Republic of the Philippines

Department of Education
Region III – Central Luzon
Schools Division of Tarlac Province
CRISTO REY HIGH SCHOOL
Capas, Tarlac

Second Quarter Test Grade 12:

Fundamental of ABM-2
Name_________________________________________ Score:_______________
Section _______________________________________ Date: ________________

Direction: Choose the letter of the correct answer. Write your answer on the space provided before each number.

___1. A bank statement ssets that can be realized (collected, sold, used up) one year after year-end date.
a. Is an acknowledgement from the bank that you are a client of good credit standing.
b. Is a list from the bank for services rendered to the client.
c. Shows the activities affecting the depositor’s account.
d. None of the above.
___2. An “NSF” check returned by the bank means.
a. “no signature found” b. “no service fee” c. “no stated fee” d. “no sufficient fund”
___3. A bank reconciliation is prepared
a. When the company is short of cash
b. when the balance per book and the balance per bank is in agreement
c. when there is difference between the book balance and the bank balance
d. where there is a need to establish the cashier’s accountability
___4. The following affect the book balance except
a. NSF checks b. outstanding checks c. bank service charges d. none of the above
___5. The following require an adjusting entry except
a. deposit in transit b. NSF checks c. bank service charge d. none of the above

___6. The sum of the beginning inventory and net purchases for the period.
a. Total Goods available for sales b. Net purchases c. Net Sales d. Cost of Goods Sold
___7. Representing the returns made by the company after they purchase merchandise.
a. Sales Return b. Cost of Goods Sold c. Purchase Discount d. Purchase Returns
___8. A business owned and managed by one person.
a. Partnership b. Sole Proprietor c. Corporation d. Merchandising company
___9. A business where ownership is evidenced by shares of stocks.
a. Partnership b. Service c. Corporation d. Merchandising company
___10. A financial statement containing the details of the movements in capital
a. Cash flow statement b. statement of changes in owner’s equityc. Balance Sheet d. Income statement
___11. Activities about the inflows and outflows of cash related with the revenue-generating activities of the company.
a. Operating activities b. Financing activities c. Investing activities d. Saving activities
___12. Contains the results of the company’s operations for a specific period of time which is called net income if it is a net positive result while a net
loss if it is a net negative result.
a. Statement of Comprehensive Income b. Statement of Changes in Equity c. Statement of Cash Flow d. Statement of Financial Position
___13. Provides an analysis of inflows and/or outflows of cash from/to operating, investing and financing activities.
a. Statement of Comprehensive Income b. Statement of Changes in Equity c. Statement of Cash Flow d. Statement of Financial Position
___14. Contains the results of the company’s operations for a specific period of time which is called net income if it is a net positive result while a net
loss if it is a net negative result.
a. Statement of Comprehensive Income b. Statement of Changes in Equity c. Statement of Cash Flow d. Statement of Financial Position
___15. Payment for the merchandise purchased is an example of
a. Operating activities b. Financing activities c. Investing activities d. Non-cash activities
___16. Receipt of cash from the sales of customers is an example of a
a. Operating activities b. Financing activities c. Investing activities d. Non-cash activities
___17. Payment of amounts borrowed from long-term creditor is an example of a
a. Operating activities b. Financing activities c. Investing activities d. Non-cash activities
___18. It is the change in equity during a period resulting from transactions and other events, other than changes resulting from transactions with
owners in their capacity as owners.
a. Income b. Expense c. Comprehensive income d. Capital
___19. It is the process of evaluating risks, performance, financial health, and future prospects of a business by subjecting financial statement data to
computational and analytical techniques with the objective of making economic decisions.
a. Ratio analysis b. accounting analysis c. system analysis d.Financial statement analysis
___20. It is a technique for evaluating a series of financial statement data over a period of time with the purpose of determining the increase or
decrease that has taken place.
a.Ratio analysis b. Horizontal analysis c. Vertical anaylsis d. system analysis
___21. It expresses the relationship among selected items of financial statement data. The relationship is expressed in terms of a percentage, a rate,
or a simple proportion.
a.Ratio analysis b. Horizontal analysis c. Vertical anaylsis d. system analysis
___22. It is also called common-size analysis, is a technique that expresses each financial statement item as a percentage of a base amount.
a.Ratio analysis b. Horizontal analysis c. Vertical anaylsis d. system analysis
___23. Pertains to the company’s ability to meet its currently maturing obligations. In short, it is the capability for short-term debts.
a. Solvency b. liquidity c. profitability d. Stability
___24. Pertains to the company’s ability to meet its long-term obligations. It provides measures on whether the company’s assets are sufficient to
cover for their liabilities.
a. Solvency b. liquidity c. profitability d. Stability
___25. Measures the ability of the company to generate income from the use of its assets and invested capital as well as control its cost.
a. Solvency b. liquidity c. profitability d. Stability
___26. In horizontal analysis, each account is expressed as a percentage of
 a. Total assets b. Total liabilities and owner’s equity c. base year d. Both a & b

