4.1 Analyzing Business Transaction

Question 1

List of goods to be ordered issued by sales department

Answer 1

Purchase requisition

Question 2

List of goods needed by the requesting department issued by any other department

Answer 2

Purchase requisition

Question 3

After inspection to show the quantity and condition of the goods received

Answer 3

Receiving Report

Question 4

Delivery of goods issued by seller

Answer 4

Sales Invoice

Question 5

Delivery of goods issued by buyer

Answer 5

Purchase Invoice

Question 6

Return of goods or for allowances

Answer 6

Credit/Debit note

Question 7

Reminder ( request ) to pay

Answer 7

Statement of Account

Question 8

Inform that payment is made ( normally through bank transfer )

Answer 8

Remittance advice

Question 9

Financial events that changes the assets, liabilities, and equity of a business entity

Answer 9

Business transactions

Question 10

Source documents that serve as basis for recording business transactions

Answer 10

Business documents

Question 11

Receive payment ( Cash, Cheque, Bank transfer )

Answer 11

Receipt

Question 12

A written promise to pay a specified amount on a certain date

Answer 12

Promissory Note

Question 13

Payment made either by cash or by cheque

Answer 13

Voucher

Question 14

Payment from petty cash fund

Answer 14

Petty Cash Voucher

Question 15

Inventory Count, Basis for recording ending inventory

Answer 15

Inventory Take Sheet/ Stock take sheet

Question 16

Where are increases recorded in an account

Answer 16

Normal Balance side

Question 17

Where are decreases are recorded on an account

Answer 17

Opposite side of the normal balance

Question 18

A written record of the assets, liabilities, and owner’s equity of a business

Answer 18

Account

Question 19

A list of accounts used by a business to record its financial transactions

Answer 19

Chart of Accounts

Question 20

The side of an account in the accounting equation

Answer 20

Normal Balance

Question 21

An accounting system that involves recording effects of each transaction as debits or credits

Answer 21

Double Entry System

Question 22

Difference between the two sides of an account

Answer 22

Account Balance

Question 23

Adding the amount

Answer 23

Footing

Question 24

Represents a mathematical operation

Answer 24

Rule/ Ruling

Question 25

Represents account balance final answers

Answer 25

Double rule / double ruling

Question 26

Account that is brought forward to the next accounting period

Answer 26

Real Account / Permanent Account

Question 27

ACcount that is closed at the end of the accounting period

Answer 27

Temporary Account/ Nominal Account

Question 28

Examples of Permanent/ Real account

Answer 28

Assets, Liabilities, Capital

Question 29

Examples of Nominal/ Temporary Account

Answer 29

Revenues, Expenses, Owner’s Drawing