Republic of the Philippines
Department of Education
Region I
SCHOOLS DIVISION OFFICE OF PANGASINAN II
Binalonan
FUNADAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 2
Grade 12
Division Diagnostic Assessment
S.Y. 2022-2023
Name:
Date:
School:
Score:
Multiple Choice. Choose the best answer and write your answer before each number.
1. What are the resources or things value owned by an enterprise?
A. Assets
B. Equity
C. Expenses
D. Liabilities
2. What compromises the portion payable beyond one year of a long term liability?
A. Assets
B. Current Liability
C. Noncurrent Liability
D. Equity
3. What account is NOT a current asset?
A. Accounts Receivable
B. Cash
C. Equipment
D. Inventories
4. What non-current asset is NOT subject to depreciation?
A. Building
B. Equipment C. Land Improvements
D. Land
5. What pro forma of the SFP that presents its elements in horizontal order following the accounting equation?
A. Account Form
B. Direct Method
C. Indirect Method
D. Report Form
6. What statement can BEST describe a Statement of Comprehensive Income (SCI)?
A. reports the changes in equity for corporation throughout an accounting period.
B. displays the assets of a company and its sources of financing and equity.
C. shows the results of operations of the company as of the cut-off date.
D. explains the net change in cash for the end of the accounting period.
7. What account is NOT an element of the Statement of Comprehensive Income for merchandising business?
A. Accounts Receivable
B. Cash
C. Freight-in
D. Notes payable
8. What account is classified as an administrative expense?
A. Salaries of sales clerks
B. Freight-out
C. sales
D. Cash
9. Which of the following is an appropriate date for the SCI?
A. For the month ended January 31, 2020
C. January 31, 2020
B. 31th of January 2020
D. January 30, 2020
10. What approach is used in the statement of comprehensive income statement that represents information in a
simplified format using only one step deducting the total expenses from the total revenues?
A. multi-step
B. single-step
C. account approach
D. report approach
11. In the computation of net income, what is added to revenues?
A. gain from sale of equipment B. cash
C. accounts receivables D. interest
12. What is more detailed and more complicated approach in the preparation of Statement of Comprehensive
Income?
A. multi-step
B. single-step
C. account approach
D. report approach
13. What account shows a decreases owner’s equity in Statement of Changes in Equity?
A. Additional Investment
B. Initial Investment
C. Net Income
D. Net Loss
14. A statement that shows the inflows and outflows of cash during a particular of time is known as?
A. Balance Sheet
C. Statement of Cash flows
B. Income Statement
D. Statement of Changes in Equity
15. The statement of cash flow clarifies cash flows according to what?
A. Operating and Non-operating Flows
C. Investing and Non-operating Flows
B. Inflow and Outflow
D. Operating, Investing, and Financing Activities
16. What activity in the Cash Flow Statement do cash receipts and cash payments classified?
A. Operating and Non-operating
C. Operating, Financing and Non-Operating
B. Operating, Investing and Financing
D. Investing, financing and Non-Operating
17. All of the following will be reported in the Cash Flow Statement EXCEPT?
A. Cash payment for assets during the period
C. The changes in owner’s equity during the period
B. Cash collections for receivables during the period
D. Borrowings from banks during the period
18. What is the capacity of a company to pay its currently maturing obligations?
A. Liquidity
B. Solvency
C. Profitability
D. Stability
19. What measures the capability of an entity to pay long term obligations as they fall due?
A. Liquidity
B. Solvency
C. Profitability
D. Stability
20. What is the type of bank account that uses withdrawal slip?
A. Savings account
B. Current account
C. Credit account
D. Cash account
21. What is the type of bank account that uses checks for withdrawal?
A. Cash account
B. Current account
C. Time deposit account
D. Savings deposit account
22. What type of bank account normally maintained by business organizations to safe keep extra cash to be
withdrawn only at the maturity date?
