FABM REVIEWER QUIZ ONLY

What is the primary purpose of accounting?

• To track financial transactions

• To provide information for decision-making

• To comply with legal requirements

• All of the above

Which of the following is NOT an accountable event?

• Purchasing office supplies

• Paying salaries

• Hiring a new employee

• Receiving a loan

What is the process of recording accountable events in a chronological order called?

• Posting

• Journalizing

• Summarizing

• Communicating

Who is considered the "father of accounting"?

• Luca Bartolomeo de Pacioli

• Adam Smith

• Karl Marx

• Henry Ford

Which branch of accounting focuses on providing financial information to external users?

• Managerial accounting

• Financial accounting

• Cost accounting

• Tax accounting

What does GAAP stand for?

• Generally Accepted Accounting Principles

• Global Accounting and Auditing Practices

• Government Accounting and Auditing Policies

• General Accounting and Auditing Procedures

Which accounting concept assumes that a business will continue to operate indefinitely?

• Separate entity concept

• Going concern assumption

• Accrual basis of accounting

• Stable monetary unit concept

What is the principle that requires expenses to be matched with the revenues they generate?

• Cost principle

• Matching principle

• Revenue recognition principle

• Materiality principle

Which of the following is NOT a qualitative characteristic of accounting information?

• Relevance

• Faithful representation

• Comparability

• Efficiency

What is the accounting equation?

• Assets = Liabilities + Equity

• Liabilities = Assets + Equity

• Equity = Assets + Liabilities

• None of the above