10. 5.

What is the result if beginning inventory is

added with the net purchases, then deducted
with the ending inventory?
a. Goods available for sale
b. Gross purchases
Republic of the Philippines
c. Net purchases
Department of Education d. Cost of Sales
REGION IV-A CALABARZON 11. Which is the financial statement that reports the
SCHOOLS DIVISION OFFICE OF LAGUNA results of the operations of the business for one
Sta. Cruz, Laguna accounting period?
SAN FRANCISCO INTEGRATED NATIONAL HIGH SCHOOL
a. Statement of Financial Position
b. Statement of Comprehensive Income
c. Statement of Changes in Equity
Name:______________________ d.Statement of Cash Flow
Teacher: ____________________ 12. What refers to as a gross inflow of economic
benefits (cash, receivables, other assets) arising
Multiple Choice: Read the questions carefully from the ordinary operating activities of an
entity?
and choose the correct answer. a. Revenues c. Gains
b. Expenses d. Losses
1. What are the 3 elements of financial position? 13. Which element of the Statement of
a. Assets, liabilities, equity Comprehensive Income has the following
b. balance sheet, income statement, examples: cost of sales, wages, and
statement of cash flow depreciation?
c. liabilities, balance sheet, cash flow a. Revenues c. Gains
d. revenue, expenses, gains b. Expenses d. Losses
2. There are two categories for this: current and 14. What is the result if Purchase Discounts and
non-current. Purchase Returns and Allowances were
a. Assets deducted, and then Freight-in was added to
b. Equity Gross purchases?
c. Liabilities a. Net Income c. Net Purchases
d. Revenue b. Net Loss d. Cost of Sales
3. Are ones that an entity expects to use within 15. What is the result of the operation of the
one year time from the reporting date? business if the total revenue is greater than the
a. Currents asset total expenses?
b. Non-asset a. Net Income c. Break-even
c. Liabilities b. Net Loss d. Bankrupt
d. Revenue 16. It is a financial statement that provides a
4. Are those whose benefits are expected to last snapshot of what a company owns and owes,
more than one year from the reporting date? as well as the amount invested by shareholders.
a. Current asset a. Statement of Changes in Equity
b. Non-current asset b. Statement of Comprehensive Income
c. Liabilities c. Statement of Financial Position
d. Revenue d. Cash Flow Statement
5. It is something which a business owns or control 17. The following are current liabilities except for
to benefit from its use in some way. _____.
a. Assets a. accrued expenses c. mortgage payable
b. Equity b. income tax payable d. trade accounts
c. Liabilities payable
d. Revenue B. Identify the following accounts below. Write SE for
6. Which among the following is not included in the Selling Expenses and AE for Administrative Expenses.
main elements of the Statement of
Comprehensive Income? 18. Salaries Expense
a. title or heading 19. Depreciation Expense – Equipment
b. revenues and expenses 20. Fuel and Oil
c. investments by the owner 21. Commission
d. gains and losses 22. Rent Expense
7. For service entities, expenses are usually 23. Depreciation Expense-office equipment
categorized as cost of service or operating 24. Tax and License
expense. 25. Advertising Expense
a. The statement is correct. C. Directions: Identify each element if it can be found on a
b. The statement is wrong. service or merchandising business. Write S if it is in the
service business and M if it is in the merchandising
8. For a manufacturing business, the expenses business.
are classified as cost of sales, selling expenses, 26. Service Revenue
and administrative expenses. 27. Freight – in
a. The statement is correct. 28. Gross purchases
b. The statement is wrong. 29. Cost of sales
9. These are expenses that are directly related to 30. Sales
the main purpose of a merchandising business 31. Professional Fees
which is the sale and delivery of merchandise. 32. Consulting Income
a. General and Administrative Expenses 33. Inventory
b. Tax Expenses 34. Advertising Revenue
c. Selling Expenses 35. Net Purchases
d. Other Expenses
D. Match the definition on Column A with the terminology
on Column B.
Column A Column B
36. Amount incurred by the A. Cost of
business in generating Goods sold
revenues

37. Occur when expenses B. Merchandisi

exceed revenues ng business
38. Refers to earnings C. Expenses
arising from the main
line of operations of the
business
39. Actual cost of D. Net Loss
merchandise that the
company sold
40. Gross Profit less E. Net Income
Operating Expenses
41. Businesses that sell F. Loss
goods to customers to
convert as revenue.
G. Revenue

E. Identify these accounts if it is part of the general

and administrative expenses or selling expenses.
Write the number of your answer on the respective
column.
Ella’s Enterprises had the following expense accounts for
the year ended December 31, Year 1:

42. Salaries of Admin personnel

43. Salaries of Janitors
44. Salaries of sales agents
45. Utilities of home office
46. Rent of office building
47. Depreciation of office equipment
48. Depreciation of delivery van
49. Advertising
50. Cost of merchandise sold during the year

General Administrative Selling Expenses

Expenses

Prepared by:

LAARNI B. REBONG
Master Teacher II

Checked by:

REYNANTE S. ANINGALAN
Principal II