WorksheetsABM Q1
Total questions: 126
Worksheet time: 42mins
A product costs ₱500 and is marked up by 20%. What is the selling price?
₱600
₱520
₱550
₱625
If a store gives a 10% discount on a ₱1,000 item, how much is the sale price?
₱900
₱950
₱1,100
₱1,000
What is 25% of ₱800?
₱150
₱175
₱200
₱250
If a worker earns ₱250 per day, how much will they earn in 5 days?
₱1,000
₱1,250
₱1,500
₱2,000
A store bought a bag for ₱300 and sold it for ₱450. What is the mark-up rate?
33.33%
50%
66.67%
75%
Which is a correct example of a direct proportion?
Price vs. Quantity
Time vs. Speed
Salary vs. Hours worked
Distance vs. Fuel cost
A business pays ₱120,000 yearly rent. What is the monthly rent?
₱10,000
₱12,000
₱15,000
₱9,000
What is the break-even point if fixed costs = ₱10,000, selling price = ₱500, and variable cost = ₱300?
10 units
25 units
50 units
100 units
Compute gross pay: 40 hours/week at ₱100/hour.
₱3,000
₱4,000
₱4,500
₱5,000
If net earnings are ₱10,000 and deductions are ₱2,000, what is the gross pay?
₱12,000
₱10,000
₱8,000
₱9,000
A shirt priced at ₱600 is on a 15% discount. What is the sale price?
₱510
₱520
₱540
₱450
What is the percentage increase from ₱200 to ₱250?
20%
22%
25%
30%
What is ⅗ expressed as a percent?
50%
60%
75%
80%
A salesman earns 10% commission on ₱50,000 sales. What is his commission?
₱5,000
₱4,500
₱6,000
₱7,000
How much is 30% of ₱2,000?
₱600
₱500
₱550
₱650
If a product is marked up by 25% and the selling price is ₱1,250, what is the cost price?
₱950
₱1,000
₱1,050
₱1,100
What is the simple interest on ₱10,000 at 5% per annum in 2 years?
₱1,000
₱500
₱1,500
₱2,000
The ratio of boys to girls in a class is 3:2. If there are 15 boys, how many girls are there?
10
5
20
25
A product originally priced at ₱800 is discounted by 25%. How much is the discount?
₱150
₱200
₱250
₱300
A company's monthly electricity bill is ₱12,000. What is the annual cost?
₱144,000
₱120,000
₱130,000
₱150,000
A worker earned ₱3,500 in gross pay and had ₱700 in deductions. What is the net pay?
₱2,500
₱2,800
₱2,900
₱3,000
Which graph is best for showing business sales trends over time?
Bar graph
Line graph
Pie chart
Table
A firm's liabilities are ₱30,000 and equity is ₱20,000. What are the assets?
₱50,000
₱60,000
₱40,000
₱45,000
Compute net profit: Revenue ₱15,000; Cost of goods ₱9,000; Operating expenses ₱3,000.
₱2,000
₱3,000
₱4,000
₱6,000
A ₱5,000 loan earns 6% interest per annum. How much is the interest after 3 years?
₱600
₱900
₱1,000
₱1,200
An item costing ₱750 is marked down by 10%. What is the sale price?
₱675
₱700
₱725
₱750
If you save ₱500 monthly, how much will you save in a year?
₱6,000
₱5,500
₱6,500
₱7,000
A pie chart is best used to show:
Trends over time
Comparison of categories
Proportions in a whole
Frequency distribution
If fixed cost = ₱12,000 and contribution margin = ₱400/unit, what's the break-even volume?
20
30
40
50
Compute the percentage change: From ₱1,200 to ₱1,500.
20%
25%
30%
33%
A ₱20,000 investment earns 8% annual compound interest. What is the value after 3 years?
₱24,000
₱25,970
₱26,000
₱25,000
A loan of ₱100,000 is amortized over 5 years at 6% interest. What is the annual payment?
₱22,000
₱23,742
₱21,218
₱25,000
A wholesaler gives a 20/10/5 discount series on a ₱10,000 item. What is the net price?
