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WorksheetsEntrepreneurship (Semi-Final- Summative Test)
Total questions: 80
Worksheet time: 40mins
Name
Class
Date
1.
What is the primary factor in hiring manpower?
a)
Age
b)
Experience and skill
c)
Location
d)
Personal background
2.
What is the most important consideration when selecting raw materials?
a)
Cost
b)
Availability
c)
Quality
d)
Supplier credibility
3.
A company must consider ________ when choosing machines for production.
a)
availability of spare parts
b)
color of the machine
c)
number of employees
d)
office location
4.
What does "Method" refer to in the 4 M’s of Production?
a)
The process of turning raw materials into finished products
b)
The number of employees hired
c)
The amount of capital invested
d)
The color scheme of the company’s branding
5.
Why is quality control important in material selection?
a)
It helps lower production costs
b)
It ensures customers receive high-quality products
c)
It speeds up production
d)
It makes hiring employees easier
6.
Which of the following is an example of the "Manpower" aspect of a business?
a)
Using high-quality steel in construction
b)
Training employees to improve efficiency
c)
Purchasing new production machines
d)
Selecting a new production method
7.
Why should a company evaluate the cost of machines before purchasing?
a)
To ensure they do not overspend on unnecessary equipment
b)
To make the factory look more modern
c)
To increase the number of employees
d)
To attract more customers
8.
A food production company wants to improve its production efficiency. Which "M" should they focus on first?
a)
Manpower
b)
Material
c)
Machine
d)
Method
9.
A business model includes:
a)
The cost of raw materials only
b)
How a business creates and delivers value
c)
The total number of employees in a company
d)
The physical location of a business
10.
What is an advantage of a strong business model?
a)
It helps a company plan for long-term success
b)
It ensures there are no financial risks
c)
It guarantees instant profit
d)
It eliminates the need for skilled employees
11.
What is the primary difference between revenue and profit in a business forecast?
a)
Revenue is the total income before expenses, while profit is the income after expenses have been subtracted.
b)
Revenue includes only sales income, while profit includes all types of income.
c)
Revenue is recognized only when earned, whereas profit is recorded when cash is received.
d)
Revenue refers to both costs and income, while profit is just the total income.
12.
If an entrepreneur wants to forecast monthly revenue, which factor is most critical to adjust for seasonality in sales?
a)
Economic condition of the country
b)
Changes in community demographics
c)
Competitor market share and trends
d)
Expected increases or decreases in revenue for specific months based on historical data
13.
Which of the following is an example of an internal factor that affects revenue forecasting for a business?
a)
The global economy’s growth rate
b)
Competition pricing strategies
c)
The plant’s production capacity
d)
Shifting customer preferences due to fashion trends
14.
Jean's business model includes a 50% markup on the cost of t-shirts and jeans. If the cost of a t-shirt is 90 pesos, and she applies the markup, what would the selling price of one t-shirt be?
a)
135 pesos
b)
145 pesos
c)
180 pesos
d)
90 pesos
15.
Given that Jessa's daily revenue is 3,420 pesos, what is the projected monthly revenue, assuming 30 days in a month?
a)
102,600 pesos
b)
89,000 pesos
c)
1,200,000 pesos
d)
102,000 pesos
16.
In the context of forecasting costs, which expense is considered an operating expense for Jean's online selling business?
a)
The cost of purchasing ready-to-wear items
b)
The shipping fees for transporting the goods
c)
The payment for internet connection
d)
The markup added to the selling price of t-shirts
17.
If Jessa sold 180 pairs of jeans in January, with each pair costing 230 pesos, what would be the total cost of goods sold for jeans in January?
a)
41,400 pesos
b)
20,700 pesos
c)
18,500 pesos
d)
5,400 pesos
18.
What is the correct formula to compute the Cost of Goods Sold (COGS) for a merchandising business?
a)
Beginning Inventory + Net Purchases + Freight-out - Ending Inventory
b)
Beginning Inventory + Net Purchases + Freight-in - Ending Inventory
c)
Net Purchases + Freight-in - Beginning Inventory
d)
Merchandise Sales - Operating Expenses
19.
