AMPO NA LNG

Question 1

FATHER OF MODERN ACCOUNTING

Answer 1

Luca di Borgo Pacioli (14445-1517)

Question 2

art of classifying, recording, summarizing, and then interpreting the results thereof

Answer 2

Accounting

Question 3

is often referred to as the language of business

Answer 3

Accounting

Question 4

commonly referred as bookkeeping, may be defined as the systematic and chronological recording of the financial transactions of an enterprise.

Answer 4

RECORDING/ JOURNALIZING

Question 5

items are sorted and grouped

Answer 5

CLASSIFYING

Question 6

After each accounting period, data recorded are summarized through financial statements.

Answer 6

SUMMARIZING

Question 7

Usually, due to the technicality of accounting reports, the accountant’s interpretation on the financial statement is needed.

Answer 7

INTERPRETING

Question 8

revenue earned by a company during a given period of time and all the expenses which were incurred in earning those.

Answer 8

INCOME STATEMENT

Question 9

financial report as of a given date designed to reflect the financial position of the company by representing all the properties owned by the business and all the debts or other claims against these properties.

Answer 9

BALANCE SHEET

Question 10

those businesses which buy raw materials, convert them to finished goods before finally selling them for profit

Answer 10

MANUFACTURING

Question 11

businesses which buy goods and without changing their form, sell them at a profit.

Answer 11

MERCHANDISING

Question 12

those which derive their income from sales of services to clients or customers

Answer 12

SERVICE

Question 13

the simplest form of organization, it is owned by one person known as proprietor or entrepreneur.

Answer 13

SOLE PROPRIETORSHIP

Question 14

an association of two or more persons to carry on as co-owners of a business for profit.

Answer 14

PARTNERSHIP

Question 15

Recording your assets when you purchase a
product or service helps keep your business’s
expenses orderly.

Answer 15

Cost Principle

Question 16

business owned by five or more persons whose ownership is evidenced
by shares of stocks. Each owner is called
stockholder.

Answer 16

CORPORATION

Question 17

This is the period of time when revenues are
recognized through the income statement of
your company

Answer 17

Revenue Recognition Principle

Question 18

Expenses should be matched to the revenues recognized in the same accounting period and be recorded in the period the expense was incurred.

Answer 18

Matching Principle

Question 19

The information on financial statements should be complete so that nothing is misleading.

Answer 19

Full Disclosure Principle

Question 20

The accounting data should consistently stay
accurate and be free of personal opinions. Make sure the data is also supported by evidence that can include vouchers, receipts,
and invoices.

Answer 20

Objectivity Principle

Question 21

defined as “resources controlled by the enterprise as a result of past transactions and events and from which future economic benefits are expected to
flow in the enterprise –things of value that are owned and used by the enterprise in its operations

Answer 21

ASSETS

Question 22

defined as “present obligations of an enterprise arising from past transactions or events, the settlement of which is expected to result in an outflow in
the enterprise of resources embodying economic benefits”.

Answer 22

LIABILITY

Question 23

presents the investment
of the owner in the business; is the excess of Total Assets over Total Liabilities; the residual interest in the assets of the enterprise after deducting all its liabilities.

Answer 23

OWNER’S EQUITY