₱6,800
₱6,960
₱6,900
₱7,200
If a job pays ₱60/hour for the first 40 hours and 150% overtime after, how much for 50 hours?
₱3,600
₱3,900
₱4,200
₱4,500
A company's income increased from ₱1.2M to ₱1.6M. What is the percent increase?
30%
33.33%
25%
20%
A ₱5,000 investment grows to ₱7,500 in 4 years. What is the compound annual growth rate (CAGR)?
10.67%
13.44%
12.59%
11.20%
A trade discount of 30% followed by 20% is equivalent to a single discount of:
50%
44%
46%
36%
A worker earns 8% on the first ₱100,000 in sales and 10% thereafter. Sales = ₱180,000. Total commission?
₱16,000
₱17,000
₱15,000
₱18,000
You borrow ₱50,000 at 10% compounded quarterly for 2 years. Maturity value?
₱60,000
₱61,050
₱61,525
₱62,100
An item has a cost of ₱600 and a 40% margin. What is the selling price?
₱840
₱1,000
₱960
₱750
A machine worth ₱120,000 depreciates 10% annually (declining balance). Value after 3 years?
₱87,480
₱97,200
₱96,000
₱100,000
Compute the effective annual rate (EAR) for 12% compounded quarterly.
12.55%
12.36%
12.75%
12.00%
If P = ₱25,000, r = 5%, t = 4 years, what is the compound interest?
₱5,250
₱5,525.63
₱6,000
₱4,925
Break-even: Fixed cost = ₱15,000; selling price = ₱500; variable cost = ₱250. BE quantity?
50
40
45
60
₱10,000 investment earns ₱3,000 in 2 years. Simple interest rate?
12.5%
15%
18%
10%
A ₱150,000 student loan at 5% simple interest over 3 years. Total due?
₱172,500
₱180,000
₱165,000
₱157,500
₱50,000 grows to ₱70,000 in 5 years. CAGR?
6.96%
7.12%
8.45%
5.93%
₱30,000 in a fund earning 9% compounded annually for 10 years. Future value?
₱71,246.54
₱69,000
₱68,300
₱65,500
NPV of ₱50,000 investment yielding ₱15,000/year for 5 years at 10% discount?
₱13,721.20
₱12,345.60
₱11,100.25
₱15,600.30
Annual income = ₱960,000; tax rate = 30%. After-tax income?
₱672,000
₱690,000
₱650,000
₱700,000
₱50,000/month salary + 13th month + 10% bonus. Annual income?
₱715,000
₱720,000
₱730,000
₱740,000
Which of the following best describes finance?
Study of production and operations
Management of money and investments
Analysis of marketing strategies
Study of organizational behavior
What is the primary goal of financial management?
Maximizing sales
Reducing expenses
Maximizing shareholder wealth
Increasing employee benefits
Which of the following is a financial institution?
Grocery store
Commercial bank
Accounting firm
Law firm
Which ratio best measures a company's ability to pay short-term obligations?
Debt-to-equity ratio
Gross profit ratio
Current ratio
Return on equity
The vertical analysis of an income statement expresses each item as a percentage of:
Net profit
Total assets
Net sales
Total liabilities
Which financial statement shows a company's profitability over a period?
Statement of Financial Position
Statement of Cash Flows
Statement of Changes in Equity
Statement of Comprehensive Income
What does the debt-to-equity ratio measure?
Return on investment
Liquidity
Capital structure
Gross margin
Which budget forecasts the expected inflows and outflows of cash?
Production budget
Cash flow budget
Sales budget
Capital expenditure budget
What is working capital?
Total assets - total liabilities
Current assets - current liabilities
Total equity - current liabilities
Net income - non-cash expenses
Which of the following is not a component of the time value of money?
Present value
Inflation
Interest rate
Future value
Which investment instrument typically offers the highest risk?
Time deposits
Treasury bonds
Common stocks
Insurance policies
Which of the following is an example of equity financing?
Bank loan
Sale of bonds
Owner's investment
Trade credit
Which interest calculation includes interest on previously earned interest?
