SCE

Which form of business organization puts the least risk on its owners?

• Single proprietorship

• Sole proprietorship

• Partnership

• Corporation

Which form of business organization is owned by only one person?

• Single proprietorship

• Cooperative

• Partnership

• Corporation

Increases in owner’s equity without additional investment

• Withdrawal

• Revenue

• Net Loss

• Net Income

Beginning owner’s equity amounted to P 300,000. Net loss for the year totaled P 45,000. No

additional investments and withdrawals for the period. Compute for total increase in equity for the

year.

• 0

• 45,000.00

• 255,000.00

• 345,000.00

Ending owner’s equity amounted to P70,000. Additional investments during the year amounted to

P30,000. Withdrawals totaled P50,000. Compute for the company’s net income for the year

assuming beginning equity is P10,000.

• 80,000.00

• 160,000.00

• 100,000.00

• 40,000.00

A type of business that is owned by at least 2 persons.

• Single proprietorship

• Sole proprietorship

• Partnership

• Corporation

Owner, Juan invested an initial capital amounting P50,000 in order to put up his janitorial services

company. During the first year of operations (2016), the company had a loss of P25,000. Because of

this, Juan invested additional capital amounting to P50,000 in 2017. In the second year (2017), the

company had a net income of P100,000 and Juan withdrew P10,000 for personal use. Compute for

the ending capital balance of Juan for the year 2017.

ANSWER SHOULD FOLLOW THIS FORMAT: 235,000.00

Owner Juana invested P100,000 to start her laundry business. During the first year of operations

(2016), the company had a net income of P15,000. Juana invested additional P100,000 to grow the

business. In 2017, the business earned P50,000. As of December 31, 2017, Juana’s capital balance

is P200,000. How much is Juana’s withdrawal?

ANSWER SHOULD FOLLOW THIS FORMAT: 35,000.00

At the end of the first month of operations for Juan’s Service Company, the business had the following accounts: Cash, Php19,000; Prepaid

Rent, Php500; Equipment, Php5,000 and Accounts Payable Php2,000. By the end of the month, Jackson's had earned Php20,000 of

Revenues, Php1,000 of Utilities Expenses and Php1,500 of Salaries Expenses. Calculate the net income to be reported by the company for

this first month.

ANSWER SHOULD FOLLOW THIS FORMAT: 15,000.00

Compute for the Cost of Goods Sold using the following:

Sales – 15,000

Purchases – 2,000

Purchase returns – 200

Purchase discounts – 200

Freight in – 100

Beginning inventory – 1,000

Ending inventory – 500

ANSWER SHOULD FOLLOW THIS FORMAT: