ENTREPRENEURSHIP

James 1:5 “If any of you lacks wisdom, he should ask God, who gives generously to all without
finding fault, and it will be given to him.”

Name: __________________________________________ Yr. & Section: _______________________Score:_________

Test I. Multiple Choice. Select the best answer. Write your answer on the space provided before each number.
Write your answer in CAPITAL LETTER. NOTE: ERASURES are NOT allowed.

_____1. It is a document that describes the various external and internal elements involved in starting a business or in
expanding an existing venture, amidst a dynamic business environment.
a. Financial Plan b. Business Plan c. Organizational Plan d. Marketing Plan
_____2. How many major sections are needed in making a business plan?
a. 12 b. 10 c. 15 d. 25
_____3. It is a document containing the marketing objectives, marketing strategies, and the activities that will be
undertaken to execute these strategies.
a. Financial Plan b. Business Plan c. Organizational Plan d. Marketing Plan
_____4. It is the section of the business plan that identifies the form of ownership the business will take.
a. Financial Plan b. Business Plan c. Organizational Plan d. Marketing Plan
_____5. This is the simplest form of business as it is owned solely by an individual or one person.
a. Partnership b. Corporation c. Sole Proprietorship d. Company
_____6. It is a business organization owned jointly by two or more persons who share the assets, liabilities and profits.
a. Partnership b. Corporation c. Sole Proprietorship d. Company
_____7. It is a kind of business organization wherein five or more persons register a business entity. A business that is
chartered by a state and legally operates apart from its owners; owned by stockholders who have purchased units
or shares of the company.
a. Partnership b. Corporation c. Sole Proprietorship d. Company
_____8. It is a resources controlled by the enterprise as a result of past transactions or events and from which future
economic benefits are expected to flow to the enterprise.
a. Assets b. Liabilities c. Capital d. Income
_____9. It is the present obligations of the enterprise arising from past transactions or events.
a. Assets b. Liabilities c. Capital d. Income
_____10. It is the residual interest in the assets of the enterprise after deducting all its liabilities and can be so called as
net worth or equity.
a. Assets b. Liabilities c. Capital d. Income
_____11. It is the inflow of the future economic benefits that increase equity, other than the contributions or investments
from owners.
a. Assets b. Liabilities c. Capital d. Income
_____12. It refers to the withdrawals made by an owner from the enterprise.
a. Drawings b. Expenses c. Debit d. Credit
_____13. It refers to the outflows or consumption of future economic benefits that decrease equity other than distributions
or dividends paid to owners.
a. Drawings b. Expenses c. Debit d. Credit
_____14. It is the means by which the information accumulated and processed in financial accounting is periodically
communicated to the users.
a. Financial Statement b. Income Statement c. Balance Sheet d. Journal
_____15. It is a formal statement showing the financial position of the enterprise as of a particular date.
a. Financial Statement b. Income Statement c. Balance Sheet d. Journal

Test II. Enumeration. Give what is being asked.

A. Three common forms of business ownership D. Five columns of journal entry

16. ______________________ 33. ______________________
17. ______________________ 34. ______________________
18. ______________________ 35. ______________________
36. ______________________
B. Elements of Financial Statements 37. ______________________
19. ______________________
20. ______________________ E. Accounting Equations
21. ______________________ 38.
22. ______________________
23. ______________________
24. ______________________
25. ______________________ 39.

C. Users of financial statements

26. ______________________
27. ______________________ 40.
28. ______________________
29. ______________________
30. ______________________
31. ______________________
32. ______________________
Test III. Solving. Show your solution. (Use separate sheet if necessary)
A. Mr. Kim Reyes invested P20,000 cash as initial capital for her coffee shop business. It took charge of P5,000 payable
for furniture and equipment it is using. Formulate an accounting equation before answering. (41-45)

B. Ms. Lowella Sanchez invested assets worth P50,000 for flower shop business. However, actual assets she invested is
only 25,000. Formulate an accounting equation before answering. (46-50)

C. Mrs. Caryl Duran gave cash and goods for a buy-and-sell business amounting P100,000. However, a P28,000 notes
payable by her to RCBC back in assumed by the business. Formulate an accounting equation before answering.
(51-55)

D. Prepare a simple INCOME STATEMENT of Gerard Santos for the period of December 1 to December 31, 2016.
(56-60)
a. Total Service Revenue P100,000
b. Advertising expense 3,500
c. Rent expense 1,500
d. Salaries expense 25,000
e. Other expenses 16,500

E. From the data Maritime Enterprise below, prepare a simple BALANCE SHEET as of February 28, 2017: (61-65)
a. Cash on hand P 8,000
b. Accounts Receivable 875
c. Delivery equipment for business 16,525
d. Furniture & Fixtures 2,555
e. Accounts Payable to Ace Commercial 9,960
f. Initial capital of P15,000 decrease by personal withdrawal of 3,000
g. Profit for the month 5,995

***End of the Test***

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“In Polomolok NHS, we are eager to learn, happy to share.”
Ma’am Merben 