FUNDAMENTALS OF

ACCOUNTING 1 - REVIEW
PERFORMANCE TASK
• ANSWER THE FOLLOWING QUESTIONS BEING
DESCRIBE OR DISCUSS.
• 1. It refers to the process of identifying,
recording and communicating economic
events of an organization for interested users.
• 1. It refers to the process of identifying,
recording and communicating economic
events of an organization for interested users.
Accounting.
• 2. It describe as the preparation of general-
purpose financial statements .
• 2. It describe as the preparation of general-
purpose financial statements Answer:
Financial
• 3. It evaluates the performance of a sales
department.
• 3. It evaluates the performance of a sales
department Answer : Managerial
• 4. It develop standards that address a new
business set up.
• 4. It develop standards that address a new
business set up Answer: Accounting Research
• 5. It is a process of reviewing tax compliance
of the business.
• 5. It is a process of reviewing tax compliance
of the business Answer: Tax Accounting
• 6. It evaluates whether a branch of the
business complies with the collection and
deposit policy of the company.
• 6. It evaluates whether a branch of the
business complies with the collection and
deposit policy of the company Answer:
Auditing (Internal)
• 7. It reviews whether the financial statements
are presented fairly and in compliance with
accounting standards
• 7. It reviews whether the financial statements
are presented fairly and in compliance with
accounting standards Answer: Auditing
(External)
• 8. A report on the spending of government
funds
• 8. A report on the spending of government
funds Answer: Government Accounting
• 9. A report on the total cost of materials and
labor used in the production.
• 9. A report on the total cost of materials and
labor used in the production Answer: Cost
Accounting
• 10. It refers to conducting lectures on
accounting topics.
• 10. It refers to conducting lectures on
accounting topics Answer: Accounting
Education
• 11. The accounting guideline that requires
financial statement information to be
supported by independent, unbiased evidence
other than someone's belief or opinion is the:
• 11. The accounting guideline that requires
financial statement information to be
supported by independent, unbiased evidence
other than someone's belief or opinion is the:
• Objectivity principle
• 12. The principle that requires every business
to be accounted for separately and distinctly
from its owner or owners is known as the:
• 12. The principle that requires every business
to be accounted for separately and distinctly
from its owner or owners is known as the:
• Business entity principle
• 13. The rule that requires financial statements
to reflect the assumption that the business
will continue operating instead of being closed
or sold, unless evidence shows that it will not
continue, is the:
• 13. The rule that requires financial statements
to reflect the assumption that the business
will continue operating instead of being closed
or sold, unless evidence shows that it will not
continue, is the:
Going-concern principle
• 14. To include the personal assets and
transactions of a business's owner in the
records and reports of the business would be
in conflict with the:
• 14. To include the personal assets and
transactions of a business's owner in the
records and reports of the business would be
in conflict with the:
• Realization principle
• 15. The objectivity principle:
• 15. The objectivity principle:
• means that information is supported by
independent, unbiased evidence
• 16. Marian Mosely is the owner of Mosely
Accounting Services. Which accounting
principle requires Marian to keep her personal
financial information separate from the
financial information of Mosely Accounting
Services?
• 16. Marian Mosely is the owner of Mosely
Accounting Services. Which accounting
principle requires Marian to keep her personal
financial information separate from the
financial information of Mosely Accounting
Services?
• Business entity principle
• 17. Which of the following accounting
principles would require that all goods and
services purchased be recorded at cost?
• 17. Which of the following accounting
principles would require that all goods and
services purchased be recorded at cost?
• Cost principle
• 18. All relevant information should be
included in the financial reports.
• 18. All relevant information should be
included in the financial reports - Disclosure
principle
• 19. In case of doubt, assets and income should
not be overstated.
• 19. In case of doubt, assets and income should
not be overstated.- Conservatism principle
• 20. Assume that the company will continue
indefinitely.
• 20. Assume that the company will continue
indefinitely.- Going concern principle
• 21. All transactions should be supported by
unbiased evidence.
• 21. All transactions should be supported by
unbiased evidence - Objectivity principle
• 22. Expenses should be recorded in the period
when the revenue is generated.
• 22. Expenses should be recorded in the period
when the revenue is generated.- Matching
principle
• 23. Minimal costs incurred should be recorded
as an expense
• 23. Minimal costs incurred should be recorded
as an expense. - Materiality principle
• 24. A Philippine company should report
financial statements in pesos.
• 24. A Philippine company should report
financial statements in pesos - Monetary unit
principle.
• 25. A barber who performs services for a
client should record revenue.
• 25. A barber who performs services for a
client should record revenue. - Accrual
accounting principle
• 26. Statement of Financial position should be
recorded as of December 31, 2015.
• 26. Statement of Financial position should be
recorded as of December 31, 2015.- Time
period principle
• 27. A company that purchases furniture
should record it at its acquisition price.
• 27. A company that purchases furniture
should record it at its acquisition price - Cost
principle
• 28. It is the obligations of the company
payable in money, goods or services.
• 28. It is the obligations of the company
payable in money, goods or services. Liabilities
• 29. These are non-current tangible assets.
• 29. These are non-current tangible assets.
Property, Plant and Equipment
• 30. These assets are identifiable, non-
monetary assets without physical substance.
• 30. These assets are identifiable, non-
monetary assets without physical substance.
Intangible Assets
• 31. It is the claim of the owner also known as
the capital.
• 31. It is the claim of the owner also known as
the capital. Owner’s Equity
• 32. It is the most liquid asset and is the
medium of exchange for business
transactions.
• 32. It is the most liquid asset and is the
medium of exchange for business
transactions. Cash
• 33. It is an expense for leased office space,
equipment or assets rented from others.
• 33. It is an expense for leased office space,
equipment or assets rented from others. Rent
Expense
• 34. Examples of this are cash, account
receivable and prepaid expenses
• 34. Examples of this are cash, account
receivable and prepaid expenses. Assets
• 35. It is a written promise from the customer
to pay his receivables on a certain future date.
• 35. It is a written promise from the customer
to pay his receivables on a certain future date.
Notes Receivable