Statement of Financial Position — Multiple Choice Questions
Question 1
ABC Company has the following balances on December 31:
Cash: ₱120,000
Accounts Receivable: ₱80,000
Supplies: ₱20,000
Equipment: ₱500,000
Accumulated Depreciation–Equipment: ₱50,000
What is the total non-current assets?
A) ₱500,000
B) ₱450,000
C) ₱470,000
D) ₱420,000
✅ Answer: B) ₱450,000
Explanation: Equipment ₱500,000 – Accumulated Depreciation ₱50,000 = ₱450,000
Question 2
Liabilities of XYZ Co. on Dec 31 are:
Accounts Payable: ₱60,000
Notes Payable (due in 2 years): ₱300,000
Salaries Payable: ₱20,000
What is total current liabilities?
A) ₱80,000
B) ₱60,000
C) ₱380,000
D) ₱320,000
✅ Answer: A) ₱80,000
Explanation: Accounts Payable ₱60,000 + Salaries Payable ₱20,000 = ₱80,000 (Notes Payable is non-current)
Question 3
Total assets are ₱900,000 and total liabilities are ₱400,000.
What is owner’s equity?
A) ₱400,000
B) ₱500,000
C) ₱1,300,000
D) ₱900,000
✅ Answer: B) ₱500,000
Explanation: Assets – Liabilities = Equity; ₱900,000 – ₱400,000 = ₱500,000
Question 4
A company has:
Cash ₱50,000
Inventory ₱150,000
Equipment ₱300,000
Accumulated Depreciation ₱30,000
What is total assets?
A) ₱470,000
B) ₱500,000
C) ₱470,000
D) ₱470,000
(There seems to be duplicate options; correct choices below:)
A) ₱470,000
B) ₱500,000
C) ₱470,000
D) ₱470,000
✅ Answer: A) ₱470,000
Explanation:
Equipment Net = ₱300,000 – ₱30,000 = ₱270,000
Total Assets = Cash ₱50,000 + Inventory ₱150,000 + Equipment Net ₱270,000 = ₱470,000
Question 5
On December 31, liabilities = ₱250,000. Equity = ₱350,000.
What are the total assets?
A) ₱250,000
B) ₱100,000
C) ₱600,000
D) ₱350,000
✅ Answer: C) ₱600,000
Explanation: Assets = Liabilities + Equity = ₱250,000 + ₱350,000 = ₱600,000
Question 6
The following are reported:
Land ₱200,000
Building ₱500,000
Accumulated Depreciation–Building ₱100,000
What is carrying amount of the building?
A) ₱600,000
B) ₱500,000
C) ₱400,000
D) ₱300,000
✅ Answer: C) ₱400,000
Explanation: ₱500,000 – ₱100,000 = ₱400,000
Question 7
Inventory = ₱90,000, Cash = ₱40,000, Accounts Receivable = ₱70,000.
What is total current assets?
A) ₱200,000
B) ₱190,000
C) ₱210,000
D) ₱180,000
✅ Answer: A) ₱200,000
Explanation: ₱90,000 + ₱40,000 + ₱70,000 = ₱200,000
Question 8
Company reports:
Notes Payable (due in 6 months): ₱100,000
Bonds Payable (due in 5 years): ₱500,000
How much is non-current liability?
A) ₱500,000
B) ₱600,000
C) ₱100,000
D) ₱0
✅ Answer: A) ₱500,000
Question 9
Total assets ₱1,200,000. Equity ₱700,000.
Liabilities are?
A) ₱500,000
B) ₱1,900,000
C) ₱700,000
D) ₱1,200,000
✅ Answer: A) ₱500,000
Explanation: ₱1,200,000 – ₱700,000 = ₱500,000
Question 10
Equipment ₱800,000, Accumulated Depreciation ₱200,000, Inventory ₱300,000, Cash ₱100,000, Accounts Payable ₱250,000.
What is total assets?
A) ₱1,200,000
B) ₱1,000,000
C) ₱1,000,000
D) ₱900,000
✅ Answer: B) ₱1,000,000
Explanation:
Equipment Net = ₱800,000 – ₱200,000 = ₱600,000
Total Assets = ₱600,000 + ₱300,000 + ₱100,000 = ₱1,000,000
Statement of Comprehensive Income – Multiple Choice
Questions
Question 1
ABC Company has:
Service Revenue: ₱500,000
Salaries Expense: ₱120,000
Rent Expense: ₱50,000
What is net income?
