EASTERN VALLEY SCHOOL

429 Cacho St. Brgy. Balite Rodriguez Rizal

Senior High School

Name: _________________________________ Date: ______________________

Section: ________________________________ Score: _____________________

DIAGNOSTIC TEST
Business Mathematics – ABM11

MULTIPLE CHOICE
DIRECTIONS: Encircle the letter of the correct answer.

1. What is 10% of ₱500?

a) ₱10 b) ₱50 c) ₱100 d) ₱5
2. The formula for simple interest is:
a) I = PR + T c) I = PRT
b) I = P + RT d) I = P/T
3. In business math, “P” in the formula I = PRT stands for:
a) Price c) Principal
b) Percentage d) Profit
4. A person borrowed ₱2,000 for 1 year at 5% simple interest. How much is the
interest?
a) ₱100 b) ₱150 c) ₱50 d) ₱200
5. What is the total amount to pay back if the interest is ₱100 and the loan is ₱1,000?
a) ₱1,100 b) ₱900 c) ₱100 d) ₱1,010
6. What is the percentage of ₱20 out of ₱100?
a) 10% b) 20% c) 30% d) 5%
7. What is 25% of ₱1,200?
a) ₱300 b) ₱150 c) ₱200 d) ₱250
8. What do we call the money earned in a business after subtracting costs?
a) Capital b) Loss c) Profit d) Expense
9. What is the original price if the selling price is ₱880 and VAT is 12%?
a) ₱1,000 b) ₱786 c) ₱800 d) ₱880

10. The term for the amount added to the cost to find the selling price:

a) Discount c) Profit
b) Markup d) Expense
11. If an item costs ₱200 and is sold for ₱250, what is the profit?
a) ₱50 b) ₱150 c) ₱450 d) ₱200
12. A 10% discount on ₱1,000 is how much?
a) ₱10 b) ₱100 c) ₱900 d) ₱110
13. What is the term for money used to start a business?
a) Asset b) Capital c) Liability d) Expense
14. What do we call the money paid for borrowing money?
a) Tax b) Interest c) Income d) Expense
15. Which one is a fixed cost?
a) Rent c) Water bill
b) Electricity d) Raw materials
16. What is the total cost of buying 5 notebooks at ₱20 each?
a) ₱25 b) ₱100 c) ₱50 d) ₱200
17. A product was sold for ₱500, and it originally cost ₱400. What is the markup?
a) ₱100 b) ₱900 c) ₱400 d) ₱0
18. What is 15% of ₱1,000?

a) ₱150 b) ₱15 c) ₱100 d) ₱50

19. If a store sells 3 shirts at ₱300 each, how much total sales?
a) ₱600 b) ₱900 c) ₱300 d) ₱1,000
20. Which one is an example of an income?
a) Buying supplies c) Selling a product
b) Paying bills d) Paying rent
21. What does VAT stand for?
a) Value Added Time c) Variable Annual Tax
b) Value Added Tax d) Value After Tax
22. If you buy a phone for ₱8,000 and sell it for ₱10,000, what is your profit?
a) ₱1,000 b) ₱2,000 c) ₱10,000 d) ₱8,000
23. A discount reduces the:
a) Cost b) Tax c) Price d) Quantity
24. What is 5% of ₱1,000?
a) ₱50 b) ₱5 c) ₱500 d) ₱100
25. If you earn ₱500 per day, how much will you earn in 6 days?
a) ₱3,000 b) ₱2,000 c) ₱600 d) ₱1,000
26. What is the interest on ₱1,000 at 10% for 1 year?
a) ₱10 b) ₱100 c) ₱1,000 d) ₱110
27. What is the purpose of a budget?
a) To lose money c) To spend more
b) To plan spending d) To increase bills
28. If total income is ₱5,000 and expenses are ₱4,000, what is the savings?
a) ₱1,000 b) ₱500 c) ₱9,000 d) ₱4,000
29. A product is sold for ₱1,120 including 12% VAT. What is the VAT amount?
a) ₱100 b) ₱120 c) ₱20 d) ₱140
30. Which is NOT an example of a business expense?
a) Utilities b) Rent c) Salary d) Profit

Prepared by:

John Rey M. Rosal, LPT

Precious Danica A. Gaspi

Answer Key
1. b 16. b
2. c 17. a
3. c 18. a
4. a 19. b
5. a 20. c
6. b 21. b
7. a 22. b
8. c 23. c
9. c 24. a
10. b 25. a
11. a 26. b
12. b 27. b
13. b 28. a
14. b 29. b
15. a 30. d