Cavite School of St.

Mark

First Periodical Examination

Fundamentals of Accountancy, Business and Management 2
S. Y. 2019 – 2020

Name: __________________________________ Date: ______________________

Level/Section: ____________________________ Teacher: Mr. John Victor M. Monzon

I. IDENTIFICATION: Read the following statements carefully and identify what is being
described in each item. Choose the letter of the correct answer from the word bank and write it
on the space provided before each number.

A. Account Form G. Heading M. Report Form

B. Assets H. Liquidity N. Single Step
C. Current Assets I. Multiple Step O. Solvency
D. Current Liabilities J. Non-Current Assets P. Statement of Changes in Equity
E. Equity K. Non-Current Liabilities Q. Statement of Comprehensive Income
F. Financial Statement L. Periodicity R. Statement of Financial Position

______________ 1. These are the means of communicating the financial performance of a business
enterprise.
______________ 2. It is a snapshot of the company’s financial condition.
______________ 3. It is also referred to as the income statement.
______________ 4. These are assets that are expected to be realized within 1 year.
______________ 5. It shows the changes in the capital as a result of additional investment or
withdrawals by owner.
______________ 6. It refers to the economic resources owned by a business enterprise expected to be
realized in the entity’s normal operating cycle.
______________ 7. It refers to the claims of the creditors due to be settled within twelve months after
the balance sheet date.
______________ 8. It refers to obligations which are payable for a period longer than one year.
______________ 9. It is a form of balance sheet that follows the accounting equation where assets are
listed on the left-hand column of the report with the liabilities and owner’s equity listed
on the right-hand column.
______________ 10. It is a form of balance sheet showing in one straight column the assets, followed by
the liabilities and owner’s equity.
______________ 11. It is a type of Income Statement that shows the results of operations presenting
expenses according to function such as cost of sales, selling expenses, administrative
expenses.
______________ 12. It is a type of Income Statement that shows the results of operations presenting
expenses under one classification according to its nature.
______________ 13. It is an accounting concept being observed in the preparation of financial
statements which is indicated on the third line of the head-up statement.
______________ 14. It is the order by which accounts are arranged in the preparation of a balance sheet.
______________ 15. It is the first line of the head-up statement of the financial report.
II. CLASSIFICATION OF ACCOUNTS: Identify on which Financial Statement you can find each
given term. Write SFP for Statement of Financial Position, SCI for Statement of Comprehensive
Income, and SCE Statement of Changes and Equity on the space provided before each number.
__________ 16. Share Capital __________ 21. Sales
__________ 17. Cash __________ 22. Bonds Payable
__________ 18. Depreciation Expense __________ 23. Dividends
__________ 19. Cost of Goods Sold __________ 24. Accounts Receivable
__________ 20. Accounts Payable __________ 25. Other Income

III. MULTIPLE CHOICE: Complete the following statements. Choose the correct answer from
the choices and write it on the space provided before each number.
__________ 26. Which financial statement is composed of Assets, Liabilities and Equity?
a. Statement of Cash Flows
b. Statement of Financial Position
c. Statement of Changes in Equity
d. Statement of Comprehensive Income
__________ 27. What accounts are needed in preparation of the Statement of Changes in Equity?
a. Capital, Drawing, Asset and Liability
b. Capital, Asset, Liability and Expense
c. Additional Capital, Drawing, Net Income and Liabilities
d. Additional Capital, Drawing, Net Income, and Net Loss

__________ 28. What are the components of the header in a financial statement?
a. Total Income, Total Cash, and Total Asset
b. Name of Business and Total of Owner’s Equity and Liability
c. Name of Business, Name of Financial Statement and period covered
d. Total of assets, Name of Business, Number of Accounts, and Chart of accounts
For numbers 29 – 31, refer to the illustration below.
SOA Enterprises
Statement of Financial Position
As of December 31, 2010

ASSETS
Current Assets
Cash 987,555.00
Accounts Receivable 158,800.00
Supplies 95,000.00
Prepaid Insurance 150,000.00
Total Current Assets 1,391,355.00

Non- Current Assets

Equipment 750,000.00
Accumulated Depreciation (35,000.00)
Total Non- Current Asset 715,000.00

TOTA L ASSETS 2,106,355.00

LIABILITIES and OWNER'S EQUITY

Liabilities
Accounts Payable 85,744.00
Unearned Consulting Revenue 42,500.00
Salary Payable 19,850.00
Total Liabilities 148,094.00

Owner's Equity 1,958,261.00

TOTA L LIABILITIES and OWNER'S EQUITY 2,106,355.00

__________ 29. What is the amount of non-current assets?
a. 148,094
b. 715,000
c. 750,000
d. 1,391,355

__________ 30. Which of the following accounts has four components?

a. Assets
b. Liabilities
c. Current Assets
d. Owner’s Equity
__________ 31. Which information can you derived from the given statement of financial position?
a. Salaries are paid at the end of the period.
b. The business is fond of borrowing money.
c. All revenue rendered were collected in cash
d. Current Assets are enough to cover Current Liabilities
For numbers 32 – 35, refer to the illustration below.

