FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1 Q3 SUMMATIVE TEST; SET A

A fashion trend shop earned P80,000 during the month of January. Salaries paid to cashier amounted to P30,000, utilities paid for is P6,000, and rent of the space is P10,000. How much is the net income of the fashion trend shop?

• P50,000
• P20,000
• P40,000
• P34,000

Cruz Grocery Store earned P325,000 from selling their goods during the month of February. These goods sold were first purchased at an amount of P200,000. Salaries paid to employees is P35,000, utilities paid is P6,000 and rent of the selling area is P8,000. How much is the net income of Cruz grocery store?

• 76,000

• 90,000

• 84,000

• 82,000

An electronic repair shop is an example of a _____________.

• a. manufacturing business

• c. trading business

• b. electrical business

• d. service business

Accountants prepare financial statements at arbitrary points in time during a company's lifetime in accordance with the accounting concept of ____________.

• a. accounting periods

• c. materiality

• b. comparability

• d. matching

United Laboratories is an example of a ___________.

• a. service business

• c. trading business

• b. manufacturing business

• d. merchandising business

"GAAP" refers to _____________________________.

• a. Guidelines for Accountants, Accounting Procedures

• b. General Association of Accounting Practitioners

• c. General Accounting and Auditing Principles

• d. Generally Accepted Accounting Principles

Which of the following have owners who do not enjoy limited liability?

• a. sole proprietorship.

• b. corporation

• c. partnership

• d. both a and c

According to which principle of accounting states that assets should be reported at their acquisition cost even if they may have a substantially higher current value?

• a. economic entity concept

• c. objectivity

• b. cost principle

• d. matching

The requirement that only transaction data capable of being expressed in terms of money be included in the accounting records relates to the ______________________.

• a. economic entity concept

• c. cost principle

• b. monetary unit concept

• d. both b and c

What is the minimum number of members required to form a corporation?

• a. 10

• c. 15

• b. 5

• d. 2