ABM Cup

Multiple Choice

What is the capital of the Philippines?

• Baguio

• Boracay

• Davao

• Manila

Multiple Choice

The main goal of a business is to:

• Earn profit

• Spend money

• Borrow money

• Pay taxes

Multiple Choice

Money borrowed from a bank is called:

• Asset

• Loan

• Income

• Expense

Multiple Choice

Which of the following is a short-term source of finance?

• Bank loan for 10 years

• Trade credit

• Bonds

• Issuing shares

Multiple Choice

Profit is computed as:

• Assets – Liabilities

• Income – Expenses

• Capital – Revenue

• Sales – Purchases

Multiple Choice

If a business earns ₱20,000 and spends ₱15,000, what is the profit?

• ₱5,000

• ₱10,000

• ₱15,000

• ₱20,000

Multiple Choice

In sales, what is the amount of money received by an employee or agent for performing a business transaction or service?

• Commission

• Consolation

• Income

• Profit

Multiple Choice

An appliance center agent sold a set of kitchen utensils for P 20,000.00 and got a P 600.00 commission. What is the commission rate?

• 1%

• 2%

• 3%

• 4%

Multiple Choice

Which of the following is decreased by debiting the account?

• Office Equipment 

• Cash

• Accumulated Depreciation 

• Depreciation Expense

Multiple Choice

Which of the following is used to record all receipts of cash from whatever source?

• Purchase Journal

• Sales Journal 

• Cash Disbursement Journal 

• Cash Receipts Journal

Multiple Choice

What is the form of business organization that is formed legally through the articles of incorporation filed with the Securities and Exchange Commission?

• Sole Proprietorship 

• Partnership 

• Corporation

• Cooperative

Multiple Choice

Which of the following is used to accumulate and classify individual transactions from the journal?

• Subsidiary Ledger

• Special Journal 

• General Journal 

• General Ledger

Multiple Choice

If the company purchased office supplies on account,

which of the following accounts is most likely affected by the transaction?

• Accounts Payable 

• Accounts Receivable 

• Supplies 

• Revenue Cash

Multiple Choice

Which of the following is most likely the journal entry

to be made if the company purchased merchandise on account?

• A

• B

• C

• D

Multiple Choice

Which of the following is most likely the journal entry to be made if a customer of the company fully paid its account within the discount period?

• A

• B

• C

• D

Multiple Choice

Which of the following statement/s is/are true? 

I. General ledger is used to record all transactions not recorded in the subsidiary ledger. 

II. A subsidiary ledger is used to provide detailed information about a specific ledger account.

• Only statement I is true. 

• Only statement II is true. 

• Both statements are true. 

• Both statements are false.

Multiple Choice

Which of the following statement/s is/are true? 

I. Accounts payable is decreased by crediting the account. 

II. Office Equipment is decreased by debiting the account.

• Only statement I is true. 

• Only statement II is true. 

• Both statements are true. 

• Both statements are false.

Multiple Choice

Which of the following statement/s is/are true? 

I. Payment of the promissory note increases the notes payable account. 

II. Payment of the water bill decreases the cash account. 

• Only statement I is true. 

• Only statement II is true. 

• Both statements are true. 

• Both statements are false.

Multiple Choice

David is paid a monthly salary of P12,000.00 and earns a commission of 4% of sales. If he sold a total amount of P80,000.00 during the month, what is the gross pay?

•  P12,000

• P15,200

• P44,000

• P80,000

Multiple Choice

Which of the following is the proper computation of Gross Profit?

• Gross Profit = Sales – Cost of Goods Sold – Operating Expenses 

• Gross Profit = Net Sales – Operating Expenses 

• Gross Profit = Net Sales – Net Purchases + Ending Inventory 

• Gross Profit = Net Sales – Cost of Goods Sold

Multiple Choice

Which of the following will most likely compute the Cost of Goods Sold for the current period?

• Gross Profit minus Sales and Sales Discounts plus Sales Returns and Allowances

• Cost of Goods Available for Sale minus Ending Inventory 

• Net Purchases plus Cost of Goods Available for Sale minus Ending Inventory 

• Cost of Goods Available for Sale plus Freight-in minus Ending Inventory

Multiple Choice

When a business has made enough money to pay its costs and begin to make a profit, it has reached its.

• Break-even point

• Fixed cost

• Variable-cost margin

• Selling price

Multiple Choice

This budget calculates the materials that must be purchased by time period,

in order to fulfill the requirements of the production budget

• Production budget

• Sales budget

• Selling and administrative expenses budget

• Direct materials budget

Multiple Choice

Which of the following refers to the channels or places where funds and financial instruments such as stocks, bonds, and other securities are exchanged between willing individuals and/or entities?

• Financial System

• Financial Market

• Financial Intermediary

• Financial Regulation

Multiple Choice

A production budget is not derived from the

• Sales volume budget

• Direct labor budget

• Inventory volume budget

• Purchasing volume budget

Multiple Choice

Which refers to the fixed amount of money often expressed as an annual sum, which is made by an employer to an employee as properly agreed by both to be paid regularly monthly or by weekly basis?

• Benefit

• Income

• Salary

• Wage

Multiple Choice

A form of the SFP that shows asset accounts first and then liabilities and owner’s equity accounts after

• Account Form

• Report Form

• Classified Form

• Horizontal Form

Multiple Choice

A form prepared by the buyer and sent to the seller to document the order and agreed upon terms of the purchase

• Purchase Order

• Delivery Receipts

• Sales Invoice

• Official Receipt

Multiple Choice

A compensation-earner who at the same time is engaged in business or practice of profession.

• Individual Income Earner

• Mixed Income Earner

• Couple Income Earner

• None of the above

Multiple Choice

Markup is _____to the original cost.

• Adding

• Multiplying

• Subtracting

• Dividing

Multiple Choice

What is the break-even point in units for a company whose total fixed costs are P275,450; selling price per unit is P16; and variable cost per unit is P14.75?

• 183,633

• 150,300

• 225,120

• 220,360