10/20/21, 2:30 AM First Quarter Exam

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BAED-FABM2121-2112S /
Week 10: Quarterly Exam /
First Quarter Exam

Question 1
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Cash withdrawal of an owner for personal use falls in what cash flow category?

Select one:
a. Operating
b. Investing
c. Financing
d. Assessing
Clear my choice

Question 2
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Net sales is P450,000, sales discounts is P35,000, and sales returns and allowances is P15,000. Compute for the gross sales.

Select one:
a. P400,000
b. 500,000
c. Cannot be determined from the given data
d. P430,000

Clear my choice

Question 3
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The cost accountant handles Management Accounting.

Select one:
True

False

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10/20/21, 2:30 AM First Quarter Exam

Question 4
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Owner's Equity is to sole proprietorship as Capital is to corporation.

Select one:
True

False

Question 5
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Investing activities cannot be presented in direct or indirect method.

Select one:
True

False

Question 6
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Liabilities are company's obligations.

Select one:
True

False

Question 7
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Withdrawals or drawings are resources of the firm which were taken by the owner for personal use.

Select one:
True

False

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10/20/21, 2:30 AM First Quarter Exam

Question 8
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There are common account titles between assets and liabilities.

Select one:
True

False

Question 9
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Cash flows are categorized into three types: operating, investing, and financing activities.

Select one:
True

False

Question 10
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The following are the advantages of forming a partnership except

~Minimal regulatory requirements than corporation.

Select one:
a. Exempt from paying corporate tax
b. Can exist for a period of 50 yrs
c. more capital from partners

Clear my choice

Question 11
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Financing activities are the common transactions happening in the organization.

Select one:
True

False

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10/20/21, 2:30 AM First Quarter Exam

Question 12
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Operating activities may be presented using either the direct method or indirect method.

Select one:
True

False

Question 13
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Cash and cash equivalents are noncurrent assets.

Select one:
True

False

Question 14
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If the beginning capital of Mrs. Castro is P200,000 and she made an additional investment during the year of P100,000 with a net profit of
P52,000, how much is the ending capital?

Select one:
a. P248,000
b. P352,000
c. P300,000
d. P252,000
Clear my choice

Question 15
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GAAP is Generally Applicable Accounting Principles.

Select one:
True

False

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10/20/21, 2:30 AM First Quarter Exam

Question 16
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If the firm has been operating in the past year, the beginning capital of the current year is the same as the ending capital of the previous
year.

Select one:
True

False

Question 17
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Cash flows are categorized into three types; these activities does not determine the purpose for which the cash has been used.

Select one:
True

False

Question 18
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Manufacturing business converts raw materials to finished goods.

Select one:
True

False

Question 19
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roperty, plant, and equipment are assets.

Select one:
True

False

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10/20/21, 2:30 AM First Quarter Exam

Question 20
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The Statement of Financial Position is commonly prepared at the year ended December 31.

Select one:
True

False

Question 21
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In this principle, it is assumed that the business owners or managers are separate from the business enterprise.

Select one:
a. matching principle
b. Business entity principle
c. Dual effect principle
d. Going concern principle

Clear my choice

Question 22
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Sole proprietorships mostly managed by their owners.

Select one:
True

False

Question 23
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The owner's equity is also called capital, net assets, or net worth.

Select one:
True

False

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10/20/21, 2:30 AM First Quarter Exam

Question 24
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Capital is also known as a residual asset.

Select one:
True

False

Question 25
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Liabilities are present obligations arising from past events.

Select one:
True

False

Question 26
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Accrual basis of accounting records income when earned regardless of when cash is received.

Select one:
True

False

Question 27
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Account form is more commonly used form of an SFP.

Select one:
True

False

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10/20/21, 2:30 AM First Quarter Exam

Question 28
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The acquisition and disposal of long-term assets, including investments not considered cash equivalents are parts of an investing activities.

Select one:
True

False

Question 29
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Capital is also known as a residual asset.

Select one:
True

False

Question 30
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Operating expenses and operating income or operating loss are items which can be found in an income statement prepared in a multi-step
approach.

Select one:
True

False

Question 31
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Cash receipts from customers is P200,000, cash paid to suppliers is P10,000 and cash paid to employees is P25,000, how much is the net cash
from operating activities.

Select one:
a. Cannot be determined from the data given
b. P190,000
c. P175,000
d. P165,000
Clear my choice

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10/20/21, 2:30 AM First Quarter Exam

Question 32
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The following are examples of non-current assets except

~Property, plant and equipment.

Select one:
a. Long-term investment
b. Accounts Receivable
c. Intangible asset

Clear my choice

Question 33
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If additional investment of the owner is P650,000 and payment of long-term loan to the bank is P700,000, how much is the net cash increase
or decrease from financing activities?

Select one:
a. Increase of P50,000
b. Decrease of P700,000
c. Decrease of P50,000
d. Increase of P650,000

Clear my choice

Question 34
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A sole proprietor's equity account is written as follows: name of owner, capital.

Select one:
True

False

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10/20/21, 2:30 AM First Quarter Exam

Question 35
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Land is a current asset.

Select one:
True

False

Question 36
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Net loss indicates that the business is doing well.

Select one:
True

False

Question 37
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In cash basis accounting, income shall only be recognized when cash is received, and expenses shall only be recorded when cash is paid.

Select one:
True

False

Question 38
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This is derived from the income statement and is also added to the beginning capital and additional investments done during the year.

Select one:
a. Net profit
b. withdrawal
c. investment
d. None of the choices
Clear my choice

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10/20/21, 2:30 AM First Quarter Exam

Question 39
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A mortgage payable is a noncurrent liability.

Select one:
True

False

Question 40
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There are common account titles between assets and liabilities.

Select one:
True

False

Question 41
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The following are cash flow transactions under the direct method except

Select one:
a. Income taxes paid
b. Cash receipts from customers
c. Cash paid to creditors
d. Depreciation of old building
Clear my choice

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10/20/21, 2:30 AM First Quarter Exam

Question 42
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This occurs whenever the enterprise purchased goods or received services on account issuing a promissory note to settle the account in a
specified future date.

Select one:
a. Mortgage Payable
b. Accounts Payable
c. Bonds Payable
d. Notes Payable

Clear my choice

Question 43
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Increase in assets is recorded as a Debit.

Select one:
True

False

Question 44
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SFP is an acronym for Statement of Financial Position, which is also known as the Balance Sheet.

Select one:
True

False

Question 45
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Gains increase the income of the business.

Select one:
True

False

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10/20/21, 2:30 AM First Quarter Exam

Question 46
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Residual asset is the result of combining liabilities and equity.

Select one:
True

False

Question 47
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Owner's equity represents the right of the owner over the resources of the firm.

Select one:
True

False

Question 48
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Gross profit is P150,000, total selling expenses is P39,000, and total general and administrative expenses cost P52,000. Compute for the
operating income.

Select one:
a. P59,000
b. P241,000
c. P163,000
d. Cannot be determined from the given data
Clear my choice

Question 49
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Current assets are expected to be used after 12 months.

Select one:
True

False

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10/20/21, 2:30 AM First Quarter Exam

Question 50
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Cash basis accounting relies entirely on the payment and receipt of cash.

Select one:
True

False

◄ Long Quiz 002

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