__________ 32. What asset accounts are shown in the illustration above?
a. Supplies, Accumulated Depreciation, Cash, Equipment, Prepaid Insurance and
Account Receivable
b. Utilities Expense, Accumulated Depreciation, Cash, Equipment, Prepaid Insurance
and Account Receivable
c. Supplies, Accumulated Depreciation, Cash, Depreciation Expense, Insurance Expense
and Account Receivable
d. Supplies, Accumulated Depreciation, Rental Revenue, Equipment, Prepaid Insurance
and Account Receivable
__________ 33. What is the amount of net income?
a. 947,833
b. 1,007,833
c. 1,005,533
d. 1,132,833
__________ 34. What is the amount of total revenues?
a. 60,000
b. 1,256,982
c. 1,316,982
d. 1,442,882
__________ 35. What is the amount of total assets?
a. 1,007,833
b. 3,099,899
c. 4,032,233
d. 4,107,732
IV. PREPARATION OF FINANCIAL STATEMENT: Prepare the four (4) financial statements using
the details in adjusted trial balance below. Each financial statement is five (5) points. Be
guided by the scoring rubric.

5 4 3 2 1 0
The All items are 1 or 2 items 3 to 4 items More than 5 All items are
classification is classified are are items are misclassified
complete and correctly but misclassified misclassified misclassified and the parts
all the parts only some and only some and many and many are not
are present. parts are parts are parts are not parts are not present.
present. present. present. present.

The adjusted trial balance accounts of LaserJet Company are as follows for the year ending December 31,
2017:

Capital 710,000
Mortgage Payable 600,000
Property, Plant and Equipment 1,500,000
Trade and other Receivables 256,000
Prepaid Expenses 80,000
Bonds Payable 400,000
Cash 319,000
Investment in Trading Securities 100,000
Trade and Other Payables 545,000

Cash Transactions:
Collected Cash from Customers 520,000
Payment for Operating Expenses 400,000
Income from Interest 14,000
Income from Dividends 12,000
Income from Rent 13,000
Proceeds from bank loan 300,000
Payment for interest 30,000
Sale of Furniture 16,000
Purchase of Equipment 36,000
Additional investment from owner 100,000
Withdrawal made by owner 50,000
Payment of loan principal 200,000

Cash balance – January 1, 2014 60,000

Beginning Capital, January 1 500,000
Additional Investments 100,000
Jet Laser, Drawing 50,000

Service Income 800,000

Other Income 40,000
Expenses:
Employee Benefit Costs 250,000
Sales Commissions 90,000
Advertising 80,000
Supplies 70,000
Depreciation 60,000
Taxes and Licenses 50,000
Bad Debts 35,000
Miscellaneous 5,000
Other Expense 10,000
Finance Cost 30,000
36-40. Statement of Comprehensive Income (Single-step)

41-45. Statement of Changes in Equity

46-50. Statement of Cash Flows (Direct Method)

51-55 Statement of Financial Position (Report Form)

V. MODIFIED TRUE OR FALSE: Read carefully each statement below. Write TRUE if the
statement is correct but if it is FALSE, underline the word/phrase that makes it wrong and
replace it with the correct word/phrase on the space provided before each number.
____________ 56. Financial statement allows the users to obtain timely information as a basis on making
decisions about future activities.
____________ 57. Cost of goods sold is computed as cost of goods available for sale less beginning
inventory.
____________ 58. Goods returned by customers are not deducted to the sales account.
____________ 59. The single step income statement is used only for merchandising business.
____________ 60. The number of capital accounts presented in a statement of changes in equity of a sole
proprietorship is equal to the number of partners.
____________ 61. Dividends distributed by corporation are deducted against retained earnings.
____________ 62. The statement of changes in equity is dated as of the year ended.
____________ 63. Cash outflows represent the cash receipts of a company.
____________ 64. Investing activities are related with cash transactions with equity owners and
creditors.
____________ 65. Interest payment of a bank loan is a sample of financing activity.