PRE TEST

COMPETENCIES FOR BASIC MATH

1. Explain the principles of Mathematics in marketing, accounting and finance;
2. Recognize basic type of financial statements for business enterprise;
3. Apply the rules in debit and credit to business transaction;
4. Differentiate assets from liabilities;
5. Solve word problem in Business Math.

DIRECTIONS: Choose and Shade the correct answer.

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

DIRECTIONS: Choose and Shade the correct answer.

1. Which terms refers to mathematical business decision that makes orderly

delineated sequence of mathematical operatives that lead to a solution?
a. Conceptual model c. algorithms
b. Quantitative model d. decisions
2. Every day we have to calculate the discount of shopping mall, allocate how
much for food and shopping, and when we get a loan from the bank we
calculate the interest. This simply means we need?
a. Money c. mathematics
b. Calculation d. percentage
3. Which is also known as quantitative finance that is concerned with financial
markets and taking observed market prices as inputs?
a. Mathematics in marketing c. percentage
b. Mathematics finance d. calculation
4. What financial reports reflect the net income sales?
a. Statement of cash flow c. net income reports
b. Balance sheet d. income statement
5. What is the remainder after all the expenses have been deducted from
revenues?
a. Repair income c. net income
b. Gross income d. service income
6. On what financial statements are assets that are used in the operation of
business found?
a. Income statement c. balance sheet
b. Statemenr of owners capital d. statement of cash flow
7. The sum of all the expenses from the operation of the business can be found
on the __________.
a. Balance sheet c. income statement
b. Statement of cash flow d. statement of owners capital
8. To which financial reports are liabilities and capital added?
a. Statement of cash flow c. income statement
b. Statement of owners capital d. balance sheet
9. What financial statement shows all the received cash from both ongoing
operations and external investment sources?
a. Statement of cash flow
b. Statement of owners capital
c. Income statement
d. Balance sheet
10. The earning power of the business firm is reported on the ___________.
a. Balance sheet c. statement of cash flow
b. Income statement d. statement owners capital
11. The balance sheet provides the information about ________________.
a. All the sales of the firm
b. All the expenses of the firm
c. List of cash received and payments of the firm
d. List of all the assets of the firm
12. To find the current liability, one must look at the ______________.
a. Mortgage payable c. bonds payable
b. Loans payable d. salaries payable
13. The resources that a firm acquires through creditors is called _______.
a. Liability c. assets
b. Capital d. income
14. Business owned that will be due not to exceed a year is referred to as _____.
a. Current asset c. fixed asset
b. Current liability d. fixed liability
15. Which is owned by the business that requires prompt payment?
a. Non-current liability c. current asset
b. Non-current asset d. current liability
Answers
1. C
2. C
3. B
4. D
5. B
6. C
7. C
8. D
9. A
10. B
11. D
12. D
13. A
14. B
15. D