Diagnostic Exam

Republic of the Philippines
Department of Education
Schools Division Office of Olongapo City
TAPINAC SENIOR HIGH SCHOOL
East Tapinac, Olongapo City
Email address: tapinac-shs@deped-olongapo.com;
Tel No. (047) 224-5998
FUNDAMENTALS OF ACCOUNTING, BUSINESS AND MANAGEMENT 2
DIAGNOSTIC EXAM
Name:____________________________________ Year Level:___________ Score:___________ Date: ___________
Direction: Encircle the letter of the correct answer.
1. Information contained in the financial statements is useful to the

a. Owners of the firm only
b. Creditors and customers of the firm only
c. Owners of the firm, creditors and customers of the firm only
d. None of the above
2. The Statement of Comprehensive Income provides information about

a. The results of the business operation
b. The resources acquired by the firm, including where the resources come from
c. The functioning of the accounting system
3. The Statement of Financial Position provides information about

a. The results of the business operation
b. The resources acquired by the firm, including where the resources come from
c. The functioning of the accounting system
4. What financial statements are prepared “as of the” end of the accounting period?
a. Statement of Comprehensive Income only
b. Statement of Financial Position and Statement in Changes of Equity
c. Statement of Comprehensive Income, Statement of Financial Position and Statement of Changes in Equity
5. Which of the following items would not have any effect on the income statement?
a. Revenue from service rendered
b. Salary Expense
c. Drawing made by the owner
6. Revenues are
a. The using up of the firm’s assets
b. A special kind of growth in the firm’s assets
c. A special kind of decrease in the firm’s assets
7. The normal reporting practice in the balance sheet for an asset such as delivery equipment is to
a. Subtract the accumulated depreciation from the cost of the asset
b. Add the accumulated depreciation to the cost of the asset
c. Report only the cost of the asset.
8. Information about the earning power of the firm is reported on the

a. Statement of Comprehensive Income
b. Statement of Changes in Equity
c. Statement of Financial Position
9. The sources of the firm’s assets are reported on the

a. Statement of Comprehensive Income
b. Statement of Changes in Equity
1
“The greatest ASSET is FAITH and
the greatest LIABILITY is FEAR”
Tel No. (047) 224-5998
c. Statement of Financial Position
10. Statement of Financial Position shows

a. The accumulated revenues and expenses
b. The changes in the owner’s equity
c. A list of all the assets of the firm
11. An item not usually found on a Statement of Financial Position

a. Accounts Receivable
b. Allowance for Bad Debts
c. Interest Expense
12. The sources of assets presented on a Statement of Financial Position are

a. Capital only
b. Liabilities only
c. Liabilities and capital
13. Preparation of financial statements will be made easier with the aid of a
a. Trial balance
b. Worksheet
c. Ledger
14. The Statement of Comprehensive Income can be presented in

a. Single – step form
b. Multi – step form
c. Either a or b
15. The Statement of Financial Position can be presented in

a. Account form
b. Report form
c. Either a or b
16. Which account is not a liability account?

a. Accounts Payable
b. Accrued Expenses
c. Cash
17. Which account increases equity?

a. Revenues
b. Withdrawals
c. Treasury Stock
18. An example of cash equivalent is

b. Certificate of Deposits
c. Notes Receivable
2
Tel No. (047) 224-5998
19. You plan to sell books for P50 each. The book cost P10 each, your rent is P1,500 and all other fixed expenses are P500.
How many books do you need to sell to make P2,000 each month?
a. 40
b. 50
c. 80
20. A current asset that is convertible to cash within 3 months can be referred to as
a. Cash asset
b. Intangible Asset
c. Cash Equivalent
21. Purchase plus beginning inventory minus ending inventory equals?

a. Amount of Sales
b. Gross Profit
c. Cost of Goods Sold
22. In Statement of Comprehensive Income, gross profit is always equal to

a. Sales – Expenses
b. Income – Expenses
c. Sales – Cost of Goods Sold
23. The Statement of Financial Position heading will specify a

a. Period of time
b. Point in time
c. Neither A nor B
24. On December 1, ABC Co. hired Juanita Perez to begin working on January 2 at a monthly salary of P4,000. ABC's balance
sheet of December 31 will show a liability of
a. 4,000
b. 48,000
c. No Liability
25. ABC Co. has current assets of P50,000 and total assets of P150,000. ABC has current liabilities of P30,000 and total
liabilities of P80,000. What is the amount of ABC's owner's equity?
a. 120,000
b. 30,000
c. 70,000
26. ABC Co. performed services for Client Kay in December and billed Kay P4,000 with terms of net 30 days. ABC follows
the accrual basis of accounting. In January ABC received the P4,000 from Kay. In January ABC will debit Cash, since cash
was received. What account should ABC credit in the January entry?
b. Service Revenue
c. Owner’s Equity
d. None of the Above
27. Amounts earned by a company in its main operating activities are

