Acctg 1_Quiz 1

This concept assumes that the business has an indefinite economic life.

• accounting entity

• accounting period

• going concern

• objectivity

Which form of business organization is characterized by limited liability?

• Sole proprietorship

• Partnership

• Corporation

• Both sole proprietorship and partnership

Which of the following is not one of the three types of business activities?

• Investing

• Financing

• Marketing

• Operating

Which of the following processes is considered bookkeeping?

• Analyzing

• Reporting

• Summarizing

• Recording

Which of the following are true of partnership?

I. The partners' individual exposure to debt is limited.

II. Financial statements for the partnership by law must be produced and made public.

III. A partnership is not separate legal entity from the partners themselves.

• I and II only

• II only

• III only

• I and III only

A business which prepares financial statements every year is following the ______ concept.

• Accounting entity

• Periodicity

• Going concern

• Objectivity

Which of the accounting concept should be considered if the owner of a business takes goods from inventory for his personal use?

• substance over form

• accrual

• going concern

• entity

Which accounting concept states that omitting or misstating information could influence users of the financial financial statement?

• consistency

• accrual

• materiality

• going concern

Accountants do not recognize that the value of the peso changes over time. This concept is called the

• stable monetary unit concept

• going concern concept

• cost principle

• entity concept

What does GAAP stands for?

• Grounds for Accounting assumptions in Philippines

• Generally accounting accepted principles

• Greatly accepted accounting principles

• Generally accepted accounting principles