FABM 2 Quiz No, 2

An asset is an

• a. Expense that will recur in more than one year

• b. Obligations to transfer benefits as a result of the past transactions.

• c. Interest of the owners in the business

• d. Any financial resources that is used by the business in its operation trade offs

Ramos trading have assets of Php130,000.00, liabilities of Php 80,000: as such the owners’ equity will be:

• a. Php 40,000.00

• b. Php 50,000.00

• c. Php 60,000.00

• d. Php 70,000.00

A statement of financial position can be best described as a:

• a. Listing of money received and paid during the past year.

• b. Summary of what happened last year

• c. Summary of all assets, expenses, liabilities and revenues

• d. Summary of the position of an organization.

What is a financial statement that shows the financial position of an enterprise at a particular point in time?

• a. Statement of Financial Position

• b. Income Statement

• c. Statement of changes in Equity

• d. Cash Flow Statement

Which of the following accounts is a current asset?

• a. Bonds Payable

• b. Property, Plant and Equipment

• c. Trade and other payables

• d. Trade and other receivables

Which of the following accounts is a non-current asset?

• a. Accounts Payable

• b. Capital

• c. Cash

• d. Trademarks

Purchased supplies on account, P900. Indicate the effect on the accounting equation.

• a. Increase in asset, decrease in another asset.

• b. Increase in asset, increase in liability.

• c. Decrease in asset, decrease in liability

• d. Decrease in asset, decrease in owner’s equity

Provide services rather than products to customers.

• a. Manufacturing Business

• b. Merchandising Business

• c. Service Business

• D. None of the above

Permites Eatery has assets of P800,000.00 and Owner’s Equity of P450,000.00. Using the accounting equation, determine the Liabilities:

• a. P800,000

• b. P300,000

• c. P450,000

• d. P350,000

Identify what account in Statement of Financial Position is Accounts Receivable

• Asset

• Liability

• Owner's Equity