a. Revenue
b. Gain
c. Interest
3
Tel No. (047) 224-5998
28. A company disposes of equipment that it no longer uses in its business. The amount received by the company is more
than the amount the asset is carried at in the accounting records. The company will report a(n)
a. Expense
b. Gain
c. Revenue
29. Net Sales minus the Cost of Goods Sold equals

a. Income from Operations
b. Gross Profit
c. Net Income
30. The combination of Selling Expenses and Administrative Expenses is referred to as

a. General Expenses
b. Operating Expenses
c. Total Expenses
31. The seller is responsible for the costs of shipping its goods to the buyer when the terms of the sale are FOB
a. Destination
b. Shipping Point
c. Freight Collect
32. Statement 1: Depreciation Expense is sometimes referred to as a noncash expense.

Statement 2: Both Land and Land Improvements will generally be depreciated.
a. Statement 1 is True
b. Both Statement are True
c. Both Statement are False
33. Statement 1: Financial statements report the fair market value of a company.
Statement 2: An asset's useful life is the same as its physical life?
a. Both Statement are True
b. Both Statement are False
c. Statement 2 is True
34. ABC Co. incurs cleanup expense of P500 on December 30. The supplier's invoice states that the P500 is due by January
10 and ABC will pay the invoice on January 9. ABC follows the accrual basis of accounting and its accounting year ends
on December 31. What is the effect of the cleanup service on the December balance sheet of ABC?
a. Asset Decreased
b. Liabilities Increased
c. No Effect on Owner’s Equity
35. A loan can be called a “short – term” loan if the period is…
a. Three years
b. Less than one year
c. Over one year
36. Current Liabilities need to be paid by

a. within one accounting cycle
b. beyond one accounting cycle
c. within six – months
d. none of the above
4
Tel No. (047) 224-5998
37. Which of the following statements describe transactions that would be recorded in the accounting system?
a. An exchange of an asset for a promise to pay
b. An exchange of a promise for another promise to pay
c. Both of the above
38. Which of the following describes how assets are listed on the balance sheet?
a. In Alphabetical order
b. In order or magnitude, lowest value to highest value
c. In order they will be used up or turned in cash
d. From least current to most current
39. If a company incorrectly records a payment as an asset, rather than as an expense, how will this error affect net income
in the current period?
a. Net income will be too high
b. Net income will be too low
c. Net income will not be affected by this error
d. It’s a mystery, nobody really knows what will happen
40. Which account is least likely to be debited when revenue is recorded?

a. Accounts Payable
b. Accounts Receivable
c. Cash
d. Unearned
Siblings Co. had the following account balances for the month of December 2016
Sales 15,000
Purchases 2,000
Purchase Returns 200
Freight In 100
Purchase Discounts 200
Purchase Allowances 50
Beginning Inventory 1,000
Freight Out 250
Sales Discount 2,500
Ending Inventory 500
Rent Expense 150
Communication Expense 75
Depreciation Expense 250
Accumulated Depreciation 100
Question 41 – 48
41. Net Sales

a. 15,000
b. 12,500
c. 2,500
42. Total Expenses

a. 725
b. 825
c. 925
5
Tel No. (047) 224-5998
43. Gross Profit from Operation
a. 12,500
b. 10,150
c. 9,425
44. Total Cost of Goods Available for Sale

a. 2,100
b. 1,850
c. 2,850
45. Cost of Purchases

a. 2,000
b. 2,100
c. 1,900
46. Cost of Goods Sold

a. 2,350
b. 2,550
c. 2,150
47. Net income

a. 9,245
b. 9,542
c. 9,425
48. Net Purchases

a. 1,850
b. 2,850
c. 2,100
49. At the end of the first month of operations for Juan’s Service Company, the business had the following accounts: Cash,
Php19,000; Prepaid Rent, Php500; Equipment, Php5,000 and Accounts Payable Php2,000. By the end of the month,
Jackson's had earned Php20,000 of Revenues, Php1,000 of Utilities Expenses and Php1,500 of Salaries Expenses.
Calculate the net income to be reported by the company for this first month.
a. 39,000
b. 18,500
c. 36,500
50. Using the above problem, what is the owner’s equity balance at the end of the month?
a. 17,500
b. 22,500
c. 22,000
51. It increases the owner’s equity without additional investment.

