Basic Accounting 1-50

Question 1

The language of business

Answer 1

Accounting

Question 2

The government unit in charge of collecting charges

Answer 2

BIR

Question 3

The government office in charge of the creation of partnership and corporation

Answer 3

SEC

Question 4

The business that buys raw materials and converts them to finished products

Answer 4

manufacturing

Question 5

The business that buys and sells products

Answer 5

Trading

Question 6

The business that does repair of equipment

Answer 6

Service

Question 7

The financial statement that shows the results of operation

Answer 7

Income statement

Question 8

The financial statement that shows the financial position

Answer 8

Balance sheet

Question 9

The financial statement that shows sources and uses of cash

Answer 9

Cash flow

Question 10

An independent professional entity or person who expresses an opinion on financial statement

Answer 10

External auditor

Question 11

A business owned by one person

Answer 11

sole proprietorship

Question 12

An artificial being created by operations of law, formed by five or more natural persons

Answer 12

corporation

Question 13

A union of two or more persons for the purpose of accomplishing specific objectives or goals

Answer 13

partnership

Question 14

The financial statement user most interested in the adequacy of taxes collected

Answer 14

BIR

Question 15

This entity faces the risk of bad debts and therefore has to analyze well the borrowers financial statements together with nonfinancial information

Answer 15

Creditor

Question 16

The continuing rise in price of gasoline, prompts this group to be more vigilant of price increases

Answer 16

public

Question 17

Manufacturers as buyers of raw materials and supplies are concerned with the stability of their

Answer 17

Suppliers

Question 18

This group is interested to know the ability of the company to give a fair return on money they put into the business

Answer 18

Investors

Question 19

Things owned are called

Answer 19

Assets

Question 20

Things owed are called

Answer 20

Liabilities

Question 21

The interest of the investors in a business is called

Answer 21

Owners equity

Question 22

The service activity that provides quantitative information primarily financial in nature, about economic entities, that is intended to be useful in making economic decisions

Answer 22

Accounting

Question 23

A service business

Answer 23

Sky cable

Question 24

A manufacturing business

Answer 24

Nestle corp

Question 25

The financial statement prepared for a period of time

Answer 25

Income statement

Question 26

The financial statement prepared as of a certain date

Answer 26

Balance sheet

Question 27

The process of writing in the journals the effects, whether increase or decrease, of the analyzed transactions and events

Answer 27

Recording

Question 28

The process of determining the effects on the different accounts of the documented transactions and economic events.

Answer 28

Analyzing

Question 29

The process of explaining the relationships of the different items in the financial statement that

Answer 29

Summarizing

Question 30

The process of grouping like transactions and events

Answer 30

Classifying

Question 31

The process of preparing balance sheet, income statement and statement of cash flow

Answer 31

Reporting

Question 32

The difference between assets and liabilities is

Answer 32

Owner's equity

Question 33

The excess of revenue over expenses is

Answer 33

Net income

Question 34

The excess of expenses over revenue is

Answer 34

Net loss

Question 35

The sum of liabilities and owner's equity is

Answer 35

Asset

Question 36

A period of time at the end of which financial statements are prepared

Answer 36

Accounting period