If a business underestimates its costs in a forecast, what is the likely result?
a)
Higher profits than expected
b)
Running out of money or overspending
c)
Increased customer satisfaction
d)
Lower product quality
20.
A clothing store expects a 20% increase in sales next month. What should the business do to prepare for this based on cost forecasting?
a)
Ignore the sales increase since it’s only an estimate
b)
Reduce the number of products in stock
c)
Increase inventory and labor costs to meet demand
d)
Lower product prices immediately
21.
A bakery sold ₱50,000 worth of bread in one month. The cost of ingredients and other direct expenses amounted to ₱30,000. What is the gross profit?
a)
₱80,000
b)
₱50,000
c)
₱30,000
d)
₱20,000
22.
A bakery has total sales revenue of ₱500,000 and a cost of goods sold (COGS) of ₱300,000. What is the Gross Profit Margin Rate?
a)
40%
b)
50%
c)
60%
d)
70%
23.
What does a higher operating profit margin indicate?
a)
Better control over costs and profitability
b)
Increased product prices
c)
Decrease in the cost of goods sold
d)
High sales volume
24.
Which of the following does NOT affect Gross Profit?
a)
Operating Expenses
b)
Cost of Goods Sold
c)
Net Sales
d)
Interest Expense
25.
If John''s Trading has a Gross Profit of ₱157,000 and Operating Expenses of ₱90,000, what is the Operating Profit Margin?
a)
₱47,000
b)
₱157,000
c)
₱67,000
d)
₱90,000
26.
A small business invests ₱50,000 in a new marketing campaign. After a year, the business earns an additional profit of ₱20,000 from this investment. What is the Return on Investment (ROI)?
a)
20%
b)
40%
c)
50%
d)
60%
27.
A business with a Quick Ratio greater than 1 indicates:
a)
It is liquid and can meet short-term obligations.
b)
It is not liquid.
c)
It has high inventories.
d)
It is not profitable.
28.
What does the Net Profit Margin indicate?
a)
The percentage of gross profit relative to sales
b)
The percentage of net profit relative to sales
c)
The operating efficiency of the business
d)
The liquidity of the business
29.
If a business has an ROI of 10%, it means:
a)
It earned 10% on total assets.
b)
It has 10% more expenses than revenue.
c)
It earned 10% of net income for every peso invested.
d)
Its investments are not profitable.
30.
What is the main purpose of liquidity ratios?
a)
To measure the profitability of the business
b)
To assess how well the business can pay its short-term obligations
c)
To determine the business's ROI
d)
To calculate gross profit
31.
What is the first step in business implementation?
a)
Progress monitoring
b)
Setting clear objectives
c)
Hiring employees
d)
Advertising
32.
Which of the following is a legal requirement for businesses in the Philippines?
a)
DTI Registration
b)
Business website
c)
Hiring an accountant
d)
Buying a company vehicle
33.
Which of the following is NOT a variable cost?
a)
Materials used
b)
Direct labor
c)
Rent
d)
Packaging
34.
Why is time allocation important in business implementation?
a)
It helps entrepreneurs avoid setting objectives
b)
It allows businesses to reduce costs
c)
It ensures tasks are completed efficiently
d)
It eliminates the need for professional advice
35.
Which business record is crucial for measuring profit and loss?
a)
Employee attendance sheet
b)
Marketing strategy plan
c)
Financial records
d)
Lease agreement
36.
What is the primary consequence of operating a business without proper legal registration?
a)
Higher sales
b)
Increased employee benefits
c)
More customers
d)
Legal penalties and fines
37.
Which of the following is a fixed cost in business?
a)
Raw materials
b)
Direct labor
c)
Advertising
d)
Packaging
38.
Which government agency is responsible for tax registration in the Philippines?
a)
SEC
b)
DTI
c)
PhilHealth
d)
BIR
39.
