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FABM 2 - Statement of Changes in Equity

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

Which of the following has an effect in the statement of changes in equity?

a)

Assets

b)

Laibilities

c)

Income

d)

Land

2.

Which of the following is not considered as an effect in equity?

a)

Add. Investment

b)

Withdrawal

c)

Liability

d)

Profit

3.

These are increases to owner’s equity by adding investments by the owner.

a)

Additional Investments

b)

Withdrawals

c)

Liability

d)

Profit

4.

These are decreases to owner’s equity by withdrawing assets by the owner.

a)

Investments

b)

Withdrawal

c)

Liability

d)

Profit

5.

Beginning owner’s equity amounted to P 300,000. Net loss for the year totaled P 45,000. No

additional investments and withdrawals for the period. Compute for total increase in equity for the

year.

a)

245 000

b)

255 000

c)

265 000

d)

275 000

6.

Ending owner’s equity amounted to P70,000. Additional investments during the year amounted to P30,000. Withdrawals totaled P50,000. Compute for the company’s net income for the year assuming beginning equity is P10,000

a)

50 000

b)

60 000

c)

70 000

d)

80 000

7.

Which of the following decreases equity?

a)

Additional Investments

b)

Earning of profit

c)

Income

d)

Drawings

8.

Which of the following increases equity?

a)

Withdrawals from the business by owner

b)

Excess of expenses over income

c)

Incurrence of loss by the business

d)

Excess of Income

9.

Which of the following transactions affects owner's equity?

a)

Collection of accounts receivable

b)

Purchase of equipment

c)

Incurrence of expense

d)

Purchase of inventory

10.

Which of the following is the form of business organization when an SFP shows two capital accounts?

a)

Sole Proprietorship

b)

Partnership

c)

Corporation

d)

Cooperative