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Sample Problem

The document contains multiple-choice questions related to financial statements, specifically the Statement of Financial Position and the Statement of Comprehensive Income. Each question provides a scenario with financial data, followed by answer choices and explanations for the correct answers. The questions cover topics such as total assets, liabilities, equity, net income, and gross profit.

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3 views7 pages

Sample Problem

The document contains multiple-choice questions related to financial statements, specifically the Statement of Financial Position and the Statement of Comprehensive Income. Each question provides a scenario with financial data, followed by answer choices and explanations for the correct answers. The questions cover topics such as total assets, liabilities, equity, net income, and gross profit.

Uploaded by

escobanezmarinel28
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Statement of Financial Position — Multiple Choice Questions

Question 1

ABC Company has the following balances on December 31:

 Cash: ₱120,000
 Accounts Receivable: ₱80,000
 Supplies: ₱20,000
 Equipment: ₱500,000
 Accumulated Depreciation–Equipment: ₱50,000

What is the total non-current assets?

A) ₱500,000
B) ₱450,000
C) ₱470,000
D) ₱420,000

✅ Answer: B) ₱450,000
Explanation: Equipment ₱500,000 – Accumulated Depreciation ₱50,000 = ₱450,000

Question 2

Liabilities of XYZ Co. on Dec 31 are:

 Accounts Payable: ₱60,000


 Notes Payable (due in 2 years): ₱300,000
 Salaries Payable: ₱20,000

What is total current liabilities?

A) ₱80,000
B) ₱60,000
C) ₱380,000
D) ₱320,000

✅ Answer: A) ₱80,000
Explanation: Accounts Payable ₱60,000 + Salaries Payable ₱20,000 = ₱80,000 (Notes Payable is non-current)

Question 3

Total assets are ₱900,000 and total liabilities are ₱400,000.


What is owner’s equity?

A) ₱400,000
B) ₱500,000
C) ₱1,300,000
D) ₱900,000

✅ Answer: B) ₱500,000
Explanation: Assets – Liabilities = Equity; ₱900,000 – ₱400,000 = ₱500,000

Question 4

A company has:
 Cash ₱50,000
 Inventory ₱150,000
 Equipment ₱300,000
 Accumulated Depreciation ₱30,000

What is total assets?

A) ₱470,000
B) ₱500,000
C) ₱470,000
D) ₱470,000

(There seems to be duplicate options; correct choices below:)

A) ₱470,000
B) ₱500,000
C) ₱470,000
D) ₱470,000

✅ Answer: A) ₱470,000
Explanation:
Equipment Net = ₱300,000 – ₱30,000 = ₱270,000
Total Assets = Cash ₱50,000 + Inventory ₱150,000 + Equipment Net ₱270,000 = ₱470,000

Question 5

On December 31, liabilities = ₱250,000. Equity = ₱350,000.


What are the total assets?

A) ₱250,000
B) ₱100,000
C) ₱600,000
D) ₱350,000

✅ Answer: C) ₱600,000
Explanation: Assets = Liabilities + Equity = ₱250,000 + ₱350,000 = ₱600,000

Question 6

The following are reported:

 Land ₱200,000
 Building ₱500,000
 Accumulated Depreciation–Building ₱100,000

What is carrying amount of the building?

A) ₱600,000
B) ₱500,000
C) ₱400,000
D) ₱300,000

✅ Answer: C) ₱400,000
Explanation: ₱500,000 – ₱100,000 = ₱400,000

Question 7

Inventory = ₱90,000, Cash = ₱40,000, Accounts Receivable = ₱70,000.


What is total current assets?

A) ₱200,000
B) ₱190,000
C) ₱210,000
D) ₱180,000

✅ Answer: A) ₱200,000
Explanation: ₱90,000 + ₱40,000 + ₱70,000 = ₱200,000

Question 8

Company reports:

 Notes Payable (due in 6 months): ₱100,000


 Bonds Payable (due in 5 years): ₱500,000
How much is non-current liability?

A) ₱500,000
B) ₱600,000
C) ₱100,000
D) ₱0

✅ Answer: A) ₱500,000

Question 9

Total assets ₱1,200,000. Equity ₱700,000.


Liabilities are?

A) ₱500,000
B) ₱1,900,000
C) ₱700,000
D) ₱1,200,000

✅ Answer: A) ₱500,000
Explanation: ₱1,200,000 – ₱700,000 = ₱500,000

Question 10

Equipment ₱800,000, Accumulated Depreciation ₱200,000, Inventory ₱300,000, Cash ₱100,000, Accounts Payable ₱250,000.
What is total assets?

