Republic of the Philippines

Department of Education
Region II – CAGAYAN VALLEY
SCHOOLS DIVISION OF SANTIAGO CITY
DIVISORIA HIGH SCHOOL
Santiago City
LEARNER’S ASSESSMENT ACTIVITY
Fundamentals of Accountancy, Business and Management 2 - 11 ABM
WEEK 2
I. Identify the following words. Choose your answers on the pool of words bellow.
Purchases General and Administrative Expenses Temporary Accounts Selling Expenses Freight In Sales
discount Purchase discount Single-step Multi-step Sales returns Purchase returns
1. Also known as nominal accounts are the accounts found under the SCI. They are called such because at the end of the accounting
period, balances under these accounts are transferred to the capital account, thus having only temporary amounts and resulting to zero
beginning balances at the beginning of the following year.
2. All revenues are listed down in one section while all expenses are listed in another. Net income is computed using a “single-step”
which is Total Revenues minus Total Expenses.
3. There are several steps needed in order to arrive at the company’s net income.
4. This account is debited in order to record returns of customers or allowances for such returns.
5. This is where discounts given to customers who pay early are recorded. Known as cash discount.
6. Amount of goods bought during the current accounting period.
7. Account used to record early payments by the company to the suppliers of merchandise.
8. Account used to record merchandise returned by the company to their suppliers.
9. This account is used to record transportation costs of merchandise purchased by the company.
10. These expenses are not directly related to the merchandising function of the company but are necessary for the business to operate
effectively.
11. These expenses are those that are directly related to the main purpose of a merchandising business: the sale and delivery of
merchandise. This does not include cost of goods sold and contra revenue accounts.
I. Write A if the statement if true and R is the statement is false.
II. Read the statements below and answer what is being asked
1. Learning is Fun Company generated revenues amounting to Php 100,000. Expenses for the year totalled Php 76,000. How much is the
company’s net income for the year?
2. Happy Selling’s beginning inventory amounted to 250,000. Net purchases amounted to 70,000. Freight In totalled 15,000. Compute for
the company’s cost of goods available for sale.
3. Happy Selling’s Sales amounted to Php 500,000. Sales returns and sales discounts amounted to Php 30,000 and Php 10,000
respectively. Purchases of the company totalled 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? Net Purchases?
III. Prepare a multi-step Statement of Comprehensive Income for Tamayo Company, December 31, 2017 using the following:
Sales – 20,000
Cost of Goods Sold – 10,000
General and administrative expenses –4,000
Selling expenses – 2,000.

Prepared by: Checked:

ANGELIQUE M. HERNANDEZ JOEL S. DOMINGO
Subject teacher SHS Coordinator

Verified: Approved:
CLARISSA F. SOLIVEN RANDY B. MINA
MT-1/Assistant to the Principal Principal II

R. Facros Street, P3-Divisoria, Santiago City

Email Add: divisoriahighschool@gmail.com
Contact Nos: 0917-124-1809 / 0917-508-8101 / 0917-162-2764