NAME: BEVERLY B.

CHING

LEVEL: GRADE 11

CHAPTER: CHAPTER II

SUBJECT MATTER: THE ACCOUNTING EQUATIONS AND THE BOOK OF ACCOUNTS

REFERENCE: FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 2

BY BETICON.DOMINGO.YABUT

OBJECTIVES:

1. RECALL THE ACCOUNTING CYCLE

2. RECALL THE ACCOUNTING EQUATION

3. DETERMINE THE NORMAL BALANCE OF AN ACCOUNT

4. DIFFERENTIATE JOURNAL FROM THE GENERAL LEDGER

5. PREPARE JOURNAL ENTRIES TO RECORD BUSINESS TRANSACTIONS

TABLE OF SPECIFICATIONS
OBJECTIVE KNOWLEDGE COMPREHENSION ANALYSIS APPLICATION TOTAL %

RECALL THE
14,29 4,9,15,17,25, 7 23.33%
ACCOUNTING
CYCLE
RECALL THE
1,3,18,19,26 6,27 13 5,7,16,22,30 13 43.33%
ACCOUNTING
EQUATION
DETERMINE
THE NORMAL 21 2,10,20 4 13.33%
BALANCE OF
AN ACCOUNT
DIFFERENTIATE
JOURNAL
8,23,24 12 4 13.33%
FROM
GENERAL
LEDGER
PREPARE
JOURNAL
ENTRIES TO 11,28 2 6.67%
RECORD
BUSINESS
TRANSACTIONS
TOTAL 30 100%
MULTIPLE CHOICES: READ THE FOLLOWING QUESTIONS CAREFULLY AND PUT THE BEST
ANSWER IN THE SPACE PROVIDED. USE CAPITAL LETTERS.

_______ 1. The Accounting Equation is _______.

A. ASSETS = LIABILITIES + OWNER’S EQUITY

B. LIABILITIES = ASSETS – OWNER’S EQUITY

C. OWNER’S EQUITY = ASSETS + LIABILITIES

D. ASSETS = LIABILITIES – OWNER’S EQUITY

_______ 2. STATEMENT No. I – The normal balance of Assets is credit.

STATEMENT No. II – The single-entry system is better than double-entry system.

Which of the following statements is FALSE _______.

A. Statement I is False

B. Statement II is False

C. Both Statements are False

D. Neither of the two Statements is False

_______ 3. An element chargeable against Revenue _______.

A. Capital

B. Liabilities

C. Assets

D. Expenses

_______ 4. Which of the following source documents is least important _______?

A. Sales Invoice

B. Official Receipt

C. Delivery Receipt

D. Acknowledgement Receipt
_______ 5. On April 1, 2019 Mr. Asiong Aksaya invested Php 50,000.00 cash in XYZ company,

they decided to pay the Php 10,000.00 debt of the company immediately. How much is their

Capital after the formation _______?

A. Php 60,000.00

B. Php 40,000.00

C. Php 30,000.00

D. Php 50,000.00

_______ 6. What are the examples of Assets _______?

A. Cash, Office Equipment, Accounts Receivable

B. Accounts Receivable, Loans Payable, Owner’s Drawing

C. Owner’s Drawing, Owner’s Capital, Notes Receivable

D. Owner’s Capital, Salaries Expense, Revenue

_______ 7. ANG ANGAS receives Php 5,000.00 worth of cash and later use the money to buy a

brand new cellphone. On his way hpme, he saw his friend and borrowed Php 3,000.00. How

much ASSETS ANG ANGAS acquired _______?

A. Php 2,000.00

B. Php 5,000.00

C. Php 3,000.00

D. Php 8,000.00

_______ 8. It is a daily collection of business transactions entered into by an entity _______?

A. Special Journal

B. General Ledger

C. General Journal

D. Special Ledger

_______ 9. Which of the following is not an accounting cycle _______?

A. Journalizing of transactions

B. Analysis of the Unadjusted Trial Balance

 C. Posting of Entries to the General Ledger

D. Journalizing and Posting of Adjusting Entries

_______ 10. Which of the following is the normal balance of Cash _______?

Normal Balance Side Increase Side Decrease Side

A.
Debit Debit Credit

B.
Credit Credit Debit

C.
Debit Credit Debit

D.
Credit Debit Credit

_______ 11. Mr. A renders services for Php 15,000.00 cash. What is the journal entry of this

transaction _______?

