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1st Year College in Accountancy > Chapter 4 - 6 Accountancy > Flashcards

Chapter 4 - 6 Accountancy Flashcards

1
Q

is the basic storage of information in accounting.

A

Account

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2
Q

The 5 Major Account

A

Asset
Liabilities
Equity
Income
Expense

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3
Q

Economic Resources you control that resulted from past events and can provide you future economic benefits.

A

Asset

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4
Q

Present Obligations that have resulted from past events and can require you to give up resources when settling them.

A

Liabilities

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5
Q

Asset minus Liabilities

A

Equity

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6
Q

Increases in economic benefits during the period in the form of increases in assets that in result increases equity.

A

Income

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7
Q

arises in the course of the ordinary activities of a business.

A

Revenue

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8
Q

represent other items that meet the definition of income and may or not may arise in the course of the ordinary activities.

A

Gains

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9
Q

Decreases in economic benefits during the period in the form of decreases in assets that in result decreases in equity.

A

Expense

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10
Q

arises in the course of the ordinary activities of a business.

A

Expenses

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11
Q

represents other items that meet the definition of expenses and may or not may arise in the same course of the ordinary business.

A

Loss

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12
Q

Varies depends on the type of business

A

Chart of Accounts

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13
Q

Banks chart of account should confirm to BSP Chart of Accounts.

A

BSP (Banko Sentral ng Pilipinas)

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14
Q

Cooperatives chart of account should confirm to CDA Chart of Accounts.

A

CDA (Cooperative Development Authority)

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15
Q

National Government Agencies MUST confirm to (RCA) Revised Chart of Accounts issued by the_______________________________

A

COA (Commission on Audit)

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16
Q

The aggregate amount of estimated losses for uncollectible accounts receivable.

A

Short Introduction in Allowance for doubtful/bad debts accounts

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17
Q
  • The portion of the cost of a depreciable asset
  • Decreasing of value over time
  • Ex. bldg., equipment, vehicle etc..
A

Short Introduction in Depreciation expense

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18
Q

total amount of depreciation expenses recognized since the asset was acquired and made available for use.

A

Accumulated Depreciation

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19
Q
  • “In & Out” sellers cost of delivering goods to customers.
  • Other terms. Delivery expense, transportation cost, & carriage outwards.
  • Contains tolls, gas, labor/rate of the worker.
A

Short Introduction in Freights

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20
Q

“Book of original entries”

A

Journal

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21
Q

Simplifies the recording process.

A

Special Journal

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22
Q

Record Sales on Account.

A

Sales Journal

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23
Q

Record Purchases of Inventory on Account.

A

Purchase Journal

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24
Q

Record all transactions involving receipts of cash.

A

Cash Receipts Journal

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25
Q

Record all transactions involving payment of cash.

A

Cash disbursement journal

26
Q

If a business does not utilize special journals, all transactions are record in the ____________

A

General Journal

27
Q

“Book of final entries”

A

Ledger

28
Q

Provides breakdown of the balances of controlling accounts.

A

Subsidiary Ledger

29
Q

Consist of group of accounts, or balances that needed a breakdown.

A

Controlling Account

30
Q

Contains all accounts appearing in the trial balance.

A

General Ledger

31
Q

Double-Entry system involves the use of the _______________________

A

CONCEPTS OF DUALITY AND EQUILIBRIUM

32
Q

Views each transactions as having a two fold effect on values, a value parted with and value valued with, and each transaction is recorded using at least two accounts

A

The Concept of duality

33
Q

Requires that each transaction is recorded in terms of equal debits and credits. For every peso debited, there is a corresponding peso credited, and vice versa

A

The concept of equilibrium

34
Q

of an account is on the side where an increase in that account is recorded

A

NORMAL BALANCE

35
Q

Normal Bal increases, vice versa

A

Rules of debits and credits

36
Q

Deduction to their related account accounts

A

Contra Account

37
Q

Increase to their related accounts

A

Adjunct Account

38
Q

-Represents the steps or procedures used to record Transactions and prepare FS.
- The accounting cycle implements the accounting process of identifying, recording, and communicating economic information

A

Accounting Cycle

39
Q

Steps in Accounting Cycle

A

Analyzing
Journalizing
Posting to Ledger
Prep. Unadjusted Trial Balance
Prep. Adjusting Entries
Prep. Adjusted Trial Balance
Financial Statements
Closing the Book
Post-Closing Trial Balance
Reversing Entries (opt)

40
Q

Gathers information and determines the effect of the transaction on the accounts

A

Analyzing

41
Q

Accountable events are recorded in the journals

A

Journalizing

42
Q

Information from journalizing is transferred to the ledger or T accounts

A

Posting to Ledger

43
Q

Balances the General Ledger to prove that credit and debit is equal. Serves as basis for Adjusting Entries

A

Prep. Unadjusted Trial Balance

44
Q

Updates the accounts as of the reporting date on an accrual basis by recording accruals, expiration of deferrals, estimations, and other events often not signaled by new source documents

A

Prep. Adjusting Entries

45
Q

Trial Balance are rechecked after adjustments are made. This serves as the preparation of the Financial Statements.

A

Prep. Adjusted Trial Balance

46
Q

these are the means by which information is processed is communicated to users

A

Financial Statements

47
Q

Temporary Accounts or Nominal Accounts are closed and the resulting profit or loss is transferred to an equity account

A

Closing the Book

48
Q

The equality of debits and credits are again rechecked after the closing pro

A

Post-Closing Trial Balance

49
Q

Are usually made at the beginning of the next account period to simplify the recording of certain transactions in that period

A

Reversing Entries (opt)

50
Q

Identifying and Analyzing Transaction and Events

A

Sales invoices (SI)
Officials’ receipts (OR)
Purchase orders
Delivery receipts
Bank deposit slips
Bank statements
Checks
Statement of account, and the like

51
Q

Sales of Goods

A

Sales invoices (SI)

52
Q

Rendering of Services

A

Officials’ receipts (OR)

53
Q

a Document Issued by B or S, indicating types, quantities and agreed prices for Goods or Services.

A

Purchase orders

54
Q

Document signed by the receiver of a shipment acknowledging the receipt of goods

A

Delivery receipts

55
Q

Evidences a deposit to a bank account

A

Bank deposit slips

56
Q

Is a report issued by a bank (on monthly basis) that shows the Deposits and Drawals during the period and cumulative balance of a depositor’s bank account

A

Bank statements

57
Q

Is an instrument that orders a bank (drawee) to pay the person named on the check or the bearer thereof (payee) a definite amount of money from the drawer’s bank account

A

Checks

58
Q

Is a report that is sent to its customers listing the transactions with the customer during a period (Notice of Billing), Ex. Balance of tuition.

A

Statement of account, and the like.

59
Q

Types Of Events

A

External Events
Internal Events

60
Q

are transactions that involve the business and another external party, Ex. includes Sales, Purchases, Borrowing, payment of liabilities,

A

External Events

61
Q

are events that do not involve an external party, Ex. Includes production, casualty losses

A

Internal Events

1st Year College in Accountancy (10 decks)

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