Basic Accounting 1-50 Flashcards
The language of business
Accounting
The government unit in charge of collecting charges
BIR
The government office in charge of the creation of partnership and corporation
SEC
The business that buys raw materials and converts them to finished products
manufacturing
The business that buys and sells products
Trading
The business that does repair of equipment
Service
The financial statement that shows the results of operation
Income statement
The financial statement that shows the financial position
Balance sheet
The financial statement that shows sources and uses of cash
Cash flow
An independent professional entity or person who expresses an opinion on financial statement
External auditor
A business owned by one person
sole proprietorship
An artificial being created by operations of law, formed by five or more natural persons
corporation
A union of two or more persons for the purpose of accomplishing specific objectives or goals
partnership
The financial statement user most interested in the adequacy of taxes collected
BIR
This entity faces the risk of bad debts and therefore has to analyze well the borrowers financial statements together with nonfinancial information
Creditor