1. Obligations supported by oral or informal promises to pay by the debtor.

a. Cash
b. Accounts Receivable
c. Accounts Payable
d. Notes Payable
2. Receivables that are supported only by oral or informal promise to pay.
a. Cash
b. Accounts Receivable
c. Accounts Payable
d. Notes Payable
3. The amount of estimated losses from uncollectible accounts receivable during the year.
a. Good expense
b. Bad expense
c. Ugly expense
d. Bad debts expense
4. The unused portion of rent paid in advance.
a. Prepaid rent
b. Rent expense
c. Cash
d. Inventory
5. The portion of the cost of a building that is already recognized as expenses since the building
was acquired and made available for use.
a. Accumulated Depreciation-Building
b. Unkeep
c. Accumulated Unkeep-Building
d. Repairs and maintenance
6. The accrual basis of accounting recognizes
a. Revenues when cash is received.
b. Expenses when cash is paid.
c. Revenues when products are produced as part of operating activites.
d. Expenses when resources are consumed as part of operating activities
7. The transaction are recorded chronologically in the
a. Ledger
b. T-account
c. Day Book
d. Journal
8. A journal entry that contains more than two accounts is called
a. Posted journal entry
b. Compound journal entry
c. Adjusting Journal entry
d. An erroneous journal entry
9. Entries recorded on the right side of any account is called
a. Debits
 b. Increases
c. Credits
d. Decreases
10. A simple journal entry
a. Consists of two debits and one credit.
b. Consists of one debit and two credit.
c. Is a memorandum entry.
d. Consists of one debit and one credit.
11. The equality of debits and credits in the ledger should be verified at the end of each accounting
period by preparing
a. An accounting statement
b. An account verification report
c. A trial balance
d. A balance report
12. A Ledger is defined as a collection of
a. All statements of financial position accounts.
b. All income statement accounts
c. Account titles- Asset,Liability,Equity,Income,Expenses
d. Transactions
13. Unused supplies are decreased through a
a. Debit
b. Credit
c. Calculator
d. Strict Diet
14. Unearned revenues are decreased through a
a. Debit
b. Credit
c. Calculator
d. Strict Diet
15. Prepaid insurance are increased through a
a. Debit
b. Credit
c. Calculator
d. Strict Diet
16. It serves as passport to the journal.
a. Ledger
b. Source documents
c. Trial balance
d. Entry
17. The systematic and chronological recording of transactions and events in books of account is
known as
a. Accounting
b. Bookkeeping
c. Record-keeping
 d. Auditing
18. Who is the father of Accounting?
a. Luca Paciole
b. Luca Paciol
c. Luca Pacoili
d. Luca Pacioli
19. Which one of the following is among the conditions that qualify a situation, particular action or
set of circumstances as an accountable event?
a. It has happened or will happen within a short period of time
b. It affects an accounting element(s) either increasing or decreasing it.
c. It involves an exchange of values between the business enterprise and a third party.
d. It can be measured accurately in monetary terms.
20. The system of bookkeeping that recognizes the two-fold effect of an accountable event is known
as
a. Double-entry
b. Single-entry
c. Cash basis
d. Accrual basis
21. The two basic concepts or theories underlying double-entry bookkeeping are
a. Value received and value parted with
b. Duality and equilibrium
c. Debit and credit
d. Debit, Credit and Kupit
22. Double entry bookkeeping requires tat
a. Every transaction affects both an asset account and either a liablity or owner’s equity
account.
b. The number of ledger accounts with debit balance is equal to the number with credit
balances.
c. The total peso amount of debit entries posted to the ledger is equal to the total peso
amount of the credit entries.
d. The number of debit entries posted to the ledger equals the number of credit entries.
23. The basic classification category and storage unit for information in a double-entry system is the
a. Business document
b. Journal
c. Ledger
d. Account
24. Given the dual effects of accountable events , an increase in asset cannot possibly be
accompanied by a (an)
a. Decrease in another asset
b. Decrease in owner’s equity
c. Increase in a liability
d. Increase in Revenue
25. Which is false concerning the rules of debit and credit/
a. The left side of an account is always the debit side and the right is always the credit side.
 b. The normal balance of any account appears on the side used for recording increases.
c. The rules of debit and credit cannot be amended over time.
d. The word “debit” means to increase and the word “credit” means to decrease.
26. The debit and credit analysis of a transaction normally takes place
a. Before an entry is recorded in a journal.
b. When the entry is posted to the ledger.
c. When the trial balance is prepared.
d. At some other point in time in the accounting cycle.
27. The first step in the accounting cycle is
a. Record transaction in the journal
b. Analyze transactions from source docments
c. Post journal entries to general ledger accounts
d. Adjust the general ledger accounts.
28. A firm’s chart of accounts is
a. A Flowchart of all transactions
b. A list if names of all account titles used by an economic entity
c. An accounting procedures manual.
d. A journal.
29. A systematic compilation of account titles of asset, liability, equity, revenues and expense
accounts which is also called a “book of secondary entry”.
a. Journal
b. Ledger
c. Worksheet
d. Trial balance
30. Which of the following statements regarding the trial balance is incorrect
a. A trial balance should always balance.
b. A trial balance is a test of the equality of the debits and credits in the ledger.
c. A trial balance that is in balance proves that no error of any kind has been made in the
accounts during the accounting period.
d. None of the above.
31. Adjusting entries involve
a. Only real accounts
b. Only nominal accounts
c. Only capital accounts
d. Mixed account
32. Which underlying concept serve as the basis for preparing financial statements at regular
intervals of time.
a. Accounting entity
b. Accrual
c. Accounting period
d. Stable monetary unit
33. Which underlying assumptions that an enterprise will continue in operation in the foreseeable
future.
a. Accrual
 b. Going Concern
c. Materiality
d. Time Period

34. Accounting records of enterprise include which of the following?

A B C D

a. Source documents yes no yes no

b. Journals and ledgers yes yes no no

On the space provided, indicate whether the normal balance of each of the given account is a Debit or
Credit

1. ______ Unearned Service Revenues

2. ______ Unused Rent
3. ______ Supplies expense
4. ______ Services Fees
5. ______ Loans Payable
6. ______ Professional Income
7. ______ Office equipment
8. ______ Land
9. ______ Drawings
10. ______ Capital