ENTREPRENEURSHIP

SUMMATIVE TEST # 4
QUARTER 2/ MODULE 12-13

NAME: _________________________________ Grade & Section : _______________ Score: ___________

MULTIPLE CHOICE: Directions: Read and understand carefully each sentence in every item. Choose the letter of the
correct answer. Write your answer before the number
_______ 1. Which called is an estimation of revenue and expenses over a future period of time and usually monitored and
evaluated on a periodic basis?
A. Budget B. Forecast C. Plan D. All of the choices
_______ 2. What do you call the process of using historical data as inputs to make informed estimates that are predictive in
determining the direction of future trends?
A. Budgeting B. Forecasting C. Planning D. Organizing
_______ 3. What do you call the cost incurred by the business in their effort to generate revenue?
A. Cost B. Expenses C. Money D. Revenue
_______ 4. Which financial statement will allow you to determine the gross profit for a retailer or manufacturer?
A. Balance sheet B. Statement of cash flow C. Income statement D. Statement
of shareholder’s equity
_______ 5. The users of financial records who are interested to know whether the company they are working for is
financially stable or not.
A. Owners B.. Employees C. Creditors D. Labor Unions
_______ 6. It is the science of recording history that refers to the process of accumulating, organizing, storing and
accessing financial information base of an entity.
A. Bookkeeping B. Financing C. Accounting D. Marketing
_______ 7. If income exceeds business expenses , _________If expenses exceed income, ______
A. Profit, Loss B. Loss, Profit C. Profit, Profit D. Loss, Loss
_______ 8. Which of the following formula represent the computation of Profit?
A. Revenue – Cost = Profit B. Income – Cost = Profit
C. Total Revenue – Total Expenses = Profit D. Income – Expenses = Profit
_______ 9. What do you call a cost that does not change regardless with the decrease or decrease of goods and services
produced or sold?
A. Fixed cost B. Operating Expenses C. Variable cost D. Other expenses
_______10. On Friday afternoon while checking the financial records, the bookkeeper of Lopez drug store noticed a
deficiency between the amount of cash and the records of sales for that day, She immediately investigate the
discrepancy and found out something , on what functions of accounting do the given situation falls under?
A. Protecting properties of the business
B. Communicating results to various parties in connected with the business
C. Communicating results to various parties in connected with the business
D. Keeping systematic record of business transactions.
_______11. . What is the proper way of journalizing the given transaction?
Mr. Brin purchase an office furniture (tables) for cash, 10,500.00 last February 22, 2017
A .February 22, 2017 B. February 22, 2017
Debit : Cash P 10.500.00 Debit: Office Furniture P 10.500.00
Credit :Office Furniture P.10,500.00 Credit: Cash P 10.500.00
To record the purchase of office furniture To record the purchase of tables
C. Debit: Office Furniture P 10.500.00 D. February 22, 2017
Credit: Cash P 10.500.00 Credit: P 10.500.00
To record the purchase of tables Debit: P 10.500.00
February 22, 2017 To record the purchase of tables
_______12. Arrange the sequence of steps in generating business reports
I. Determine the scope of the report IV. Analyze, and weigh the supporting information

II. Consider the target audience V. Determine the solution, findings and/or recommendation

III. Gather and organize the supporting VI. Determine the report format
information

A. II, III, IV, V, VI B. V, III, IV, I, II, V C. I, II, III, IV, VI, V D. III, V, IV, I, II, V
_______13. Which is not TRUE about business report?
A. Business reporting must be done only if it is required by the government.
B. It monitors what is happening in the business
C. It can used for securing additional capital by attracting new investors.
D. It serve the purpose of showing what the business has achieved compared to what was planned
For Items 14-18
The Bela Company was established three (3) years ago and the operation of the business is going smoothly.
Last year 2020, the company recorded a sales of their product amounting to 800,000.00 pesos and recorded
cost of sale 35% of the generated sales revenue. The company forecasted their 2021 sales based on last year
2020 data. The company projected a 25% increase on 2021 sales and cost of sales remained the same. The
operating expenses for the next year 2021 will be 200,000.00 and other expenses amounting to 25,000.00.
2020 2021
Sales 800,000.00 1,000,000.00
Less: Cost of Sale 280,000.00 280,000.00
Gross Profit 520,000.00 720,000.00
Less: Operating Expenses 200,000.00
Operating Income 520,000.00
Less: Other Expenses 25,000.00
Net Income 495,000.00
_______14. What is the cost of sale for the year 2020? A. 250,000.00 B. 280,000.00 C.
520,000.00 D. 550,000.00
_______15. What is the gross profit for the year 2020? A. 250,000.00 B. 280,000.00 C.
520,000.00 D. 550,000.00
_______16. What is the projected sale for 2021? A. 200,000.00 B. 280,000.00 C.
600,000.00 D. 1,000,000.00
_______17. What is the projected operating income for 2021? A. 250,000.00 B. 350,000.00 C.
450,000.00 D. 520,000.00
_______18. What is the projected net income for 2021? A. 225,000.00 B. 245,000.00 C.
495,000.00 D. 450,000.00
In June 3 Mrs. Carmelita Dela Cruz, paid cash worth P50,000 for the purchase of supplies.
___19. A. Cash
Date Particular Debit Credit B. Supplies
June 3 Supplies 50,000.00 C. Equipment
19. ? 50,000.00 D. Accounts Payable
To record the amount paid for the office supplies purchased
____20. A. Cash
A day after June 4, Mrs. de la Cruz bought office equipment on account worth B. Supplies
P32,000. C. Equipment
June 4 20 . ? 32,000.00 D. Accounts Payable
Accounts Payable 32,000.00
To record the amount paid for the purchase of equipment on
account
For the first month of operations, XYZ company has a total revenue of P15,000.00 incurring P18,000.00 of total
expenses.
For the second month, its revenue increased to P20,000.00 with P16,000.00 expenses.
On the third month of operation, the company has a revenue of P19,000.00 and a total expenses of P19,000.00.
_______ 21. How much is the profit/loss of XYZ Company in first month?
A. 3,000 profit B. 3,000 loss C. 15,000.00 profit D.no profit/loss
_______ 22. How much is the profit/loss of XYZ Company in second month?
A. 4,000 profit B. 4,000 loss C. 20,000.00 profit D. no profit/loss
_______ 23. How much is the profit/loss of XYZ Company in third month?
A. 5,000 profit B. 5,000 loss C. 19,000.00 profit D. no profit/loss

Based on the Income Statement of Kristin Angel Department Store during the month of December
Find the following ________________ 24. Gross profit ________________ 25. Net profit/loss