1. 1
FUNDAMENTALS OF ACCOUNTANCY, BUSINESS, AND MANAGEMENT 1
Final Requirement
Name: ____________________________________ Date: _______________
Grade & Section: ___________________________ Teacher: Mr. James Corpuz
I. KNOWLEDGE
A. Identification. Below are accounting concepts and principles. Match each description to the
correct accounting concept and principle.
Accrual Accounting Matching Principles Sole Proprietorship
Accounting Entity Assumption Use of Judgment & Estimates cost
Going Concern Assumption Cash Basis Accounting Partnership
Time Period Assumption Property Dividends
Prudence Corporation Cooperative
_______________ 1. The indefinite life of a company can be divided into periods of equal length for the
preparation of financial reports.
_______________ 2. Income and assets are not overstated and liabilities and expenses are not overstated.
_______________ 3. Income should be recognized in the period what is earned regardless of when the
payment is received.
_______________ 4. The business is separate from the owners, managers, and employees operating in the
business.
_______________ 5. Expenses are recognized in the same period as the related revenue.
_______________ 6. Approximations are made by the accountants or the management in the preparation
of financial statements.
_______________ 7. It is assumed that the operations of a business will continue indefinitely into the
future.
_______________ 8. It is the basis of the accrual accounting by recognizing income when cash is received
and recognizes expenses when cash is paid.
_______________ 9. It is a business organization formed by a single individual.
_______________ 10. It is defined as “an artificial being created by operation of law, having the right of
succession, and the powers, attributes, and properties authorized by law or incident to
its existence.
II. PROCESS and UNDERSTANDING
Analyze the following business transactions of Dr. Who Clinic, a sole proprietorship. Record
the transactions in the journal by following the ruled of debits and credits.
Use the following account titles:
Cash AccountsPayable SalariesExpense
AccountsReceivables NotesPayable RentExpense
PrepaidInsurance Dr. Who, Capital UtilitiesExpense
Furniture andFixtures Dr. Who, Drawing Tax and LicensesExpense
Equipment ProfessionalFees OrganizationExpense
Class no. _____
K – /10
P – /10
U – /20

2. 2
Requirements:
A. Journalize the transactions in a 2 column worksheet/ columnar pad.
B. Use pencil only.
C. Using mobile phones as calculator is prohibited.
1-Jan Dr. Who invested P100,000 into the business.
3 Dr. Who paid P7,500 to city hall for a business permit.
5 Dr. Who paid P10, 000 for a one-year insurance.
10 Dr. Who purchased computer amounting to P20,000 for the clinic.
11 Dr. Who purchased furniture and fixtures on account amounting to P15,000.
15 Dr. Who borrowed P30,000 from the bank by signing a note.
17 Dr. Who rendered Professional service to various patients and receivedP35,000
20
Dr. Who rendered professional service to various patients. The total bill of these
patients amounted to P21,000. These patients had no cash with them and promised
to pay D. Who on January 30, 2014.
30
Dr. Who collected P21,000 from various patients who owed him money on January
20.
31
Dr. Who paid P10,000 for rent, P2,500 for electricity, and P15,000 for salaries of
employees.
1-Feb Dr. Who withdrew P3,000 from the business for his personal use.
CREATIVITYisGREAT
ButNOTinACCOUNTING.
- CharlesScott