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Trade companies
d. Trade debtors
1) Find the profit of Weng's water refilling business 10) Which of the following is an example of external
with revenue of ₱56,000,000 and costs of finance?
₱42,000,000. a. Disposal by a business of surplus assets
a. ₱14,000,000 b. Bank loan
b. ₱140,000 c. Day to day cash from sales to customers
c. ₱1,400,000 d. Money loaned from trade suppliers through
d. ₱14,000 extended credit
2) Norma's food stall has costs of ₱2,900. Her total 11) A shareholder sells his shares for more than he
food sales are ₱11,600. What percent of her food paid for them. This is known as:
sales do the food costs represent? a. Capital gain
a. 20% b. Profit on disposal
b. 25% c. God deal
c. 27% d. Capital allowance
d. 30% 12) The point at which the level of sales of a business
3) Marvin needs 250 cookies for a buffet. He will exactly equals its costs is known as the:
make oatmeal raisin, macaroons, and chocolate a. Break-even point
chunk cookies. He wants 25% of the cookies to be b. Insolvency point
oatmeal raisin and 15% of the cookies to be c. Start-up stage
macaroons. How many chocolate chunk cookies must d. Profit point
Marvin bake? 13) Working capital is:
a. 150 a. Current Assets-Current Liabilities
b. 125 b. Notes Payable
c. 140 c. Current Liabilities
d. 100 d. Accounts Payable
4) If a shirt is marked down 25%, what will the 14) Which of the following does not appear in a
purchase price be? Balance Sheet?
a. ₱25 a. Cash
b. 75% of its original price b. Equipment
c. 50% off c. Accounts Payable
d. ₱75 d. Depreciation Expense
5) A customer places a special order through 480 15) Adjusting entries are used to:
Furniture Store. The list price in the manufacturer's a. close the books
catalog is ₱1,600. 480 Furniture receives a 35% trade b. record accruals
discount. What is the net price for the furniture order? c. correct errors
a. ₱560 d. all of the listed answers are correct
b. ₱1,535 16) Net Income or Profit results from:
c. ₱1,565 a. revenues exceeding expenses
d. ₱1,040 b. assets exceeding liabilities
6) Ron's Manufacturing offers discounts on most of its c. expenses exceeding revenues
products. What is the trade discount rate on an item d. liabilities exceeding assets
with a list price of ₱16.79 and a net price of ?₱2.42? 17) Assets are normally recorded at:
a. 22% a. cost
b. 26% b. appraised value
c. 54% c. market value
d. 74% d. management's estimated value
7) What type of financial statement summarizes the 18) Which financial report measures results for a
information concerning the cash inflows and outflows period of time?
during a particular period? a. Balance Sheet
a. Balance sheet b. Income Statement
b. Statement cash flows c. Trial Balance
c. Income statement d. All of the listed answers
d. Statement of retained earning
19) Using the double entry system, every business
8) Closing entries are made: transaction _________.
a. so that financial statements can be made a. affects two or more accounts
b. in order to terminate the business as an operating b. affects only asset accounts
entity c. affects only one account
c. in order to transfer net income/loss and owner's d. affects only income statement
drawings to the owner's capital account
d. so that all assets, liabilities, and owner's capital 20) A debt incurred by buying goods or services from
accounts will have zero balances when the next a supplier on credit is called _________.
accounting period starts a. property
b. accounts payable
9) Suppliers who allow business to receive goods and c. an expense
services before paying for them are known as: d. accounts receivable
a. Finance companies
b. Leasing companies
TLE (8) - Business Math
ANSWERS:
1. A
2. B
3. A
4. B
5. D
6. B
7. B
8. C
9. C
10. B
11. A
12. A
13. A
14. D
15. D
16. A
17. A
18. B
19. A
20. B