Our Lady of Assumption College

N. Gonzales St. Pob. II Tanauan City Batangas

2nd Monthly Exam in Fundamentals of Accounting 2

I. IDENTIFICATION.
1. The business owned by two or more partners.
2. The amount of contributions given or will be given to the corporation in exchange for its common stocks.
3. The balance that reflects the par value of the issued common shares.
4. The second half of the stockholders equity.
5. The excess of the issue price over the par is reported as __________.
6. The simplest form of a business.
7. The most complex form of the business organization.
8. It is an important asset.
9. Refers to those that involve current assets and current liabilities.
10. Related to the main revenue-producing activities of the business.

II. Enumeration (For ABM 1 ONLY)

A. 1-3.Types of activities in Statement of Cash Flows.
4-8.Examples of financing activities.
9-14.Examples of operating activities
15-18.Examples of investing activities

B. For ABM 2 only. Modified TRUE or FALSE.

1. The SoCE is dated “as of the year ended”.
2. There are two equity accounts reported on the SoCE of a sole proprietorship namely, Owner, Owner Capital
and Owner’s drawing.
3. The number of capital accounts presented in a SoCe of partnership is equal to the number of partners.
4. The drawings account is used for sole proprietorship and corporation.
5. The partnership net income is allocated to each partners capital using the profit and loss sharing agreement
stated in the contract of partnership.
6. Paid in capital is the amount of contributions given to the corporation in exchange for the shares of stock.
7. All equity accounts have normal credit balances.
8. The capital stock account reports the proceeds from the issuance of the stocks.
9. The SoCe of a corporation presents the reconciliation from the beginning to the ending balances of all the
equity accounts.
10. Dividends distributed by corporation are credited against retained earnings.

III. Compute for the Net Income

Our Lady of Assumption College is owned and managed by Dr. Maximo Acierto. The balances of Dr.
Maximo Acierto, Capital is P700,000 and P800,000 on December 31, 2014 and December 31, 2015
respectively.Net income for 2014 is P 150,000. Dr. acierto did not make additional contribution to the
business in 2014. Determine the balance of Dr. Maximo Acierto,Drawings account on December 31,2014.

IV. State the “My Formula” in Operating Activities.

HONESTY is the BEST POLICY

G O D B L E S S !!!!!

Prepared by:
Ms. Rosa V. Banaira
Subject Teacher