WorksheetsPRELIMS- Fundamentals of Accounting and Business Management 2
Total questions: 25
Worksheet time: 30mins
Which of the following is listed first in a Statement of Financial Position?
Asset
Liabilities
Income
Owner's Equity
What is the distinct feature of the report form of Statement of Financial Position?
It is presented horizontally.
It is presented vertically.
It follows the format of the accounting equation.
It lists all Assets first, followed by Liabilities, then Equity.
From which financial statement is the amount in the Owner’s Capital in the Total Liabilities and Owner’s Equity section of the Statement of Financial Position based?
Statement of Cash Flows
Statement of Comprehensive Income
Statement of Changes in Owner’s Equity
Notes to Financial Statement
Which of the following best describes the account form of a Statement of Financial Position?
It is presented horizontally.
Its total assets and total liabilities and owner’s equity are equal.
Its assets and liabilities are classified as current or non-current.
It follows the format of the accounting equation.
Which of the following forms of Statement of Financial Position is easier to read when compared to a different year?
account form
report form
basic form
equal form
Which of the following accounts should be listed under the Owner’s Equity of a Sole Proprietorship company?
Common Stocks - ₱20,000
Retained Earnings - ₱5,000
Mr. Perez, Capital - ₱10,000
Preferred Stocks - ₱25,000
Company ABC is preparing its Statement of Financial Position. Its accountant has already prepared the headings of the statement. Which of the following should the accountant do next?
Classify the assets into current and non-current accounts, and place them in the assets column.
Compute the totals of current and non-current liabilities and total equity.
Copy the Ending Capital and place it under the subheading of Owner’s Equity.
Determine the totals of current and non-current assets from the general ledgers.
A sole proprietorship business is engaged in selling second hand cars. The business currently has 20 cars as inventory. How will the cars be classified in the Statement of Financial Position?
current asset
non-current assets
current liabilities
non-current liabilities
If the total current assets of a company is ₱82,000, total non-current assets is ₱150,000, and owner’s capital is ₱142,000, how much is the total liabilities of the company?
₱142,000
₱232,000
₱90,000
₱322,000
The following are account balances of DC Company for the year ended, December 31, 2021. How much is the Net Income for the year?
₱158,000
₱213,000
₱230,000
₱303,000
The elements that can be found in a statement of comprehensive income are ___________________________. Which of the following will make the statement correct?
assets and liabilities
assets and income
liabilities and expenses
income and expenses
In the heading portion of the statement of comprehensive income, the date of preparation should be stated using ___________________________. Which of the following will make the statement correct?
“As of”
“Between”
“For the month/year”
“As at”
Fun Co. generated revenues amounting to ₱100,000. The expenses for the year amounted to ₱66,000. The company reported a ____________________ for the end of the year. Which of the following will make the statement correct?
net income
net loss
deficit
breakeven
Fun Co. generated revenues amounting to ₱48,000. The expenses for the year amounted to ₱66,000. The company reported a ____________________ for the end of the year. Which of the following will make the statement correct?
net income
net loss
deficit
breakeven
In the preparation of SCI using the _____________ approach, revenues are listed down together on one side, and expenses are listed on the other. Which of the following will make the statement correct?
single-step
multi-step
business
merchandise
BST Merchandise’s beginning inventory amounted to ₱150,000, the net purchases amounted to ₱80,000, and the freight-in totaled ₱12,000. Compute the company’s cost of goods available for sale.
₱92,000
₱218,000
₱242,000
₱230,000
What is equity?
Equity presents the financial interests of the owners of the business.
Equity presents the financial objectives of the owners of the business.
Equity is the total liabilities plus the total assets combined.
Equity shows the performance of the business.
What refers to the reconciliation of the equity balance?
statement of financial position
statement of comprehensive income
statement of changes in equity
statement of cash flows
How does a business incur a loss in a given period?
when total expenses for the period is equal to total income earned
when total income earned is lesser than total expenses incurred
when total expenses for the period is greater than beginning equity
when there are no expenses for the period
Why do we need to prepare the Statement of Changes in Equity?
To see the movements of equity in a given period
To show that profit increases equity
To show that there are various transactions affecting the equity account
To encourage business owners to invest more money
Given the following business transactions, how much is the beginning owner’s equity for the month of January 2022?
₱76,000.00
₱105,000.00
₱158,000.00
₱0.00
If a business has a total income amounting to ₱47,000.00 and total expenses amounting to ₱53,000.00 for the month of January 2022, what will the business recognize for the month?
a profit
a loss
an expense
a withdrawal
Why is it essential to monitor the cash receipts and payments for financing activities?
What is the purpose of investing?
Draw an Accounting logo.
