FABM 1 Assessment

1. Which nature of Accounting emphasizes it’s NOT the objective?

• a. Accounting is an art

• b. Accounting is a process

• c. Accounting is a means not an end

• d. Accounting deals with financial information and transactions.

2. Who is considered the Father of Modern Accounting

• a. Augustus

• b. Luca Pacioli

• c. Queen Victoria

• d. Suetonius

3. Which is the most important step in the Accounting process?

• a. Communication

• b. Identification

• c. Recording

• d. All steps are equally important

4. Which of the following is NOT an Accounting process step?

• a. Communication

• b. Identification

• c. Recording

• d. Verification

5.Who is the person responsible for the process of identifying, recording and communicating economic events of an organization?

• a. accountant

• b. manager

• c. secretary

• d. treasurer

6.What profession does NOT use accounting information at all?

• a. Economists

• b. Entrepreneurs

• c. Government Officials

• d. none of the above

7.Which of the following is mostly used by accountants in communicating the results of operations to outside parties?

• Bulletin Board Postings

• Financial Statement

• Performance Memo

• Public Announcements of the results of the operations

8. Which of the following can be considered can as a relevant economic event?

• a. A meeting of the top management last month.

• b. GMA Network signed a contract with Coco Martin.

• c. Meralco announced of higher charges.

• d. The company received advanced payments from its customers.

9. Which of the following cannot be considered a limitation of accounting?

• a. Accounting is only historical in nature.

• b. Accounting provides limited information to the management.

• c. Accounting considers only those transactions which can be measured in terms of money.

• a. The accounting process is tedious to execute.

10. Which of the following does NOT show one of the main functions of Accounting?

• a. Fred prepared a report to be submitted to the taxing authorities.

• b. John prepares financial reports monthly for the company’s stockholders.

• c. Jason recorded an equipment in the accounting books immediately after purchase.

• d. Allen canvassed the price of a sewing machine to be used in the company’s operations.