Simple interest
Compound interest
Effective interest
Discounted interest
A company pays its creditors using funds from:
Capital contributions
Revenue
Loans
Liabilities
Which budget helps predict revenue?
Capital budget
Sales budget
Production budget
Collection budget
The process of comparing financial statement items from different periods is called:
Vertical analysis
Ratio analysis
Forecasting
Horizontal analysis
What does a high inventory turnover ratio indicate?
Overstocking
Slow sales
Efficient inventory management
High receivables
An income statement reports:
Assets and liabilities
Revenues and expenses
Cash inflows and outflows
Owner's equity
Which of the following reduces the risk of investing in a single company?
Bonds
Diversification
Insurance
Bank deposits
The formula for present value is based on:
Simple interest
Compounding
Discounting
Budgeting
Which activity is not a primary function of a financial manager?
Investment decision
Production planning
Financing decision
Dividend decision
What is the advantage of long-term financing?
Lower cost
Flexibility
Extended repayment period
Less paperwork
Which investment is considered least risky?
Real estate
Stocks
Mutual funds
Treasury bills
Net profit margin is calculated as:
Net profit / total assets
Net profit / total equity
Net profit / net sales
Net sales / net profit
Which financial ratio is best used to measure a company's ability to pay its short-term obligations?
Return on Equity
Debt-to-Equity Ratio
Current Ratio
Gross Profit Margin
If an accrued expense is not recorded, what is the effect on the financial statements?
Assets overstated, liabilities understated
Expenses understated, net income overstated
Assets understated, equity understated
Liabilities overstated, equity overstated
Which of the following best represents the matching principle?
Recognizing revenue when cash is received
Recording expenses when paid
Matching expenses to the revenue they help generate
Using historical cost for assets
Which adjusting entry is required for unearned revenue that has now been earned?
Debit Cash, Credit Revenue
Debit Revenue, Credit Unearned Revenue
Debit Unearned Revenue, Credit Revenue
Debit Accounts Receivable, Credit Revenue
What is the effect of an owner withdrawing cash for personal use on the accounting equation?
Decrease in assets and liabilities
Increase in assets and capital
Decrease in assets and capital
Increase in liabilities and capital
Which of the following is considered a contra asset account?
Prepaid Rent
Accumulated Depreciation
Unearned Revenue
Allowance for Salaries
In a periodic inventory system, what is the correct formula to compute cost of goods sold?
Beginning Inventory + Purchases - Ending Inventory
Sales - Ending Inventory
Beginning Inventory - Purchases + Sales
Purchases - Sales + Ending Inventory
Which account is credited when goods are sold on account using the perpetual inventory system?
Inventory
Accounts Receivable
Sales Revenue
Purchases
What is the purpose of preparing a post-closing trial balance?
To verify the accuracy of adjusting entries
To list all temporary accounts
To verify that permanent accounts are balanced
To ensure debits equal credits for temporary accounts
Which form of business organization has the ability to issue shares of stock?
Sole Proprietorship
Partnership
Corporation
Cooperative
Which account normally requires an adjusting entry at year-end?
Utilities Payable
Prepaid Insurance
Equipment
Service Revenue
What is the primary objective of adjusting entries?
To record business transactions
To correct accounting errors
To match revenues and expenses to the correct period
To close temporary accounts
Which type of business uses a cost of goods sold account?
Service
Merchandising
Consulting
Banking
A reversing entry is usually prepared for:
Errors in journal entries
Accruals and deferrals
Depreciation
Bank reconciliations
Which financial statement reflects the effects of both income and owner withdrawals?
Statement of Cash Flows
Statement of Financial Position
Statement of Changes in Equity
Income Statement
Which type of account is 'Bad Debts Expense'?
Asset
Contra Asset
Liability
Expense
Which of the following is not a characteristic of a corporation?
Unlimited liability
Transferable ownership
Separate legal personality
Ability to issue shares
What happens to the accounting equation when a business pays a creditor?
Assets increase, liabilities increase
Assets decrease, liabilities decrease
Assets increase, equity decreases
Liabilities increase, equity increases
Which of the following accounts would not appear on a post-closing trial balance?
