Multiple choice:

1. It reports the resources available for the company to use, obligations that the company is required to settle and the equity that belongs to the owners of the company. a. Statement of Management's Responsibility b. Statement of Financial Position C. Independent's Auditor Report d. Philippine Financial Reporting Standards 2. It refers to money readily available to be used in the company's operation. a. bill C. cash b. credit d. receivable 3. These are the assets that pertain to the company's right to collect or right to claim payment. bill C. cash b. credit d. receivables 4. It refers to the cost of unsold merchandise that the company purchased for the purpose of reselling to its customers in the normal course of its business. a. receivables C. assets b. inventory d. cash 5. It is an asset account that refers to future expenses paid in advance before the services or goods are used. a. receivables C. prepaid expense b. inventory d. PPE 6. These are long-term assets that have no tangible properties. a. Inventory C. Tangible assets b. Prepaid expense d. Intangible asset 7. The SFP may be presented using two acceptable formats: these are the following a. account and report C. horizontal and vertical b. direct and indirect d. single step and multi step 8. Assets are classified as current if it can be used or converted to cash within five years C. two years b. one year d. ten years9. PSlvl Hardware has total assets ofP'l'50,000. What are the total assets if new halting equipment is purchased for P100,000 cash'l' a. P850000 c. P100000 15. P650000 :1 P250000 10. Eon Park, with total assets of [5500,000, borrows P150,000 from the hank. Which of the following statement upon borrowing the money? a} Total assets are now P350,000 h} Total assets are now P650000 c} Total assets are now P5m,000 d} Owner's equity is 0150,0012I more. 11. Revenue accounts that normally has a debit balance is: a} Sales c) Sales Discount h} Sales Returns and Allowances d) both E and C 12. Iftota] liabilities are 20,000 ad owner's equity is 150,000, the total assets must he: a) 80.000 c) 400,000 b} 220,000 d} 230,000 13. It is the statement that reports the results of the operations of the business for one period a. Statement of Financial Position h. htoome c. Statement of Comprehensive Income d. Financial Information 14. This represents the cost of the goods delivered hy the seller to the customer. a. Cost of goods delivered h. Cost of sales c. Total goods available for sale d. Gross Margin 15. The excess of the net sales over cost of sales. a. Net Income h. Sales :3. Net Loss d. Gross Income 16. The sum of net purchases and beginning inventory. a. Cost of goods delivered h. Cost of sales c. Total goods available for sale d. Gross Margin 11'. On October 1, Ace Company purchased 6,000 worth of goods on terms 2115, n30. Freight of 500 was prepaid hy the seller tutder the term FOE Shipping Point, goods worth 1,000 were returned by Ace on October 3 and the account was paid on Oct. 15. Discount received from the seller was a. 100 h. 110 c. 90 d. 120 10. Refer to No. 1?, net cost of purchases was a. 4,900 b. 5,400 c. 5,900 d. 4,800 10. Du May 1, 2003, .11 Company sold goods to DEF for 5,000 on terms of 21'10, 1320, 11.130. Freight of500 was aid by I] under the term FCIB Destination. DEF returned goods worth 1,000. DEF paid on May 15. Discount given to DEF was a. 100 h. 00 c. 50 d. 40 20. Refer to No. 19, net sales was a. 4,500 b. 4,000 0. 3,960 d. 4,460 21. During the year, Rex Store purchased goods worth 150,000. There were 40,011 unsold goods at the end of the year but old stock brought from last year's purchase was 10,000, cost of sales was s. 140000 b. 120,000 0. 110,000 d. 100,000 22. '1' Company reported a net loss of 40,000. Its net sales was 200,000 and gross prot was 40% of net sales Operating expenses amounted to a. 160,000 b. 150,000 c. 40,000 d. 120,000 23. Net sales amounted to 50,000 with cost ofsales representing \"15%. Ifoperating expenses is 10% of sales, net income will he a. 5,000 b. 12,500 c. 12,500 d. 2,500 24. There are two acceptable formats of the SCI: a. account and report 0. direct and indirect h. horizontal and vertical d. single step and multi-step 25. Which form of business organization puts the least risk on its owners? a. sole proprietorship corporation b. partnership d. committee 26. Increases in owner's equity without additional investment a. drawings C. Net Income b. Net loss d. Initial Investment 27. Beginning owner's equity amounted to P 300,000. Net loss for the year totaled P 45,000. No additional investments and withdrawals for the period. Compute for total increase in equity for the year. a. zero 300,000 b. 45,000 d. 54,000 28. Ending owner's equity amounted to P70,000. Additional investments during the year amounted to P30,000. Withdrawals totaled P50,000. Compute for the company's net income for the year assuming beginning equity is P10,000. a. 8,000 80,000 c. zero 800,000 29. Owner, Juan invested an initial capital amounting P50,000 in order to put up his janitorial services company. During the first year of operations (2016), the company had a loss of P25,000. Because of this, Juan invested additional capital amounting to P50,000 in 2017. In the second year (2017), the company had a net income of P100,000 and Juan withdrew P10,000 for personal use. Compute for the ending capital balance of Juan for the year 2017. a. 16,500 165,000 b. 1,650,000 zero 30. Owner Juana invested P100,000 to start her laundry business. During the first year of operations (2016), the company had a net income of P15,000. Juana invested additional P100,000 to grow the business. In 2017, the business earned P50,000. As of December 31, 2017, Juana's capital balance is P200,000. How much is Juana's withdrawal? a. 6,500 65,000 b. 650,000 zero ENRICHMENT ACTIVITIES 1. The following were taken from XYZ Company. Arrange the following using the Report form of SFP. Long-term Payable P 600,000 Notes Payable 220,000 Property, plant and equipment 850,000 Accounts Receivable 66,000 Accounts Payable 75,000 Accumulated Depreciation 200,000 Cash 97,000 Owner's Capital Unearned Income 25,345 Notes Receivable 344,000 Prepaid Expenses 66,700 Accrued Expenses 47,890 Inventory 257,840 Intangible Assets 224,500 2. Below are the accounts of Nena's Laundry Shop for March 2020. Service Income P 45,000.00 Salaries Expense 15,000.00 Utilities Expense 3,540.00 Cleaning Supplies Expense 1,500.00 Rent Expense 2,000.00 Insurance Expense 260.00 Transportation Expense 1,200.00 You were employed by the shop as its bookkeeper. You are now to prepare the Statement of Comprehensive Income for March 2020