some are multiple choice only

V. LEARNING ACTIVITIES Direction: Answer the following. Show your solutions for problem solving. 1. What are increases in assets or decreases of liabilities that result in increase in equity, other than those relating to contributions from holders of equity claims? a. Asset b. Income c. Gain d. Profit 2. What are decreases in assets or increases in liabilities that result in decreases in equity, other than those relating to distributions to holders of equity claims a. Assets b. Liabilities c. Income d. Expenses 3. An entity's revenue may result from a. A decrease in an asset from primary operations b. A decrease in a liability from primary operations c. An increase in an asset from incidental transactions d. An increase in a liability from incidental transactions 4. Which of the following is not considered as a distribution cost? a. Salemen's commission c. Freight-out b. Depreciation of delivery equipment d. Freight-in 5. Information in the income statement helps users to a. Evaluate past performance of the enterprise b. Provide a basis for predicting future performace c. Helps assess the risk or uncertainty of achieving future cash flows d. All of these 6. The income statement reveals a. Resources and equities of a firm at a point in time b. Resources and equities of a firm for a period of time c. Net earnings (net income) of a firm at a point in time d. Net earnings (net income) of a firm for a period of time Grand Co.'s sales amounted to P500,000. Sales returns and sales discounts amounted to P30,000 and P10,000 respectively. Purchases of the company totaled P 100,000 while purchase returns and purchase discounts amounted to P20,000 and P10,000 respectively. How much is the company's Net Sales? Net Purchases? 8. Logan's beginning inventory amounted to P250,000. Net purchases amounted to P70,000. Freight In totaled P15,000. Compute for the company's cost of goods available for sale. 9. JT Cleaning Services prepares monthly financial statements. The revenue account shows ending balance of P8,470. The following expense account balances also appear in the Income Statement section of this month's worksheet. Advertising Expense P3,690.00 Maintenance Expense 2, 745.00 Miscellaneous Expense 605.00 Rent Expense 3,400.00 Utility Expense 985.00 Calculate the amount of net income or net loss for the month.10. XYZ Company's Cost of Goods Sold amounted to P285,000. Net cost of purchases totaled P85,000. Beginning inventory amounted to P250,000. Sales amounted to P500,000. Compute for the company's Ending Inventory. II. Monarch Company had the following expense accounts for the year ended December 31, 20xx: A. Salaries of admin personnel B. Salaries of janitors C. Salaries of sales agents D. Utilities of home office E. Rent of office building F. Depreciation of office equipment G. Depreciation of delivery van H. Advertising I. Cost of merchandise sold during the year Identify if the account is part of the general and administrative expenses or selling expenses. III. Preparation of Income Statement (in good form) Prepare a single step Income Statement using the following: Revenue P1,200,000 Salaries & wages expense 100,000 Depreciation expense 200,000 Utilities expense 80,000 Advertising expense 130,000 Prepare a multi-step Income Statement using the following: Sales P9,300,000 Sales Returns and Allowances 300,000 Gross Income 3,600,000 Beginning Inventory 1,500,000 Freight In 300,000 Purchase Discount 400,000 Ending Inventory 2,000,000 Selling Expenses 1,350,000 Administrative Expense 1,000,000 Prepared by: Checked by: Approved by: JEAN GLORYDELLE O. PAGAY JOSEPHINE D. ORZALES, LPT GERMANA A. ORZALES, Ph.D. Subject Teacher Academic Coordinator SHS Principal