Republic of the Philippines

Department of Education
Region 02 SCORE
Division of Cagayan
CAGAYAN NATIONAL HIGH SCHOOL
QUIZ 2
FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 2

NAME:________________________________________ GRADE/SECTION:_____________________________

TEST 1. TRUE OR FALSE. Write TRUE if statement is correct, otherwise write FALSE.
1. The Statement of Comprehensive Income shows information on an entity’s financial performance during the
period.
2. If income is greater than expenses, the difference is loss.
3. The statement of profit or loss and other comprehensive income is synonymous with income statement.
4. A statement of comprehensive income may be presented using single statement or double statement.
5. Distribution costs are costs attributable to selling activities
6. Bad debts expense is classified as administrative expenses
7. Sales commission is an income of a merchandising business
8. Revenue includes both income and gains.

TEST 2. MULTIPLE CHOICE. Write the letter of the best and/or correct answer. Use CAPITAL LETTERS ONLY.
9. What do we call the items that meet the definition of income but may or may not arise in the ordinary course of
activities of the business?
A. Revenue B. Gains C. Sales D. Unearned Income
10. Which of the following holds true about expenses?
A. It encompasses both revenue and gains C. It may either be current or noncurrent
B. These are increases in economic benefits during the period D. It decreases the equity
11. What do we call the statement of comprehensive income that presents expenses by function?
A. Single step approach B. Multi step approach C. classified presentation D. unclassified
presentation
12. What comprises the line item “other income”?
A. Interest Revenue B. Gains C. Service Fees D. Both A and B
13. Which of the following items will not appear in the computation of Cost of goods Sold?
A. Net Purchases B. Purchases C. Freight- out D. Total Goods Available for
Sale
14. Which of the following will not form part of the Selling Costs?
A. Sales Commission B. Freight- in C. Advertising Expense D. Transportation- out
15. Which line item includes Bad Debts Expense?
A. Cost of Sales B. Administrative C. Selling D. Finance

FOR ITEMS 18- 22: Refer to the given problem. Write the letter of your choice. USE CAPITAL LETTERS ONLY.
Cost of Goods sold P320,000
Insurance Expense 75, 000
Advertising Expense 25, 000
Freight- out 30, 000
Loss on Sale of Equipment 7, 000
Rent Expense (1/2 pertains to sales dept.) 80, 000
Salaries Expense (1/4 pertains to non-sales dept.) 150, 000
Sales Commission 10, 000
Bad debts Expense 5, 000
Interest Expense 5, 000
16. What is the amount of Rent Expense attributable to sales department?
A. P80, 000 B. P40, 000 C. P60, 000 D. P75, 000
17. What is the amount of salaries expense attributable to non- sales personnel?
A. P150, 000 B. P75, 000 C. P25, 000 D. 37, 500
18. What is the total amount of the entity’s administrative expenses?
A. P157, 500 B. P162, 500 C. P197, 500 D. P202, 500
19. What is the total amount of entity’s selling expenses?
A. P217, 500 B. P222, 500 C. P224, 500 D. P229, 500
20. What is the total amount classified as other expenses?
A. P320, 000 B. P7, 000 C. P10, 000 D. P5, 000

Prepared by: AR-JAY C. ROMERO

Subject Teacher