Introduction To Accounting With Answers by Alagangwency

Introduction to Accounting
KEY ANSWERS TO QUIZ 1:
1. True 6. True
2. True 7.True
3. True 8.True
4. True 9.True
5. True 10. False, father
QUIZ 2: MULTIPLE CHOICE
Instruction: Choose the letter corresponding to the correct answer for each of the questions
provided below.
1. The main purpose of accounting is

a. to account for money so it will not be lost.
b. to provide information that is useful in making economic decisions.
c. to safeguard the assets of a company.
d. to provide a clear view of the state of the industry’s economy.
2. This process refers to the reporting of the information processed in the accounting system to
interested users.
a. Measuring
b. Identifying
c. Communicating
d. Classifying
3. In accounting, the term “recording” is also called

a. journalizing
b. communicating
c. debiting
d. videoing
4. Which of the following statements regarding the recording of events is valid?

a. Only non-accountable events are recorded in the accounting books
b. Only accountable events are recorded in the accounting books
c. Both non-accountable and accountable events are recorded in the accounting books
d. Neither non-accountable nor accountable events are recorded in the accounting books
5. Statement I: Financial information is information expressed in terms of money.

Statement II: Financial information is always qualitative information.
a. True; False
b. False; True
c. True; True
d. False; False
1
1. False, Management accounting

2. True
3. True
4. False, Cost accounting
5. True
6. False
7. False, Tax accounting
8. True
9. False, investors, not management
10. True
Instruction: Choose the letter corresponding to the correct answer for each of the questions
provided below.
1. This branch of accounting focuses on catering to the information needs of external users.
a. Management accounting
b. Financial accounting
c. Auditing
d. External accounting
2. These users need accounting information in order to regulate businesses that are within the
scope of their legal authority.
a. Employees
b. Creditors
c. Auditors
d. Government regulatory bodies or agencies
3. These users need accounting information in evaluating the stability of the business in so far as
their job security, future remuneration, and career growth and opportunities are concerned.
a. Employees
b. Creditors
c. Auditors
d. Regulatory authorities
4. The following are decisions made by external users except

a. whether to hold or sell investments in stocks.
b. whether or not to extend a loan to the business.
c. whether to sell goods on credit to the business.
d. whether to obtain additional capital from outside creditors or to generate it internally.
5. Which of the following users of financial information is not considered a creditor of the
business?
a. A loan provider, such as a bank
b. A supplier that sells goods to the entity on credit
c. A customer that buys goods from the entity on credit
d. A financing company that provides the entity with machineries on a “rent-to-own” basis
6. It is the branch of accounting that involves the careful analysis of economic events and other
variables to understand their impact on decisions.
a. Accounting education
b. Cost accounting
c. Accounting research
d. Tax accounting
7. It is the process of objectively evaluating evidence and expressing an opinion regarding the
correspondence between management’s assertions and established criteria.
b. Auditing
d. Tax accounting
8. It refers to the accounting for the government and its instrumentalities, focusing attention
on the custody of public funds, the purpose or purposes to which those funds are
committed, and the responsibility and accountability of the individuals entrusted with those
funds.
b. Government accounting
d. tax accounting
9. This branch of accounting involves teaching accounting, taxation, and other business-related
subjects.
b. Government Accounting
d. Tax accounting
10. It involves the provision of information for use by internal users.

a. Management accounting
b. Cost accounting
c. Financial accounting
d. Tax accounting
1. Sole or single proprietorship

2. Partnership
3. Service business
4. Merchandising
5. Corporation
6. Manufacturing
3
7. Cooperative
8. Sole or single proprietorship
9. Corporation
10. Partners
1. True 6. False (Service business)

2. False (SEC) 7. True
3. False (SEC only) 8. False
4. False (Merchandising) 9. False (Sole proprietorship)
5. True 10.False (1 vote each irrespective of the number of shareholdings)
1. Which of the following is most likely an advantage of a corporation over the other types of
business organizations?
a. Shared management responsibility over the owners
b. Ease of formation
c. Greater capital and, hence, better opportunity for growth
d. Limited life
2. It is a form of business organization that provides a greater degree of continuity

a. Cooperative
b. Sole proprietorship
c. Partnership
d. Corporation
3. It is a business organization that is owned by several individuals. It is formed by operation of

law and is registered with the SEC.
a. Cooperative
c. Partnership
d. Corporation
4. The liability of a shareholder for corporate debts is limited to the value of his or her
shareholdings because a corporation
a. has a separate legal identity from its shareholders
b. provides liability insurance for its shareholders
c. issues stocks for additional funds
d. can issue dividends to the shareholders when the corporation earns enough profits
5. This type of business organization has the tendency to become monopolistic. It can hamper the
economy by funneling wealth to only few individuals (i.e., the organization’s top owners) and
restricting the redistribution of wealth to the majority of the members of the society.
a. Cooperative
c. Partnership
d. Corporation
5

Introduction To Accounting With Answers by Alagangwency

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Introduction To Accounting With Answers by Alagangwency

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Introduction to Accounting

KEY ANSWERS TO QUIZ 1:

QUIZ 2: MULTIPLE CHOICE

1. The main purpose of accounting is

3. In accounting, the term “recording” is also called

4. Which of the following statements regarding the recording of events is valid?

5. Statement I: Financial information is information expressed in terms of money.

1. False, Management accounting

QUIZ 4: MULTIPLE CHOICE

4. The following are decisions made by external users except

10. It involves the provision of information for use by internal users.

KEY ANSWERS TO QUIZ 5:

1. Sole or single proprietorship

1. True 6. False (Service business)

QUIZ 7: MULTIPLE CHOICE

2. It is a form of business organization that provides a greater degree of continuity

3. It is a business organization that is owned by several individuals. It is formed by operation of

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