Joyland School Inc.
San Fabian, Pangasinan
2nd Monthly Examination
Accounting
Grade 12-GAS (Newton)
Name ______________________________ Score ___________
I. Multiple Choice. Read and analyze each item. Circle the letter of the best answer.
1. Which of the following is NOT considered a service company?
a. Beauty salon
b. Carwash company
c. Bus company
d. Bakeshop
2. Services performed by service companies may include all of the following, EXCEPT.
a. Professional service
b. Legal advice
c. Transportation services
d. None of the above
3. Francesca Co., an accounting firm, earns ₱ 120 000 from its audit engagement with San Miguel
Corporation. The 120 000 is considered as Francesca Co.,
a. Service revenues
b. Sales revenues
c. Capital
d. Investment
4. The major input used by service companies is.
a. Raw materials
b. Labor
c. Overhead
d. All of the above
5. The operating cycle of a service company involves which of the following?
a. Paying out labor and other operating expenses
b. Performing services
c. Collecting cash payments
d. All of the above
6. Which of the following is considered a service type of business.
a. Shaskia's Cakes and Pastries Bakery
b. Karla's Meat Shop
c. Dresses by Pauline
d. Patricia's School for toddlers
7. What is the primarily source of revenues of service companies?
a. Performance of service
b. Sale of equipment
c. Sale of finished goods
d. Sale of components parts
8. The main difference of a merchandising company over a service company is.
a. It does not need employees
b. It has no inventory
c. It provides tangible products
d. It has production facilities
9. A merchandising company that sells goods directly to customers is called.
a. Retailer
b. Wholesaler
c. Manufacturer
d. None of the above
10. A merchandising company that sells goods directly to retailer is called.
a. Major retailer
b. Wholesaler
d. Manufacturer
c. None of the above
11. This term refers to goods that are held by a company and are subsequently sold to customers.
a. Supply goods
b. Goods held by the company
c. Finished goods
d. Inventory
12. Which of the following is considered a merchandising company?
a. National Book Store
b. SM Hypermarket
c. Rey's Convenience Store
d. All of the above
13. These are the revenues earned by merchandising companies.
a. Sales revenues
b. Sales
c. Service Revenues
d. Both a and b are correct
14. Which of the following resources is/are used as major inputs of manufacturing companies?
a. Raw materials
b. Labor
c. Overhead
d. All of the above
15. Manufacturing companies are also known as.
a. Retailer
b. Wholesaler
c. Manufacturers
d. Sole proprietorship
16. In the operating cycle of a manufacturing company, once the major inputs are acquired, the next phase is.
a. Strong goods as inventory
b. Selling products to customers
c. Conversion process
d. Collection of payments
17. One of the advantages of manufacturing companies is.
a. Existence of inventory
b. Capital outlay
c. High conversion costs
d. Quality control
18. Service companies are to service revenues as manufacturing is to.
a. Production revenues
b. Subscription revenues
c. Service revenues
d. Sales revenues
19. The different types of business according to activities are.
a. Manufacturing, Corporations, Service
b. Manufacturing, Merchandising, Service
c. Service, Partnership, Sole Proprietorship
d. Corporations, Partnerships, Sole Proprietorships
20. Which is the following is not considered as a manufacturing company.
a. Car company
b. Bank
c. Bakery Shop
d. Oil company
21. Statement I-Operating cycle is the time it takes for a company to create productions, sell these
productions, and collect cash payments from customers.
Statement II-All types of business have the same operating cycle.
a. Both statements are true
b. Only statement I is true
c. Only statement II is true
d. Both statements are false
22. Statement I-The operating cycle of a service company ends with the sale of service
Statement II-Funeral parlor is an example of a service company.
a. Both statements are true
b. Only statement I is true
c. Only statement II is true
d. Both statements are false
23. Statement I-A merchandising company that sells goods directly to customers called a retailer.
Statement II-A merchandising company that sells goods to retailers is called wholesaler.
a. Both statements are true
b. Only statement I is true
c. Only statement II is true
d. Both statements are false
24. Statement I-The product of a merchandising company is also known as merchandise.
Statement II-Goods held by a company which are subsequently sold are called inventory.
a. Both statements are true
b. Only statement I is true
c. Only statement II is true
d. Both statements are false
25. Statement I- Revenues of service companies are referred to as sales revenues
Statement II- A hair beauty salon earns revenue from giving a haircut to its customers
a. Both statements are true
b. Only statement I is true
c. Only statement II is true
d. Both statements are false
Prepared By:
Mrs. Felicidad Verceles
Subject Teacher
