ABM CUP

EASY 1: EBITDA means

• A. Earnings Before Income Taxes, Depreciation and Amortization
• B. Earnings Before Interest, Taxes, Doubtful Accounts
• C. Earnings Before Interest, Taxes, Depreciation and Amortization
• D. Earnings Before Income Taxes, Doubtful Accounts

EASY 2: ______ is a branch of accounting that is usually done internally and externally. It includes examining and monitoring a business for accurate reporting, compliance with tax laws and regulations, and financial integrity.

• A. Financial Accounting
• B. Auditing
• C. Cost Accounting
• D. Managerial Accounting

EASY 3: This measures the ability of a company to use its near cash or quick assets to extinguish or retire its current liabilities immediately.

• A. Acid Test Ratio
• B. Quick Ratio
• C. Current Ratio
• D. Both A and B

EASY 4: The PCG Department reported P18,000 of net income for 2019, 24,000 for 2020 and 26,000 for 2021. The percentage change in net income from 2020 to 2021 was:

• A. 7.27%
• B. 8.27%
• C. 7.33%
• D. 8.33%

EASY 5: Gross profit of Grant Thornton amounted to Php 175,000. Beginning Inventory totaled Php 250,000. Ending Inventory amounted to Php 50,000 while Net Cost of Purchases totaled Php 85,000. Compute for Grant Thornton’s Net Sales.

• A. P460,000
• B. P455,000
• C. P385,000
• D. P425,000

EASY 6: The effect of receiving cash by payment of accounts receivables of the customer.

• A. Increase in asset, decrease in liability
• B. Decrease in asset, decrease in liability
• C. Increase in asset, increase in revenue
• D. No effect

EASY 7: Finance and Accounting Company collected P24,700 in interest during 2023. Finance and Accounting showed P10,600 in interest receivable on its December 31, 2023 balance sheet and P14,300 on December 31,2022. How much is the interest revenue reported in Finance and Accounting’s income statement for 2023?

• A. P21,000
• B. P49,600
• C. P24,900
• D. P35,300

EASY 8: All of the following consist of twelve (12) months, except one.

• A. Interim Financial Statements
• B. Financial Year Financial Statements
• C. Calendar Year Financial Statements
• D. Financial Statements Covering Two Semesters

EASY 9: One component of cash flow statement wherein results in cash inflows and outflows were generated from the normal courses or day to day business transactions of the company is called

• A. Financing Activities
• B. Operating Activities
• C. Investing Activities
• D. Business Activities

EASY 10: The rule that requires accountants to prepare financial statements under the assumption that the business will continue operating instead of being put up for sale or closure, unless evidence shows that it will not continue.

• A. Historical Costing
• B. Objectivity
• C. Going concern assumption
• D. Business entity concept