1) Find the profit of Weng's water refilling business with revenue of ₱56,000,000 and costs of ₱42,000,000.
a. ₱14,000,000✔
b. ₱140,000
c. ₱1,400,000
d. ₱14,000
2) Norma's food stall has costs of ₱2,900. Her total food sales are ₱11,600. What percent of her food sales do the food costs represent?
a. 20%
b. 25%✔
c. 27%
d. 30%
3) Marvin needs 250 cookies for a buffet. He will make oatmeal raisin, macaroons, and chocolate chunk cookies. He wants 25% of the cookies to be oatmeal raisin and 15% of the cookies to be macaroons. How many chocolate chunk cookies must Marvin bake?
a. 150✔ 250*.25=62.5 250-100=150
b. 125. 250*.15=37.5
c. 140. =100
d. 100
4) If a shirt is marked down 25%, what will the purchase price be?
a. ₱25
b. 75% of its original price✔
c. 50% off
d. ₱75
5) A customer places a special order through 480 Furniture Store. The list price in the manufacturer's catalog is ₱1,600. 480 Furniture receives a 35% trade discount. What is the net price for the furniture order?
a. ₱560
b. ₱1,535
c. ₱1,565
d. ₱1,040✔
6) Ron's Manufacturing offers discounts on most of its products. What is the trade discount rate on an item with a list price of ₱16.79 and a net price of ?₱2.42?
a. 22%
b. 26%✔
c. 54%
d. 74%
7) What type of financial statement summarizes the information concerning the cash inflows and outflows during a particular period?
a. Balance sheet
b. Statement cash flows✔
c. Income statement
d. Statement of retained earning
8) Closing entries are made:
a. so that financial statements can be made
b. in order to terminate the business as an operating entity
c. in order to transfer net income/loss and owner's drawings to the owner's capital account✔
d. so that all assets, liabilities, and owner's capital accounts will have zero balances when the next accounting period starts
9) Suppliers who allow business to receive goods and services before paying for them are known as:
a. Finance companies
b. Leasing companies
c. Trade companies✔
d. Trade debtors
10) Which of the following is an example of external finance?
a. Disposal by a business of surplus assets
b. Bank loan✔
c. Day to day cash from sales to customers
d. Money loaned from trade suppliers through extended credit
11) A shareholder sells his shares for more than he paid for them. This is known as:
a. Capital gain✔
b. Profit on disposal
c. God deal
d. Capital allowance
12) The point at which the level of sales of a business exactly equals its costs is known as the:
a. Break-even point ✔
b. Insolvency point
c. Start-up stage
d. Profit point
13) Working capital is:
a. Current Assets-Current Liabilities✔
b. Notes Payable
c. Current Liabilities
d. Accounts Payable
14) Which of the following does not appear in a Balance Sheet?
a. Cash
b. Equipment
c. Accounts Payable
d. Depreciation Expense✔
15) Adjusting entries are used to:
a. close the books
b. record accruals
c. correct errors
d. all of the listed answers are correct✔
16) Net Income or Profit results from:
a. revenues exceeding expenses✔
b. assets exceeding liabilities
c. expenses exceeding revenues
d. liabilities exceeding assets
17) Assets are normally recorded at:
a. cost✔
b. appraised value
c. market value
d. management's estimated value
18) Which financial report measures results for a period of time?
a. Balance Sheet
b. Income Statement✔
c. Trial Balance
d. All of the listed answers
19) Using the double entry system, every business transaction _________.
a. affects two or more accounts✔
b. affects only asset accounts
c. affects only one account
d. affects only income statement
20) A debt incurred by buying goods or services from a supplier on credit is called _________.
a. property
b. accounts payable✔
c. an expense
d. accounts receivable
