EXAM Flashcards
Review
1
Q
are financial management practices that are systematically used to prevent misuse and misappropriation of assets, such as occur through theft or embezzlement.
A
Internal controls
2
Q
are generally described in written policies that set forth the procedures that the non-profit will follow, as well as who is responsible.
A
Internal Controls
2
Q
The goal of internal controls is
A
to create business practices that serve as “checks and balances” on staff (and sometimes board members) and outside vendors, to reduce the risk of misappropriation of funds/assets.
3
Q
is a bank form filled up by the account holder that instructs the bank to pay the designated payee indicated on the check on or after the date specified on the ____.
A
check
4
Q
One of the cash controls of the business is to issue a _____ which serves a mode of payment for suppliers, employees, stakeholders, and others.
A
check
5
Q
is a document that orders a bank to pay a specific amount of money from a person’s account to the person in whose name the check has been issued.
A
check
6
Q
In the Philippines, issuing a check with insufficient bank balance is a criminal offense under
A
Batas Pambansa Blg. (BP) 22 on the Bouncing Check Law.
7
Q
the person or any entity who makes the check
A
Drawer (maker)
8
Q
the recipient of the money
A
payee
9
Q
the bank or other financial institution where the check can be presented for payment
A
drawee(payer)
10
Q
Contains details about the account owner/s. (parts of check)
A
Personal information
11
Q
Is the person or company who will receive the check. (parts of check)
A
Payee line
12
Q
The check amount written in numeric form. (parts of check)
A
Numeric amount box:
13
Q
The check amount written in word form. (parts of check)
A
Written amount
14
Q
Sometimes, it contains the bank logo, address, or phone number. (parts of check )
A
Bank contact information
15
Q
The check number helps the account owner/s track checks. (parts of check)
A
Check number
16
Q
Where the date of the check is written. (parts of check)
A
Dateline
17
Q
Additional identification for the banking system. (parts of check)
A
Bank fractional number
18
Q
Where the account owner puts his signature.
A
Signature line
19
Q
are issued by persons, a single depositor, or holders of joint accounts. may have two signatories if the issuing account is a joint account.
A
Personal Check
20
Q
is seen more too secure more than a personal check. It is owned by the issuing corporation.
A
A corporate check
21
Q
Kaya pa?
A
Kakayanin
22
Q
are marked to specify an instruction about the way it is to be redeemed. A common instruction is to specify that it must be deposited directly into an account of the payee. It is usually done by writing two parallel lines on the upper left portion of the check.
A
crossed check
23
Q
cannot be encashed over the counter by the payee. It should be deposited into the payee’s account.
A
cross check
24
are checks which a bank will not accept and exchange for money or payment because it was written more than a certain number of months ago.
stale check
25
In the Philippines, a check becomes stale if it exceeds_____ months from the date of the check.
6
26
are issued by banks. The promise to pay is made by the bank, not the person using the check. This type of check is guaranteed and is often treated the same as cash
cashier's/manager's check
27
This type of check is usually used to pay out loans to a customer or a third party.
cashier's/manager's check
28
This check is also known as an official check, treasurer's check or manager's check.
cashier's/manager's check
29
is a prepaid check that you use, logically enough, when traveling.
traveler's check
30
You can get ______ checks in any denomination, in all currencies. They are accepted the same as cash in most hotels, merchants and hotels. They are insured against loss, theft, damage or destruction.
traveler's
31
is a type of check that has been purchased at either the US Post Office or a financial institution.
money order
32
is prepaid with cash, debit card or traveler's check. You do not need to have an account with a financial institution to purchase or cash a ______
money order
33
is payable to anyone who presents the check. The check can be marked "cash," without naming anyone in particular. This means that the person in possession of the check can take it into the paying bank and receive the money without having to bank the check into their own personal account.
bearer check
34
is a check on which the issuer has stated a date later than the current date.
A postdated check
35
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Miss ka ba?
36
is defined as something that is generally accepted as a form of payment, medium of exchange or a unit of measure.
Money
37
In a monetary economy, its importance is infinite.
money
38
There are three types of bank accounts mostly maintained by a business organization. These are:
1. Savings deposit; 2. Time deposit; and 3. Current account.
39
is an interest-bearing deposit account held at a bank or other financial institution. Though these accounts typically pay a modest interest rate, their safety and reliability make them a great option for parking cash you want available for short-term needs
savings account
40
A maximum amount of five hundred thousand pesos per account is insured to ______
Philippine Deposit Insurance Corporation (PDIC).