___27. Tatul Co. reported net sales of 150,000, 200,000 nd 300,000 for 2015, 2016, and 2017, respectively. Assuming the base year to be 2015,
what is the trend percentage for 2017?
a. 100% b. 200% c. 150% d. 125%
___28. Socrates Co. reported average assets of 250,000, net income of 200,000, and net sales of 1,000,000. What is the net profit margin for 2017?
a. 20% b. 25% c. 50% d. 200%
___29. Which is not a profitability ratio?
a. Gross Profit Margin b. Operating Profit Margin c. Net Profit Margin d. Net Sales Margin
___30. Which ratio determines a company’s ability to pay interest from loan?
a. Debt Ratio b. Equity Ratio c. Times Interest Earned d. Debt to Equity Ratio
___31.Learning is Fun Company had current assets amounting to Php 100,000. Noncurrent assets for the year totaled Php 76,000. How much is
the company’s total assets?
a. P176,000. b. P186,000 c. P196,000 d. P156,000
___32. Happy Selling Company’s total liabilities amounted P 10,000. Total equity had an ending balance of Php 20,000. How much is total assets?
a.P20,000 b. P30,000 c. P40,000 d. P50,000
___33. Happy Selling’s had the following accounts at year end: Cash-250,000, Accounts Payable-70,000, Prepaid Expense-15,000. Compute for the
company’s current assets.
a. P275,000 b. P255,000 c. P265,000 d. P285,000.
___34. (For Number 34 & 35)Happy Selling’s Accounts Receivable amounted to Php 500,000. Prepaid Expense and Unearned Income totaled Php 30,000
and Php 10,000 respectively. Cash balance amounted to Php 100,000 while Accounts Payable and Inventory totaled to Php 20,000 and Php
10,000 respectively. How much is the company’s current assets?
a. P540,000 and b. P440,000 c. 7640,000 d. P640,000
___35. How much is the company’s current liabilities?
a.P30,000 b. P40,000 c. P50,000 d. P60,000
___36. Company’s Total Liabilities and Equity amounted to Php 285,000. Total noncurrent assets ended at Php 85,000. Cash totaled Php50,000.
Inventory amounted to Php100,000. Assuming the company had no other assets, how much is Accounts Receivable?
a. P40,000 b. P50,000. c. P60,000. d. P70,000..
___37. Total assets amounted to Php575,000. Total equity amounted to Php 250,000. Accounts Payable amounted to Php 50,000 while Unearned
Income totaled Php 85,000. Assuming there are no other current liabilities, compute for the company’s noncurrent liabilities.
a. P170,000 b. P180,000 c. P190,000 d. P160,000
___38. Learning is Fun Company generated revenues amounting to Php 100,000. Expenses for the year totaled Php 76,000. How much is the company’s
net income for the year?
a.P34,000 b. P14,000 c. P44,000 d. P24,000.
___39. Happy Selling Company’s salaries to sales agents amounted to Php 10,000. Salaries of accountants amounted to Php 20,000. No other expenses
were incurred. How much is the company’s general and administrative expense?
a. P20,000 b. P30,000 c. P10,000 d. P40,000.
___40. Happy Selling’s beginning inventory amounted to 250,000. Net purchases amounted to 70,000. Freight In totaled 15,000. Compute for the
company’s cost of goods available for sale.
a.P325,000 b. P335,000 c. P235,000 d. P435,000.
___41. (For Number 41 & 42)Happy Selling’s Sales amounted to P 500,000. Sales returns and sales discounts amounted to Php 30,000 and Php 10,000
respectively. Purchases of the company totaled Php 100,000 while purchase returns and purchase discounts amounted to Php 20,000 and Php
10,000 respectively. How much is the company’s Net Sales?
a. P460,000 b. P360,000 c. P460,000 d. P260,000
___42.How much is the company’s Net Purchases?
a.P80,000 b. P65,000 c. P75,000 d. P70,000
___43. Company’s Cost of Goods Sold amounted to Php 285,000. Net cost of purchases totaled Php 85,000. Beginning inventory amounted to Php
250,000. Sales amounted to Php 500,000. Compute for the company’s Ending Inventory.
a.P50,000 b. P60,000 c. P75,000 d. P70,000
___44. Gross profit of Happy Selling amounted to Php 175,000. Beginning Inventory totaled Php 250,000. Ending Inventory amounted to Php 50,000
while Net Cost of Purchases totaled Php 85,000. Compute for Happy’s Net Sales.
a.P470,000 b. P460,000 c. P450,000 d. P670,000
___45.Ending owner’s equity amounted to P70,000. Additional investments during the year amounted to P30,000. Withdrawals totaled P50,000.
Compute for the company’s net income for the year assuming beginning equity is P10,000.
a.P50,000 b. P60,000 c. P80,000 d. P70,000
___46. If current assets are ₱270,000 and total assets are ₱810,000, what percentage of total assets are current assets?
a. 3.5 percent b. 30 percent c. 25 percent d. 33 percent
___47. Comparing the amount of a balance sheet item in one year to the amount for the same item in a prior year is called
a. horizontal analysis b. vertical analysis c. common-size analysis d. ratio analysis
___48. A firm has liabilities of ₱30,000 and owner’s capital of ₱90,000. The percentage of total liabilities to total assets is
a. 20 percent. b. 25 percent. c. 50 percent. d. 75 percent.
___49. A firm had owner’s capital of ₱150,000 in 2015 and ₱187,500 in 2016. The increase in owner’s capital from 2015 to 2016 is
a. 12.5 percent. b. 20 percent. c. 25 percent. d. 125 percent.
___50. If long-term liabilities are ₱300,000 and total assets are ₱2,100,000, what percentage of total assets are long-term liabilities?
a. 7 percent b. 16.7 percent c. 12.5 percent d. 14.3 percent

Prepared by: Checked by: Noted by:

Manuel T. Hipolito Roselie G. Lundang Elizabeth C. Estabillo ARLENE P. APOSTOL, Ed.D

Teacher II Master Taecher II Focal Person-SHS Principal I