28.

What is the net cash flow generated by/used in invest- AMADOR-BELLO HIGH SCHOOL
ing activities? Gangao, Baleno, Masbate
A. 100,000 C. 200,000
D. 50,000 D. 300,000 SUMMATIVE TEST
FUNDAMENTAL OF ACCOUNTING BUSINESS & MANAGEMENT 2
29. What is the net cash flow generated by/used in financ-
ing activities? Name : ___________________________________________________
A. 10,000 C. 15,000
Grade/Section:_____________________Date:__________________
B. 5,000 D. 20,000
A. Choose the correct answer by and circle the letter of
40. What is the net change of cash for the year?
A. 50,000 C. 120,000 your choice on your answer sheet. Use additional sheet of
B. 100,000 D. 150,000 paper for the computation of your answer

1. The Balance Sheet is alternatively known as ___________.

A. Statement of profit and loss C. Assets Statement
B. Statement of Financial D. None of the above

2. Which of the following characteristics does not describe

an Asset?
A. Controlled by an entity C. Requires the payment of cash
B. Result of a past transaction Dl. Probable

3. . Which of the following is the fundamental accounting

equation?
A. Equity = assets – Liabilities
B. Value Received = Value Parted with
C. Assets = Liabilities + Equity
D. All of these choices

4. Expected to result in an outflow from the enterprise of

resources embodying economic benefits.
A. Liabilities C. Expenses
B. Revenue D. Equity

For number 5-7 . Identify the type of account whether cur-

rent assets, non-current assets, current liabilities, non-
current liabilities

5. Prepaid insurance
A. Current assets C. Non-current Assets
B. Current liabilities D. Non- current liabilities

6. Unearned revenue
A. Current assets C. Non-current Assets
B. Current liabilities D. Non- current liabilities

7. Loans payable
A. Current assets C. Non-current Assets
B. Current liabilities D. Non- current liabilities

For number 8-11, Cocoy’s Auto Parts provided the follow-

ing Information on Dec 31, 2018:
Cash = 80,000
Inventories = 597,000
Accounts Payable = 45,000
Unearned Income = 19,000
Notes Payable (due in two years) = 336,000
Prepayments = 23,000

8. How much is the total assets of Cocoy’s Auto Parts?

A. 700,000 C. 597, 000
B. 696,000 D. 677,000

9. Compute for the total liabilities of the Company.

A. 700,000 C. 381,000
B. 400,000 D. 336,000

PARENTS’ SIGNATURE ____________________________________

8. How much is the total assets of Cocoy’s Auto Parts? 21. The objectives of cash Flow Statement are:
A. 700,000 C. 597, 000 I. Analysis of cash position
B. 696,000 D. 677,000 II. Short term cash planning
III. Evaluation of liquidity
9. Compute for the total liabilities of the Company. IV. Comparison of operating performance
A. 700,000 C. 381,000 A. Both I and II C. both II and IV
B. 400,000 D. 336,000 B. Both I and III D. All of these are correct

10. How much is the equity of the company? 22. Leonard’s Car Wash has a beginning balance equity
A. 700,000 C. 400,000 of ₱ 15,000 and ending equity of ₱ 38,000. He made addi-
B. 300,000 D. Zero tional contributions of ₱ 8,000 and his business reported a
profit of 15,000. Given the said information, how much was
11. Compute for the total Liabilities & Owners equity? his withdrawals?
A. 400,000 C. 300,000 A. 11,000 C. 2,300
B. 200,000 D. None of these choices C. 30,500 D. Zero

12. Net income is computed using a ________ which is Total 23. Ana’s Hair Salon earned a profit of ₱100,000. She in-
Revenues minus Total Expenses. vested 15,000 and has withdrawn 10,000. The beginning
A. Single step C. Multi step balance of her equity was 45,000. How much is the ending
B. Report form D. Account form balance of her owner’s equity account?
A. 120,000 C. 150,000
13. In the choices below, a single type approach is least B. 115,000 D. 105,000
applicable with?
A. Manufacturing corporations C. Sari-sari stores 24. As per Accounting Standard, Cash Flow is classified
B. Small Business entities D. Services providing into:
A. Operating activities and financing activities
14. The business derived its income from rendering of ser- B. Operating activities, financing activities and
vices to its client. investing activities.
A. Service concern C. Sole proprietorship C. Operating activities and investing activities.
B. Hybrid Company D. Merchandising Company D. Investing activities and financing activities

15. It generates income from buying and selling of mer- 25. Which of the following are false?
chandise. I. Cash flow Statement is useful for external analysis
A. Partnership business C. Hybrid company II. Cash flow Statement is helpful in the formation of
B. Merchandising business D. Manufacturing business policies.
III. Cash Flow Statement is helpful in estimating future
16. A ₱ 250,000 sale is made on February 1st, with terms of cash flow.
2/10. n/30 how much would the discount be if payment is A. Both I and III C. Both II and III
made on January 91t? B. Both I and II D. None of these choices
A. 45,000 C. 0
B. 5,000 D. 15,000 26. Which part will be affected by an increase the bal-
ance in accounts payable?
17. Shane Services generated revenues amounting to Php A. Operating expenses
200,000. Expenses for the year totaled Php 126,000. How B. Financing expenses
much is the company’s net income for the year? C. Investing expenses
A. 26,000 C. 54,000 D. None of these choices
B. 74,000 D. 38,000
For 27-30. Amador’s sari-sari store had the following trans-
actions during the year: Using the given below prepare a
18. It generates income from buying and selling of mer-
cashflow statement and answer the next five items. Use
chandise.
additional sheets .
A. Partnership business C. Hybrid company
B. Merchandising business D. Manufacturing business a. Purchase of goods. Paid cash. 200,000
b. Sale of goods. Received cash. 250,000
19. Shane Services generated revenues amounting to Php c. Paid utilities 20,000
80,000. Expenses for the year totaled Php 56,000. How d. Paid rent 10,000
e. Sold equipment for cash 50,000
much is the company’s net income for the year?
f. Owner withdraws investment 20,000
A. 36,000 C. 14,000
B. 24,000 D. 18,000 27. What is the net cash flow generated by/used in oper-
ating activities?
20. What is true about the owner’s equity? A. 5,000 C. 10,000
A. Are the words used in the balance sheet when the B. 20,000 D. 15,000
company is a sole proprietorship
B. Represents time of growth
C. Represents the owner’s profit in the business
D. Are the words for the owner