Practice Task 1

Practice Task 2

Multiple Choice. READ AND UNDERSTAND EACH ITEM. ANALYZE what is asked; choose the correct answer. Write your answer in your module notebook, DO NOT PUT YOUR ANSWER/S IN THE MODULE. Please answer the post-test in a separate sheet of paper. 1. Which statement is the first component of the financial statements? A. Balance Sheet C. Income Statement B. Cash flow statement D. Statement of Changes in Equity 2. What is the other name for Income Statement? A. Cash Flow Statement C. Profit and Loss Statement B. Net Income and Expense Statement D. SCI 3. What is the primary purpose of Income Statement? A. show cash position ing puc. show financial performance show financial position 4. Which of the following statements is true? A. The first section of the income statement for a trading business shows the buying and selling of goods B. The first section of the income statement for a trading business shows net profit C. The first section of the income statement for a trading business shows the tax expense D. None of the above 5. What do you call the amounts earned by a company in its main operating activities? A. Cost of Goods Sold C. Revenue B. Net Sales D. Selling Expenses 6. The income statement line gross profit will appear on which income statement format? A. Multi-step Approach C. Both format B. Single Step Approach D. None of the above 7. Is it acceptable that some of the expenses reported on the income statement be estimates? A. No C. Undetermined B. Yes D. Either Yes or No 8. What do you call the combination of Selling Expenses and Administrative Expenses? A. Administrative Expenses C. General and Selling Expenses B. General Expenses D. None of the above Maligaya Corp. had the following figures in its income statement: CTION Sales P670,000 Sales Returns P20,000 Cost of Goods Sold P220,000 Other Income P50,000 aries P100,000 Advertising P70,000 Rent P50,000 Other Expenses P30,000 D. P380,000 only 9. How much is the Gross Profit? A. P450,000 C. P480,000 B. P430,000 AL1119 MU 10. How much is the Net Income?for sale C. P220,000 C. P250,000 D. P330,000 D. P230,000 VII. Assignment/Additional Activity: Instruction: Identify if the account is part of the general and administrative expenses or selling expenses. Write your answer in your module notebook. DO NOT PUT YOUR ANSWER/S IN THIS MODULE. Nena had the following expense accounts for the year ended December 31, 2016: A. Salaries of admin personnel B. Salaries of janitors C. Salaries of sales agents D. Utilities of home office E. Rent of office building F. Depreciation of office equipment G. Depreciation of delivery van H. Advertising I. Cost of merchandise sold during the year