Republic of the Philippines

Department of Education
Region 02 SCORE
Division of Cagayan
CAGAYAN NATIONAL HIGH SCHOOL
QUIZ 4
FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 2

NAME:________________________________________ GRADE/SECTION:_____________________________
TEST 1. MATCHING TYPE: Match Column A with Column B. Write the letter of your choice. Use CAPITAL LETTERS ONLY.
COLUMN A COLUMN B
1. Retirement of bonds payable A. Cash Inflow from Operating Activity
2. Purchase of land for cash B. Cash Outflow from Operating Activity
3. Receipts of cash from rendering of services C. Cash Inflow from Investing Activity
4. Purchase of inventories D. Cash Outflow from Investing Activity
5. Issuance of notes for acquisition of building E. Cash Inflow from Financing Activity
6. Sale of office building for cash F. Cash Outflow from Financing Activity
7. Payment of interest on notes payable G. Non- cash transaction
8. Payment of notes payable
9. Collection of trade accounts receivable
TEST 2. MULTIPLE CHOICE. Write the letter of the best and/or correct answer. Use CAPITAL LETTERS ONLY.
10. Which of the following would be considered a cash flow item from an investing activity?
A. Cash outflow on dividends paid C. Cash outflow on interest expense
B. Cash outflow on prepayments D. Cash outflow on acquisition of fixed assets
11. How is depreciation expense classified in the statement of cash flows?
A. Operating activity B. Investing activity C. Financing activity D. none of the above
12. How is dividends paid classified in the statement of cash flows?
A. Operating activity B. Investing activity C. Financing activity D. none of the above
13. How is acquisition of PPE classified in the statement of cash flows?
A. Operating activity B. Investing activity C. Financing activity D. none of the above
14. On statement of cash flows, an increase in inventory appears as
A. Operating activity B. Investing activity C. Financing activity D. none of the above
15. In the presentation of Cash Flow from Operating Activities using indirect method, which of following is an addition?
I. Depreciation
II. Increase in Accounts Receivable
III. Decrease in Prepaid Assets
IV. Increase in property Plant and Equipment
V. Increase in Accounts Payable
A. I, II, IV, V B. I, II, V C. I, III, V D. II, IV, V

COMPREHENSIVE PROBLEM 4:
1. The different transactions are as follows:
 Cash receipts from sale of goods - P600,000
 Cash paid for purchases of inventory - 60,000
 Cash paid for salaries expense - 50,000
 Cash paid for utilities expense - 40,000
 Cash paid for interest expense - 30,000
How much is the net cash from operating activities?
2. The company has P100,000 beginning cash and cash equivalents, it also has a profit for the year
amounted P60,000 which gives the net cash from operating activities of P465,000. The net cash used in
investing activities amounted to P300,000 and net cash used in financing activities amounted to
P45,000. With the different transactions that the company have, how much is the ending cash and
cash equivalents?
 ACCOUNT TITLES 2019 2018
Cash, beg Php 150,000 Php 120,000
Accounts receivable 25,000 30,000
Inventory 65,000 50,000
Prepaid Insurance 5,000 15,000
Accounts Payable 15,000 25,000
Acquisition of Equipment 80,000 60,000
Short term notes payable 40,000 -
Payment of long term bond payable 50,000 70,000
Profit 320,000 230,000
3. Using the indirect method, find for: Net Cash flow from Operating Activities, Net Cash from Investing
Activities, Net Cash from Financing Activities, Net effect on cash

Prepared by: AR-JAY C. ROMERO

Subject Teacher