Accumulated Depreciation
Cash
Revenue
Capital
The balance of which account is closed to Income Summary?
Cash
Equipment
Service Revenue
Drawings
What is the primary use of horizontal analysis in financial statements?
Compare different companies
Compare an item across time periods
Analyze market competition
Examine employee performance
Which financial ratio indicates how effectively inventory is managed?
Return on Assets
Current Ratio
Inventory Turnover
Net Profit Margin
A liability that arises from the purchase of goods or services on credit is:
Accounts Receivable
Unearned Revenue
Accounts Payable
Accrued Income
In a trial balance, what does it mean if total debits and total credits do not match?
The business is not profitable
An error exists in the accounting records
The accounting cycle is complete
It's time to close accounts
What entry is made when depreciation expense is recorded?
Debit Depreciation Expense, Credit Accumulated Depreciation
Debit Equipment, Credit Depreciation Expense
Debit Accumulated Depreciation, Credit Expense
Debit Cash, Credit Equipment
Which document initiates the recording of a business transaction?
Financial statement
Source document
Ledger
Trial balance
The balance sheet account that represents the owner's residual interest is:
Accounts Receivable
Revenue
Capital
Expense
Which error will not be revealed by a trial balance?
Transposing numbers in the same side
Omission of a transaction
Recording a debit as a credit
Misstating an amount
When a business receives payment in advance for services not yet rendered, it should:
Debit Service Revenue
Credit Unearned Revenue
Credit Cash
Debit Accounts Payable
The preparation of closing entries is done to:
Reset balances of temporary accounts
Report net income
Match expenses with revenues
Prepare adjusting entries
What is the primary purpose of accounting in business?
To eliminate losses
To record employee data
To provide financial information for decision-making
To regulate market prices
Which of the following is not an asset?
Accounts Payable
Cash
Inventory
Equipment
In a sole proprietorship, the owner's capital increases when:
Liabilities increase
Expenses are incurred
Revenue is earned
Assets decrease
Which document records the initial entry of a business transaction?
Ledger
Trial Balance
Journal
Invoice
The accounting equation is:
Assets = Liabilities - Capital
Assets + Liabilities = Capital
Assets = Liabilities + Capital
Liabilities = Assets + Capital
Which is an example of a current liability?
Bonds payable
Accounts payable
Land
Building
A merchandising business earns revenue by:
Selling services
Manufacturing products
Selling goods
Investing in stocks
Which account increases with a credit entry?
Cash
Salaries Expense
Accounts Receivable
Revenue
The Statement of Comprehensive Income shows:
Financial position
Profit or loss for a period
Owner's equity
Cash flow activities
A purchase invoice is used to record:
Cash sales
Credit purchases
Deposit slips
Owner investment
What does the ledger provide in accounting?
Summary of cash receipts
Details of transactions in each account
Original entry of business transactions
Bank statements
Which of the following is a form of business organization with limited liability?
Sole proprietorship
Partnership
Corporation
Cooperative
Which financial statement shows the financial position of a business on a specific date?
Statement of Comprehensive Income
Statement of Cash Flows
Statement of Changes in Equity
Statement of Financial Position
What is the normal balance of an expense account?
Debit
Credit
Zero
Varies
What is the main purpose of the trial balance?
Prepare taxes
Check equality of debits and credits
Show financial performance
Reconcile bank statements
Which of the following is not part of the accounting cycle?
Recording transactions
Preparing a budget
Posting to ledger
Preparing a trial balance
What account is debited when the owner invests additional cash into the business?
Capital
Cash
Revenue
Accounts Payable
What type of account is 'Prepaid Rent'?
Liability
Equity
Asset
Expense
Which of the following best describes depreciation?
Increase in asset value
Allocation of cost of an asset over time
Reduction of liabilities
Recognition of profit
What financial statement shows cash inflows and outflows?
Statement of Financial Position
Statement of Changes in Equity
Statement of Comprehensive Income
Statement of Cash Flows
Which account is affected when merchandise is sold on account?
Cash
Sales Revenue
Purchases
Rent Expense
