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Summative FABM2

This document appears to be a summative test for a Grade/Section on topics related to accounting, including the Statement of Financial Position, Statement of Comprehensive Income, Statement of Changes in Equity, and Cash Flow Statement. It contains multiple choice and fill-in-the-blank questions testing understanding of key terms, concepts, and analyses related to these fundamental financial statements.

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Antonio Seares
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34 views

Summative FABM2

This document appears to be a summative test for a Grade/Section on topics related to accounting, including the Statement of Financial Position, Statement of Comprehensive Income, Statement of Changes in Equity, and Cash Flow Statement. It contains multiple choice and fill-in-the-blank questions testing understanding of key terms, concepts, and analyses related to these fundamental financial statements.

Uploaded by

Antonio Seares
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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Republic of the Philippines

Region VII, Central Visayas


Division of Cebu Province
Bantayan District I
SULANGAN INTEGRATED SCHOOL
SUMMATIVE TEST
FABM2

Name: _________________________________________Grade/Section: ________________Score: __________

Test I. STATEMENT OF FINANCIAL POSITION


Direction: Read each item carefully. Write the letter of the correct answer.
____1. It is the statement that includes the amounts of the company’s total assets, liabilities, and owner’s equity which in
totality provides the condition of the company on a specific date. (Haddock, Price, & Farina, 2012)
A. Statement of Comprehensive Income C. Cash Flow Statement
B. Statement of Financial Position D. Statement of Changes in Equity
____2. What element of SFP includes debts, obligations to pay, and claims of the creditors on the assets of the business.
A. Asset C. Capital
B. Liabilities D. Expenses
____3. As the name suggests, these accounts are ________________ in a sense that their balances remain intact from one
accounting period to another. (Haddock, Price, & Farina, 2012)
A. Permanent C. Noncurrent
B. Current Asset D. Contra Asset
____4. What classification of liabilities does not fall due within one year-end date?
A. Current C. Contra
B. Noncurrent D. Permanent

____5. Which among the following does not belong to noncurrent assets?
A. Equipment C. Prepaid expenses
B. Building D. Intangible
____6. What element of SFP is economic resources owned by the business expected for future gain?
A. Asset C. Capital
B. Liabilities D. Expenses
____7. What is the other term for Owner’s Equity?
A. Asset C. Capital
B. Liabilities D. Expenses
____8. It is a form of the SFP that shows assets on the left side and liabilities and owner’s equity on the right side just like
the debit and credit balances of an account. (Haddock, Price, & Farina, 2012)
A. Report Form C. Vertical Form
B. Account Form D. None
____9. It is an asset used in the operation of the business.
A. Property, Plant & Equipment C. Current Assets
B. Intangible Assets D. Contra Asset
Test II. STATEMENT OF COMPREHENSIVE INCOME
Direction: Write the letter of the correct answer.
____10. It is the format used to prepare an income statement where revenues, expenses, and net income are presented into a
single subtotal?
A. Single step c. Single pot
B. Single stop d. Single staff
____11. Also called operating income
A. Revenues c. Recall
B. Rebel d. Gain
____12. Uses only one subtraction to arrive at net income
A. Single-step c. Single-tap
B. Multi-step d. Multitask
____13. It segregates the operating expense from the nonoperating revenues, nonoperating expenses, gains, and losses
A. Single-step c. Single-tap
B. Multi-step d. Multitask Parent/ Guardian Name and Signature
____14. If the net is negative the bottom line is labeled as?
A. Net income c. Net outcome
B. Net loss d. Net gain
____15. Net Sales minus the Cost of Goods Sold equals
A. Gross Profit c. Income
B. Operations income d. Net income
Test III. STATEMENT OF CHANGES IN EQUITY
Direction: Write the letter of the correct answer.

____16. An entity whose assets, liabilities, income and expenses are centered or owned by only one person. (Haddock,
Price, & Farina, 2012)
A. Sole proprietorship B. Partnership C. Corporation D. Cooperative
____17. An entity whose assets, liabilities, income and expenses are centered or owned by itself being legally separate
entity from its owners. (Haddock, Price, & Farina, 2012)
A. Sole proprietorship B. Partnership C. Corporation D. Cooperative
____18. An entity whose assets, liabilities, income and expenses are centered or owned by two or more persons. (Haddock,
Price, & Farina 2012).
A. Sole proprietorship B. Partnership C. Corporation D. Cooperative
____19. It is a temporary account to record whatever asset was withdrawn from the business by the owner
A. Investments B. Withdrawals C. Capital D. Sales
____20. It refers to the financial resources that businesses can use to fund their operations like cash, machinery, equipment
and other resources.
A. Investments B. Withdrawals C. Capital D. Sales
Test IV. CASH FLOW STATEMENT
Direction: Write Op if the cash flow activity is operating, Inv if the cash flow activity is Investing, Fin if the cash flow
activity is financing and NOT if the item is not a cash flow activity.

________1. Proceeds from sale of building ________6. Payment of income tax


________2. Payment of principal loan to Allied Bank ________7. Cash received from rent of building
________3. Cash collection from customers ________8. Purchase of building
________4. Cash sale of company assets ________9. Payment of accounts payable
________5. Collection of cash interest ________10. Proceeds from sale of land

Test V. VERTICAL AND HORIZONTAL ANALYSES OF FINANCIAL STATEMENTS OF A SINGLE


PROPRIETORSHIP
Directions: Identify the type of financial statement analysis performed under each of the following. (Horizontal Analysis,
Vertical Analysis, Trend Analysis, Financial Ratios)

_____1. Shows the relationship of each part to the whole in a single financial statement.
_____2. Describes the significant relationship between the numbers presented in the financial statement.
_____3. Compares the same account in the financial statement of two periods (current and past year) determining the
number of changes and computing its percentage change using a base year as comparison.
_____4. Analyzes not only two years in comparison but covers three, four- or five-years’ financial statements to determine
the trends in the industry.
_____5. In the income statement, each item is presented as percentage of net sales.
_____6. This can be expressed either as a rate, percentage, or a proportion.
_____7. This is to determine the trends in the industry.
_____8. In the statement of financial position, each item is expressed as a percentage of total assets.
_____9. The amount under each year is divided by the amount in base year thereby determining the amount of the other
years in relation to the base year.
_____10. Helps management analyze increases and decreases in balance sheet and income statement accounts.

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