TLE (8) - Business Math c.

54%
1) Find the profit of Weng's water refilling d. 74%
business with revenue of ₱56,000,000 7) What type of financial statement
and costs of ₱42,000,000. summarizes the information concerning
a. ₱14,000,000 the cash inflows and outflows during a
b. ₱140,000 particular period?
c. ₱1,400,000 a. Balance sheet
d. ₱14,000 b. Statement cash flows
2) Norma's food stall has costs of ₱2,900. c. Income statement
Her total food sales are ₱11,600. What d. Statement of retained earning
percent of her food sales do the food 8) Closing entries are made:
costs represent? a. so that financial statements can be
a. 20% made
b. 25% b. in order to terminate the business as
c. 27% an operating entity
d. 30% c. in order to transfer net income/loss
3) Marvin needs 250 cookies for a buffet. and owner's drawings to the owner's
He will make oatmeal raisin, macaroons, capital account
and chocolate chunk cookies. He wants d. so that all assets, liabilities, and
25% of the cookies to be oatmeal raisin owner's capital accounts will have zero
and 15% of the cookies to be macaroons. balances when the next accounting
How many chocolate chunk cookies period starts
must Marvin bake? 9) Suppliers who allow business to
a. 150 receive goods and services before paying
b. 125 for them are known as:
c. 140 a. Finance companies
d. 100 b. Leasing companies
4) If a shirt is marked down 25%, what c. Trade companies
will the purchase price be? d. Trade debtors
a. ₱25 10) Which of the following is an example
b. 75% of its original price of external finance?
c. 50% off a. Disposal by a business of surplus
d. ₱75 assets
5) A customer places a special order b. Bank loan
through 480 Furniture Store. The list c. Day to day cash from sales to
price in the manufacturer's catalog is customers
₱1,600. 480 Furniture receives a 35% d. Money loaned from trade suppliers
trade discount. What is the net price for through extended credit
the furniture order? 11) A shareholder sells his shares for
a. ₱560 more than he paid for them. This is
b. ₱1,535 known as:
c. ₱1,565 a. Capital gain
d. ₱1,040 b. Profit on disposal
6) Ron's Manufacturing offers discounts c. God deal
on most of its products. What is the trade d. Capital allowance
discount rate on an item with a list price 12) The point at which the level of sales
of ₱16.79 and a net price of ?₱2.42? of a business exactly equals its costs is
a. 22% known as the:
b. 26% a. Break-even point
b. Insolvency point ANSWERS:
c. Start-up stage 1. A
d. Profit point 2. B
13) Working capital is: 3. A
a. Current Assets-Current Liabilities 4. B
b. Notes Payable 5. D
c. Current Liabilities 6. B
d. Accounts Payable 7. B
14) Which of the following does not 8. C
appear in a Balance Sheet? 9. C
a. Cash 10. B
b. Equipment 11. A
c. Accounts Payable 12. A
d. Depreciation Expense 13. A
14. D
15) Adjusting entries are used to: 15. D
a. close the books 16. A
b. record accruals 17. A
c. correct errors 18. B
d. all of the listed answers are correct 19. A
16) Net Income or Profit results from: 20. B
a. revenues exceeding expenses
b. assets exceeding liabilities
c. expenses exceeding revenues
d. liabilities exceeding assets
17) Assets are normally recorded at:
a. cost
b. appraised value
c. market value
d. management's estimated value
18) Which financial report measures
results for a period of time?
a. Balance Sheet
b. Income Statement
c. Trial Balance
d. All of the listed answers
19) Using the double entry system, every
business transaction _________.
a. affects two or more accounts
b. affects only asset accounts
c. affects only one account
d. affects only income statement
20) A debt incurred by buying goods or
services from a supplier on credit is
called _________.
a. property
b. accounts payable
c. an expense
d. accounts receivable