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Unit Test Controlling

This document contains an organization and management unit test with multiple choice and fill-in-the-blank questions about financial statements such as the balance sheet, income statement, and cash flow statement. It also provides a sample transaction list and financial information for Persia Sicat's financial consulting business and the Cruz Company to calculate financial ratios from.

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ericacadago
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142 views2 pages

Unit Test Controlling

This document contains an organization and management unit test with multiple choice and fill-in-the-blank questions about financial statements such as the balance sheet, income statement, and cash flow statement. It also provides a sample transaction list and financial information for Persia Sicat's financial consulting business and the Cruz Company to calculate financial ratios from.

Uploaded by

ericacadago
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Organization and Management

UNIT TEST

Name:____________________________________________ Section: ________________ Score: ___________


Direction: Read all the questions carefully.
I. Multiple Choice. Write the letter of the correct answer.
_____1. It is also known as profit and loss statement.
a. Balance sheet b. Statement of cash flow c. Income statement
_____2. It refers to snapshot of any entity’s financial condition.
a. Balance sheet b. Statement of cash flow c. Income statement
_____3. It refers to control that takes place after the occurrence of the activity.
a. Feedforward control b. Feedback control c. Concurrent control
_____4. Which of the following is not a non-quantitative control method?
a. Charts b. Inspection c. Performance evaluation
_____5 Prevents problems because managerial action is taken before the actual problem occurs.
a. Feedforward control b. Feedback control c. Concurrent control
_____6. Formula of Balance sheet.
a. Asset + Liabilities = Capital b. Asset = Liabilities + Capital c. Asset = Liabilities – Capital
_____7. It refers to independent review and evaluation of organization’s nontactical operations such as accounting
and finance.
a. Budgets b. Charts c. Audits
_____8. Direct supervision by walking around is an example of this type of control.
a. Feedforward control b. Concurrent control c. Feedback control
_____9. It tests the organization’s ability to meet short term obligations.
a. Liquidity ratio b. Profitability ratio c. Leverage ratio
_____10.It measures the efficiency of assets to generate profits.
a. Return on investment b. Debt-to-assets ratio c. Current ratio

II. Prepare the following:


A. Balance Sheet B. Income Statement
Persia Sicat is a financial planning consultant. She completed the following transaction during the month of
August of the current year.
August 1 Sicat invested cash in the business, P150,000.00
1 Paid August office rent, P10,000.00
5 Received P35,000.00 from a client, Paz Gamino, for services rendered.
7 Bought office supplies, P5,000.00
10 Paid cash to Shell for gasoline purchases, P600.00
15 Paid telephone bills, P1,000.00
20 Bought office supplies on credit, P6,000.00
23 Received P40,000.00 cash from Alfredo Medina, a client, for services rendered.
28 Made partial payment on supplies purchased August 20, P1,000.00
30 Paid electric bill, P1,000.00
30 Paid secretary salary, P8,000.00

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III. Using the information below, calculate the following financial ratios:
Analyze and interpret your answer.
a. Current Ratio (5 points)
b. Leverage Ratio or Debt-to-Assets Ratio (5 points)
c. Profitability Ratio (5 points)
d. Return on Investment (5 points)

Cruz Company
Balance Sheet
July 31, 2017
Assets
Current Assets
Cash 35,400.00
Accounts Receivable 17,300.00
Supplies 19,000.00
Total Current Assets 71,700.00
Property and Equipment
Service Vehicles 416,000.00
Office Equipment 59,000.00 475,000.00
Total Assets P546,700.00
Liabilities
Current Liabilities
Accounts Payable 65,700.00
Notes Payable 210,000.00 275,700.00
Owner’s Equity
Cruz, Capital 271,000.00
Total Liabilities and Owner’s Equity P546,700.00

Cruz Company
Income Statement
For the Month Ended July 31, 2017

Revenues
Consulting Revenues P67,700.00
Referral Revenues 4,000.00
Total P71,700.00

Expenses
Salaries Expense P15,600.00
Utilities Expense 6,600.00
Rent Expense 8,000.00
Supplies Expense 6,500.00
Total 36,700.00
Profit P35,000.00

“That in all things, God may be glorified”

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