Why is record-keeping essential for business success?
a)
It helps businesses hide transactions
b)
It prevents customer complaints
c)
It allows businesses to measure performance and meet legal requirements
d)
It eliminates the need for accounting
40.
A business owner wants to monitor expenses and keep track of transactions. What should they do?
a)
Ignore financial records
b)
Set up an accounting system
c)
Stop keeping receipts
d)
Focus only on advertising
41.
What is the primary purpose of bookkeeping?
a)
To analyze company trends
b)
To systematically record financial transactions
c)
To file tax reports
d)
To prepare budgets
42.
Which of the following accounts normally has a credit balance?
a)
Cash
b)
Accounts Receivable
c)
Revenue
d)
Prepaid Expenses
43.
What type of journal entry records the purchase of office supplies on credit?
a)
Cash Payment Entry
b)
Sales Entry
c)
Adjusting Entry
d)
Accounts Payable Entry
44.
Which of these statements about a ledger is true?
a)
It is a book of original entry
b)
It summarizes transactions recorded in the journal
c)
It replaces financial statements
d)
It does not use debits and credits
45.
Why is a trial balance prepared?
a)
To verify that total debits equal total credits
b)
To record adjusting entries
c)
To create a financial statement
d)
To track cash flow
46.
What is the impact of an incorrect journal entry?
a)
It has no effect
b)
It can cause errors in financial statements
c)
It improves company profitability
d)
It reduces tax liabilities
47.
How does an adjusting entry for depreciation affect the financial statements?
a)
Increases cash balance
b)
Decreases asset value
c)
Reduces liabilities
d)
Increases revenue
48.
What is unearned revenue classified as before adjustment?
a)
Asset
b)
Expense
c)
Liability
d)
Revenue
49.
How do accrued expenses affect financial statements?
a)
Increase liabilities
b)
Decrease revenue
c)
Increase assets
d)
Have no impact
50.
Which of these is NOT a function of a bookkeeper?
a)
Recording transactions
b)
Preparing tax returns
c)
Reconciling accounts
d)
Maintaining financial records
51.
Which of the following is not considered an expense on the income statement?
a)
Salaries
b)
Rent
c)
Equipment purchase
d)
Utilities
52.
What does the income statement summarize?
a)
Assets, liabilities, and equity
b)
Revenues, expenses, and profits or losses
c)
Sales and inventory levels
d)
Cash flows
53.
Which of the following is not an example of a current asset?
a)
Accounts Receivable
b)
Cash
c)
Property
d)
Inventory
54.
In which section of the balance sheet would you find long-term loans?
a)
Current Assets
b)
Current Liabilities
c)
Non-current Assets
d)
Non-current Liabilities
55.
Which of the following best describes the term "net income"?
a)
Total assets minus liabilities
b)
Total revenues minus total expenses
c)
Total equity minus liabilities
d)
Cash flow from operations minus capital expenditures
56.
What is the purpose of the contra asset account in a balance sheet?
a)
To record the owner's equity
b)
To reduce the value of the asset it is associated with
c)
To represent unearned income
d)
To track accumulated revenues
57.
Which of the following is an example of a non-current liability?
a)
Accounts payable
b)
Short-term bank loan
c)
Mortgage payable
d)
Accrued expenses
58.
What does the balance sheet primarily reflect about a business?
a)
The profitability over a period of time
b)
The owner’s equity at the start of the period
c)
The financial condition at a specific point in time
d)
The amount of sales made during the period
59.
Which of the following would not be included in the current liabilities section of the balance sheet?
a)
Accounts payable
b)
Accrued expenses
c)
Notes payable due in 6 months
d)
Long-term bank loans
60.
If a company reports 20,000 Php in revenue and 15,000 Php in expenses, what is the net income?
a)
20,000 Php
b)
10,000 Php
c)
15,000 Php
d)
5,000 Php
61.
What is the main purpose of an income statement?
a)
To determine whether a business has earned more revenue than expenses
b)
To list all the assets and liabilities of a business
c)
To determine the business's current cash flow position
d)
To calculate the total equity of a company
62.
