TECHNOLOGY AND LIVELIHOOD EDUCATION

BUSINESS MATH

1. Which term refers to mathematical business decisions that make

orderly delineated sequences of mathematical operatives that lead to a
solution?
A. Conceptual model
B. Quantitative model
C. Algorithms
D. Decisions

2. Every day we have to calculate the discount of shopping mall, allocate

how much for food and shopping, and when we get a loan from the
bank we calculate the interest. This simply means we need _______.
A. Money
B. Calculation
C. Mathematics
D. Percentage

3. Which is also known as Quantitative Finance that is concerned with

financial markets and taking observed market prices as inputs?
A. Mathematics in marketing
B. Mathematical finance
C. Percentage
D. Calculation

4. What financial reports reflect the net income sales?

A. Statement of Cash Flow
B. Balance sheet
C. Net Income Report
D. Income statement

5. What is the remainder after all the expenses have been deducted from
revenues?
A. Repair income
B. Gross income
C. Net income
D. Service income

6. On what financial statements are assets that are used in the operation
of business found?
A. Income statement
B. Statement of Owners Capital
 C. Balance sheet
D. Statement of Cash Flow

7. The sum of all the expenses from the operation of the business can be
found on the _____________
A. Balance sheet
B. Statement of Cash Flow
C. Income statement
D. Statement of Owners capital

8. To which financial reports are Liabilities and Capital added?

A. Statement of Cash Flow
B. Statement of Owners capital
C. Income Statement
D. Balance Sheet

9. What financial statement shows all the received cash from both
ongoing operations and external investment sources?
A. Statement of Cash Flow
B. Statement of Owners capital
C. Income statement
D. Balance Sheet

10. The earning power of the business firm is reported on the ________.
A. Balance sheet
B. Income Statement
C. Statement of Cash Flow
D. Statement of Owners Capital

11. The Balance Sheet provides the information about ____________.

A. all the sales of the firm
B. all the expenses of the firm
C. list of cash received and payments of the firm
D. list of all the assets of the firm

12. Recording the increases of income of a Computer Repair Shop should

be written on the ________ column.
A. Asset
B. Income
C. Credit
D. Debit
13. In journalizing, the owner’s withdrawal from his firm should be
written on the _____.
A. Capital
B. Debit
C. Credit
D. Expenses

14. When a business purchased a computer set worth Php 65,000.00

for the office; debit computer set, Php 65,000.00; credit is _______.
A. Accounts payable, Php 65,000.00
B. Capital, Php 65,000.00
C. Computer set expenses, Php 65,000.00
D. Cash, Php 65,000.00

15. Ms. Allen receives her payment from tutorial of Mrs. Yap’s son;
debit, cash; credit, ______.
A. payment
B. cash
C. fee
D. asset

16. Mr. Albert Patac bought and invested a Coffee Vending Machine
worth Php 35,000.00. Debit, machine; credit, _______.
A. Cash, Php 35,000.00
B. A. Patac, capital, Php 35,000.00
C. Asset, Php 35,000.00
D. Expenses, Php 35,000.00

17. Purchased office supplies and equipment on credit are _______.

A. debit office supplies, credit cash
B. debit office supplies, credit accounts payable
C. debit office supplies and equipment, credit cash
D. debit office supplies and equipment, credit accounts payable

18. To find the current liability, one must look at the ________.
A. mortgage payable
B. loans payable
C. bonds payable
D. salaries payable

19. The resources that a firm acquires through creditors, is called ___.
A. liability
B. capital
C. assets
D. income

20. Business owed that will be due not to exceed a year is referred to
as ______.
A. current asset
B. current liability
C. fixed asset
D. fixed liability

21. Which is owned by the business that requires prompt payment?

A. Non-current liability
B. Non-current asset
C. Current asset
D. Current liability

22. Which refers to a business obligation that requires 15 months of

payment?
A. Current liability
B. Long-term liability
C. Current asset
D. Long-term asset

23. Which of these terms best applies to current asset?

A. Accounts receivable
B. Accounts payable
C. Notes receivable
D. Notes payable

24. What is an example of non-current assets?

A. Prepaid expenses
B. Cash in the bank
C. Accounts receivable
D. Properties and equipment

25. What are the resources owned for the operation of the business?
A. Assets
B. Liability
C. Capital
D. Expenses

26. Some resources of the firm acquired their assets through

obligations. What does this refer to?
A. Expenses
B. Assets
C. Liability
D. Capital

Situation:

27. After a month, Mr. Patac was able to get all the coins he earned
from his coffee vending machine worth Php 11,755.00 and paid his
water bill for Php 750.00 and electricity for P 1,300.00.

