ASSESSMENT Instructions: Multiple Choice. Encircle the letter of the correct answer. 1. The company's assets are P12,000

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Assessment Instructions Multiple Choice Encircle The Letter Of The Correct Answer 1 The Company S Assets Are P12 000 1 (120.89 KiB) Viewed 57 times

ASSESSMENT Instructions: Multiple Choice. Encircle the letter of the correct answer. 1. The company's assets are P12,000,000, out of which 1/3 represents owner's equity. How much is the total liabilities? A. P3,000,000 B. P4,000,000 C. P6,000,000 D. 8,000,000 2. The assets of the business at the start of the month total P1,000,000. Owner's equity is P800,000. Before the month ended, equipment worth P500,000 were purchased, paying P150,000, with the balance on credit. At the start of the month, liabilities are... A. P200,000 B. P1,200,000 C. P1,800,000 D. zero 3. Refer to no. 2, at the end of the month, liabilities are... A. P1,150,000 B. P1,000,000 C. P800,000 D. P550,000 4. A transaction caused a P10,000 decrease in total assets. This could have been due to a/an... A. Payment of a loan C. cash investment made by the owner B. Purchase of equipment on account D. purchase of equipment for cash 5. On January 1, the assets were P500,000 and the liabilities were P200,000. During the year, the assets increased by P100,000 and the liabilities decreased by P50,000. Owner's equity on January 1 was... A. P800,000 B. P700,000 C. P300,000 D. none 6. Refer to no. 6, Owner's equity on December 31 was... A. P250,000 B. P300,000 C. P350,000 D. P450,000 7. Cash withdrawn by the owner decreases assets and decreases owner's equity. Net income which increases owner's equity is considered a return on capital. A. Both statements are true C. Only the first statement is true B. Both statements are false D. Only the second statement is true 8. If total liabilities amount to P400,000 which is 1/3 of the total assets, what is the amount of the residual interest of the business? A. P400,000 B. P600,000 C. P800,000 D. P1,200,000 9. The economic obligations of a business amount to P60,000 and its residual interest amounts to P150,000, what would be the amount of the economic resources of the business? A. P200,000 B. P210,000 C. P250,000 D. P280,000 10. If owner's equity is thrice the total liabilities which is 4 of total assets, what would be the owner's equity of the business? The amount of total assets is P800,000. A. P200,000 B. P400,000 C. P600,000 D. P800,000