1. Combining and consolidating business transactions of J Enterprises and Ms. Jenny J. does

not comply the accounting principles of

A. Business Entity principle
B. Accrual Accounting principle
C. Going Concern principle

D. Time period principle


2. Which of the following is NOT an accounting principle?

A. Business Entity principle

B. Accrual Accounting principle
C. Cost principle
D. None of the above


3. Which of the following accounting principles states that all business transaction should be

supported with pertinent documents?

A. Monetary unit principle

B. Materiality principle
C. Objectivity principle
D. Time-Period principle


4. All of the following statements are correct, EXCEPT:

A. Revenues should be recorded when it is earned regardless when it is collected.

B. Expenses should be recorded when it is incurred regardless when it was paid.

C. Accounting principles and concepts adheres with generally accepted accounting

principles

D. Financial statements should be bias and free from errors and misstatements


5. Business entity will continue to operate and assume its existence unless

A. A net loss incurred in the first month of the year.

B. Sale of unused assets.

C. Liquidation and disposal of all assets

D. A tax payable to Bureau of Internal Revenue​