La Consolacion College Manila

Basic Education Department

Senior High

Name: _________________________________Grade & Section:_________________ Score:__________

Fundamentals of ABM 2
Practical Exercise No. 3

Topic: Statement of Comprehensive Income

Directions: Read and understand the question carefully. Write your answer in a separate sheet of paper.

THEORIES: True/ False

1. The Statement of comprehensive income shows information on an entity’s financial position during
the period.
2. A statement of comprehensive income that shows expenses by their function is said to have been
prepared using the multi-step approach.
3. The Statement of profit or loss and other comprehensive income is different from the income
statement.
4. The categories of expenses under the function of expense method include “Cost of sales,”
“Distribution costs,” and “Administrative expenses” only.
5. If profit is ₱100 while other comprehensive income is ₱80, total comprehensive income is ₱20.
6. A statement of comprehensive income that presents separately an entity’s cost of sales is said to
have been prepared using the single-step method.
7. The Statement of comprehensive income shows profit or loss only.
8. Losses incurred on sales of noncurrent assets are presented under “Administrative expenses.”

PROBLEMS
1-2. Use the following information for the next two questions: The following items were presented for the
purpose of determining comprehensive income:
Profit for the year 2,000
Increase in revaluation surplus 1,000
Remeasurements of the net defined benefit liability (asset) – loss (200)
Net change in translation of foreign operation (400)
Dividends declared (100)
Stock rights 300
1. How much is the other comprehensive income?
a. 400 b. 600 c. 800 d. 2,000
2. How much is the total comprehensive income?
a. 1,800 b. 2,200 c. 2,400 d. 2,800

3-4. Use the following information for the next two questions: The records of Goodmorning Sunshine Co.
show the following information:
Interest expense ₱24,000
Cost of inventories sold 600,000
Insurance expense 100,000
Advertising expense 20,000
Freight-out 10,000
Freight-in 4,000
Loss on sale of equipment 2,000
Legal and other professional fees 12,000
Rent expense (one-half occupied by sales department) 8,000
Sales commission expense 14,000
Doubtful accounts expense 16,000
3. How much is the total distribution (selling) costs?
a. 48,000 b. 56,000 c. 64,000 d. 108,000
4. How much is the total administrative expenses?
a. 24,000 b. 132,000 c. 226,000 d. 668,000

5. The records of GREGORIANS EVENING PARTY Co. showed the following information:
Increase in accounts receivable 100,000
Collections on accounts 800,000
 Cash sales 120,000
Increase in inventory 40,000
Freight-in 14,000
Freight-out 13,000
Decrease in accounts payable 60,000
Disbursements for purchases 480,000
Purchase discounts 4,000
How much is the gross profit for the year?
a. 662,000 b. 656,000 c. 648,000 d. 626,000

6. The records of JOSEFACE Co. showed the following information:

Accounts receivable, net, Jan. 1, 20x1 40,000
Accounts receivable, net, Dec. 31, 20x1 160,000
Accounts receivable turnover 4:1
Inventory, Jan. 1, 20x1 120,000
Inventory, Dec. 31, 20x1 60,000
Inventory turnover 3:1
How much is the gross profit for the year?
a. 120,000 b. 130,000 c. 132,000 d. 146,000

7. The records of FULGELLIAM Co. showed the following information:

Decrease in accounts payable 60,000
Disbursements for purchases 440,000
Increase in raw materials 100,000
Direct labor is 50% of raw materials used in production
Manufacturing overhead is 20% of prime costs
Increase in work-in-process inventory 40,000
Decrease in finished goods inventory 50,000
How much is the cost of goods sold?
a. 380,000 b. 464,000 c. 514,000 d. 546,000

END