Name: _______________________________________ Score: _______________
Grade & Section: _________________________________
BASIC ACCOUNTING
Summative Test 1
PART I: MATCHING TYPE: Match the Column A with Column B.
Column A Column B
_____1. It helps others by providing financial information A. Accounting is a process
_____2. It follows steps like recording, classifying, and B. Accounting is both an art and a discipline
summarizing
_____3. It uses creativity and rules to present C. Accounting is known as a storehouse of information
information
_____4. It involves money, reports, and business D. Accounting is service activity
activities
_____5. It stores organized records over time E. Accounting deals with financial information and
transactions
PART II. Directions: Read each situation and identify which accounting function is being used
6. A customer purchases goods worth ₱5,000 in cash..
➤ Function: ___________
7. On June 1, the company purchased office supplies worth ₱1,500 on account resources.
➤ Function: ___________
8. The journal entry for office supplies is posted to the Office Supplies account and Accounts Payable account in the
ledger.
➤ Function: ___________
9. An error was found: rent expense of ₱3,000 was recorded as ₱300.
➤ Function: ___________
10. Based on the adjusted trial balance, the company prepares the Income Statement, Balance Sheet, and Statement of
Owner’s Equity.
➤ Function: ___________
PART III: MULTIPLE CHOICE. Read and understand the questions. Write the letter of the correct answer in the space
provided.
_____11. Which of the following best describes the recording function of accounting?
A. Sorting transactions into categories
B. Writing down financial transactions as they happen
C. Preparing a financial report
D. Explaining financial results to the owner
_____12. Why is summarizing important in accounting?
A. It tells jokes about money
B. It gives the complete list of all receipts
C. It helps present financial data in a clear and concise form
D. It records every small transaction
_____13. He was known as the “Father of Accounting”.
A. Stepehen
B. Zeff Barry Melancon
C. Leonardo De Vinci
D. Luca Pacioli
_____14. Mass production and the great importance of fixed assets were given attention during this period. What part
of evolution of accounting history is this?
A. Cradle Civilization
B. French Revolution
C. Industrial Revolution
D. The Present
_____15. Record keeping was done through “Clay Table” as evidence of recording transactions during this period. What
part of evolution of accounting history is this?
A. Cradle Civilization
B. French Revolution
C. Industrial Revolution
D. The Present
_____16. In this period, the development of accounting theory has begun and was influenced by social upheavals. What
part of evolution of accounting history is this?
A. Cradle Civilization
B. French Revolution
C. Industrial Revolution
D. The Present
_____17. Accounting standards were established and practitioners follow the rules of international organizations or
groups like AICPA. What part of evolution of accounting history is this?
A. Cradle Civilization
B. French Revolution
C. Industrial Revolution
D. The Present
PART IV. IDENTIFICATION: Read the statement and identify what branches of accounting is described.
Financial Accounting Government Accounting Accounting Sytem
Managerial Accounting Tax Accounting Forensic Accounting
Cost Accounting Accounting Education Auditing
Accounting Research Fund Accounting
______________________________18. A company hires someone to prepare their financial statements for investors.
______________________________19. A manager wants help in deciding how to cut costs in production.
______________________________20. An accountant is checking the company's books to make sure nothing is wrong.
______________________________21. Someone helps a business compute and file their annual taxes
______________________________22. An investigator looks into a company suspected of stealing money.
______________________________23. Ella is a certified public accountant hired by a small bakery in town. It’s nearing
tax season, and the business owner asks her to compute the bakery’s income tax, file their VAT returns, and ensure
they’re availing of the right deductions to avoid penalties from the BIR.
______________________________24. Mr. Santos is the finance officer at a public senior high school. He prepares a
report detailing how the school spent its MOOE (Maintenance and Other Operating Expenses) budget, ensuring that all
transactions—from school supplies to electricity bills—are properly recorded and transparent for audit purposes
______________________________25. A university research team receives a government grant worth ₱2 million to
study sustainable farming. A research accountant is assigned to track every expense—from salaries to equipment—and
make sure funds are only used within the approved scope of the project
______________________________26. A nonprofit organization called "Bata Para sa Kinabukasan" runs multiple
programs like feeding, scholarships, and disaster relief. Their accountant uses fund accounting to separately manage
donations for each program, ensuring that scholarship donations are not spent on other activities.
_____________________________27. A manufacturing company suspects an employee of embezzling funds. A forensic
accountant is brought in to trace irregular financial transactions, uncover hidden accounts, and gather evidence that can
be used in court.
_____________________________28. A medium-sized retail company hires a systems accountant to help automate
their sales and inventory tracking. She integrates a new accounting software that allows real-time financial reporting and
ensures the system complies with financial regulations.
_____________________________29. A manager uses data to plan next month’s budget.
_____________________________30. A CPA checks the accuracy of a company’s financial report.
____________________________________________
Name and Signature of Parent/Guardian
ANSWER KEY
1. D
2. A
3. B
4. E
5. C
6. IDENTIFYING
7. RECORDING
8. CLASSIFYING
9. SUMMARIZING
10. COMMUNICATING
11. B
12. C
13. D
14. C
15. A
16. B
17. D
18. Financial
19. Cost
20. Audit accounting
21. Tax acct
22. Forensic
23. Tax
24. Education a
25. Research ac
26. Fund
27. Forensic
28. Accounting system
29. Financial acc.
30. Auditing