41
____ and ___ are written orders to the bank. These slips are used to take out money or to put in money to the depositor’s account.
A withdrawal slip and deposit slip
42
this is the complete name of the depositor that is reflected in the records of the bank. If it has a pass book, the account name is indicated on first page inside the passbook.
Account Name
42
The bank provides deposit slip that the depositor will fill up every time the depositor will put in money to his account. The usually required information in a deposit slip are:
deposit slip
43
this is a unique identifier of the account maintained by the depositor.
Account Number
43
* Date of Deposit
* Type of Account
* Currency
parts ng deposit slip
44
the amount that the depositor wishes to put into his account. The amount to be deposited maybe in form of cash or check.
Amount in words and in figures
45
Without a _______, the bank will not allow you to get money from your account.
Withdrawal Slip
46
the name of the depositor
Account Name
47
the unique identifier given by the bank for every account maintained
account number
48
* Date of the withdrawal
* Type of account - savings or current
* Currency
parts ng withdrawal slip
49
the amount that the depositor wishes to withdraw from his account. The amounts in words and in figures are indicated.
Amount to be withdrawn
50
_______ this is the most important part in the withdrawal slip. The ____ is a proof that the depositor is authorizing the bank to get money from his account
Signature of the Depositor , signature
51
A business account where the cash not immediately needed for operation is place. It has a bigger interest rate than a savings deposit.
Time Deposit Account
52
This account can be withdrawn only at the maturity date but banks allow the pre-termination of the account after imposing penalties to the owner of the account.
Time Deposit Account
53
This is more popularly known as the checking account. It does not earn interest and can be withdrawn only by means of check. A check is a document that orders a bank to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued.
Current Account
54
is a process of making the cash balance per book and cash balance per bank equal.
Bank reconcilliation
54
is a record of all the cash receipts and disbursement on the part of the company while the bank statement is the records of the bank pertaining to a current account showing all the debits and credits with corresponding balances on every date after each transaction.
cash book
54
There are three methods of bank reconciliation.
These are: a.) adjusted balance method; b.) book to bank method, and c.) bank to book method.
54
shows the beginning balances of both the book and the bank at the beginning of the month.
adjusted balance method
54
starts with the unadjusted balance of the book at the beginning of the period. Series of adjustments will follow to arrive at the bank balance at the beginning of the month.
book to bank method
55
method begins with the unadjusted balance of the bank. Adding or deducting the applicable reconciling items will let you arrive at the unadjusted book balance.
bank to book
55
- These are cash or checks received and recorded by the company and deposited to the bank but are not yet reflected in the records of the bank as of cut-off period. This should be added to the bank balance.
Deposit in Transit/Uncredited Cash or Checks
56
These are checks already issued for payment by the company but not yet presented by the payee to the bank for payment.
Outstanding checks or Uncashed Checks
57
This is the case if the payee does not immediately present the checks at the bank. The company has already recorded it in cash book as payment but the bank has not yet reflected it on the bank’s record. This should be deducted from the bank balance.
Outstanding checks or Uncashed Checks
58
This result when the bank has received a direct amount on behalf of the company and the bank records the receipt, but the company is unaware of it.
Credit memo
59
Bank deposits usually earn interest which is directly credited to the account of the company.
Interest Income/Interest credited by the bank
60
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61
This is also called bouncing check. An ________ means that the account of the customer from which the check was drawn has no sufficient funds.
NSF check
62
is deducted from the book balance because this was already reflected as part of cash.
NSF check
63
This result when the bank has deducted a direct amount from the company’s the account, company is not but aware of it until the bank statement arrives.
Debit Memo
63
These are mistakes made by the bank. Depending on the errors, these can either increase or decrease the balance in bank statement.
Bank errors
64
These are mistakes made by the company. Depending on the errors, these can either increase or decrease the balance in company’s book.
Book Errors/ Errors in Cash Account
65
, is the initial package of the Comprehensive Tax Reform Program (CTRP) in the Philippines.
