1. Purposes of an accounting system includes all of the following except: a) Interpret and record the effects of business transactions. b) Classify the effects of transactions to facilitate the preparation of reports. c) Summarize and communicate information to decision makers d) Dictate the specific types of business transactions that the enterprise may engage in. 2. Cost-volume-profit analysis is based on several assumptions. Which one of the followin these assumptions: a) The sale mix of the products is constant. b) Inventory quantities change during the year. c) Material and labor price do not change. d) The behavior of both sale and variable cost is linear throughout the relevant range. 3. When sale volume increase: a) Break-even point increases. b) Total profit increases. c) Total loss increases. d) All of the above. 4. To obtain the break-even point in dollar sales value, a) Total Variable cost. b) Total Fixed cost. c) Total Contribution. d) Total Sale. is divided by P/ 5. Long term assets having no physical existence but, possessing a value are called a) Intangible assets b) Fixed assets c) Current assets d) Investments 6. Which of the following equation is correct? a) Assets+ Owners' equity Liabilities b) Assets Liabilities Owners' Equity = c) Assets Liabilities Owners' equity - == d) Liabilities + Owners' equity Fixed Assets