How much is Mr. Patac’s gross sales?

A. Php 9,705.00
B. Php 10,455.00
C. Php 11,755.00
D. Php 11,005.00

28. How much is the net sales of Mr. Patac after a month of his
business?
A. Php 11,005.00
B. Php 10,455.00
C. Php 9,705.00
D. Php 11,755.00

29. Mr. Patac bought a motorcycle worth Php 72,000.00 to monitor his
expanding Coffee Vending Machine business. After 5 years, the said
motorcycle will become Php 15,000.00 in value. How much is he going
to set aside per month for depreciation?
A. Php 57,000.00
B. Php 11,400.00
C. Php 950.00
D. Php 850.00

30. Giving 10% depreciation for the 5 additional units of Coffee

Vending Machine that is worth Php 35,000.00 each, how much is the
depreciation cost of each machine?
A. Php 17,500.00
B. Php 3,500.00
C. Php 4,250.00
D. Php 1,750.00
31. What is the term that best describes the total cash, plus
purchases, plus the customers’ obligation to the business?
A. Assets
B. Inventory
C. Profit
D. Liability

32. Which term refers to gross increases in owner’s equity arising from
increases in assets received in exchange for the delivery of goods or
services to customers?
A. Assets
B. Liability
C. Income
D. Expenses

33. Which term refers to decreases in owner’s equity that increases

because goods or services are delivered to customers?
A. Profit
B. Expenses
C. Earnings
D. Revenue

34. Something a business owns or controls such as cash, land, and

equipment, etc.?
A. Capital
B. Equity
C. Asset
D. Liabilities

35. Represents the difference between the assets and liabilities. It

represents the amount of capital that remains in the business after the
assets are deducted to pay off the obligations or liabilities.
A. Equity
B. Revenue
C. Profit
D. Liability

36. A business obligation, owned to someone such as payables,

creditors, bank loans, mortgage, etc.?
A. Expenses
B. Liabilities
C. Assets
D. Statements
37. What the business has earned over a period is called ______.
A. Assets
B. Income
C. Profit
D. Sales

38. The cost incurred by the business is called _________.

A. Liabilities
B. Expense
C. Debit
D. Credit

39. It is a measure of the assets of your operation that have been

generated through profitable activity, retained in your business and
not paid out to shareholders as dividends.
A. Statement of Cash flow
B. Statement of Retained earnings
C. Statement of Assets and Liabilities
D. Statement of Financial Position

40. Also knows as the Balance Sheet. It presents the financial position
of an entity at a given date.
A. Statement of Financial Position
B. Income statement
C. Statement of Retained earnings
D. Statement of Cash flow

41. Also known as Profit and Loss Statement. It reports the company’s
financial performance in terms of net profit or loss over a specified
period.
A. Fixed Assets
B. Income Statement
C. Statement of cash flow
D. Statement of Retained earnings

42. Things of value that you have and that may have future economic
benefit.
A. Assets
B. Profit
C. Income
D. Expense
43. These are the things that have negative value because they are
something you owe.
A. Liabilities
B. Debts
C. Expenses
D. Investment

44. The type of assets that are acquired by the business for use in the
business. The business has no intention of selling them at the time of
purchase for as long as they remain productive and business
continuous to operate. Also known as long term assets.
A. Fixed
B. Current
C. Financial term
D. Short term

45. The type of assets that remain in business over a short time
period. This is usually less than a year. Their value constantly changes
and some of these are acquired by the business for re-sale purposes.
Also known as short term assets.
A. Financial term
B. Current
C. Fixed
D. Credit
 ANSWER KEY
BUSINESS MATHEMATICS
(45 ITEMS)

1. C 13. B 23. A 36. B

2. C 14. D 24. D 37. B
3. B 15. C 25. A 38. B
4. D 16. B 26. C 39. B
5. B 17. D 27. C 40. A
6. C 18. D 28. C 41. B
7. C 19. A 29. C 42. A
8. D 20. B 30. B 43. A
9. A 21. D 34. C 44. A
10. B 22. B 35. A 45. B
11. D
12. C