The Tax Reform for Acceleration and Inclusion (TRAIN) Law or Republic Act No. 10963
66
All earnings citizens of the Philippines, whether from compensation or business, are required to pay taxes. (True or False)
True
66
are the revenue of the government that funds government expenditures and programs.
tax
67
The Tax Reform for Acceleration and Inclusion (TRAIN) Law or Republic Act No. 10963, is the initial package of the _____________
Comprehensive Tax Reform Program (CTRP) in the Philippines.
68
three types of tax
; proportional tax, progressive tax, and regressive tax.
69
imposes the same percentage of taxation on everyone regardless of income.
proportional tax
70
imposes a higher percentage rate of taxation on those with higher incomes.
progressive tax
71
imposes a higher percentage rate of taxation on low incomes than on high incomes.
regressive tax
72
Taxes imposed at the national level are collected by the
Bureau of Internal Revenue (BIR)
72
A failure to pay, along with evasion of or resistance to taxation, is ___.
is punishable by law.
73
while those imposed at the local level (provincial, city, municipal, barangay) are collected by a
local treasurer’s office
74
is the process by which the government collects revenue in order to pay for its expenses.
Taxation
75
The primary purpose of taxation
is to provide funds or property with which to promote the general welfare of its citizens and to enable it to finance its multifarious activities.
76
Governing tax law in the Philippines is the ________
the National Internal Revenue Code of 1997.
77
the primary implementing agency of this law.
The Bureau of Internal Revenue (BIR) is
77
is defined as the tax on the net income or the entire income realized in one taxable year.
income tax
78
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79
receive states that the citizens of the country who benefits from the goods and services should pay in proportion to the amount of benefits they received.
Benefit Received Principle
79
There are two (2) principles of taxation.
Benefit Received Principle and Ability to Pay Principles.
79
states that citizens should be taxed according to their ability to pay. The more money you have, the more money you should pay.
Ability to pay principle
79
There are three (3) principles of a sound tax system:
(1) Fiscal adequacy; (2) Equality or theoretical justice; and (3) Administrative feasibility.
80
is the amount of tax collected that should be enough to be spent by the government in providing service to the people.
Fiscal adequacy
81
is based on the ability to pay theory. The more money you have, the more taxes you pay.
Equality or theoretical justice
82
must be easy to enforce. The collection system must not be hard for both the government and the people.
Administrative feasibility the taxation
83
List of sources of gross income: (NIRC 1997 Chapter 6 Section 32 A)
* Compensation for services in whatever form paid, including, but not limited to fees, salaries, wages, commissions, and similar items;
* Gross income derived from the conduct of a trade or business or the exercise of a profession;
* Gains derived from dealings in property; (Note: subject to 6% capital gains tax for individuals and corporation if land and building is not used in business)
* Interests; (Note: generally subject to 20% final withholding tax)
* Rents;
* Royalties; (Note: generally subject to 20% final withholding tax, 10% if from books and literary works)
* Dividends; (Note: generally subject to 10% final withholding tax for individuals, tax-exempt for a corporation)
* Annuities;
* Prizes and winnings; (Note: generally subject to 20% final withholding tax, except those that are tax-exempt based on specific criteria in the law)
* Pensions; and
* Partner's distributive share from the net income of the general professional partnership
83
Employed individuals that earn compensation income pay their income taxes monthly. Employers withhold the income tax of their employees from their monthly gross income and remit these sums to the BIR.
Compensation Income
83
is computed at the end of the year based on all compensation income derived during the year.
income tax
83
Taxpayers who derive their income solely from compensation are required to file _______ as their income tax returns. However, to give relief to these taxpayers, the employee may present BIR _______ as their income tax return.
BIR Form 1700. Form 2316
83
_______ The tax payments of a business organized as a sole proprietorship are made in the name of its owner. The owner is considered an individual taxpayer who derived income from the business. He is required to file ______
Business Income, BIR Form 1701
84
are those who derive income from business or practice of profession and compensation income.
Mixed-Income Earners
85
the amount of tax to be paid to the government by a taxpayer
Tax Due
85
is gross income minus the deductions allowed by law. Taxable income is the amount on which the tax computed.
Tax Schedule
85
the primary purpose of taxation is to
provide the proper funding needed to run the government.
86
the secondary purpose of taxation is to
by imposing customs duties or taxes on imported goods, local products made in the Philippines would remain competitive.
87
Congrats, computations naman i review mo
