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Fabm2 - Summative Test 1

This document contains a summative test on the statement of financial position (SFP) for a fundamentals of accountancy course. It includes 10 true/false questions testing knowledge of key SFP concepts like normal balances, debit/credit rules, and account classifications. It also includes a matching exercise to classify sample accounts as assets, liabilities, or equity on the SFP. Finally, it provides accounting data for multiple accounts and asks students to prepare the SFP for a company called Grey's Company by calculating totals, determining the owner's capital balance, and identifying normal balances.

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Kyla Acyatan
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386 views2 pages

Fabm2 - Summative Test 1

This document contains a summative test on the statement of financial position (SFP) for a fundamentals of accountancy course. It includes 10 true/false questions testing knowledge of key SFP concepts like normal balances, debit/credit rules, and account classifications. It also includes a matching exercise to classify sample accounts as assets, liabilities, or equity on the SFP. Finally, it provides accounting data for multiple accounts and asks students to prepare the SFP for a company called Grey's Company by calculating totals, determining the owner's capital balance, and identifying normal balances.

Uploaded by

Kyla Acyatan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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NAME: __________________________________________________ Grade/Strand/Section:____________________

FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 2


Statement of Financial Position
Summative Test

TRUE OR FALSE: Read each sentence carefully and determine whether the statement is True or False. Write your
answers in the space provided before the number.

_________________ 1. The SFP provides readers with the information as to the company’s financial position as of
a specified date.
_________________ 2. Asset = Liabilities + Owner’s Equity is the governing equation of SFP.
_________________ 3. Asset is an element of the SFP that has normal balance of credit.
_________________ 4. Debit means to increase an account.
_________________ 5. T-account is a representation of the general ledger account used in teaching accounting.
_________________ 6. An entry on the opposite side of the normal balance of an account means to decrease the
account by the amount entered.
_________________ 7. The normal balance of liabilities and equity is credit.
_________________ 8. The normal balance of note receivable is debit.
_________________ 9. Credit means to decrease an account.
_________________ 10. The normal balance of unearned income is debit.

MATCHING TYPE. Match the accounts on the table with the appropriate elements of the SFP.

Long-term payable Accounts payable Notes receivable


Notes payable Cash Prepaid expenses
Property, plant and equipment Owner’s Capital Accrued expenses
Goodwill Unearned income Inventory

ASSETS LIABILITIES EQUITY

PROBLEM SOLVING: Comprehensive Problem

The following were taken from the books of Grey’s Company, December 31, 2020:

Long-term payable Php500,000 Cash Php77,000


Notes payable 120,000 Owner’s Capital ?
Property, plant & equipment 750,000 Unearned income 15,345
Accounts receivable 56,000 Notes receivable 244,000
Accounts payable 65,000 Prepaid expenses 56,700
Accumulated depreciation 100,000 Accrued expenses 37,890
Inventory 157,840 Intangible Assets 124,500

Requirements:
1. Based on the above set of accounts, determine the total assets to be reported in the SFP._____________________
2. Based on the above set of accounts, determine the total liabilities to be reported in the SFP.____________________
3. Based on the above set of accounts, determine the balance of the Owner’s Capital to be reported in the
SFP.________________________
4. Based on the above set of accounts, identify all the accounts with normal debit balances. Compute the total of all
accounts with debit balances._____________________
5. Based on the above set of accounts, identify all the accounts with normal credit balances. Compute the total of all
accounts with credit balances._____________________
6. The Owner’s Capital has a beginning balance of Php500,545. The owner gave Php100,000 additional contribution
during the year. Based on the Statement of Comprehensive Income, net income for the year was Php120,445. How
much money did the owner withdrew from the business?_____________________
7. Prepare a Statement of Financial Position of Grey’s Company using the report form.

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