Republic of the Philippines

DEPARTMENT OF EDUCATION
Schools Division Office I Pangasinan

Sual National High School

Sual, Pangasinan

First Quarter Examination

I. Answer the following problems with complete solution.

1. If assets are Php17,000 and owner's equity is Php10,000, liabilities are ___________________. (3pts)

2. At the end of the first month of operations for Juana’s Delivery Service, the business had the following
accounts: Accounts Receivable, Php1,200; Prepaid Insurance, Php500; Equipment, Php36,200 and Cash,
Php40,650. On the same date, Juana owed the following creditors: Nena’s Supply Company, Php12,000;
Maria’s Equipment, Php9,500. The current assets for the Juana’s Delivery Service are _________. (10pts)

3. At the end of the first month of operations for Juana’s Delivery Service, the business had the following
accounts: Accounts Receivable, Php1,200; Prepaid Insurance, Php500; Equipment, Php36,200 and Cash,
Php40,650. On the same date, Juana owed the following creditors: Nena’s Supply Company, Php12,000
(due in 6 months); Maria’s Equipment, Php9,500 (due after 2 years). Current liabilities are _________.
(10pts)

4. If during the year total assets increase by Php75,000 and total liabilities decrease by Php16,000, by how
much did owner's equity increase/decrease? (2pts)

5. Prepare a Statement of Financial Position using the following accounts: (for 10 pts)
Cash – 5,000
Loans Payable – 77,500
Accounts Receivable – 2,600
Supplies – 2,300
Equipment – 17,000
Owner’s equity – 40,000
Accounts Payable – 22,400
Building – 113,000

6. The company presented the following in order to aid the accountant in preparing the CFS:
a. Net income: P200,000
b. Depreciation expense: P 25,000
c. Gain on sale of property and equipment: P100,000
d. Decrease in trade and other receivables: P 70,000
e. Purchase of property and equipment: P200,000
f. Payment of loan from bank: P150,000
*Compute for the cash generated/used in financing activities.
*Based on the given above, compute for the net change in cash for the year.
*P700,000, prepare the CFS for the year.

II. Identify which of the following transactions fall under operating, investing and financing activities.
a. Cash received from customers
b. Cash paid to suppliers
c. Cash paid to employees
d. Cash paid to purchase equipment (company does not sell equipment)
e. Cash received from sale of furniture (company’s main line of business is not related to furniture)
f. Depreciation expense
g. Sale of goods on credit
h. Purchase of goods on credit
i. Cash received from getting a loan from a bank
j. Cash paid to owners

III. Matching Type: Write the number corresponds to each of the following terms.

1. The balance of the cash account at the end of the accounting period
STATEMENT OF FINANCIAL POSITION computed using the beginning balance plus the net change in cash for the
current period.
PERMANENT ACCOUNTS 2. The balance of the cash account at the beginning of the accounting period.

CONTRA ASSETS 3. Cash transactions related to changes in equity and borrowings.

Report Form 4. Cash transactions related to purchase or sale of non-current assets

 5. Activities that are directly related to the main revenue producing activities
Account Form of the company such as cash from customers and cash paid to
suppliers/employees
Current Assets 6. Decreases to owner’s equity by withdrawing assets by the owner

Noncurrent Liabilities 7. Increases to owner’s equity by adding investments by the owner

8. This statement is prepared prior to preparation of the Statement of

TEMPORARY ACCOUNTS Financial Position to be able to obtain the ending balance of the equity to be
used in the SFP.

Sales returns 9. Gross Profit less General and Administrative Expenses less Selling Expenses

10. Sales less Cost of Goods Sold

Sales discount

11. amount if inventory presented in the Statement of Financial Position. Total

Cost of Goods Sold cost of inventory unsold at the end of the accounting cycle.

12. This account is used to record transportation costs of merchandise

Beginning inventory purchased by the company.

13. Account used to record merchandise returned by the company to their

Net Cost of Purchases suppliers.

14. Account used to record early payments by the company to the suppliers of
Net Purchases merchandise.

15. An account that is credited being “contrary” to the normal balance of

Purchases Purchases account.

Contra Purchases 16. amount of goods bought during the current accounting period

Purchase discount 17. Purchases – (Purchase discount and purchase returns)

Purchase returns 18. Purchases + Freight In

19. This is the amount of inventory at the beginning of the accounting period.
Freight In This is also the amount of ending inventory from the previous period.
20. This account represents the actual cost of merchandise that the company
Ending inventory could sell during the year.

Gross Profit 21. This is where discounts given to customers who pay early are recorded

22. This account is debited to record returns of customers or allowances for

Net Income such returns
23. balances under these accounts are transferred to the capital account, and
STATEMENT OF CHANGES IN EQUITY resulting to zero beginning balances at the beginning of the following year.

24. Liabilities that do not fall due (paid, recognized as revenue) within one
SINGLE/SOLE PROPRIETORSHIP year after year-end date.

Additional Investment
Operating Activities
25. Assets that can be realized (collected, sold, used up) one year after year-
end date.
26. 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.

27. A form of the SFP that shows asset accounts first and then liabilities and
Investing Activities owner’s equity accounts after.

28. accounts that are presented under the assets portion of the SFP but are
Financing Activities reductions to the company’s assets.

Beginning Cash Balance
Ending Cash Balance
29. balances remain intact from one accounting period to another and are
retained permanently in the SFP until their balances become zero.
30. This statement 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.

Prepared by: Approved: Noted:

Nelson R. Garcia SHIELA R. BIASON MARIELA N. CALIMA, Ed, D

SHS Teacher II OIC – SHS Asst. Principal Principal IV

GOODLUCK!!!