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Fundamentals of Accountancy, Business and Management Exam

Total questions: 46

Worksheet time: 34mins

Name
Class
Date
1.

Which of the following can be considered as an intangible asset of the company?

a)

Buildings and Equipment

b)

Intellectual Property

c)

Cash on Account

d)

Investment

2.

When assets can be realized in 10 months this asset is classified as _________.

a)

Current

b)

Non Current

c)

Pending Asset

d)

Classified Asset

3.

Mang Kanor owes P 15,000,000.00 to ABM Bank payable within 36 months. This is classified under _________.

a)

Asset: Current

b)

Asset: Non Current

c)

Liabilities: Current

d)

Liabilities: Non current

4.

This refers to the company's total revenue from selling the products or offering services to clients.

a)

Expenses

b)

Sales

c)

Income

d)

Profit

5.

ABC company purchased 350,000 units of mobile phones and sold 70% of it for 6

months, determine the number of units available for sale?

a)

100,000 units

b)

105,000 units

c)

150,000 units

d)

245,000 units

6.

Advertising expense falls under _________.

a)

Company's expense

b)

Selling Expense

c)

Product Expense

d)

General and Administrative Expense

7.

It shows the movement in the capital account of the owner.

a)

Statement of Comprehensive Income

b)

Statement of Changes in Equity

c)

Statement of Financial Position

d)

Cash Flow Statement

8.

In preparing the statement of changes in equity, which of the following

elements are not included?

a)

beginning capital

b)

additional investments

c)

net loss

d)

total assets

9.

In 2018, Maria’s Repair shop had a beginning capital of Php 300,000.00, additional investments amounted to Php100,000.00, drawing of Php50,000.00. Unfortunately, due to the high cost of operations, it had a net loss of 25,000. How much is Maria’s ending capital in 2018?

a)

Php 300,000.00

b)

Php 315,000.00

c)

Php 310,000.00

d)

Php 325,000.00

10.

Which increases in owner’s equity without additional investment?

a)

Net income

b)

Net loss

c)

drawing

d)

None of the given option

11.

The beginning owner’s equity/capital amounted to P 300,000. Net loss for the year totaled PHP 45,000. No additional investments and withdrawals for the period. How much is the increase from the owners’ equity?

a)

Php 45,000.00

b)

Php 10,000.00

c)

deficit of Php 45,000.00

d)

None of these

12.

The amount of expenses accumulated from the purchase of inventories from the

supplier is best known as _________.

a)

Freight in

b)

Transportation Cost

c)

Expenses due for the transport

d)

Cost of transport

13.

Assume that a company’s total Liabilities and Equity is Php 285,000. The total

noncurrent assets ended at Php 85,000. Cash reached Php50,000. Inventory amounted to Php100,000. Assuming the company had no other assets, how much are the Accounts Receivable?

a)

Php 50,000.00

b)

Php 60,000.00

c)

Php 70,000.00

d)

Php 80,000.00

14.

Balances from JOLLITREE company for the year ended December 2020. Cash = P500,000.00, Supplies = P600,000.00, Accounts Receivable = P300,000.00, Macheries = P520,000.00, Building = 900,000.00, Accounts Payable = P600,000.00, Notes Payable (18 months) = P700,000.00, Loans Receivable (2 years) = P590,000.00, Land = P250,000.00, Capital = P 2,210,000.00.

Compute the total Current asset of the company.

a)

Php 1,600,000.00

b)

Php 1,500,000.00

c)

Php 1,400,000.00

d)

Php 1,300,000.00

15.

Balances from JOLLITREE company for the year ended December 2020. Cash = P500,000.00, Supplies = P600,000.00, Accounts Receivable = P300,000.00, Macheries = P520,000.00, Building = 900,000.00, Accounts Payable = P600,000.00, Notes Payable (18 months) = P700,000.00, Loans Receivable (2 years) = P590,000.00, Land = P250,000.00, Capital = P 2,210,000.00.

The owners’ equity is_______.

a)

Php 1,290,000.00

b)

Php 2,600,000.00

c)

Php 2,210,000.00

d)

Php 2,560,000.00

16.

This is an account used by companies that sell goods instead of services.

a)

Net Sales

b)

Cost of Good Sold

c)

Net Profit

d)

Gross Profit

17.

It is the Financial Statement that explains the net change in cash for the year.

a)

Statement of Financial Position

b)

Statement of Comprehensive Income

c)

Statement of Changes in Equity

d)

Statement of Cash Flows

18.

Balances from JOLLITREE company for the year ended December 2020. Cash = P500,000.00, Supplies = P600,000.00, Accounts Receivable = P300,000.00, Macheries = P520,000.00, Building = 900,000.00, Accounts Payable = P600,000.00, Notes Payable (18 months) = P700,000.00, Loans Receivable (2 years) = P590,000.00, Land = P250,000.00, Capital = P 2,210,000.00.

The total liabilities of the company are ______.

a)

Php 1,300,000.00

b)

Php 600,000.00

c)

Php 700,000.00

d)

Php 1,860,000.00

19.

Balances from JOLLITREE company for the year ended December 2020. Cash = P500,000.00, Supplies = P600,000.00, Accounts Receivable = P300,000.00, Machineries = P520,000.00, Building = 900,000.00, Accounts Payable = P600,000.00, Notes Payable (18 months) = P700,000.00, Loans Receivable (2 years) = P590,000.00, Land = P250,000.00, Capital = P 2,210,000.00.

