FABM2 QTR1, QUIZ NO, 1

I. Name the accounts being described. Write your answers in a separate answer sheet.
1. _____ are equities or government bonds bought by the business to be held only for a
short time.
2. _____ includes coins, currencies, checks, bank deposits and other cash items used for
operations of the business.
3. _____ is the amount collectible to customers who made purchases on account or
credit.
4. _____ is the amount of interest collectible on promissory notes received from
customers and clients.
5. _____ are assets held long-term by a business for the growth of wealth through
putting assets in different baskets where it can either earn or appreciate in amount.
6. _____ is the structure that is used by the business as its office, store, or factory for its
operations.
7. _____ items or machinery needed by the business to run its operations.
8. _____ are debts that come from purchases from suppliers for goods or services.
9. ______ are advance payment from customers who are about to avail the business’
products or services.
10. _____ is a long-term debt of a business arising from borrowings from an individual or
another entity by issuing a certificate of indebtedness.

II. Write CA if an account is a Current Asset, NCA if Non-current Asset, CL if Current Liabilities,
NCL of Non-current Liabilities, and OE if Owner’s Equity.

1. Mortgage payable 6. Patent

2. Accrued expenses 7.Equipment
3. Prepaid insurance 8. Building
4. Accounts payable 9. Ann Capital
5. Salaries payable 10. Merchandise Inventory

III. Below are the accounts of Agatha Trading for the year ended December 31, 2019.
Accounts Payable ₱ 100,000.00
Accounts receivable 140,000.00
Capital 1,840,000.00
Cash 1,000,000.00
Inventories 450,000.00
Long term debt 300,000.00
Notes Payable 100,000.00
Notes Receivable 100,000.00
Property, Plant & Equipment 550,000.00
Supplies and other prepayments 100,000.00

Instructions: Answer the following questions.

a. How much is the total current asset of the entity?
b. How much is the total non current asset of the entity?
c. How much is the total current liability of the entity?
d. How much is the total non current liability of the entity?
e. How much is the total asset of the entity?

Marketable securities
2.Cash
3.Accounts receivable
4.Interest receivable
5.Long term investment
6.Building
7.Equipment
8.Accounts payable
9.Unearned income
10.Bonds payable

1.Mortgage payable
2.Prepaid expense
3.Report form
4.Accumulated depreciation
5.Notes payable