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ACADEMIA DE SAN FRANCISCO JAVIER, BATANGAS, INC.

Unified Schools of the Archdiocese of Lipa (USAL) Ruiz Martinez Street, Poblacion 6, Nasugbu, Batangas 0955.058.2700
/0930.632.7693

acadnasugbu@yahoo.com.ph/asfj2020@gmail.com

Midterm Examination in Fundamentals of

Accounting, Business and Management 12
Name: _________________________________ Score/Rating:
Grade 12 – St. Bartholomew

Note:
 Observe Academic Honesty
 Any form of erasure is considered as wrong
answer.
 Use black /blue ink pen ONLY.
 Always READ and FOLLOW the directions

I. Identification
Directions: Read each statement carefully then write your answer on the space provided before each
number.
Drawing/Withdrawal Selling Expenses Capital Statement of Cash Flows
Corporation Functional Form Liabilities Administrative Expenses
Partnership Natural Form Assets Noncurrent Assets
Single Proprietorship Expense Statement of Current Liabilities
Comprehensive
Income
Statement of Changes Revenue Statement of Entity’s payables
in equity Financial Position

______________1. It is a summary of the cash inflows and outflows that brings the cash to its ending balance.
______________2. It is the king and every business aims to have so it can support operations profitability.
______________3. It is the company’s core operations or day-to-day activities intended to generate income for
the business. Thus, they affect the net income.
______________4. It pertains to transactions between the business and its owner/s and creditors (lenders).
______________5. These are transactions or activities that will affect the inflows and outflows of cash due to
purchase and disposal of noncurrent assets such as long-term investments as well as property,
plant, and equipment.
______________6. It is the entity’s net cash provided by (used in) operating, investing and financing
activities
is obtained by adding the individual cash inflows and then subtracting the individual cash
outflows.
______________7. It derives the net cash provided by (or used in) operating activities by adjusting profit for
income and expense items not resulting from cash transactions.

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______________8. Based on this standard, enterprises are expected to report cash flows during the period
classified by operating, investing and financing activities through the SCF.
______________9. It provides the framework in analyzing the past, current and projected performance of any
business entity.
______________10. It compares two or more years of financial information in both peso and percentage
form.
______________11. It is where each item is represented as a proportion of another item.
______________12. It analyzes the company’s liquidity, solvency and profitability.
______________13. It is the measurement of relationships between financial statement items normally
expressed in terms of either ratio or percentage.
______________14. It refers to the availability of resources, specifically cash, to meet short term cash
requirements or pay maturing liabilities.
______________15. It is simply the relationship between two amounts in the financial statements.

II. Essay

Directions: Explain the following questions briefly. You will be graded based on this criteria:

Content- 3 points, Organization - 2 points with the total of 5 points each.

16-20. How do you think a business enterprise with assets that could be easily converted to cash affects its
options for growth? Explain your answer.

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21-25. How can analysis of financial statements aid in reducing uncertainty in business decision-making?

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26-30. How can the knowledge of financial ratios help the management to analyze and plan for the business?

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III.Solving
Direction: Solve the following problems.

31-40. Below is the preliminary trial balance of Jayar’s Service Center for the calendar year 2020. Prepare the
SCI and the SCE.

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41-50. You have been hired as the bookkeeper for Party to the Max. It is a business owned by Max Shado that
sells party needs and decors including balloons and flowers. It also rents out chairs, tables, sound
system, and provides services for events management such as hosting, party coordination, and disc
jockey. The previous bookkeeper left for abroad but prepared the following preliminary trial balance
for the period
ending 31 December 2020. Prepare the SCI and the SCE for this business.

Prepared by:

ALIYAH MONIQUE V. BENITEZ

Mathematics Teacher
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Checked by:

KARIZZA E. SALANGUIT
High School Department Coordinator

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Parent’s signature

Fundamentals of Accounting, Business and Management 2 Senior High School