FABM Flashcards by Janna Mangampo

Offer services

SERVICE BUSINESS

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Third step in the accounting cycle
process of transferring data from journal

Posting

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A list of general ledger

TRIAL BALANCE

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Types of trial Balance

Unadjusted Trial Balance
Adjusted Trial Balance
Post-closing Trial Balance

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Prepared before adjusting entries

Unadjusted Trial Balance

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Prepared after adjusting entries

Adjusted Trial Balance

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Prepared after the closing process

Post - Closing Trial Balance

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Types of error

Transplacement Error or slide error
Transposition Error

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incorrectly increased or decrease

Transplacement Error or Slide error

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Amounts is interchanged

Transposition Error

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Update a certain accounts

Adjusting entries

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Under this concept, Cost that provide economi benefits

The concept of systematic and Rational allocation

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Allocation of cost over the useful life

Depreciation

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Under this concept, a cost produces no future economic benefits

The Concept of Immediate Recognition

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Expense Recognition Principles

Matching
Systematic and Rational Allocation
Immediate Recognition

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Cost that are directly associated

Matching

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Cost that are not directly associated

Systematic and rational allocation

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Cost that do not provide future economic benefits

Immediate Recognition

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Accounts that also classified into following:

Real Accounts or Permanent Accounts
Nominal Accounts or Temporary Accounts

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Account that are not closed at the end of the accounting period

Real Account or Permanent Account

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Account that are closed at the end of accounting period

Nominal Account or Temporary Account

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Types of Nominal Accounts

Clearing Account
Suspense Account

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Transfere to another account

Clearing Accounts

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Temporarily store discrepancies

Suspense Account

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Have both real and nominal acc.

Mixed accounts

Nominal account component

Expired Portion

Real account component

Unexpired Portion

Advance collection

Income

Credited to liabili account

Liability Method

Credited to income account

Income method

Recognized at income at the period (used up)

Earned Portion

Recognized as liability

Unearned Portion

Profit of a business earn after deducting cost of good sold

Gross Profit

Amount derived after deducting all

Profit ( net profit)

contra accounts deducting to sale when computing for?

Net sale

include both cash sale and credit sale

Sales

Use to record goods returned by customers

Sales Returns

Use to record transactions of similar nature

Special Journal

Use to record cash discounts given to customers

Sales Discounts

Use to record sale on journal

Sales Journal

Use to record purchases of inventory accounts

Purchase Journal

Use to record all transactions involving receipts of cash

Cash receipt Journal

use to record all transactions involving payment of cash

Cash disbursements Journal

All other transactions

General Journal

Contains all the accounts

General Ledger

Provides a breakdown of balances

Subsidiary Ledger

Buy and sell a product w/out changing physical form

Merchandising Business

Refers to goods

Inventory

continuing forever or tuloy tuloy or walang hanggan

Perpetual Inventory System

Updated each time a purchase or sale is made

Inventory Account

Stock cards or stock ledger cards

Records

occuring or recurring

Periodic Inventory System

Adjunct account

Freight in

Contra Account

Purchase Return or Purchase Discounts

The account used to record purchases

Purchases

Transportation or shipping cost

Freight In

Record returns of purchased goods to the supplier

Purchase Returns

Record cash discounts availed of on the purchased goods

Purchase discounts

Initially debited to asset account

Asset Method

Initially debited into Expense accounts

Expense method

Recognized as expense

Incurred portion

Recognized as asset

Not yet incurred Portion

Items of income that collected in advance and items of expense that were paid in advance is called?

Deferrals

Analytical Device

Worksheet

Are the end product

Financial Statement

2 Financial Statement

Statement of Financial Position(Balance sheet) Statement of profit or loss(Income statement)

Entries prepaid at the end or closing the book

Closing Entries

Debits and credits in the closing entries are place here

Closing Entries

Resulting amounts

Post Closing Trial Balance

Usually made on the first day/ to reverse

Reversing Entries

Procedure to compute horizontally

Cross footing

Procedure to compute vertically

Footing

Two lines underneath

Double Rule

Closing the books

Closing entries

With account

Open Account

No account

Close accounts

Steps in accounting cycle

Identifying and analyzing Journalizing Posting Unadjusted Trial Balance Adjusting entries Adjusted Trial Balance Financial Statement Closing entries Post-Closing Trial Balance Reversing entries