A) ₱1,200,000
B) ₱1,000,000
C) ₱1,000,000
D) ₱900,000

✅ Answer: B) ₱1,000,000
Explanation:
Equipment Net = ₱800,000 – ₱200,000 = ₱600,000
Total Assets = ₱600,000 + ₱300,000 + ₱100,000 = ₱1,000,000

Statement of Comprehensive Income – Multiple Choice


Questions

Question 1

ABC Company has:


 Service Revenue: ₱500,000
 Salaries Expense: ₱120,000
 Rent Expense: ₱50,000

What is net income?

A) ₱330,000
B) ₱500,000
C) ₱450,000
D) ₱380,000

✅ Answer: A) ₱330,000
Explanation: ₱500,000 – (₱120,000 + ₱50,000) = ₱330,000

Question 2

Sales = ₱700,000, Sales Returns = ₱50,000, Sales Discounts = ₱20,000.


Compute net sales.

A) ₱630,000
B) ₱700,000
C) ₱650,000
D) ₱680,000

✅ Answer: A) ₱630,000
Explanation: ₱700,000 – ₱50,000 – ₱20,000 = ₱630,000

Question 3

Sales: ₱900,000
Cost of Goods Sold: ₱500,000

What is gross profit?

A) ₱500,000
B) ₱400,000
C) ₱900,000
D) ₱600,000

✅ Answer: B) ₱400,000
Explanation: ₱900,000 – ₱500,000 = ₱400,000

Question 4

Gross Profit: ₱300,000


Operating Expenses: ₱150,000

What is operating income?

A) ₱450,000
B) ₱300,000
C) ₱150,000
D) ₱200,000

✅ Answer: C) ₱150,000
Explanation: ₱300,000 – ₱150,000 = ₱150,000
Question 5

Net Sales: ₱800,000


Cost of Goods Sold: ₱500,000
Operating Expenses: ₱200,000

Net income?

A) ₱100,000
B) ₱300,000
C) ₱200,000
D) ₱500,000

✅ Answer: A) ₱100,000
Explanation:
Gross Profit = ₱800,000 – ₱500,000 = ₱300,000
Net Income = ₱300,000 – ₱200,000 = ₱100,000

Question 6

Sales: ₱600,000
Sales Returns: ₱30,000
Sales Discounts: ₱20,000
Cost of Goods Sold: ₱400,000

Gross Profit?

A) ₱200,000
B) ₱150,000
C) ₱170,000
D) ₱180,000

✅ Answer: D) ₱180,000
Explanation:
Net Sales = ₱600,000 – ₱30,000 – ₱20,000 = ₱550,000
Gross Profit = ₱550,000 – ₱400,000 = ₱150,000

Oops—my explanation contradicts the answer; correcting:


Gross Profit = ₱550,000 – ₱400,000 = ₱150,000
✅ Correct Answer: B) ₱150,000

Question 7

Gross Profit: ₱500,000


Operating Expenses: ₱300,000
Other Income: ₱50,000

Net Income?

A) ₱200,000
B) ₱250,000
C) ₱150,000
D) ₱300,000

✅ Answer: B) ₱250,000
Explanation: ₱500,000 – ₱300,000 + ₱50,000 = ₱250,000
Question 8

Revenue: ₱400,000
Salaries Expense: ₱100,000
Rent Expense: ₱50,000
Utilities Expense: ₱20,000

Net Income?

A) ₱250,000
B) ₱230,000
C) ₱300,000
D) ₱200,000

✅ Answer: B) ₱230,000
Explanation: ₱400,000 – (₱100,000 + ₱50,000 + ₱20,000) = ₱230,000

Question 9

Sales: ₱1,000,000
Sales Returns: ₱50,000
Sales Discounts: ₱20,000
COGS: ₱500,000
Operating Expenses: ₱300,000

Net Income?

A) ₱130,000
B) ₱150,000
C) ₱200,000
D) ₱180,000

✅ Answer: A) ₱130,000
Explanation:
Net Sales = ₱1,000,000 – ₱50,000 – ₱20,000 = ₱930,000
Gross Profit = ₱930,000 – ₱500,000 = ₱430,000
Net Income = ₱430,000 – ₱300,000 = ₱130,000

Question 10

Gross Profit: ₱600,000


Administrative Expenses: ₱150,000
Selling Expenses: ₱200,000
Finance Costs: ₱50,000

Net Income?

A) ₱250,000
B) ₱200,000
C) ₱300,000
D) ₱150,000

✅ Answer: A) ₱250,000
Explanation: ₱600,000 – ₱150,000 – ₱200,000 – ₱50,000 = ₱200,000

Oops—calculation correction:
₱600,000 – ₱400,000 = ₱200,000
✅ Correct Answer: B) ₱200,000

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