Which of the following is NOT typically included as an expense in an income statement?
a)
Salaries
b)
Rent
c)
Depreciation
d)
Owner’s capital investment
63.
In the equation Net Income/Loss = Revenue - Expenses, what does "expenses" include?
a)
Only taxes paid
b)
Only fixed costs like rent
c)
Costs directly related to business operations
d)
Owner’s withdrawals from the business
64.
If a company has 10,000 Php in revenue and 12,000 Php in expenses, what is the net result?
a)
2,000 Php profit
b)
2,000 Php loss
c)
Break-even
d)
22,000 Php loss
65.
What is the financial statement that reports a business’s total revenue and expenses for a specific period?
a)
Balance Sheet
b)
Cash Flow Statement
c)
Income Statement
d)
Statement of Owner’s Equity
66.
Which of these would be classified as a non-operating expense in an income statement?
a)
Advertising costs
b)
Loan interest payments
c)
Employee salaries
d)
Raw material purchases
67.
What is the best indicator of a business's financial health?
a)
Net profit or loss from the income statement
b)
Total revenue from the income statement
c)
The owner’s equity on the balance sheet
d)
The number of assets owned by the business
68.
Which of the following accounts is considered a revenue account?
a)
Utilities Expense
b)
Rent Expense
c)
Sales Revenue
d)
Supplies Expense
69.
What is the result of subtracting expenses from revenue?
a)
Profit or Loss
b)
Gross Margin
c)
Operating Income
d)
Equity
70.
A company spends 20,000 Php on advertising but earns 80,000 Php in sales revenue. What is the net income from this transaction?
a)
20,000 Php
b)
80,000 Php
c)
60,000 Php
d)
10,000 Php
71.
Which of the following financial statements shows the profitability of a business over a specific period?
a)
Balance Sheet
b)
Cash Flow Statement
c)
Income Statement
d)
Sales and Cash Receipts Summary
72.
What does the Debt Ratio measure?
a)
The percentage of assets financed by equity.
b)
The ability of the business to meet long-term obligations.
c)
The percentage of a company's assets financed by debt.
d)
The company's ability to generate revenue from its assets.
73.
If a business has a Return on Equity (ROE) of 10%, this means that:
a)
For every 1 pesos of equity, the company generates 10 pesos in profits.
b)
For every 100 pesos of equity, the company generates 10 pesos in profits.
c)
The business has a high amount of debt compared to its equity.
d)
The company has no equity.
74.
The Quick Ratio excludes which of the following from the calculation?
a)
Cash
b)
Accounts Receivable
c)
Inventory
d)
Current Liabilities
75.
Which of the following is true about a company’s equity?
a)
It represents the money owed to creditors.
b)
It shows the total value of a business’s assets.
c)
It is the residual value after liabilities are subtracted from assets.
d)
It is the total debt the company has.
76.
In the Cash Flow Projections, which of the following is an example of financing activity?
a)
Cash from selling inventory
b)
Cash from borrowing a loan
c)
Cash used for purchasing new equipment
d)
Cash from collecting accounts receivable
77.
Which ratio is used to measure how well a company can meet its short-term obligations?
a)
Debt to Equity Ratio
b)
Current Ratio
c)
Operating Income Ratio
d)
Return on Assets (ROA)
78.
If a company has a negative net income on the Income Statement, it indicates that the business:
a)
Is not generating enough revenue to cover its expenses.
b)
Is making a profit after expenses.
c)
Has increased its assets.
d)
Has decreased its liabilities.
79.
What is the primary purpose of a Balance Sheet?
a)
To show the company’s revenue for a specific period.
b)
To track cash inflows and outflows.
c)
To report the company’s financial position at a specific point in time.
d)
To analyze the company’s profitability.
80.
A company with a high Debt to Equity Ratio is considered to have:
a)
Low financial risk and high profitability.
b)
High financial risk and may face difficulty in paying interest.
c)
A strong liquidity position.
d)
A healthy balance between debt and equity financing.
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