FDNACCT 01 · Accounting Foundations
Conventions
Amounts are Philippine pesos (₱). Enter numeric answers without a currency symbol; commas are optional. Use accrual accounting, periodic inventory, prepaid expenses under the asset method, unearned revenue under the liability method, straight-line depreciation, and the allowance method unless a question states otherwise. Interest uses a 360-day year or months/12. Follow the course cash-flow convention: interest/dividends received are investing, interest/dividends paid are financing. Each Practice Lab table has one highlighted blank. Questions are independent; use only the facts given in that question.
Questions
01Identify the branch: determine the total cost of producing a product.
Problem
An accountant measures and classifies the costs of producing one product. Identify the branch performing that work.
02Identify the branch: examine suspected fraudulent transactions using accounting and investigation.
Problem
An accountant examines records in a suspected fraud dispute and combines financial analysis with investigation. Identify the branch.
03Identify the branch: prepare the overall plan for resources and operations.
Problem
A business is preparing a forward plan for its resources and activities. Identify the planning activity.
04Identify the historical author who documented double-entry bookkeeping in Summa.
Problem
In Venice in November 1494, a mathematician and monk published a description of double-entry bookkeeping in Summa. Identify the author.
05What is the bookstore’s business activity?
Problem
Classify each business by its main activity: providing services, buying and reselling finished goods, or making goods from raw materials. The bookstore buys completed books from publishers and resells them.
06Is the factory manager an internal or external user?
Problem
Classify users by their relationship to the business. The factory manager is employed by the entity and decides how its factory should operate. A bank lender and supplier deal with the entity from outside.