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ABM 2 QUIZ 1

Total questions: 15

Worksheet time: 15mins

Name
Class
Date
1.

It refers to art of recording, summarizing, and reporting financial transactions and events, and analyzing the results thereof.

a)

Accounting

b)

Management

c)

Marketing

d)

Organizing

2.

Balance sheet is also referred to ________.

a)

Statement of Comprehensive Income

b)

Statement of Financial Position

c)

Statement of Changes in Owner’s Equity

d)

Statement of Cash Flows

3.

These are the two elements that can be seen on the face of income statement.

a)

Revenues and Assets

b)

Liabilities and Expenses

c)

Revenue and Expenses

d)

Assets and Liabilities

4.

If the company’s assets amounted to P150,000 and liabilities for P50,000, how much is the owner’s equity?

a)

P200,000

b)

P100,000

c)

P150,000

d)

P50,000

5.

If liabilities amounted to P275,000 and owner’s equity of P75,000, how much is the total assets?

a)

P350,000

b)

P200,000

c)

P275,000

d)

P75,000

6.

What is the basic accounting equation?

a)

Assets + Liabilities = Owner’s Equity

b)

Assets = Liabilities + Owner’s Equity

c)

Liabilities = Assets + Owner’s Equity

d)

Liabilities = Owner’s Equity – Assets

7.

If the revenue of the company is P500,000 and expenses totaled to P350,000, how much is the company’s net income?

a)

P150,000

b)

P500,000

c)

P350,000

d)

P850,000

8.

Statement of economic performance also refers to _______.

a)

Income statement

b)

Balance sheet

c)

Both income statement and balance sheet.

d)

Neither income statement nor balance.

9.

If net income is computed to be P100,000 and expenses totaled to P250,000, how much is the revenue generated by the company?

a)

P350,000

b)

P100,000

c)

P250,000

d)

P150,000

10.

If revenue is reported at P2,000,000 showing a net income a net income P700,000, how much was the total expense incurred?

a)

P2,000,000

b)

P1,300,000

c)

P2,700,000

d)

P700,000

11.

Which among the choices is not an element of balance sheet?

a)

Assets

b)

Owner’s Equity

c)

Revenue

d)

Liabilities

12.

If the owner invested his cash to the business, will the assets of the business increase?

a)

Yes.

b)

No.

c)

Maybe.

d)

Can’t be determined.

13.

If the owner withdraws money from the business for his personal use, it will decrease the value of the assets.

a)

True

b)

False

14.

If the liability is paid, there is also a corresponding increase in the asset.

a)

True

b)

False

15.

If the owner invested a machinery to the business, the effect will be an increase to both assets and equity.

a)

True

b)

False