Cuyapo National High School

Senior High School Curriculum

ACCOUNTANY, BUSINESS AND MANAGEMENT (ABM)

FUNDAMENTALS OF ACCOUNTANCY, BUSINESS & MANAGEMENT 2

Summative Test No. 1
Name: _________________________________________________ Date: _________________
Grade & Section: _______________________________________ Score: ________________

Part I. Fill in the blanks with the correct answers. Choose the letter of your answers from the box. All answers
should be in capital letters.

A. Real Accounts F. Losses K. Gains

B. Cash G. Cost of goods sold L. Sales
C. Contra Sales H. Financial Statements M. Non-current assets
D. Contra Purchase I. Current Assets N. Income
E. Account Form J. Report Form O. Revenues

____________1. Are revenues derived from the sale of goods in a merchandising.

____________2. Are accounts that decrease the sales account.
____________3. Are accounts in the general ledger that do not close at the end of the accounting year because
there are balances retained in the account
____________4. Kinds of expenses from other activities of the business
____________5. Form of SFP is also known as horizontal balance which consist of two columns.
____________6. Are Assets of an entity that are not likely to be realized within a year.
____________7. It is one of the most common current assets.
____________8. Form of SFP which is also known as vertical balance which consist of one column.
____________9. It is the cost of the merchandise that a retailer or manufacturer has sold
____________10. Are accounts that decrease the purchase account.
____________11. Are income derived from other activities of the business
____________12. It is the increase in the economic benefits of the entity that may be a result of enhancement or
inflow of asset or such decrease in the liability that cause equity to increase
____________13. Are income generated from the primary operations of the business.
____________14. Are assets of an entity that can be converted within one year of the normal operating cycle of
business.
____________15. These are the end products of the accounting system in any company for one operating cycle.

II. Multiple choice. Use the following information to answer questions 16-20 below:

Account Name Debit Credit

Sales 750,000.00
Sales Returns and Allowances 15,000.00
Sales Discounts 10,000.00
Purchases 170,000.00
Purchase Returns & Allowances 20,000.00
Transportation in 30,000.00
Selling Expenses 75,000.00
General & Administrative Expenses 275,000.00

In addition, beginning merchandise inventory was 55,000 and ending inventory was 35,000.

16. Net Sales for the period were

a. 755,000 b. 725,000 c. 735,000 d. 775,000

17. Net purchases for the period were

a. 150,000 b. 180,000 c. 210,000 d. 430,000

18. Cost of goods sold for the period was

a. 235,000 b. 160,000 c. 200,000 d. 170,000
19. Profit for the period was
a. 525,000 b. 450,000 c. 250,000 d. 175,000

20. If beginning and ending inventories were ignored in computing profit, then profit would be
a. Understated by 55,000 b. overstated by 20,000 c. understated by 35,000 d. understated by 20,000

III. Problems. Presented below are accounts of NuBear Merchandising for December 31, 2017.

Cash P ?
Account Receivable ` 59,400
Allowance for Bad Debts 5,000
Notes Receivable 39,600
Interest Receivable 5,000
Merchandise Inventory 247,500
Prepaid Insurance 6,000
Office Supplies 30,000
Delivery Equipment 225,000
Accum.Dep-Delivery Equipment 72,000
Furniture and Fixtures 180,000
Accum. Dep.-Furniture & Fixtures 67,500
Accounts Payable 45,000
Accrued Expenses 8,000
Notes payable (due in 3 years) 105,000
N, Capital ?
N,Drawing 50,000

During the year, the owner made an additional investment of P 20,000 and withdrawals amounting to 50,000. N,
capital beginning is P 617,600. Net income for the year is P 75,000.

Required: 1. Prepared the SFP and determine the amount of cash. (10 points)
2. Prepare the Statement of Changes in Owners Equity (SoCE). (10 points)

IV. Problem. Mr. Carlo Perez established a consultancy firm. The following data are taken from the records of
C. Perez Consultancy Services for the year 2017. (10 points)

Consultancy fees receivable from clients P 500,000

Cash receipt from clients 600,000
Depreciation 40,000
Proceeds of Metrobank loan 350,000
Cash purchase of van 800,000
Provision for Bad Debts 28,000
Additional Investment 900,000
Dividends income received 23,000
Rent income received 32,000
Payment of operating expenses 975,000
Principal long-term loan paid 600,000
Cash withdrawal of owner 125,000
Proceeds from sale of land 950,000

Required: Determine the net cash flow from financing activities

Good luck!!!