Name: Score:

Date:

Direct materials Asset income rent expense

Direct labor Liability equity supplies expense

Factory Overhead Expenses salaries expense

Asset 1.) It is a resource controlled by the enterprise as a result of past events and from which
future economic benefits are expected to flow to the enterprise.
_liability___________2. It is a present obligation of the enterprise arising from past events.
_expenses___________3. These are decreases in economic benefits during the accounting period
in the form of outflows or depletions of assets or incidences of liabilities
__income__________4. It is an increase in economic benefits during the accounting period in
the form of inflows or enhancements of assets or decreases of liabilities that result in increases in
equity.
Equity__________5. It is the residual interest or remainder of the asset of the enterprise after
deducting its liabilities.
Direct materials____________6. It pertains to all materials that form parts of the finished
product
Direct labor expense____________7. It is labor used in a manufacturing a product which can be
charged directly to that particular product.
_factory overhead___________8. It refers to indirect elements of cost incurred to produce a
finished product.
_supplies___________9. It is the laboratory, medical and office supplies used.
Salaries expense____________10. It is service rendered by employees.
Test II. Enumeration. List down or enumerate what is being ask on each of the following item.
1. Give the 3 elements of manufacturing costs.direct material, direct labor, factory overhead.
2. list down the 3 forms of businesses organization
3. Supply the diagram showing the flow of operations of manufacturing concern.

Sole proprietorship Partnership Corporation

 Test III.
Essay.
1. Soon after graduating you received a sizeable cash gift from your parents. What type of
business would you put up? What form of business organization would you choose? As early as
now plan your business project.
A computer shop because now a days not all the people can afford to buy gadget so in order for
them to make their projects or to search their assignment a computer shop is a very helpful for
them to be easy access to all there needs in school not
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Compare assets, liabilities, and owner’s equity. Name two account titles under each group.
There are various types of equity accounts that add up to total shareholder equity. Common
stock, preferred stock, contributed surplus, additional paid-in capital, retained earnings, other
comprehensive earnings, and treasury stock are all examples of these accounts.

The amount funded by a company's owners or shareholders for the initial start-up and ongoing
operation of a business is referred to as equity. Total equity, which is recorded on the balance
sheet, also represents the residual value left in assets after all liabilities have been paid off.
Simply subtract total liabilities from total assets to calculate total
equity.________________________________________________________________________
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Excellent Ideas are thoroughly explained, highly coherent writing, almost no

8-10 grammatical errors
Good Ideas are explained, coherent writing, few grammatical errors.
5-7
Satisfactory Ideas are partially explained, somewhat coherent writing, several
1-4 grammatical errors.