A. Cash account
B. Current account
C. Time deposit account
D. Savings deposit account
23. How many signatories are there in a sole proprietorship checking account?
A. One
B. Two
C. Three
D. Four
24. What do you call the bank in which the check will be presented for payment?
A. Drawer
B. Drawee
C. Payer
D. Payee
25 What do you call the person or company who owns the account and prepares the check?
A. Drawer
B. Drawee
C. Payer
D. Payee
26. A check worth ₱30,000 was issued to a supplier on September 25, 2016. The check was cleared by the bank
on October 5, 2016. What is the reconciling item?
A. Outstanding check
B. Bank error C. Deposit in transit
D. Bank charges
27. What is the amount already recorded in the Cash Disbursement Journal of the depositor but too late to be
recorded in the book of the bank?
A. Stale check
B. Deposit in transit
C. Debit memorandum D. Credit memorandum
28. What is the monthly statement containing the beginning and ending balances, debits and credits with
corresponding dates given by the bank to the owner of the current account?
A. Bank statement
B. Credit memorandum C. Outstanding check D. Bank reconciliation
29. Who can correct an error committed by the bookkeeper of the drawer?
A. The bank can correct the error.
C. The auditor of the bank can correct the error.
B. The company can correct the error.
D. Either of the company or the bank can correct the error.
30. What term defined by NIRC Tax Code, under Sec. 31 that refers to the pertinent items of gross income less
the deductions, if any, authorized for such type of income?
A. Gross Income
B. Net Income
C. Tax Due
D. Taxable Income
Refer to the Statement of Financial Position below to answer items 31-33.
Seal General Merchandising
Statement of Financial Position
As of December 31, 2021
Assets
2021
2020
Current Assets
85,000
55,000
Property and Equipment
125,000
136,000
Total Assets
210,000
191,000
Liabilities and Owner’s Equity
Current Liabilities
45,500
58,600
Non-current liabilities
148,300
116,900
Seal Capital
16,200
15,500
Total Liabilities and Equity
210,000
191,000
31. Using vertical analysis of financial statement, what is the ratio of current assets against total assets for year
2021?
A. 40.48%
B. 40.47%
C. 28.80%
D. 28.79%
32. Using vertical analysis of financial statement, what is the ratio of current liabilities against total liabilities
and equity for year 2020?
A. 21.67%
B. 21.66%
C. 30.68%
D. 30.66%
33. Using horizontal analysis of financial statement, how much is the increase in liabilities?
A. 31,400
B. -31,400
C. 18,300
D. -18,300
Use the data below to answer items 34-36.
BCG Merchandising
Statement of Financial Position
As of December 31, 2020
Assets
Cash
Accounts Receivable
Marketable Securities
Inventory
Prepaid expenses
Land
Equipment
Total Assets
350,000
35,000
12,000
75,500
15,000
300,000
350,000
1,137,500
Liabilities and Owner's Equity
Liabilities
Accounts payable
25,000
Salaries Payable
12,500
Notes payable
200,000
Total Liabilities
237,500
Owner's Equity
BCG, Capital
900,000
Total Liabilities and Owner's Equity
1,137,500
34. Using the data of BCG Merchandising, how much is the working capital?
A. 447,500
B. 450,000
C. 435,000
35. Using the data of BCG Merchandising, what is the current ratio?
A. 7.69%
B. 10.59%
C. 12.60%
36. Using the data of BCG Merchandising, how much is the quick assets?
A. 472,500
B. 385,000
C. 487,500
D. 462,500
D. 12.33%
D. 397,000
37. How do you compute the Adjusted cash balance per bank?
A. Add Deposit in Transit and subtract Outstanding checks from book balance
B. Add Interest earned and subtract Outstanding checks from bank balance
C. Less Deposit in Transit and add Interest earned to book balance
D. Less Interest earned and subtract Outstanding checks from bank balance
38. How would you solve the problem where the bank statement shows that a note receivable of P10,700 was
collected by the bank for the company and withdrew P550 for company’s account as fee for collecting the
note receivables?
A. Add Notes receivable collected less fees on the balance per bank statement
B. Add Notes receivable collected less fees on the balance per books
C. Less Notes receivable collected less fees on the balance per bank statement
D. Less Notes receivable collected less fees on the balance per books
39. If the bank statement shows charges of P135 for the service charge for maintaining the checking account,
what is the adjusting entries to be made?
