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FABM2

Total questions: 15

Worksheet time: 11mins

Name
Class
Date
1.

It pertains to resources which are controlled and owned by the business.

a)

Assets

b)

Liabilities

c)

Equity

d)

Resources

2.

Which of the following pertains to the obligations that the business owed to other entities arising from past events which are to be settled in the future?

a)

Assets

b)

Liabilities

c)

Equity

d)

Resources

3.

Which of the following is the correct Accounting Equation?

a)

Assets + Liabilities = Equity

b)

Assets = Liabilities + Equity

c)

Assets = Liabilities - Equity

d)

Assets + Equity = Liabilities

4.

Which of the following is classified as Current Asset?

a)

Prepaid Expenses

b)

Land

c)

Delivery Vehicle

d)

Copyright

5.

In which part of Statement of Financial Position does the Salaries Payable be listed?

a)

Assets

b)

Liabilities

c)

Owner’s Equity

d)

Expenses

6.

Which of the following is classified as a non-current liability?

a)

Accounts Payable

b)

Unearned Revenue

c)

Mortgage Payable

d)

Utilities Payable

7.

Wash and Wear Laundry has current assets amounting to Php 300,000. Noncurrent assets for the year totaled Php 89,000. How much is the laundry’s total assets?

a)

398,000.00      

b)

389,000.00

c)

211,000.00     

d)

122,000

8.

Read Me Book Shop has assets of Php 2,000,000.00 and owner’s equity of Php 600,000.00. How much is the book shop’s total liabilities?

a)

1,400,000.00

b)

191,000.00

c)

129,000.00

d)

919,000.00

9.

What is the first step to prepare the Statement of Changes in Equity/Owner’s

Equity?

a)

Prepare the heading

b)

Report Capital at the beginning of the period

c)

Gather the needed information

d)

Add additional investment

10.

What do you call the very first investment of the owner to the company?

a)

Initial investment

b)

Additional investment

c)

Initial deposit

d)

Additional deposit

11.

All are example of operating activity EXCEPT:

a)

Receipts from sales of goods

b)

Payments to acquire debt securities

c)

Payments for taxes

d)

Receipts from customers

12.

Which of the following is an example of an investing activity?

a)

Obtaining bank loan

b)

Paying taxes to the government

c)

Producing goods and services

d)

Purchasing a building

13.

This activity includes cash transactions related to obtaining and selling of property and equipment and other non - current assets.

a)

Operating activity

b)

Investing activity

c)

Financing activity

d)

Cash flow activity

14.

All of the following are classified as Assets, EXCEPT

a)

  Building                 

b)

Inventory  

c)

Accounts Payable

d)

Accounts Receivable

15.

No Melt Ice Cream parlor has liabilities of Php 395,000.00 and assets of Php 524,000.00. How much is the ice cream parlor owner’s equity?

a)

919,000.00

b)

219,000.00

c)

129,000.00

d)

191,000.00