For items 11-25, Choose the correct answer from the box. 11 Is the financial statement that shows the results of operation if it earns a profit or incurs a loss for a given period of time. 12 Is the purchase price and other expenses incurred in buying the products that the business has to sell including the freight - 3MAN in or the transportation of the goods it buys for resale. MOITSBB CHARTS 13. are expenses incurred to run the business. 14 includes interest income and other incidental clone altium income the firm eams like rent income if it has a property being rented out. 15 includes interest expense or finance charges financial institutions charge firms for their services. 16. is at times referred to as gross margin. 17. is gross profit less operating expenses 18. is operating profit plus other income less other expenses 19. is the point where a business neither makes a profit nor loss 20. are costs that vary with output. 21 . Formula to get the monthly payment: 22. is taken as 360 days. 23. is when you use your property as collateral for a loan from a financial institution. 24. is the installment payment of the loan. 25. is a certain percent of the purchase price of the item or property Cost of Sales income Statement Break-Even Point Gross Profit Other Expense Other Income Operating Expenses Cost Cost of Sales Net Profit/Loss Operating Profit/Loss Variable Sales Down payment Mortgage Loan Ordinary Interest A=ixPx(1 +i) n/ (1+1)n-1 A= ixPx (1+i) ( 1+1)n+11. What is the business doing at the breakeven point? a. making profit b. making loss c. making neither a profit nor loss d. 50% profit & 50% loss 2. Which of the following shows the breakeven point a. Fixed Cost - Variable Cost = Sales Revenue b. Fixed costs + Variable Costs= Sales Revenue c) Fixed Costs x Variable Costs= Sales Revenue d) Fixed Cost / Variable Costs= Sales Revenue 3. If the variable cost of a perfume is 120 and it's selling price is 250, what is the contribution? a. 370 b. 125 c. 130 d. 570 4. Why is it important for business to know the breakeven points of their products? a. It helps improve the business. b. They can use information when preparing financial statement . c. It can be used in the process of planning. d. It is an important calculation in accounting. For numbers 5 and 6, consider and study the problem below. If Teresita borrowed P2,000.00 from her friend at an interest rate of 1% per month. She promised to pay it within 3 months. 5. How much interest will Teresita have to pay for the term of the loan? a. P 55 b. P 50.00 c. P 60.00 d. P 70.00 6. How much will she pay at the end of the loan period (maturity date)? a. P 2,050.00 b. P 2,060.00 C. P 2,070.00 d. P 2,055.00 For numbers 7-10, consider and study the problem below. You are planning to buy a house and lot and secure a mortgage. The price of the house and lot is P 2 400 000.00. The real estate is asking for a 20% down payment 7. How much is the down payment? a. P 400,015.00 b. P 480,000.00 c. P 253,005.00 d. P 299,225.00 8. How much would be the amount of the mortgage loan? a. P 2,454,015.00 b. P 3,111,425.00 c. P 2, 100,205.00 d. P 1,920,000.00 9.If Lilia paid P980.00 in interest at 14% for 2 years, how much money did she borrow? a. P 2,015.00 b. P 5,425.00 c. P 3,500.00 d. P 1,225.00 10. Tessa borrowed P2,000.00 at 12% interest for 2 years. Find the interest a. P480.00 b. P2,480.00 c. P240.00 d. P1,240.00