TLE (8) - Business Math d.
Money loaned from trade suppliers through extended credit
1) Find the profit of Weng's water refilling business with revenue of ₱56,000,000 and costs of ₱42,000,000. 11) A shareholder sells his shares for more than he paid for them. This is known as:
a. ₱14,000,000 b. ₱140,000 c. ₱1,400,000 d. ₱14,000 a. Capital gain
2) Norma's food stall has costs of ₱2,900. Her total food sales are ₱11,600. What percent of her food sales b. Profit on disposal
do the food costs represent? c. God deal
a. 20% b. 25% c. 27% d. 30% d. Capital allowance
3) Marvin needs 250 cookies for a buffet. He will make oatmeal raisin, macaroons, and chocolate chunk 12) The point at which the level of sales of a business exactly equals its costs is known as the:
cookies. He wants 25% of the cookies to be oatmeal raisin and 15% of the cookies to be macaroons. How many a. Break-even point
chocolate chunk cookies must Marvin bake? b. Insolvency point
a. 150 c. Start-up stage
b. 125 d. Profit point
c. 140 13) Working capital is:
d. 100 a. Current Assets-Current Liabilities
4) If a shirt is marked down 25%, what will the purchase price be? b. Notes Payable
a. ₱25 c. Current Liabilities
b. 75% of its original price d. Accounts Payable
c. 50% off 14) Which of the following does not appear in a Balance Sheet?
d. ₱75 a. Cash
5) A customer places a special order through 480 Furniture Store. The list price in the manufacturer's catalog is b. Equipment
₱1,600. 480 Furniture receives a 35% trade discount. What is the net price for the furniture order? c. Accounts Payable
a. ₱560 d. Depreciation Expense
b. ₱1,535 15) Adjusting entries are used to:
c. ₱1,565 a. close the books
d. ₱1,040 b. record accruals
6) Ron's Manufacturing offers discounts on most of its products. What is the trade discount rate on an item c. correct errors
with a list price of ₱16.79 and a net price of ?₱2.42? d. all of the listed answers are correct
a. 22% 16) Net Income or Profit results from:
b. 26% a. revenues exceeding expenses
c. 54% b. assets exceeding liabilities
d. 74% c. expenses exceeding revenues
7) What type of financial statement summarizes the information concerning the cash inflows and outflows d. liabilities exceeding assets
during a particular period? 17) Assets are normally recorded at:
a. Balance sheet a. cost
b. Statement cash flows b. appraised value
c. Income statement c. market value
d. Statement of retained earning d. management's estimated value
8) Closing entries are made: 18) Which financial report measures results for a period of time?
a. so that financial statements can be made a. Balance Sheet
b. in order to terminate the business as an operating entity b. Income Statement
c. in order to transfer net income/loss and owner's drawings to the owner's capital account c. Trial Balance
d. so that all assets, liabilities, and owner's capital accounts will have zero balances when the next accounting d. All of the listed answers
period starts 19) Using the double entry system, every business transaction .
9) Suppliers who allow business to receive goods and services before paying for them are known as: a. affects two or more accounts
a. Finance companies b. affects only asset accounts
b. Leasing companies c. affects only one account
c. Trade companies d. affects only income statement
d. Trade debtors 20) A debt incurred by buying goods or services from a supplier on credit is called .
10) Which of the following is an example of external finance? a. property
a. Disposal by a business of surplus assets b. accounts payable
b. Bank loan c. an expense
c. Day to day cash from sales to customers d. accounts receivable
ANSWERS:
1. A
2. B
3. A
4. B
5. D
6. B
7. B
8. C
9. C
10. B
11. A
12. A
13. A
14. D
15. D
16. A
17. A
18. B
19. A
20. B