FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1

PRELIM EXAM
Score:_________________
Name: ____________________________ Date:______________________
Grade & Section: ________________ Instructor: __________________
General Direction: This is a 55-item test, read each directions written in every
type of test, you may answer the test for one hour.
Part I. Identification.
Direction: Identify what is being described in the following and write your answer on the
space provided. Choose your answer from the given text box below.

_________ 1. It is the art of recording, classifying, and summarizing in a significant

manner and in terms of money, transactions and events.
_________ 2. Branch of accounting involves in determination of income tax planning
and preparation of tax return.
_________ 3. Deals with the administration of or use of public or community funds to
bring about service to the people.
_________ 4. It focuses on evaluating the adequacy of a company’s internal control
structure by testing segregation of duties, policies, and procedures and
other control implemented by the organization.
_________ 5. Branch of accounting deals with needs of management rather than
strict compliance with generally accepted accounting principle.
_________ 6. Branch of accounting involves recording and classifying business
transactions, and preparing ad presenting financial statements.
_________ 7-8. This is a business that is owned by single individual who has the full
control and authority in the business. The owner is called_____________.
_________ 9-10.This is a business owned by two or more individuals called
___________ with the intention of dividing the profit among themselves.
_________ 11-12. This is business that is owned by its ____________ and consist of
five (5) to fifteen (15) incorporators.
_________ 13. It is duly registered association of persons with common bond of
interest, who have voluntarily joined together to achieve a lawful common
social or economic end.
_________ 14. This type of business purchases products from other business or
manufacturers and sell them to customers.
_________ 15. This type of business converts raw materials, labors and overhead into
finished products that are available for sale to customers.

Accounting Financial Accounting Corporation

Tax Accounting Sole Proprietorship Shareholders
Government Accounting Proprietor Cooperative
Internal Auditing Partnership Merchandising Business
Managerial Accounting Partners Manufacturing Business

SUBSIDIZED TECHNICAL EDUCATION PROGRAM (STEP), Inc.

2nd & 3rd Floor, Sajite-Atdrmam Bldg. National Road, Brgy. Uno, Calamba City, Laguna
Tel. No.: (049) 545-0968 / 545-0805 - Email Address: step.inc2016@gmail.com
Part II. True or False. Write T if the statement correct and F if not.
_________ 1. Service business provides intangible goods or services to customers.
_________ 2. Business like grocery stores, real state brokers and department stores
are the example of merchandising business.
_________ 3. Other businesses include businesses that can’t be classified as service,
merchandising, or manufacturers.
_________ 4. Stock Corporation is a corporation with capital stock divided into shares
and authorized to distribute to the holders of such shares dividend.
_________ 5. Non-stock Corporation organized principally for public purposes such
as foundations, charitable, educational and cultural purposes.
_________ 6. Assets is a resource that is owned or controlled by the company to be
used for future benefits.
_________ 7. Liability are creditors’ claim on company assets. A common form of
liability is a payable.
_________ 8. Going concern assumes an entity will continue to operate indefinitely.
_________ 9. Business Entity means a business is considered separate entity from
the owner(s) and should be treated separately.
_________ 10.Historical Cost means all business resources should be valued and
recorded based on the actual cash equivalent or original cost of
acquisition.
Part III. Multiple Choice. Accounting Equation.
Direction: Direction: Choose the letter of the correct answer and write it on the space
provided before each number. Write only the letter of your answer.

_________ 1. Ms. Pina Tubo owned a small repair business, record shows the total
assets of Php. 125,000.00 and total liabilities of Php. 50,000. How much is
the company’s equity?
A. Php. 175,000 C. Php. 50,000
B. Php. 75,000 D. Php. 60,000

_________ 2. Tiong Go is the owner of Go Enterprises. Based from the record the total
Liabilities is Php. 85,000 and Equity 35,000. How much is the total
company’s asset?
A. Php. 120,000 C. Php. 1,200
B. Php.122,000 D. Php 125,000

_________ 3. During the second month of operation, Tiong Go’s assets is Php.185,000
while the owner’s equity is Php. 150,000.How much is the company’s
liabilities?
A. Php. 3,500 C. Php 35,000
B. Php. 350,000 D. Php. 3,500,000

SUBSIDIZED TECHNICAL EDUCATION PROGRAM (STEP), Inc.

2nd & 3rd Floor, Sajite-Atdrmam Bldg. National Road, Brgy. Uno, Calamba City, Laguna
Tel. No.: (049) 545-0968 / 545-0805 - Email Address: step.inc2016@gmail.com
 For no. 4 & 5 refer to the following data taken from the business of Ms. Fe Rah.

Cash Php. 25,000

Accounts Receivable 30,000
Land 100,000
Equipment 35,000
Accounts Payable 55,000
Loans Payable 20,000
Fe Rah, Capital 135,000
_________ 4. How much is the total asset of Ms. Fe Rah?
A. Php. 25,000 C. Php 155,000
B. Php. 55,000 D. Php. 190,000

_________ 5. How much is the total liabilities?

A. Php. 55,000 C. Php. 135,000
B. Php. 110,000 D. Php. 75,000

Part IV. Financial worksheet (15 pts.)

Direction: Please read and analyze the given transactions. Complete the financial
transaction worksheet of Ms. Pina Tubo.

1. Ms. Pina Tubo invested Php. 100,000 cash in the business

2. Performed services to Mr. Tiong Go received cash amounting to Php.25,000
3. Performed services to Ms. Fe Rah on account amounting to Php. 20,000.
4. Bought equipment amounting to Php. 50,000, made cash payment for only 30,000
and the balance of Php.20,000 will be due next month.
5. Ms. Pina Tubo made a withdrawal amounting to Php. 35,000.

= LIABILITIES OWNER'S EQUITY

1
2
3
4
5
Total 60,000.00

SUBSIDIZED TECHNICAL EDUCATION PROGRAM (STEP), Inc.

2nd & 3rd Floor, Sajite-Atdrmam Bldg. National Road, Brgy. Uno, Calamba City, Laguna
Tel. No.: (049) 545-0968 / 545-0805 - Email Address: step.inc2016@gmail.com
Part V. Enumeration (10 pts.)
A. Types of Business Organization (3)
1.
2.
3.
B. Forms of Business Organization (4)
1.
2.
3.
4.
C. Accounting concept and principle
1.
2.
3.

SUBSIDIZED TECHNICAL EDUCATION PROGRAM (STEP), Inc.

2nd & 3rd Floor, Sajite-Atdrmam Bldg. National Road, Brgy. Uno, Calamba City, Laguna
Tel. No.: (049) 545-0968 / 545-0805 - Email Address: step.inc2016@gmail.com