Republic of the Philippines

Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF IMUS CITY
Gen. Pantaleon Garcia Senior High School
Pedro Reyes St. Malagasang 1-G, City of Imus, Cavite
FUNDAMENTALS OF ACCOUNTANCY BUSINESS AND MANAGEMENT I

Name: _____________________ Grade and Section: ________________________

Quarter 4 Week 2 Financial Statements
Directions: Choose the letter corresponding to the correct answer for each of the questions provided
below. (Write the letter before the number, use UPPERCASE LETTER).

1. It presents the entity's revenues and expenses during an accounting period that tells users on
whether the entity enjoyed profit or suffered a loss during the period.
a. Capital Statement
b. Income Statement
c. Statement of Cash Flows
d. Statement of Financial Position

2. It presents the changes in equity of the owner due to investments, additional contributions, net
income or loss, and personal withdrawals.
a. Capital Statement
b. Income Statement
c. Statement of Cash Flows
d. Statement of Financial Position

3. It presents the entity's assets liabilities, and capital as of the period.

a. Capital Statement
b. Income Statement
c. Statement of Cash Flows
d. Statement of Financial Position

4. It presents the entity's cash inflows and outflows on three major activities, operating, investing,
and financing.
a. Capital Statement
b. Income Statement
c. Statement of Cash Flows
d. Statement of Financial Position

5. These include cash activities related to the net income.

a. Financing Activities
b. Investing Activities
c. Operating Activities
 6. This comes from conducting financing activities for the business.
a. Financing Activities
b. Investing Activities
c. Operating Activities
7. These include cash activities related to noncurrent assets.
a. Financing Activities
b. Investing Activities
c. Operating Activities

8. Financial statements are unstructured representation of the entity's financial position, financial
performance, and cash flows of an entity that is useful to a wide range of users in making
economic decisions.
a. True
b. False

9. Notes and Disclosures are part of the financial statements.

a. True
b. False

10. State the correct process flow of financial statements.

a. Income Statement-Capital Statement-Statement of financial Position-Statement of Cash
Flow
b. Income Statement-Statement of Financial Position-Statement of Cash flow-Capital
Statement
c. Income Statement- Capital Statement- Statement of Cash Flows- Statement of Financial
Positions

Quarter 4 Week 4: Accounting for Merchandising Operations

Directions: Choose the letter corresponding to the correct answer for each of the questions provided
below. (Write the letter before the number, use UPPERCASE LETTER).

1. It is a business activity of buying and selling of goods.

a. Merchandising Operations
b. Selling Transactions
c. Purchasing Transactions

2. The product that is being sold in merchandising operations are called.

a. Inventories
b. Sales
c. Items

3. Choose among the choices the simpler version of merchandising operating cycle.
a. Cash - Inventory - Accounts Receivable
b. Accounts Receivable - Inventory - Cash
c. Cash - Accounts Receivable - Inventory
 4. It is also known as list price.
a. Original Price
b. Discounted Price
c. Suggested Retail Price

5. It is transfer of legal ownership of goods from the seller to the buyer of merchandise.
a. Merchandising Operations
b. Sales Transactions
c. Purchase Transactions

6. It is where the seller of goods becomes the buyer for inventories.

a. Merchandising Operations
b. Sales Transactions
c. Purchase Transactions

7. Discounts has two types namely, single and chain discounts

a. True
b. False

8. You can select what to record on gross invoice price in the books.
a. True
b. False

9. Merchandising entities need to purchase inventory to be able to sell and gain profit.
a. True
b. False

10. Seller uses sales returns and allowances to record these types of transactions (if the buyer intends
to keep unwanted item).
a. True
b. False

Quarter 4 Week 5: Merchandise Transportation

1. It is when the title of the goods transfers to the buyer at the shipping point. Therefore, the seller is
not responsible for the goods during the transit.
a. FOB Shipping Point
b. FOB Destination

2. It is when the buyer owns the title of the goods once it arrives at the buyers doorstep. The
ownership title remains with the seller during the transit.
a. FOB Shipping Point
b. FOB Destination

3. Also known as Delivered Pricing. When a supplier handles delivery on its own product into the
buyer, selling the product at a higher price.
a. Freight Prepaid
b. Freight Collect
 4. Also known as Customer Pick-up Pricing. When a buyer handles pick-up and delivery of the
product selling the product at a lower price.
a. Freight Prepaid
b. Freight Collect

5. It is when the buyer pays for the freight charges. It is an adjunct account to purchases and thus
added as a cost of inventory in bringing it to its present location and condition.
a. Freight-in
b. Freight-out

6. It is when the sellers pay for the freight charges. It is recorded by the seller as an operating
expense, under the selling expenses line item.
a. Freight-in
b. Freight-out

7. Merchandise transportation can only be done by land.

a. True
b. False

8. FOB shipping point and FOB destination differ in terms of how the buyer claims the title of
ownership.
a. True
b. False

9. Who is the owner by December 31? Goods shipped FOB shipping point on December 28,
received by the buyer on December 31.
a. Buyer
b. Seller

10. Who is the owner by December 31? Goods shipped FOB Destination on December 25, received
by the buyer on February 3.
a. Buyer
b. Seller

Reflective Question 1.

Why are financial statements important in running the business? Discuss the risks and benefits of
preparing these statements.

Reflective Question 2.
How does merchandising business function and how does it differ from others such as a service business?
(Answer in a single paragraph only) 3-5 sentences.