Compute the company’s total asset ________.

a)

Php 3,660,000.00

b)

Php 3,570,000.00

c)

P 2,970,000.00

d)

Php 2,770,000.00

20.

When an external user of accounting information wants to determine the profit or

looses of a certain company for a specific period, the accounting information that must be presented is the ____________.

a)

Statement of the Financial Position

b)

Statement of the Comprehensive Income

c)

Balance Sheet

d)

Cash Flow Statement

21.

SM Holdings Corp. invested a ballooning amount of Money amounting to PHP 15

billion to the government for the construction of several infrastructures. This loan must be payable within 10 years. In the part of the government, this is classified under ___________.

a)

Asset: Current

b)

Asset: Non current

c)

Liabilities: Current

d)

Liabilities: Non-current

22.

Which of the following is the best description of the Statement of Financial Position?

a)

Summary of all assets, liabilities and owner's equity

b)

Summary of all the assets received during the current year

c)

Summary of all the business transactions that happened last year

d)

Summary of all the owner's equity

23.

It is the most liquid and always comes first in the list among assets.

a)

Land

b)

Supplies

c)

Accounts Receivable

d)

Cash

24.

The following are all parts of the asset section of the Statement of Financial Position except:

a)

Prepaid Expenses

b)

Accounts Receivable

c)

Cash

d)

Expenses

25.

It is an account bearing the name of the owner and shows the amount of original and additional investments made by the owner.

a)

Cash

b)

Capital

c)

Trademarks

d)

Income Summary

26.

It is a financial statement that reports the results of the operations of the business for one accounting period.

a)

Statement of Changes in Equity

b)

Statement of Cash Flow

c)

Statement of Financial Position

d)

Statement of Comprehensive Income

27.

Long-term debt of a business with collateral in the form of real properties.

a)

Mortgage Payable

b)

Bad Debts

c)

Bonds Payable

d)

Accumulated Depreciation

28.

Which of the following is not a characteristic of a tax?

a)

It is enforced contribution.

b)

It is payable in money particularly legal tender.

c)

It is imposed not inside the state's territory.

d)

It is proportionate in character.

29.

Which of the following is a characteristic of tax?

a)

It is an enforced contribution.

b)

Its efficient cause or juridical tie is contract.

c)

It is considered a demand of ownership or proprietorship.

d)

The amount to be collected is limited to the cost of regulation.

30.

Which of the following taxes is a personal tax or a tax imposed on a person?

a)

Real property tax

b)

Community tax

c)

Amusement tax

d)

Income tax

31.

One of the following is not a characteristic or element of tax.

a)

It is an enforced contribution.

b)

It is payable in money or in kind.

c)

It is proportionate in character.

d)

It is levied by the legislature.

32.

Taxpayers should be treated equally both in terms of rights conferred and obligations imposed.

a)

Equal protection of law

b)

Due process of law

c)

Equality

d)

Uniformity

33.

Eminent domain ______________________.

a)

is the power to take public property for public purpose after payment of just compensation.

b)

is the power to take private property for public purpose after payment of just compensation.

c)

is the power to take private property for private purpose after payment of just compensation.

d)

is the power to take public property for private purpose after payment of just compensation.

34.

Without taxes, the government would be paralyzed for lack of the motive power to activate and operate it.

a)

Holmes Doctrine

b)

Necessity Doctrine

c)

Doctrine of Symbiotic Relationship

d)

Lifeblood Doctrine

35.

In this type of tax, non-payment is constitutionally exempted from imprisonment.

a)

Value added tax

b)

income tax

c)

Poll tax

d)

Documentary tax

36.

Which of the following inherent powers of the state is inferior to constitutional right of non-impairment of obligation of contracts?

a)

Power of taxation

b)

police power

c)

power of eminent domain

d)

all of the above

37.

What is the primary purpose of taxation power?

a)

To promote the general welfare through regulations.

b)

To advocate protection of constitutional right.

c)

To facilitate the state's need of property for public use

d)

To raise revenues for the expenses of the state

38.

What is the effect to cash if a debit balance in the general journal is posted as credit to the general ledger?

a)

Zero balance

b)

No effect

c)

Increase cash

d)

Decrease cash

39.

All the accounts below have debit normal balance except:

a)

Miscellaneous Expense

b)

Prepaid Rent

c)

Salaries Payable

d)

Supplies

40.

It means how quickly you can get your hands on your cash.

a)

Growth

b)

Stability

c)

Profitability

d)

Liquidity

41.

The adjusted trial balance is the last report prepared before the _________ is made.

a)

General ledger

b)

Worksheet

c)

Financial statement

d)

general journal

42.

What is the term applied to the excess of net revenue from sales over the cost of merchandise sold?

a)

income from operations

b)

gross sales

c)

net income

d)

gross profit

43.

Which of the following accounts usually has a debit balance?

a)

Purchase discounts

b)

freight in

c)

sales tax payable

d)

allowance for doubtful accounts

44.

Balance sheet accounts

a)

represent amounts accumulated during a specific period of time

b)

are equal to assets and liabilities

c)

are called real accounts

d)

have zero balances after the closing entries have been posted

45.

Owned resources of a business are referred to as

a)

Assets

b)

Equities

c)

Liabilities

d)

Revenues

46.

Debts owed by a business are referred to as

a)

Liabilities

b)

Accounts Receivable

c)

Equities

d)

Stockholders' Equity