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First Periodical TEST FABM2

Total questions: 30

Worksheet time: 21mins

Name
Class
Date
1.

The other name for Balance Sheet is ?

a)

Statement of Comprehensive Income

b)

Statement of Financial Position

c)

Statement of Changes in Owner's Equity

d)

Adjusted Trial Balance

2.

Which is not included in Balance Sheet permanent account ?

a)

Cash

b)

Accounts Payable

c)

Service Income

d)

Notes Receivable

3.

This are account titles in SFP but serves as a reduction to either a current or a non current assets

a)

Asset Ratio

b)

Quick Assets

c)

Expenses

d)

Contra Assets

4.

What is the standard formula for presenting accounts in Balance Sheet?

a)

Assets = Liabilities + Owner's Equity

b)

Net Profit = Service Income - Total Expenses

c)

Assets + Liabilities = Owner's Equity

d)

Assets - Liabilities = Owner's Equity

5.

Which of the following is not an example of Current Asset

a)

Accounts Receivable

b)

Merchandise Inventory

c)

Intangible Assets

d)

Prepaid Expenses

6.

What is the other term use for Capital Statement?

a)

Statement of Comprehensive Income

b)

Statement of Changes in Owner's Equity

c)

Statement of Financial Position

d)

Adjusted Trial Balance

7.

This refers to account titles whose balances are added to capital account?

a)

Account Payable

b)

Permanent Account

c)

Quick Assets

d)

Nominal Accounts

8.

The term use in SCI for a positive results at the end of every period

a)

Net Purchase

b)

Net Income

c)

Net Loss

d)

Net Sales

9.

Compute for the Net Purchase

Mabuhay Advertising purchase 25pcs of Noche Buena Feast Basket to SM Hypermarket. Each one cost 550.00 with Free delivery service.

a)

55.00

b)

13,750.00

c)

11,000.00

d)

All of the above

10.

Compute for the Net Purchase

Hann Resort purchase 50 case Ham to Mekeni Foods Corporation worth 100,000.00. Mekeni provides 5% discount and 5 case were returned due to mishandling.

a)

90,000.00

b)

5000.00

c)

85,000.00

d)

All of the above

11.

This refers to the total cost of good unsold at the end of the accounting cycle

a)

Beginning Inventory

b)

Sales Discount

c)

Freight In

d)

Ending Inventory

12.

This refers to the transportation cost of merchandise purchase by the company.

a)

Beginning Inventory

b)

Sales Discount

c)

Freight In

d)

Ending Inventory

13.

Which type of expenses represents Indirect cost in Income Statement?

a)

Operating Expense

b)

General and Administrative Expenses

c)

Prepaid Expense

d)

Salary Expense

14.

Which type of expenses represents direct cost in Income Statement?

a)

Operating Expense

b)

General and Administrative Expenses

c)

Prepaid Expense

d)

Salary Expense

15.

Manager Salary and Rent Expense are example of ________ cost?

a)

Fixed Cost

b)

Variable Cost

c)

Total Cost

d)

Unit Cost

16.

This refers to a type of business owned by a single person.

a)

Partnership

b)

Sole Proprietorship

c)

Cooperative

d)

Corporation

17.

Based on the existing Corporation Law of the Philippines how many members are needed to established a Corporation?

a)

5-20

b)

5-10

c)

5-15

d)

None of the above

18.

What is the term use to describe the owner of a corporation?

a)

Stockholder

b)

Partners

c)

Investors

d)

Entrepreneur

19.

What is the term used to identify that the business is created by the law and has a unique identity separate to the owner.

a)

Jurisdiction

b)

Judicial

c)

Juridical Personality

d)

None of the above

20.

Which of the following event is not related to dissolution of the business in partnership?

a)

Withdrawal of investment of the partner

b)

Death of the partner

c)

Additional investment from new partners

d)

None of the above

21.

Compute for Depreciation

NDPB Foods Inc. equipment has an actual cost of 100,000 with 5 years useful life and an estimated scrap value of 20,000.

a)

16,000

b)

20,000

c)

15,000

d)

18,000

22.

Compute for Depreciation

Byron Foodstuff Corporation equipment has an actual value of 250,000 with an estimated scrap value of 20,000 after 10 useful years.

a)

20,000

b)

23,000

c)

25,000

d)

30,000

23.

Compute for Depreciation

Tan Food Haven Corporation equipment has an actual value of 300,000 with an estimated scrap value of 50,000 after 5 useful years.

a)

40,000

b)

45,000

c)

50,000

d)

55,000

24.

Analyze the statement and choose the best Answer

Statement 1: Corporation can live up to 50 years

Statement 2: Stockholders of a corporation has a general liability

a)

Statement 1 is TRUE , Statement 2 is False

b)

Statement 1 is FALSE, Statement 2 is TRUE

c)

Both Statement are True

d)

Both Statement are FALSE

25.

Analyze the statement and choose the best Answer

Statement 1: Contract can be oral and written in form

Statement 2: Contract is define as the meeting of minds

a)

Statement 1 is TRUE , Statement 2 is False

b)

Statement 1 is FALSE, Statement 2 is TRUE

c)

Both Statement are True

d)

Both Statement are FALSE

26.

Analyze the statement and choose the best Answer

Statement 1: Accumulated Depreciation is a Quick Assets

Statement 2: Allowance for Bad Debts is a Contra Assets of Accounts receivable

a)

Statement 1 is TRUE , Statement 2 is False

b)

Statement 1 is FALSE, Statement 2 is TRUE

c)

Both Statement are True

d)

Both Statement are FALSE

27.

Analyze the statement and choose the best Answer

Statement 1: Shared Capital is used for Corporation Capital Statement

Statement 2: Prepaid Rent is an advance payment for building or office rental

a)

Statement 1 is TRUE , Statement 2 is False

b)

Statement 1 is FALSE, Statement 2 is TRUE

c)

Both Statement are True

d)

Both Statement are FALSE

28.

Analyze the statement and choose the best Answer

Statement 1: In Partnership capital statement Net income is divided among members

Statement 2: For Corporation net income is represented by a dividend

a)

Statement 1 is TRUE , Statement 2 is False

b)

Statement 1 is FALSE, Statement 2 is TRUE

c)

Both Statement are True

d)

Both Statement are FALSE

29.

In Corporation who issue the Stock Certificate to a stockholder?

a)

President

b)

Vice President

c)

Corporate Secretary

d)

Corporate Treasurer

30.

Compute for Doubtful Account

It is assumed that 20% of the Accounts Receivable and 5% of the notes receivable will not be collected.


Accounts Receivable 100,000

Notes Receivable 50,000

a)

20,000

b)

2,500

c)

22,500

d)

37,500