HBA 111 – Fundamentals of Accounting 1

Quiz No. 1 A
(Business World Overview – Legal Forms of Business)

Instructions: On a ½ lengthwise yellow paper, please provide the correct answers corresponding on each questions on this
20-item questionnaire. Please do NOT write anything on this test paper.

Multiple choice: Please write the LETTER corresponding to your choice of answer for each question.
B 1. It is the process of producing (manufacturing) goods (products) and services and then distributing (selling) them to
those who desire or need them.
a. Accounting c. Organizing
b. Business d. None of the above
C 2. This business transaction document serves as a proof of services rendered by companies to their clients.
a. Sales Invoice c. Statement of Account
b. Official Receipt d. None of the above
B 3. These are the people willing to accept the opportunities and take the risks of starting and running a business
a. Managers c. Stakeholders
b. Entrepreneurs d. None of the above
D 4. The following statements are the importance of business, except:
a. Provides taxes for government c. Provides employment for employees
b. Provides needs and wants of customers d. None of the above, all are considered importance
A 5. Cash vouchers are generally used when:
a. The company pays employees or suppliers in cash
b. The company make deposit / payment through bank
c. The company withdraws money from bank
d. All of the above
C 6. The following are the advantages of a Sole Proprietorship Company, except one:
a. Has an over-all control for the Company c. Owner is protected from all risks such as creditors
b. No sharing in income d. None of the above
B 7. Philex Mining, Diaz Farms, General Santos Fishing Company are examples of Companies under:
a. Distributions systems c. Public utilities
b. Raw-material producing company d. None of the above
D 8. Statement 1: The main objective of a business firm is to produce goods and services to meet the needs only of the
customers and to do so at a profit.
Statement 2: Corporations can be organized by 5 up to 25 incorporators.
a. Only Statement 1 is True c. Both Statements are True
b. Only Statement 2 is True d. Both statements are False
D 9. Statement 1: An official receipt serves as an evidence of a sale of goods transaction that has taken place.
Statement 2: A promissory note is a written promise to buy a certain specified good at a certain future time
a. Only Statement 1 is True c. Both Statements are True
b. Only Statement 2 is True d. Both statements are False
A 10. Statement 1: Manufacturing companies are involved with conversion of raw materials into finished goods.
Statement 2: Service companies deals with selling tangible products.
a. Only Statement 1 is True c. Both Statements are True
b. Only Statement 2 is True d. Both statements are False

Enumeration:
1. Give at least 5 Business Stakeholders. (5 points)
2. What are the 3 basic functions of business? (3 points)
3. Give at least 2 advantages of a business in Corporation form. (2 points)
 HBA 111 – Fundamentals of Accounting 1
Quiz No. 1 B
(Business World Overview – Legal Forms of Business)

Instructions: On a ½ lengthwise yellow paper, please provide the correct answers corresponding on each questions on this
20-item questionnaire. Please do NOT write anything on this test paper.

Multiple choice: Please write the LETTER corresponding to your choice of answer for each question.
B 1. It is the process of producing (manufacturing) goods (products) and services and then distributing (selling) them to
those who desire or need them.
a. Accounting c. Organizing
b. Business d. None of the above
B 2. This business transaction document serves as a proof of sales of goods transaction with partial payment inclusion.
a. Purchase sales invoice c. Sales invoice
b. Charge sales invoice d. None of the above
B 3. These are the people willing to accept the opportunities and take the risks of starting and running a business
a. Managers c. Stakeholders
b. Entrepreneurs d. None of the above
C 4. All of the following are the basic functions of business, except one:
a. Acquisition of raw materials or resources
b. Distributing products to consumers
c. Making a profit from sold products
d. None of the above
C 5. The following are the advantages of a Corporation, except one:
a. Easy pooling of investment funds c. A shareholder can easily decide for the business
b. Owners are protected from all risks such as creditors d. None of the above
B 6. ABS-CBN, TV5 and GMA 7 are companies under__________ segment and __________ activity:
a. Distributions systems / Service c. Public utilities / Service
b. Communications industry / Service d. None of the above
D 7. The best interest of creditors in businesses is:
a. Whether the business can give them profit or income
b. Whether the business can sustain their needs
c. Whether the business can pay right taxes
d. None of the above
D 8. Statement 1: The main objective of a business firm is to produce goods and services to meet the needs only of the
customers and to do so at a profit.
Statement 2: Managers main interest in business lies in the capacity of the business to pay debts owing to them.
a. Only Statement 1 is True c. Both Statements are True
b. Only Statement 2 is True d. Both statements are False
D 9. Statement 1: A Corporation can be formed by 5 to 25 incorporators.
Statement 2: A Statement of Account serves as an evidence of a sale of goods transaction that has taken place.
a. Only Statement 1 is True c. Both Statements are True
b. Only Statement 2 is True d. Both statements are False
C 10. Statement 1: Merchandising companies are involved with conversion of raw materials into finished goods.
Statement 2: Owners have an interest in the business’ performance and ability to generate income.
a. Only Statement 1 is True c. Both Statements are True
b. Only Statement 2 is True d. Both statements are False
Enumeration:
1. Major importance of business. (4 points)
2. Types of Business Activities (3 points)
3. Give at least 3 disadvantages of putting-up Partnership Companies (3 points)