Republic of the Philippines

DEPARTMENT OF EDUCATION
Region IV-A CALABARZON
DIVISION OF RIZAL
CATALINO D. SALAZAR NATIONAL HIGH SCHOOL-SHS
Subay, Cardona, Rizal

FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT

SUMMATIVE ASSESSMENT

Name:_____Aivanfred S. Saranguero__________________________ Grade/Section: 11 GALILEO

I. Multiple Choices: Choose the letter of the best answer. Write the chosen letter on the space
provided.

1. It is a method of allocating the cost of an asset to an expense over the accounting period. A
a. Depreciation
b. Appreciation
c. Entries
d. Journal
2. It is the original entry made is charged to an asset account. A
a. Asset method
b. Entry method
c. Expense method
3. It is simply plotting the items in the unadjusted trial balance on the columnar sheet. C
a. Journal
b. Entries
c. Worksheet
d. Trial balance
4. The seventh step in the accounting cycle is. C
a. closing entries
b. adjusting entries
c. financial statements
d. post-closing trial balance
5. The third step in the accounting cycle is. B
a. Journalizing
b. Posting
c. Adjusting entries
d. Financial statements
6. Refers to goods that are held for sale to customers in the normal course of business. B
a. Advertising
b. Merchandise
c. Commercial
d. Production
7. It is the amount of merchandise sold by a business for a specific period of time. A
a. Sales revenues or sales
b. Gross profit
c. Operating expense
d. Distribution cost
8. It is equal to sales revenues less the cost of goods sold. B
a. Sales revenues or sales
b. Gross profit
c. Operating expense
d. Distribution cost
9. Refers to expenses incurred by business in their day to day operations. D
a. Sales revenues or sales
b. Gross profit
c. Distribution cost
d. Operating expense
10. It is detailed of records of the cost each item are maintained, and the cost of each item sold is
determined from records when the sales occurred. B
a. Periodic System
 b. Perpetual System
c. Payment System
d. Purchase System
11. It is traditionally used by business selling many inexpensive goods. A
a. Periodic System
b. Purchase System
c. Payment System
d. Perpetual System
12. It is a document which acknowledge receipt of cash or check. A
a. Official Receipt
b. Trial Balance
c. Journal Entries
d. Purchase
13. This is the cost of inventory that’s on hand at the beginning of a specific period. A
a. Beginning Inventory
b. Additional Inventory
c. Ending Inventory
d. Sales Inventory
14. This is the cost of additional inventory that was purchased during the specified period. D
a. Beginning Inventory
b. Ending Inventory
c. Sales Inventory
d. Additional Inventory
15. This is the cost of inventory that the company has at the end of specified period. A
a. Ending Inventory
b. Sales Inventory
c. Beginning Inventory
d. Additional Inventory

II. Write the correct answer on the space provided.

TRUE OR FALSE: Write TRUE if the statement is correct or FALSE if it is incorrect.

__TRUE________1. Sales and expenses balances are extended to the income statement columns of the
worksheet
__TRUE________2. The beginning balance of merchandise inventory account is extended to the debit side of
the income statement column of the worksheet under the periodic inventory system.
__FALSE________3. The business has net income if the total debit side exceeds the total credit side under the
income statement of columns.
__FALSE________4. Purchase discount is added to gross purchases.
__TRUE________5. Gross profit is the difference between the net sales and cost of goods sold
__FALSE________6. All of the permanent or real accounts should be closed at the end of the period.
__TRUE________7. Ending inventory is deducted from the cost of goods available for sale.
__TRUE________8. Sales returns and allowances are deducted from gross sales.
__TRUE________9. Freight in or transportation in is added to net purchases.
__TRUE_______10. The income summary is debited to close it to a credited capital account

Prepared by:

DOMINADOR O. GONDRA JR.

Teacher I: Subject Teacher