REVIEW QUIZ FABM2

All are current assets except

• Prepaid Rent

• Office Equipment

• Cash in Bank

• Accounts Receivable

A company’s income and expenses are presented in

• SFP

• SOCE

• CASH FLOW

• SCI

Information on utilisation and sources of cash is provided by SCI.

• TRUE

• FALSE

Two former classmates decided to make a business. What is the most appropriate form of business organisation should they create?

• Sole proprietorship

• Corporation

• Partnership

• Cooperative

The categories of expenses under function of expense method include Cost of Sales, Distribution Costs, and Administrative Expenses only.

• TRUE

• FALSE

Financial position refers to the condition of an entity’s asset, liabilities, and equity.

• TRUE

• FALSE

If the total assets is 800,000 and the total equity id 200,000, what is the total liability?

• 1,000,000

• 900,000

• 0

• 600,000

What is the formula of current ratio?

• CA-CL

• Total Assets minus Total Liability

• CA/CL

• Gross profit / Net sales

What is CA-CL?

• Working Capital

• Current Ratio

• Acid test ratio

• Return on Equity

Partners A, B, and C agreed to share their capital investment with 3:1:6 ratio, and profit and loss shared equally. If their business earned a profit of 330,000, how much is B’s share in profit?

• 0

• 110,000

• 33,000

• 198,000