TRUEORFALSE: Write TRUE if the statement is correct, write FALSEIf otherwise.
TRUE
1. Accounting is often characterized as the "language of business".
FALSE 2. A partnership is a business owned and operated by two or more persons who bir
to contribute money, property or industry to a common fund, with the intention of
among themselves.
3. Asset are things of value owned by a business entity.
4. The first step in analyzing a transaction is to determine what accounts are involve
5. Labilities represent amounts owed to creditors.
6. Accounts Receivable is considered an asset.
7. Both sides of the fundamental accounting equation must always be equal.
8. Business transaction are expressed in terms of money.
9. An owner can invest cash or other assets of value in the business.
10. When a business receive cash, it is always recorded as an increase to Cash and
Expense.
Multiple Choice: Choose the letter of the correct answer and write it on the blank.
1. Which of the following eqaution is correct?
vertical
a. Assets + Capital = Liabilities
b. Liabilities - Capital = Assetsnico esbubni rbidwees A
c. Capital = Assets +Liabilities
einesviporno
d. Capital = Assets - Liabilities
lasvistod
oldavienu
2 Which of the following is correct?
Assets Lial Capital
a. P7,850 P1, P6,600
mecasted on
SOS
b. P8,200 P2, P11,000
c. P9,550 P1, P8,200
collidsloob d
d. P5,420 P6, P1,120
3. Amounts owned by a business are reffered to as
noi a Assetsnil to nemals nie srl to Inoms o ANO NEBO
b. Equities
YTIUSSSWO eSTUSAU BA
c. Liabilities
000.00 000.00
000.000
000,SB
d. Capital
000.0ar 000 801
e. Expenses
OAST 000,
4. The following can be found in an income statement except
a. Income
b. Assets
c. Expenses
d. Profit or Loss