STO.

TOMAS NATIONAL HIGH SCHOOL

Sto. Tomas, Sasmuan, Pampanga
Long Test in Entrepreneurship
Applied Subject
Name: _______________________________________ Date: _____________________
Grade & Section;__________________________________ Prepared by: Mrs. Redchest M. Yumol
I. MULTIPLE CHOICES: Read and answer each statement carefully then write the letter of the best answer on the space provided before the number.
_____ 1. It is the difference between the amount invested and the monetary gain from the investment.
a. Income c. Loss
b. Expense d. Profit
_____ 2. It refers to the actual amount paid for articles bought including the buying expenses.
a. Buying price c. Purchase price
b. Cost of purchases d. Selling price
_____ 3. The _______________ is the financial statement that shows if a business is earning a profit or incurring a loss.
a. Balance sheet c. Statement of changes in equity
b. Income statement d. Statement of financial position
_____ 4. The amount obtained when all the selling expenses are deducted from gross profit.
a. Gross profit c. Net profit
b. Net income d. Operating income
_____ 5. The expenses incurred during the selling of the product such as wages or salaries, water and electric bills, rental, transportation, and commissions.
a. Overall expenses c. Operating or expenses overhead
b. Operation d. Total expenses
_____ 6. Which is an equity account?
a. Inventory c. Owner’s drawings
b. Loan payable d. Petty cash
_____ 7. Which is a liability account?
a. Inventory c. Owner’s drawings
b. Loan payable d. Petty cash
_____ 8. A current asset is defined as any asset which can reasonably be expected to be sold, consumed, or exhausted through the normal operations of a
business within the current fiscal year or operating cycle. Which of the following is a current asset?
a. Inventory c. Machinery
b. Land d. Vehicle
_____ 9. Noncurrent liabilities, also known as long-term liabilities, are obligations listed on the balance sheet not due for more than a year. Which of the
following is a noncurrent liability?
a. Accounts payable c. Notes payable due for 8 months
b. Interest payable d. Tax payable

STO. TOMAS NATIONAL HIGH SCHOOL

Sto. Tomas, Sasmuan, Pampanga
Long Test in Entrepreneurship
Applied Subject
Name: _______________________________________ Date: _____________________
Grade & Section;__________________________________ Prepared by: Mrs. Redchest M. Yumol
I. MULTIPLE CHOICES: Read and answer each statement carefully then write the letter of the best answer on the space provided before the number.
_____ 1. It is the difference between the amount invested and the monetary gain from the investment.
a. Income c. Loss
b. Expense d. Profit
_____ 2. It refers to the actual amount paid for articles bought including the buying expenses.
a. Buying price c. Purchase price
b. Cost of purchases d. Selling price
_____ 3. The _______________ is the financial statement that shows if a business is earning a profit or incurring a loss.
a. Balance sheet c. Statement of changes in equity
b. Income statement d. Statement of financial position
_____ 4. The amount obtained when all the selling expenses are deducted from gross profit.
a. Gross profit c. Net profit
b. Net income d. Operating income
_____ 5. The expenses incurred during the selling of the product such as wages or salaries, water and electric bills, rental, transportation, and commissions.
a. Overall expenses c. Operating or expenses overhead
b. Operation d. Total expenses
_____ 6. Which is an equity account?
a. Inventory c. Owner’s drawings
b. Loan payable d. Petty cash
_____ 7. . Which is a liability account?
a. Inventory c. Owner’s drawings
b. Loan payable d. Petty cash
_____ 8. A current asset is defined as any asset which can reasonably be expected to be sold, consumed, or exhausted through the normal operations of a
business within the current fiscal year or operating cycle. Which of the following is a current asset?
a. Inventory c. Machinery
b. Land d. Vehicle
_____ 9. Noncurrent liabilities, also known as long-term liabilities, are obligations listed on the balance sheet not due for more than a year. Which of the
following is a noncurrent liability?
a. Accounts payable c. Notes payable due for 8 months
b. Interest payable d. Tax payable
II. PROBLEM SOLVING: Show your solution. (10 points each)
Identifying Profit or loss to Generate the Overall Report on the Activity of the Business

Problem # 1: Kurt Jared’s report from sales of motorcycle parts and accessories for the month of April was P 192,423.50, cost of goods sold P 127,103.22, sales
returned P 6,434, salaries P9,345.20, rental P17,000, light and water bills P13,635.13 and miscellaneous expenses P11,817.10. Find (a) gross profit and (b)
net profit or loss.

Problem # 2: XYZ department store had the following activities for year ended 2020: gross sales amounting to P108,753.00, the cost of goods sold was
P67,856.00, the operating expenses were, P9,543.14, and refunds for defective goods amounted to P 25,215.14. Generate an income statement and find:
a. Net Sales
b. Gross Profit
c. Net Profit

II. PROBLEM SOLVING: Show your solution. (10 points each)

Identifying Profit or loss to Generate the Overall Report on the Activity of the Business

Problem # 1: Kurt Jared’s report from sales of motorcycle parts and accessories for the month of August was P 192,423.50, cost of goods sold P 127,103.22,
sales returned P 6,434, salaries P9,345.20, rental P17,000, light and water bills P13,635.13 and miscellaneous expenses P11,817.10. Find (a) gross profit and
(b) net profit or loss.

Problem # 2: XYZ department store had the following activities for year ended 2020: gross sales amounting to P108,753.00, the cost of goods sold was
P67,856.00, the operating expenses were, P9,543.14, and refunds for defective goods amounted to P 25,215.14. Generate an income statement and find:
a. Net Sales
b. Gross Profit
c. Net Profit