A. Dr. Cash Php 15,000, Cr. Owner’s Capital Php 15,000

B. Dr. Cash Php 15,000, Cr. Revenue Php 15,000

C. Dr. Cash Php 15,000, Cr. Income Php 15,000

D. Dr. Cash Php 15,000, Cr. Service Income Php 15,000

_______ 12. The following are characteristics of General Ledger, except _______?

A. Transactions are arranged by account

B. Summarized all transactions affecting the account

C. Also known as the books of original entry

D. Captures all debits and credits for specific accounts

_______ 13. In accounting equation, derived for Owner’s Equity _______?

A. Owner’s Equity = Assets – Liabilities

B. Owner’s Equity = Liabilities + Assets

C. Owner’s Equity = Revenues + Assets – Liabilities

D. Owner’s Equity = Revenues – Expenses + Assets

_______ 14. It contains the balances of the real accounts _______?

A. Post-Closing Trial Balance

B. Pre-Closing Trial Balance

C. Unadjusted Trial Balance

D. Adjusted Trial Balance

_______ 15. What is the order of Financial Statements _______?

A. Statement of Income, Statement of Owner’s Equity, Statement of Financial

Position, Cash Flow Statement

B. Statement of Income, Statement of Financial Position, Statement of Owner’s

Equity, Cash Flow Statement

C. Statement of Financial Position, Statement of Income, Statement of Owner’s

Equity, Cash Flow Statement

D. Statement of Financial Position, Statement of Owner’s Equity, Cash Flow

Statement, Statement of Income

_______ 16. Mr. C receives Php 10,000.00 cash for his laundry business. He owes Mr. X Php

5,000.00 for the repair he made for his shop. How much is the liability of Mr. C _______?

A. Php 10,000

B. – 0 –

C. Php 5, 0000

D. Php 15, 000

_______ 17. Nominal accounts is presented in which Financial Statements _______?

A. Statement of Financial Position

B. Statement of Income

C. Statement of Owner’s Equity

D. Statement of Cash Flow

_______ 18. Trade Receivables is an example of _______?

A. Assets

B. Liabilities

C. Capital
 D. Revenue

_______ 19. This is a component Owner’s Equity _______?

A. Depreciation

B. Expenses

C. Assets

D. Liabilities

_______ 20. When Liabilities increase, Assets is _______?

A. Assets has no effect

B. Assets decrease

C. Assets slightly increase

D. Assets increase

_______ 21. What is the effect of Contribution to the Accounting elements _______?

A. Increase the Assets but decrease the Capital

B. Decrease the Liabilities and Capital

C. Increase the Assets and Capital

D. Increase the Liabilities and Assets

_______ 22. Ms. Candy is a student, her daily allowance is Php 100. She pays for her

transportation for Php 20 and buys her food for Php 50. How much of her Assets left _______?

A. Php 30

B. Php 50

C. Php 80

D. Php 70

_______ 23. This is a listing of General Ledger _______?

A. T-Accounts

B. Adjusted Trial Balance

C. Unadjusted Trial Balance

D. Trial Balance
_______ 24. A more informal way of capturing the effects of transactions _______?

A. Journal

B. Ledger

C. T-accounts

D. Trial Balance

_______ 25. Source documents or evidences are inspected _______?

A. Journalizing of transactions

B. Analysis of transactions

C. Generation of Unadjusted Trial Balance

D. Post-Closing Trial Balance

_______ 26. It is intended for personal use of the owner _______?

A. Advertisement

B. Representation

C. Owner’s Equity

D. Owner’s Drawing

_______ 27. Statement of Income excludes _______?

A. Assets

B. Capital

C. Expenses

D. Revenue

_______ 28. What is the journal entry of the transaction below _______?
MR. XYZ incurs utilities for Php 10,000 for the month.

A. Dr. Utilities Php 10,000, Cr. Cash Php 10, 000

B. Dr. Accounts Payable Php 10, 000, Cr. Utilities Php 10, 000

C. Dr. Utilities Php 10,000, Cr. Accounts Payable Php 10,000

D. Dr. Accounts Payable Php 10,000, Cr. Capital Php 10,000

_______ 29. The other term for Statement of Income is _______?

A. Income Trial Balance

B. Income Summary

C. Income Adjustment

D. Income Ledger

_______ 30. Fill in the question marks below _______?

ASSETS = LIABILITIES + CAPITAL

300,000 ? 120,000

? 250,000 400,000

A. 180,000 – 650,000

B. 420,000 – 150,000

C. 180,000 – 150,000

D. 420,000 – 650,000
KEY ANSWER:

1. A 11. D 21. C

2. C 12. C 22. A

3. D 13. B 23. D

4. D 14. A 24. C

5. B 15. A 25. B

6. A 16. C 26. D

7. D 17. B 27. A

8. C 18. A 28. C

9. B 19. B 29. B

10. A 20. D 30. A