A. Add interest earned
C. Notes receivable collected less fees
B. Bank Service Charges
D. Outstanding checks should be noted
40. The cash amounting to P11,450 which received by the company on May 31 was recorded on the company's
books as of May 31. However, the P11,450 of cash receipts was deposited at the bank on the morning of
June 1. How much is the Deposit in Transit?
A. 10,719
B. 10,917
C. 11,450
D. 12,204
41. On May 29, the company's Cash account shows cash sales of P2,145. The bank statement shows the amount
deposited was really P2,154. The company reviewed the transactions and found that P2,154 was the correct
amount recorded in the book. How much is the adjustment to be recorded per book?
A. 0
B. 2
C. 4
D. 9
42. Which of the following statements is true?
Statement no. 1: The husband and wife shall compute separately their individual income tax based on their
respective total taxable income.
Statement no. 2: That if any income of the husband and the wife cannot be definitely attributed to or
identified as income exclusively earned or realized by either of the spouse, the same shall
be added to the husband.
A. Statements 1 and 2
B. Statement 1only
C. Neither statements 1 nor 2 D. Statement 2 only
43. Individuals earning income purely from self-employment and or practice of profession whose gross sales
do not exceed the VAT threshold. Which of the following options can the individual avail?
I: Graduated rates under Section 24(A)(2)(a);
II: Twelve percent (12%) tax on gross sales
A. I and II
B. I only.
C. Neither I nor II
D. II only
44. Taxpayers whose gross sales/receipts and other non-operating income did not exceed the 3,000,000 VAT
threshold during the taxable year may qualify and avail of 8% income tax rate. Which of the following is
required?
I: To file the Annual Income Tax Return but Financial Statement (FS) is not required to be attached.
II: To maintain books of accounts and issue receipts/invoices.
A. I only
B. II only
C. I and II
D. Neither I nor II
45. Which item is NOT included in the “Exclusions from gross income” for the computation of taxable income
which are treated as deductions?
A. De minimis benefits
C. Union dues.
B. Employee’s share in the SSS, GSIS, PHIC, and contributions
D. 13th month pay in excess of Php90,000 threshold
Refer to the situation below to answer items 46-47.
Mr. Yan, is an employee of ABC Inc. He is not engaged in business nor has any other source of income
other than his employment. For 2021, Mr. Yan earned a basic annual income of PhP 145,000.00 inclusive of his
contribution to SSS in the amount of PhP 2,400.00, PhilHealth, PhP 3,987.50, HDMF amount to Php2,400.00, and
13th month pay of Php12,000.00. Mr. Yan earned, aside from his basic wage, additional pay of Php140,000.00.
46. How much is the total compensation income of Mr. Yan?
A. Php12,000.00
B. Php145,000.00
C. Php157,000.00
D. Php297,000.00
47. How much is the taxable income?
A. Php 26,212.50
B. Php145,000.00
C. Php157,000.00
D. Php264,212.50
Use the data below to answer items 48 – 50.
Cash transactions of BGC Enterprises for Dec 31, 2020.
Cash receipts from rendering of services
125,000
Cash payment to suppliers of goods and services 62,500
Cash withdrawals by owner
52,500
Proceeds of bank loans
62,500
Payment for salaries
30,000
Payment for interest
31,250
Proceeds from sale of equipment
37,500
Payment of machineries
300,000
Proceeds from sale of furnitures
37,500
Payment of bank loans
12,500
Cash balance, beginning
2,500,000
Prepare the Statement of Cash Flows then use it to answer the following:
48. How much is the net cash flow from financing activities?
A. 2,500
B. -2,500
C. 10,000
49. How much is the total net increase or decrease of cash for the year?
A. 35
B. 226,250
C. -226,250
50. How much is the ending balance of cash as of December 31, 2020?
A. 2,273,750
B. -2,273,750
C. 2,500,000
D. -10,000
D. 351.250
D. -2,148,750