Fabm Summative 1

RJDAMA CHRISTIAN ACADEMY INC.
San Jose, Gonzaga, Cagayan

S.Y. 2021-2022
FUNDAMENTALS OF ACCOUNTING AND BUSINESS MANAGEMENT I

(ABM 11)
1st SUMMATIVE TEST
Name: SCORE:
I. MULTIPLE CHOICE
Direction: Encircle the correct answer.
1. It is prepared to check the equality of total debits and total credits in the ledger.
a. Unadjusted Trial Balance
b. Post-closing Trial Balance
c. Trial Balance
2. It is the process of recording a business transaction in the form of an accounting entry in the “journal” or the
so-called “book of the original entry”.
a. Ledger
b. Journalizing
c. Accounting
3. The third step in the accounting cycle, is the process of transferring data from the journal to the
appropriate accounts in the ledger. More specifically, this is done by transferring the amounts of debits
and credits in a recorded journal entry to the ledger accounts.
a. Journalizing
b. Post-Trial Balance
c. Posting
4. It is simply assets minus liabilities. Other terms for equity are “capital”, “net assets” and “net worth”.
a. Equity
b. Accounts Payable
c. Services
5. Increases in economic benefits during the period in the form of increases in assets or decreases in
liabilities, that result in increases in equity, excluding those relating to investments by the business
owner.
a. Income
b. Cash
c. Accounts Receivable
6. The basic storage of information in accounting. It is a record of the increases and decreases in a specific
item of asset, liability, equity, income or expense.
a. T-account
b. Ledger
c. Account
7. The left side of the T-account.
a. Debit side
b. Account Title
c. Credit side
8. It is one of the components of a complete set of financial statements. This shows the financial position
of a business.
a. Balance sheet
b. Income statement
c. Trial balance
9. It is the aggregate amount of estimated losses from uncollectible accounts receivable. Another term is
“allowance for doubtful accounts”.
a. Accumulated depreciation
b. Inventory
c. Allowance for bad debts
10. Items related to incomes that were collected in advance before they are earned. After the earning
process is completed, these items are transferred to income.
a. Income c. Unearned interest
b. Interest payable
II. IDENTIFICATION
Direction: Choose the correct answer inside the box below and write it on the space provided.
1. I Generalt journal i Accounting

s concepts aand principles p Liabilities
r o c e s
Accounting Assets Language of business
Service business Bookkeeping Financial information
Accounting standard Ledger Trial Balance
economic decisions.
________________________________________
2. An information used to express in money, financial information is also quantitative information because
monetary amounts are normally expressed in numbers.
__________________________________________
3. It refers to the process of recording the accounts or transactions of an entity.
_______________________________________
4. It serves as guide when recording and communicating information.
_______________________________________
5. Set of logical ideas and procedures that guide the accountant in recording and communicating economic
information.
_______________________________________
6. Accounting is often referred to as the .
______________________________________
7. These are the economic resources you control that have resulted from past events and can provide you
with economic benefits.
_____________________________________
8. These are your present obligations that have resulted from past events and can require you to give up
economic resources when settling them.
_____________________________________
9. Any commercial organization engaged in an activity that provides service to clients for profit is called a
.
_____________________________________
10. A chronological record of all company’s events or business transactions showing all the effects of each
transaction listed by date.
_____________________________________
III. TRUE OR FALSE

Direction: Write TRUE if the statement is correct and FALSE if it is not. Write your answer on the space
provided.
________ 1. Accounting refers to the process of recording the accounts or transactions of an entity.
Bookkeeping normally ends with the preparation of the trial balance.
________ 2. Accounting covers the whole process of identifying, recording, and communicating information to
interested users.
________ 3. Production refers to how goods are produced or services are rendered.
________ 4. Leonardo Da Vinci is considered as the “Father of Modern Accounting.”
________ 5. Service businesses have no physical product actually sold to clients; instead, their product is “service”.
________ 6. Adjusted trial balance is the process of recording a business transaction in the form of an accounting
entry in the “journal” or the so-called “book of the original entry”.
________ 7. Liabilities are the economic resources you control that have resulted from past events and can
provide you with economic benefits.
________ 8. Legal obligation an obligation that results from a contract, legislation, or other operation of law.
________ 9. Materiality concept assets, liabilities, equity, income and expenses are stated in terms of a common
unit of measurement, which is the Philippine peso. Moreover, the purchasing power of the peso is regarded as
stable. Therefore, changes in the purchasing power of the peso due to inflation are ignored.
________ 10. Accounting standards serve as a guide when recording and communicating information.
IV. MATCHING TYPE

Direction: Match column A with the correct answer on column B, write the letter on the space
provided before the number.
COLUMN A COLUMN B
________ 1. Users of accounting information who are a. Freight-out
not directly involved in managing the business. b. External users
________ 2. The life of the business is divided into series c. Accounts
of reporting periods. receivable
________ 3. Refers to how a business generates and d. Account title
manages its funds. e. Notes receivable
________ 4. The cost of processing and communicating f. Cost-benefits
information should not exceed the benefits to be derived g. Unearned income
from it. h. Time period
________ 5. Describes the specific item of asset, i. Finance
liability, equity, income or expense. j. Freight-in
________ 6. Items related to incomes that were collected k. Staffing
in advance before they are earned. l. Charts of
________ 7. Represents the sellers’ costs of delivering accounts
goods to customers.
________ 8. List of all the accounts used by a business.
________ 9. Involves the process of selecting, training
and developing employees.
________ 10. Receivables supported by oral or informal
promises to pay.
“BE HONEST!!! Dahil ang EXAM parang LOVE, tama kana sana pero TUMINGIN ka pa sa IBA!”
Prepared by:
ALMA ANGELIE D. AGRESOR

Adviser/FABM 1 Instructor

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RJDAMA CHRISTIAN ACADEMY INC.

San Jose, Gonzaga, Cagayan

FUNDAMENTALS OF ACCOUNTING AND BUSINESS MANAGEMENT I

1st SUMMATIVE TEST

1. I Generalt journal i Accounting

III. TRUE OR FALSE

IV. MATCHING TYPE

ALMA ANGELIE D. AGRESOR

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