A) ₱330,000
B) ₱500,000
C) ₱450,000
D) ₱380,000
✅ Answer: A) ₱330,000
Explanation: ₱500,000 – (₱120,000 + ₱50,000) = ₱330,000
Question 2
Sales = ₱700,000, Sales Returns = ₱50,000, Sales Discounts = ₱20,000.
Compute net sales.
A) ₱630,000
B) ₱700,000
C) ₱650,000
D) ₱680,000
✅ Answer: A) ₱630,000
Explanation: ₱700,000 – ₱50,000 – ₱20,000 = ₱630,000
Question 3
Sales: ₱900,000
Cost of Goods Sold: ₱500,000
What is gross profit?
A) ₱500,000
B) ₱400,000
C) ₱900,000
D) ₱600,000
✅ Answer: B) ₱400,000
Explanation: ₱900,000 – ₱500,000 = ₱400,000
Question 4
Gross Profit: ₱300,000
Operating Expenses: ₱150,000
What is operating income?
A) ₱450,000
B) ₱300,000
C) ₱150,000
D) ₱200,000
✅ Answer: C) ₱150,000
Explanation: ₱300,000 – ₱150,000 = ₱150,000
Question 5
Net Sales: ₱800,000
Cost of Goods Sold: ₱500,000
Operating Expenses: ₱200,000
Net income?
A) ₱100,000
B) ₱300,000
C) ₱200,000
D) ₱500,000
✅ Answer: A) ₱100,000
Explanation:
Gross Profit = ₱800,000 – ₱500,000 = ₱300,000
Net Income = ₱300,000 – ₱200,000 = ₱100,000
Question 6
Sales: ₱600,000
Sales Returns: ₱30,000
Sales Discounts: ₱20,000
Cost of Goods Sold: ₱400,000
Gross Profit?
A) ₱200,000
B) ₱150,000
C) ₱170,000
D) ₱180,000
✅ Answer: D) ₱180,000
Explanation:
Net Sales = ₱600,000 – ₱30,000 – ₱20,000 = ₱550,000
Gross Profit = ₱550,000 – ₱400,000 = ₱150,000
Oops—my explanation contradicts the answer; correcting:
Gross Profit = ₱550,000 – ₱400,000 = ₱150,000
✅ Correct Answer: B) ₱150,000
Question 7
Gross Profit: ₱500,000
Operating Expenses: ₱300,000
Other Income: ₱50,000
Net Income?
A) ₱200,000
B) ₱250,000
C) ₱150,000
D) ₱300,000
✅ Answer: B) ₱250,000
Explanation: ₱500,000 – ₱300,000 + ₱50,000 = ₱250,000
Question 8
Revenue: ₱400,000
Salaries Expense: ₱100,000
Rent Expense: ₱50,000
Utilities Expense: ₱20,000
Net Income?
A) ₱250,000
B) ₱230,000
C) ₱300,000
D) ₱200,000
✅ Answer: B) ₱230,000
Explanation: ₱400,000 – (₱100,000 + ₱50,000 + ₱20,000) = ₱230,000
Question 9
Sales: ₱1,000,000
Sales Returns: ₱50,000
Sales Discounts: ₱20,000
COGS: ₱500,000
Operating Expenses: ₱300,000
Net Income?
A) ₱130,000
B) ₱150,000
C) ₱200,000
D) ₱180,000
✅ Answer: A) ₱130,000
Explanation:
Net Sales = ₱1,000,000 – ₱50,000 – ₱20,000 = ₱930,000
Gross Profit = ₱930,000 – ₱500,000 = ₱430,000
Net Income = ₱430,000 – ₱300,000 = ₱130,000
Question 10
Gross Profit: ₱600,000
Administrative Expenses: ₱150,000
Selling Expenses: ₱200,000
Finance Costs: ₱50,000
Net Income?
A) ₱250,000
B) ₱200,000
C) ₱300,000
D) ₱150,000
✅ Answer: A) ₱250,000
Explanation: ₱600,000 – ₱150,000 – ₱200,000 – ₱50,000 = ₱200,000
Oops—calculation correction:
₱600,000 – ₱400,000 = ₱200,000
✅ Correct Answer: B) ₱200,000
