Long Exam

Fundamentals of Accountancy, Business, and Management 2

Grade 12
S.Y. 2018-2019

Name: _______________________________ Score: ___________

Section: _____________________________ Date: ___________

TEST I. MULTIPLE CHOICE. Read each question carefully and select the best answer. Write
your choice on the answer sheet.

1. Natalie Sod Company generated revenues amounting to ₱100, 000. Expenses for the year
totaled ₱76,000. How much is the company’s net income for the year?
a. ₱ 176,000 c. ₱ 88,000
b. ₱ 24,000 d. ₱ 26,000

2. Assets that cannot be collected, sold, used up within a year.

a. Current Assets c. Intangible Assets
b. Tangible Assets d. Noncurrent Assets

3. Liabilities that fall due one-year after year-end date.

a. Current Liabilities c. Accrued Liabilities
b. Non-Current Liabilities d. Long-Term Liabilities

4. A contra asset deducted to accounts receivable that represents the estimated amount that the
company may not be able to collect from delinquent customers.
a. Accumulated Depreciation c. Purchase Return and Allowances
b. Sales Return and Allowances d. Allowance for Doubtful Accounts

5. A contra asset represented under the portion of SFP deducted to Property, Plant and
Equipment.
a. Accumulated Depreciation c. Purchase Return and Allowances
b. Sales Return and Allowances d. Allowance for Doubtful Accounts

6. Wah Lah total liabilities amounted to ₱10,000. Total equity had an ending balance of ̈́₱20,000.
How much is the total assets?
a. ₱10,000 c. ₱30,000
b. ₱20,000 d. ₱40,000

7. An entity whose assets, liabilities, income and expenses are centered or owned by only one
person.
a. Sole Proprietorship c. Partnership
b. Corporation d. Company

8. This statement also known as balance sheet which includes amounts of the company’s total
assets, liabilities and owner’s equity.
a. Statement of Comprehensive Income c. Statement of Financial Position
b. Statement of Changes in Equity d. Cash Flow Statement

9. All changes, whether increases or decreases to the owner’s interest are reported here.
a. Statement of Comprehensive Income c. Statement of Financial Position
b. Statement of Changes in Equity d. Cash Flow Statement

10. Contains the result of the company’s operations for a specific period of time which is called net
income or net loss.
a. Statement of Comprehensive Income c. Statement of Financial Position
b. Statement of Changes in Equity d. Cash Flow Statement
 11. A summary of the cash inflows and outflows that brought cash to its ending balance.
a. Statement of Comprehensive Income c. Statement of Financial Position
b. Statement of Changes in Equity d. Cash Flow Statement

12. Activities intended to generate income for the business.

a. Financing Activities c. Operating Activities
b. Investing Activities d. Eliminating Activities

13. This is where discounts given to customers who pay early are recorded.
a. Sales Returns c. Sales Discount
b. Purchase Returns d. Purchase Discount

14. Also known as trend analysis, a technique for evaluating a series of financial statement with the
purpose of determining the increase or decrease that has taken place.
a. Horizontal Analysis c. FS Analysis
b. Vertical Analysis d. SFP Analysis

15. Also called common-size analysis, technique that expresses each financial statement item as a
percentage of base amount.
a. Horizontal Analysis c. FS Analysis
b. Vertical Analysis d. SFP Analysis

16. Assuming that the service income amounted to ₱50,000 and the expenses is ₱53,800. What is
the result of the operations of the business for the year?
a. Net Profit- ₱ 3,800 c. Net Loss- ̈́₱103,800
b. Net Profit- ̈́₱103,800 d. Net Loss - ₱ 3,800

17. Freight-in is the shipping cost or the transportation cost to be paid by the buyer. This is classified
as ________.
a. Asset c. Revenue
b. Liability d. expense

18. Mina Las Merchandising had the following accounts at year end: Cash- 250,000; Accounts
Payable- 50,000; Office Supplies – 10, 000. Compute for the company’s current assets.
a. ₱ 300,000 c. ₱ 260,000
b. ₱ 310,000 d. ₱ 240,000

19. Love Beast invested ₱ 20,000 for his extra service (2016). The company had a net income of
₱10,000. At the end of the year, he withdrew ₱18,000 for personal use. Compute for the ending
capital balance of Love Beast for the year 2016.
a. ₱48,000 c. ₱12,000
b. ₱28,000 d. ₱10,000

20. Kaye Tulin and Kae Bagal invested ₱20,000 and ₱30,000 respectively. At the third month they
both add ₱50,000 and withdrew 12,000 at the end of the year. What is the kind of their business
according to ownership?
a. Partnership c. Corporation
b. Sole Proprietorship d. Duo

TEST II. Categorize each cash flow transaction. Write Operating, Investing and Financing.
21. Cash received from sale of a building.
22. Cash paid for salaries.
23. Cash received from getting a loan from the bank.
24. Cash withdrawal by the owner
25. Cash paid to acquire a new truck
26. Cash received from services rendered.
27. Cash paid to suppliers
 28. Cash paid to purchase equipment
29. Depreciation expense
30. Additional investment by the owner.
TEST III. Identification. Identify whether the following accounts are Current Assets,
Noncurrent Assets, Current Liabilities, and Noncurrent Liabilities
31. Utilities Payable
32. Cash
33. Mortgage Payable
34. Merchandise inventory
35. Land
36. Accounts Payable
37. Building
38. Accounts Receivable
39. Loans Payable
40. Notes Payable
TEST IV. Computation. Calculators are allowed.
A. Prepare a common-size analysis (vertical analysis) for Vina Baluktot Store. (10 points).

Base Amount % of assets

41._________
Cash ₱ 200,000 42.
Accounts Receivable 400,000 43.
Inventory 250,000 44.
Equipment 550,000 45.
Total Assets ₱1,400.000 46.

Accounts Payable ₱ 300,000 47.

Notes Payable 400,000 48.
Owner, Capital 700,000 49.
Total Liabilities and Equity ₱1,400.000 50.

B. 51-70. (20 pts) Prepare a Statement of Financial Position for Dean Nakot (December
31, 2017)
Cash- 5,000 Equipment-17,000
Accounts Receivable -2,600 Accounts Payable- 22,400
Supplies – 2,300 Loans Payable- 77,500
Building- 113,000 Owner’s Equity- 40,000
TEST V. Essay (5 pts). What is the importance of Financial Analysis?