Finals Flashcards
are those accounts
that are used in a firm’s profit and loss
statement. These accounts are usually
positioned in the general ledger after the
accounts used to compile the balance sheet.
Income statement accounts
this represents revenue derived from the sale of merchandise.
Sales
this is the account an income that is drawn by providing various professional
services such as consulting, technical, or other services as part of a profession, trade or
business.
Service Income
the account title generally used by professionals for income
earned from the practice of their profession.
Professional Income
for income earned on buildings, space or other properties owned and
rented out by the business as the main line of its activity.
Rental Income
for income received by the business arising from an amount of
money borrowed by a customer and is usually covered by a promissory note.
Interest Income
for income earned by the business which is not the main line
of its activity.
Miscellaneous Income
cost to produce and sell the goods.
Cost of Sales or Cost of Goods Sold
is the total amount a business accumulates
(accrues) in interest on its loans. It’s the cost of borrowing funds, in short. Businesses
take out loans to add inventory, buy property or equipment or pay.
Interest Expense
the cost incurred by a business to utilize a property or location for an
office, retail space, factory, or storage space.
Rent Expense
for expenses incurred in repairing or servicing
the buildings, machineries, vehicles and equipment which are owned by the business.
Repairs and Maintenance Expense
the stationery, envelopes, clips, fasteners
and etc.. used in the office will bear the account title as “Office Supplies”. If use in
the store “Store Supplies” or another title may be used to describe the kind of
supplies used.
Stationary and Office Supplies Expense
for compensation given to employees of a business. It may be
specified as “Office Salaries” or , “Salesmen’s Salaries”.
Salaries Expense
an accounting entry that lists the amount of receivables your
company does not expect to collect.
Bad Debts Expense
is the amount that a company’s assets are depreciated for a
single period ( quarter or the year).
Depreciation Expense
Amounts paid for taxes and licenses related to your business
and other government dues.
Taxes and Licenses Expense
the amount that a company pays to get an insurance contract and any
additional premium payments.
Insurance Expense
is the cost incurred by using utilities such as electricity, water, waste
disposal, heating, and sewage.
Utilities Expense
account title for the employer’s share on SSS contribution.
SSS Contribution
account title for the employer’s share on Philhealth contribution.
Philhealth Contribution
the account title for the employer’s share on Pag-ibig contribution.
Pag-ibig Contribution
any amount paid as expense which is not significant enough to warrant a particular classification.
Miscellaneous Expense
Is the process of evaluating an economic
entity’s proposed long-range projects or courses for future activity
for the purpose of allocating limited resources to desirable
projects.
Capital Budgeting
Are tangible and generally illiquid property which
a business intends to use to generate revenue and expects its
usefulness to exceed one year. On a balance sheet, capital assets
are represented as property, plant, and equipment (PP&E).
Examples include land, buildings, and machinery.
Capital Assets
