ABM 2 QUIZ 1

It refers to art of recording, summarizing, and reporting financial transactions and events, and analyzing the results thereof.

• Accounting

• Management

• Marketing

• Organizing

Balance sheet is also referred to ________.

• Statement of Comprehensive Income

• Statement of Financial Position

• Statement of Changes in Owner’s Equity

• Statement of Cash Flows

These are the two elements that can be seen on the face of income statement.

• Revenues and Assets

• Liabilities and Expenses

• Revenue and Expenses

• Assets and Liabilities

If the company’s assets amounted to P150,000 and liabilities for P50,000, how much is the owner’s equity?

• P200,000

• P100,000

• P150,000

• P50,000

If liabilities amounted to P275,000 and owner’s equity of P75,000, how much is the total assets?

• P350,000

• P200,000

• P275,000

• P75,000

What is the basic accounting equation?

• Assets + Liabilities = Owner’s Equity

• Assets = Liabilities + Owner’s Equity

• Liabilities = Assets + Owner’s Equity

• Liabilities = Owner’s Equity – Assets

If the revenue of the company is P500,000 and expenses totaled to P350,000, how much is the company’s net income?

• P150,000

• P500,000

• P350,000

• P850,000

Statement of economic performance also refers to _______.

• Income statement

• Balance sheet

• Both income statement and balance sheet.

• Neither income statement nor balance.

If net income is computed to be P100,000 and expenses totaled to P250,000, how much is the revenue generated by the company?

• P350,000

• P100,000

• P250,000

• P150,000

If revenue is reported at P2,000,000 showing a net income a net income P700,000, how much was the total expense incurred?

• P2,000,000

• P1,300,000

• P2,700,000

• P700,000