Northern Samar Division
VIGO NATIONAL HIGH SCHOOL
Laoang 1 District
Senior High School Department
SUMMATIVE TEST IN ABM 2
Name of Date:
Learner:
Grade & Score:
Section:
Direction: Encircle the letter of the correct answer.
1. A statement of financial position can be best described as a:
A. Listing of money received and paid during the past year B. Summary of what happened last year
C. Summary of all assets, expenses, liabilities, and revenues D. Summary of the position of an organization
2. An asset is an
A. Expense that will recur in more than one year B. Obligation to transfer benefits as a result of past transactions
C. Interest of the owner in the business D. Any financial resources that is used by the business in its
operation
3. The Statement of Financial Position equation is:
A. A – C = L C. A – L = C
B. L + C = A D. all of the choices
4. XYZ Company have non-current assets of P 60,000, current assets of P 70,000, current liabilities of P 40,000, and a long-term loan
of P 50,000; as such the owner’s equity will be:
A. P 40,000 B. P 60,000 C. P 50,000 D. P 70,000
5. What is a financial statement that shows the financial position of an enterprise at a particular point in time?
A. Balance Sheet B. Income Statement C. Cash Flow Statement D. Statement of Changes in Equity
6. A Statement of Financial Position
A. Shows the changes of the owners interest B. Reports the assets and claims of an enterprise at a specified
moment in time
C. Presents revenue and expenses of an enterprise D. Reports the inflow and outflow of cash in an enterprise
7. Which of the following transactions would increase cash as well as non-current liabilities?
A. Long-term bank loan B. Purchasing equipment on credit
C. Payment to suppliers D. Payment from customers
8. Which of the following accounts is a current asset?
A. Bond Payable B. Property, Plant and Equipment C. Notes payables D. Accounts receivables
9. Which of the following accounts is a non-current asset?
A. Accounts Payable B. Capital C. Cash D. Trademarks
10. Which of the following accounts is a current liability?
A. Trade receivables B. Retained Earnings C. Trade Payables D. Machineries
11. Which is an appropriate date for a statement of comprehensive income?
A. “As of December 31, 2019” B. . Either A or
C. Neither A or B D “For the period ended December 31, 2020”
12. Which of the following is an element of a statement of comprehensive income?
A. Revenues B. Loan Receivables
C. Cash D. Interest Payable
13. Which of the following is an element of a statement of comprehensive income?
A. Note Payable B. Note receivable
C. Interest Receivable D. Interest Expense
14. Which of the following is an element of a statement of comprehensive income?
A. Interest Payable B. Interest Expense
C. Rent Expense D. Prepaid Rent
15. Which of the following is an element of a statement of comprehensive income?
A. Gross Profit B. Interest Payable
C. Interest Receivable D. Accounts Payable
16. Which of the following is only ancillary to the entity’s operation?
A. Professional fees charged by an auditing firm B. Sales Revenue earned by a convenience store
C. Sales Revenue earned by a drug store D. Gain on Sale of land
17. Which of the following is classified as selling expenses?
A. Salaries of corporate executive B. Salaries of salesman
C. Depreciation of corporate headquarters D. Depreciation of automobile
18. Which of the following is the correct gross profit formula?
A. Sales + Cost of Sales = Gross Profit B. Sales + Gross Profit = Cost of Sales
C. Sales – Gross Profit - Expenses = Net Income D. None of the above.
19. Which of the following is an element of a statement of comprehensive income?
A. Cash equivalents B. Capital
C. Drawing D. Professional fees
20. Select the most appropriate description of the statement of comprehensive income’s key features.
A. A statement of comprehensive income is dated “As of December 31, 2020”
B. A statement of comprehensive income is like a running video that depicts a moving scene of an entity.
C. A statement of comprehensive income contains liabilities, and equity.
D. A statement of comprehensive income is like a picture that depicts a static image of an entity.
21. The following are the step on multi-step approach except one.
A. Determine the revenues. B. Determine the Net Purchases, Cost of Sales and Gross Profit
C. Determine the Administrative and Operating Expenses D. Determine Total Revenue from the Trial Balances
22. This is where discounts given to customers who pay early are recorded.
A. Sales Discount B. Sales Return C. Purchases D. Beginning Inventory
23. What do you call the revenue of a merchandise business?
A. Sales B. Revenue C. Fees D. Rental
24. Gross Profit less General and Administrative Expenses less Selling Expenses is Net Income for a positive result while Net Loss for a
negative result. What step is this in Multi-step approach in preparing SCI?
A. Determine the revenues. B. Determine the Net Purchases, Cost of Sales and Gross Profit
C. Determine the Administrative and Operating Expenses D. Determine the Net Income
25.Which of the following pertains to a business entity concept?
A. Transactions of a business (as a separate entity) must be distinguished with transactions of the owners.
B. Transactions of the business (as a separate entity) must be merged with the transactions of the owners.
C. Revenues are recorded when it is earned.
D. Revenues are recorded when the corresponding cash has been received.
26. Which of the following is a major type of business organization??
A. Sole Proprietorship B. Partnership C. Corporations D. All of the above
27. How many is considered owner(s) of a sole proprietorship?
A. One B. More than one C. Two but not more than five D. Five and above
28. How many is/are considered owner(s) in a partnership?
A. One B. More than one C. Two but not more than five D. Five and above
29. How are owners of a sole proprietorship called?
A. Sole proprietors B. Partners C. Shareholders/Stockholders D. None of the above
30. How are owners of a partnership called?
A. Sole proprietors B. Partners C. Shareholders/Stockholders D. None of the above
PRAPARED BY: SUBMITTED TO: APPROVED BY:
MARK Q. TURBANADA WINMAR J. LUNA, PHD RAMON LOBOS
