Summative Test

Fundamentals of Accountancy, Business and Management 2

First Quarter, First Semester S.Y. 2020 – 2021

NAME:_________________________________________________ Grade XII – ABM SCORE:_________

I. MULTIPLE CHOICES. Read each statement carefully and encircle the letter of your answer.
1. Also known as the balance sheet. This statement includes the amounts of the company’s total
assets, liabilities, and owner’s equity which in totality provides the condition of the company on a
specific date.
A. Statement of Financial Position C. Statement of Cash Flow
B. Statement of Comprehensive Income D. Statement of Changes in Equity
2. ____________ are those accounts that are presented under the assets portion of the SFP but are
reductions to the company’s assets.
A. Depreciation C. Contra assets
B. Interest D. Cost
3. ________________ are assets that can be realized (collected, sold, used up) one year after year-
end date.
A. Current assets B. Fixed Assets C. Old properties D. Receivables

4. Liabilities that do not fall due (paid, recognized as revenue) within one year after year-end date.
A. Current liabilities B. Noncurrent liabilities C. Notes Payable D. Equity
5. Learning is Fun Company had current assets amounting to Php 100,000. Noncurrent assets for the
year totaled Php 76,000. How much is the company’s total assets?
A. P24,000 B. P176,000 C. P167,000 D. P100,760
6. Happy Selling Company’s total liabilities amounted Php 10,000. Total equity had an ending balance
of Php 20,000. How much is total assets?
A. P30,000 B. P10,000 C. P20,000 D. P40,000
7. Happy Selling’s had the following accounts at year end: Cash-250,000, Accounts Payable-70,000,
Prepaid Expense-15,000. Compute for the company’s current assets.
A. P320,000 B. P265,000. C. P 85,000 D. P335,000
8. Happy Selling’s Accounts Receivable amounted to Php 500,000. Prepaid Expense and Unearned
Income totaled Php 30,000 and Php10,000 respectively. Cash balance amounted to Php 100,000
while Accounts Payable and Inventory totaled to Php 20,000 and Php 10,000 respectively. How much
is the company’s current assets?
A. P600,000 B. P640,000 C. P620,000 D. P650,000
9. (Refer to No. 8) How much is the Current liabilities?
A. P20,000 B. P10,000 C. P30,000 D. P60,000
10. If assets are Php17,000 and owner's equity is Php10,000, liabilities are ___________________.
A. P27,000 B. P17,000 C. P7,000 D. P10,000
11. At the end of the first month of operations for Juana’s Delivery Service, the business had the
following accounts: Accounts Receivable, Php1,200; Prepaid Insurance, Php500; Equipment,
Php36,200 and Cash, Php40,650. On the same date, Juana owed the following creditors: Nena’s
Supply Company, Php12,000 (due in 6 months); Maria’s Equipment, Php9,500 (due after 2
years).Current liabilities are _________.
A. P12,000 B. P9,500 C. P21,500 D. P500
12. If during the year total assets increase by Php75,000 and total liabilities decrease by Php16,000, by

how much did owner's equity increase/decrease?

A. Decrease by P 91,000 C. Increase by P 91,000

B. Decrease by P59,000 D. Increase by P59,000
13. Which form of business organization puts the least risk on its owners?
A. Single proprietorship B. Partnership C. Corporation D. Cooperative
14. Which form of business organization is owned by only one person?
A. Sole Proprietorship B. Partnership C. Corporation D. Cooperative
15. Decreases in equity aside from withdrawals of the owners
A. Net loss B. Payment of Dividends C. Purchases D. Payment of Liability
16. A type of business that is owned by at least 2 persons.
A. Partnership B. Corporation C. Venture D. Merger
17. A firm had owner’s capital of ₱150,000 in 2013 and ₱187,500 in 2013. The increase in owner’s
capital from 2013 to 2014 is
A. 12.5 percent B. 20 percent C. 25 percent D. 125 percent.
18. If long-term liabilities are ₱300,000 and total assets are ₱2,100,000, what percentage of total assets
are long-term liabilities?
A. 7 percent B. 16.7 percent C. 12.5 percent D. 14.3 percent
(For Nos. 19 - 24 see the attached Financial Statement)
19. Which statement best describes Merdana Trading Ltd.’sacid-test ratio?
A. Greater than 1
B. Equal to 1
C. Less than 1
D. None of the above
20. Merdana Trading Ltd.’s inventory turnover during 2014 was (amounts rounded)
A. 6 times.
B. 7 times
C. 8 times.
D. Not determinable from the data given.
21. During 2014, Merdana Trading Ltd.’s days’ sales in receivables ratio was (amounts rounded)
A. 34 days
B. 30 days
C. 32 days
D. 28 days
22. Which measure expresses Merdana Trading Ltd.’s times-interest-earned ratio? (amounts rounded)
A. 54.7% B. 20 times C. 34 times D. 32 times
23. Merdana Trading Ltd.’s rate of return on equity can be described as

A. 33.55% B. 16.72% C. 35.29% D. None of the above

24. Merdana Trading Ltd.’s gross profit rate can be described as

A. 34% B. 19% C. 20% D. 66%
25. Merdana Trading Ltd.’s rate of return on asset can be described as
A. 33.55% B. 16.72% C. 35.29% D. None of the above
II. Preparation of Financial Statements.
A. Prepare a Statement of Financial Position using the following accounts ( in account form):
Use your name as the Business Name and the date is today. (10 points)

Cash – 5,000

Loans Payable – 77,500

Accounts Receivable – 2,600

Supplies – 2,300

Equipment – 17,000

Owner’s equity – 40,000

Accounts Payable – 22,400

Building – 113,000

B. Prepare a single-step Statement of Comprehensive Income using the following: (10 points)

Revenues – 20,000

Rent expense – 3,000

Salaries expense – 4,000

Utilities expense – 2,000

Create a Business Name for a Service Business, and the date is the end of the current month.

C. Prepare a Vertical Analysis for SFP II.A (5points)