Republic of the Philippines

DEPARTMENT OF EDUCATION
Region VII, Central Visayas
Division of Cebu Province
Municipality of Tabuelan
JUAN PAMPLONA NATIONAL HIGH SCHOOL

MASTERY EXAMINATION
in FABM 2
2ND SEMESTER S.Y. 2018-2019

I. MULTIPLE CHOICE: Analyze each statement carefully. Write the letter and the word of your chosen answer.
Strictly NO ERASURE.

1. In this kind of comparison, the company’s financial statements for the current period are being compared with the
financial statements of prior or earlier periods.
a. Intracomparability b. Intercomparability c. Introcomparability d. Industry Standards
2. It deals with the comparative analysis of the company’s financial statements against a direct competitor.
a. Intracomparability b. Intercomparability c. Introcomparability d. Industry Standards
3. It is the comparison of the company’s financial statements with the standard average for a certain industry.
a. Intracomparability b. Intercomparability c. Introcomparability d. Industry Standards
4. In this analysis, the company will compare their own financial statements for the current period with their financial
statements from the prior period.
a. Profitability Ratio b. Horizontal Analysis c. Vertical Analysis d. Ratio Analysis
5. In this analysis, the company expresses items of a certain financial statement as a percentage of a given base amount.
a. Profitability Ratio b. Horizontal Analysis c. Vertical Analysis d. Ratio Analysis
6. Which of the following cannot be used to analyze financial statements?
a. Liquidity Ratio b. Solvency Ratio c. Profitability Ratio d. None of the above
7. It is the capacity of a company to pay its currently maturing obligation.
a. Liquidity Ratio b. Solvency Ratio c. Profitability Ratio d. None of the above
8. It measures the capability if an entity to pay long term obligations as they fall due.
a. Liquidity Ratio b. Solvency Ratio c. Profitability Ratio d. None of the above
9. It measures the capability of a company to earn profits.
a. Liquidity Ratio b. Solvency Ratio c. Profitability Ratio d. None of the above
10. Which of the following is considered as quick asset?
a. Prepaid asset b. Trading Securities c. Both A & B d. None of the above
11. If current assets amounted to P600 000 and current liabilities amounted to P200 000, how much is the working capital
of the entity?
a. P800 000 b. P400 000 c. 3 d. 1/3
12. If current assets amounted to P600 000 and current liabilities amounted to P200 000, what is the current ratio of the
entity?
a. P800 000 b. P400 000 c. 3 d. 1/3
13. If net sales is P200 000 and the average accounts receivable is P50 000, what is the A/R turnover ratio?
a. 4 b. ¼ c. P150 000 d. P250 000
14. If the collection period is 19 days and the average of inventory is 12 days, how long is the number of days in the
operating cycle?
a. 31 days b. 7 days c. 228 days d. 1.58 days
15. If the net income after tax of the company is P 4 000 000, starting balance of assets is P500 000, and the ending
balance of assets is P700 000, what is the return on assets?
a. 8 b.5.71 c. 6.6667 d. 3.3333
16. A type of a savings account that is held for a fixed-term and can be withdrawn only after the lapse of the
agreed period and by giving notice to the bank.
a. Savings Account b. Current Account c. ATM d. Time Deposit
17. A 24-hour teller machine and the funds can be withdrawn anytime.
a. Savings Account b. Current Account c. ATM d. Time Deposit
18. If the company’s inventory turnover is 4 and the company makes use of 360 days, how many is the average days in
inventory?
a. 364 days b. 356 days c. 1 440 days d. 90 days
 19. From an acid test ratio of 9 in 2015, the ratio went up to 12 in 2016.
a. This is something good from a liquidity standpoint c. This data has no implication on the liquidity status
b. This is something bad from a liquidity standpoint d. all of the above
20. From an average collection period of 207 days in 2015, it went down to 202 days in 2016.
a. This is something good from a liquidity standpoint c. This data has no implication on the liquidity status
b. This is something bad from a liquidity standpoint d. all of the above

II. ENUMERATION. Strictly NO ERASURE.

A. Variations of Return on Investment
B. Solvency Ratio
C. Liquidity Ratio
D. Profitability Ratio
E. General types of Bank Accounts
F. Types of Savings Account
G. Different Financial Ratio

Prepared by:

KEISHA MARIE P. ROLDAN, M.Ed, LPT

Subject Teacher

Noted by:

RICA M. ROBLE, MST

Principal I