FABM12 POINTERS 1ST QUARTER
1. During October, a sari-sari store had the following transactions involving revenue and expenses. Did the firm earn a
net income or incur a net loss for the period? What was the amount? Paid Php1,200 for rent, Provided services for
Php2,750 in cash, Paid Php250 for telephone service, Provided services for Php1,900 on credit, Paid salaries of
Php1,675 to employees, Paid Php350 for office cleaning service.
a. P 1,075
b. P 1,175 c. P 2,175
d. P 2,155
2. The following are permanent accounts except one.
a. Cash
b. Dividends
c. Tax
d. Mortgage
3. 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.
a. Statement of Financial Position
b. Statement of Equity c. Statement of Income d. none of the above
4. 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 _________.
a.Php42, 350
b.Php42, 351
c.Php42,349
d. Php42,352
5. At the end of the first month of operations for Juan’s Service Company, the business had the following accounts:
Cash, Php19,000; Prepaid Rent, Php500; Equipment, Php5,000 and Accounts Payable Php2,000. By the end of the
month, Jackson's had earned Php20,000 of
Revenues, Php1,000 of Utilities Expenses and Php1,500 of Salaries Expenses. Calculate the net income to be reported
by the company for this first month.
a. Php 17,500
b. Php 19,500
c. Php 20,500
d. Php 16,500
6. This is in contrast with temporary accounts which are found in the Statement of Comprehensive Income .
a. Permanent Accounts b. Temporary Accounts c. Real Accounts d. Contra Assets
7. It is a form of the SFP that shows asset accounts first and then liabilities and owner’s equity accounts after.
a. Report form
b. Account form
c. Book value
d. Investment form
8. Scorpio Company’s total liabilities amounted Php 10,000. Total equity had an ending balance of
Php20,000. How much is total assets?
a.P30, 000
b. P 40,000
c. P 20,000 d. P 10,000
9. Beginning owner’s equity amounted to P 300,000. Net loss for the year totaled P 45,000. No additional investments
and withdrawals for the period. Compute for total increase in equity for the year..
a. Increase is zero but decrease is P 45,000
c. Increase is zero and increase is P 55,000
b. Decrease is zero but decrease is P 45,000
d, Increase is zero and increase is P 35,000
10. What is the primary purpose of a Statement of Financial Position (Balance Sheet) in financial reporting?
A) To summarize the company's revenues and expenses.
B) To provide an overview of the company's cash flows.
C) To report the company's financial position at a specific point in time.
D) To detail the company's comprehensive income over a period of time.
Part 2: Computation: Direction: No Erasures Allowed. Show your solutions in a separate sheet. Use only
market calculator.
A.CASH FLOW STATEMENT
You are analyzing the financial statements of Company XYZ and notice a significant decrease in its cash
balance from the previous year. You decide to investigate further and identify the following information:
Net Income for the year: 500,000
Depreciation Expense: 10,000
Increase in Accounts Receivable: 55,000
Increase in Accounts Payable: 10,000
Purchase of Equipment: 70,000
Sale of Investments: 10,000
Issuance of New Common Stock: 30,000
Payment of Long-Term Debt: 30,000
Dividends Paid to Shareholders: 10,000
Drawings; 20,000
Cash,beg; 15,000
Calculate the Net Cash Flow from Operating Activities, Net Cash Flow from Investing Activities, and Net
Cash Flow from Financing Activities for Company XYZ.
B.FINANCIAL STATEMENTS
You are a financial analyst reviewing the financial statements of Company ABC. You notice that the
company's Gross Profit has increased significantly, but the Net Income has decreased compared to the
previous year. You decide to investigate further and identify the following information:
ACCOUNT TITLES
2017
2018
ASSETS
Cash
Receivables
Inventory
Prepaid Expenses
Total Current Assets
Other Assets
Total Assets
LIABILITIES & EQUITY
40,000
30,000
18,000
3,000
83,000
50,000
P138,000
45,000
35,000
22,000
2,000
104,000
40,000
P144,000
Total Current liabilities
Long Term liabilities
Aries, Capital
Total liabilities & Equity
PROFITS/LOSSES
10,000
60,000
58,000
P138,000
10,000
45,000
89,000
P144,000
Sales
Returns
Net Sales
Cost of Sales
Gross Profit
Utilities Expenses
Salaries Expenses
Rent Expense
NET INCOME
Capital, beg
Add: Net Income
Subtotal
Withdrawal
Capital, end
REQUIRED:
Prepare STATEMENT OF FINANCIAL
POSITION;EQUITY & INCOME
60,000
5,000
55,000
20,000
35,000
1,000
5,000
2,000
P27,000
35,000
27,000
62,000
4,000
P58,000
75,000
5,000
70,000
15,000
55,000
2,000
5,000
2,000
P46,000
50,000
46,000
96,000
7,000
P89,000
“Never take your eyes off the cash flow because it's the lifeblood of business.”
_Unknown_