Dapdap Street, Poblacion 3 Carcar City,
Cebu
Tel.Nos: 487-8927/ 487-7670/ 09562796609
First Grading Periodical Exam in
Fundamentals of Accountancy, Business, and
Management 2 (Part A/Preliminary)
Score
Name: ________________________________ Date: ________________________
Grade and Section: ______________________ Prepared by: T. Maryland V. Pasilan
I. Put a check mark on the space before each sentence if the statement is True. Leave it blank if the statement is
False. (Right minus wrong.)
____________ 1. The SCI or Statement of Comprehensive Income is picture of results of operation of the
company as of the cut-off date.
____________ 2. The SFP or Statement of Financial Position or Balance Sheet is a report based on the
accounting equation: Assets = Liabilities + (owner’s) Equity (ALOE).
____________ 3. Current Assets cannot be realized one year after year-end date.
____________ 4. Liabilities are borrowed money of the company.
____________ 5. Revenues are income generated from the primary operations of the business.
____________ 6. Goods returned by customers are immediately deducted to the Sales Revenue account.
____________ 7. The Statement of Owner’s Equity is dated “as of the year ended”.
____________ 8. Partnership is an entity who assets, liabilities, income and expenses are centered or owned
by two or more persons.
____________ 9. If there are two or more owners in a partnership thus, the changes in the capital account of
each partner is presented.
____________ 10. There are two equity accounts reported on the Statement of Owner’s Equity of a sole
proprietorship namely, Owner, Capital and Owner, Drawings.
II. Match the accounts on the table with the appropriate elements of the SFP (Statement of Financial Position)
or Balance Sheet.
Long- term payable Accounts receivable Owner’s capital
Notes Payable Accounts payable Unearned Income
Property, plant, and equipment Cash Notes receivable
Prepaid expense Accrued expenses Inventory
Asset Liabilities Equity
III. Understand and Solve the Following Problem. Show your solutions. (3 points each)
1. Total assets amounted to Php 575,000. Total equity amounted to Php 250,000. Accounts Payable amounted
to Php 50,000 while Unearned Income totaled Php 85,000. Assuming there are no other current liabilities,
compute for the company’s noncurrent liabilities.
Answer:
2. Happy Selling Company’s total liabilities amounted Php 10,000. Total equity had an ending balance of Php
20,000. How much is total assets?
Answer:
3. Gross profit of Happy Selling amounted to Php 175,000. Beginning Inventory totaled Php 250,000. Ending
Inventory amounted to Php 50,000 while Net Cost of Purchases totaled Php 85,000. Compute for Happy’s Net
Sales.
Answer:
IV. Prepare the single-step income statement for the year ended December 31 for Happy Toddlers Bookstore. 5
points
The Happy Toddlers Bookstore
The Happy Toddlers Bookstore sells the books used in classes such as workbooks and coloring books.
All the enrolled students (150 students) purchased the three prescribed books at 500 pesos each. The books cost
200 pesos each. Also, sales of various school suppliers amounted to 500,000 pesos.
The monthly salary if the bookstore manager is 20,000 pesos. The store is manned by one clerk with
monthly salary of 6,000 pesos. Utilities expense for the year totals 80,000 pesos. Of this, 25% is for the small
office at the back of the bookstore. Depreciation for store fixtures amounted to 50,000 pesos.