a. Sales
b. Gross Income
c. Expenses
d. Net Income
6
Tel No. (047) 224-5998
52. Beginning owner’s equity amounted to P 300,000. Net loss for the year totaled P 45,000. No additional investments
and withdrawals for the period. Compute for total increase in equity for the year.
a. 0
b. P 45,000
c. P 255,000
d. P 345,000
53. The financial statement that provides the net change in the cash balance of the company for a period.
a. Statement of Financial Position
b. Cash Flow Statement
c. Statement of Activity
d. Balance Sheet Statement
54. It is also called trend analysis, a technique for evaluating a series of financial statement data over a period of time.
a. Financial Statement analysis
b. Ratio Analysis
c. Horizontal Analysis
d. Vertical Analysis
55. Financial Statement Analysis that is also called common – size analysis, it is a technique that expresses each financial
statement item as a percentage of a base amount.
b. Ration Analysis
56. Financial statement analysis that expresses the relationship among items of financial statement data. The relationship
is expressed in terms of a percentage, a rate or a simple proportion.
b. Ratio Analysis
57. A report which compares the bank balance as per the company’s accounting record with the balance stated in the bank
statement.
a. Deposit
b. Bank Reconciliation Statement
c. Bank Statement
d. Withdrawal
58. Who are required to pay income tax in the Philippines?

a. A citizen in the Philippines, living in the Philippines.
b. A non – resident citizen with his income in the Philippines.
c. A foreigner living in the Philippines with his income in the Philippines.
d. A Foreign corporation with his income derived in the Philippines.
e. All of the above
59. A compensation earner who at the same time is engaged in business or practice of profession.
a. Non – resident individual who has no income derived in the Philippines.
b. Mixed Income earner
c. Overseas Filipino Worker whose earning is from abroad only.
d. Resident alien whose income is only from outside the country.
60. Juan Dela Cruz generated annual compensation income of P615,000. Statutory payments are as follows:
SSS - P 6,975.60
PhilHealth - P 5,250.00
Pag – Ibig - P 1,200.00
Total - 13, 425.60
7
Tel No. (047) 224-5998
Other Information:
Tax exempt – 13th month pay and other bonuses – P 50,000
Juan Dela Cruz is single with no dependent
Compute for the Net Taxable Income

a. P 491,574.40
b. P 50,000.00
c. P 13,425.60
d. 541,574.40
Prepared and submitted by:
Melvin P. Facturanan
Teacher II
Checked and Verified by:
Shermein F. Sunga
MT II/Subject Head
Approved by:
Sandy Cabarle, Ed.D

Principal II
8

Diagnostic Exam

Caricato da

Informazioni sul documento

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Diagnostic Exam

Caricato da

Copyright:

Formati disponibili

Republic of the Philippines

Name:____________________________________ Year Level:___________ Score:___________ Date: ___________

Direction: Encircle the letter of the correct answer.

1. Information contained in the financial statements is useful to the

2. The Statement of Comprehensive Income provides information about

3. The Statement of Financial Position provides information about

8. Information about the earning power of the firm is reported on the

9. The sources of the firm’s assets are reported on the

10. Statement of Financial Position shows

11. An item not usually found on a Statement of Financial Position

12. The sources of assets presented on a Statement of Financial Position are

14. The Statement of Comprehensive Income can be presented in

15. The Statement of Financial Position can be presented in

16. Which account is not a liability account?

17. Which account increases equity?

18. An example of cash equivalent is

21. Purchase plus beginning inventory minus ending inventory equals?

22. In Statement of Comprehensive Income, gross profit is always equal to

23. The Statement of Financial Position heading will specify a

27. Amounts earned by a company in its main operating activities are

29. Net Sales minus the Cost of Goods Sold equals

30. The combination of Selling Expenses and Administrative Expenses is referred to as

32. Statement 1: Depreciation Expense is sometimes referred to as a noncash expense.

36. Current Liabilities need to be paid by

40. Which account is least likely to be debited when revenue is recorded?

41. Net Sales

42. Total Expenses

44. Total Cost of Goods Available for Sale

45. Cost of Purchases

46. Cost of Goods Sold

47. Net income

48. Net Purchases

51. It increases the owner’s equity without additional investment.

58. Who are required to pay income tax in the Philippines?

Compute for the Net Taxable Income

Prepared and submitted by:

Checked and Verified by:

Sandy Cabarle, Ed.D

Potrebbero piacerti anche

Name:______________________________ Year Level:_ Score:_ Date: _____