business implementation Flashcards
someone who owns an unincorporated business by themselves. If you are the sole member of a domestic limited liability company (LLC) and elect to treat the LLC as a corporation, you are not a sole proprietor.
Sole proprietor
the relationship between two or more people to do trade or business. Each person contributes money, property, labor or skill, and shares in the profits and losses of the business
partnership
prospective shareholders exchange money, property, or both, for the its capital stock. A ___ generally takes the same deductions as a sole proprietorship to figure its taxable income
corporation
is able to buy and sell property, sue and be sued, and protect its owners from liability
corporation
guidelines - the entrepreneur should have a clear idea on what is his purpose of putting up his enterprise.
objectives
guidelines - this means that the entrepreneur must know what the tasks are he has to perform in order that his objectives will be realized.
tasks
guidelines - This means that the entrepreneur should have a timetable or a
schedule to follow every task, so that it will be accomplish on time and realize his objective
time allocation
amount you gain after selling your product
profit
represents the difference
between net sales and cost of sales.
gross profit
formula for gross profit
Sales - Cost of Goods Sold = Gross Profit
are those things that change based on the
amount of product being made and are incurred as a direct result of producing the product.
variable costs
generally are more static in nature
fixed costs
a document (hard copy or digital) that records business dealing with this include meeting minutes, memoranda, employment contracts, and accounting source documents
business record
shows the income and
expenses of the business for a given period of time
income statement
shows the assets, liabilities, and equity in the business on a given date
balance sheet
the source documents, both physical and electronic, that specify transaction dates and amounts, legal agreements and private customer and business details
records
the recording of financial transactions and is the part of accounting in business and other organizations
book keeping
- Resources possessed by the business and expected to generate income for the business in the future.
- Have cash value or can be converted into cash
assets
Obligations that are owed by the business and expected to provide assets or services to outsiders in the future
liabilities
what is left in owner’s hand from the assets after liabilities have been settled
residual ownership
money contributed by the owners in the business
contributed capital
any amounts of surplus income that are kept for
future uses by the business
retained earnings
is the money earned by the business
income
is the cash that flows out from the business to pay for some item or service
expenses
The whole of financial accounting is based on this
accounting equation
- the process of recording business transactions in a systematic and chronological manner
- systematic because it follows procedures and principles. On the other hand, it is chronological because the transactions are recorded in order of the date of occurrence.
bookkeeping
in- charge to record, maintain and update business records from all sorts of financial transactions using account title that can be found in the charts of accounts already set up by the Accountant
bookkeeper
uses the Book of Accounts to record the business transactions which is to be consolidated later to help construct financial statement such as the Trial Balance, Income Statement and Balance Sheet.
bookkeeper
the most basic journal which provides columns for date, ccount titles and explanations, folio or references and a separate column for debit nd credit entries.
general journal
a grouping of all accounts directly traceable to chart of accounts. These accounts will be reflected in the financial statements as a summary of all financial activities that have taken place as recorded in the general journal and subsidiary ledgers.
general ledger
essential part to ensure accurate recording and sound decision making. Debit is abbreviated as DR while CR for Credit
rules of debit and credit
When cash or non-cash items are received, the said cash or non-cash items must be recorded in the ___ column. This means that the debit balance increased. It is called Value Received.
debit
When cash or non-cash items are given, the said cash or non-cash items must be recorded in the ___ column. This means that the credit balance is increased. It is called Value Parted With.
credit
