FINALS

Question 1

is a list of all the accounts used by companies in their financial
records.

Answer 1

CHART OF ACCOUNTS

Question 2

accounting development is closely associated with the rise of large-scale manufacturing and industrial growth

Answer 2

COST ACCOUNTING

Question 3

needs accounting information as a factor to consider in staying employed
or looking for other opportunities

Answer 3

EMPLOYEES

Question 4

are assets without physical substance

Answer 4

INTANGIBLE ASSETS

Question 5

is where you can see the changes in
each account due to transaction.

Answer 5

SUMMARY TABLE OF TRANSACTION EFFECTS

Question 6

physical assets with substance

Answer 6

TANGIBLE ASSETS

Question 7

ACCOUNTING EQUATION FOR ASSETS

Answer 7

assets = liabilities + owner’s equity

Question 8

ACCOUNTING EQUATION FOR LIABILITIES

Answer 8

liabilities = assets – owner’s equity

Question 9

ACCOUNTING EQUATION FOR OWNER’S EQUITY

Answer 9

owner’s equity = assets – liabilities

Question 10

ACCOUNTS RECEIVABLE CATEGORIZATION ON SERVICE REVENUE (DECREASE)

Answer 10

if it is already paid

Question 11

ACCOUNTS RECEIVABLE CATEGORIZATION ON SERVICE REVENUE (INCREASE)

Answer 11

if the services are already done on account

Question 12

are claims against debtors or customers arising from services
rendered and the sale of merchandise on account

Answer 12

accounts receivable

Question 13

cash, accounts receivable, inventory, land or building

Answer 13

assets example

Question 14

being defined as the equity or claim of the owner on the assets of the business

Answer 14

capital

Question 15

is a medium of exchange that a bank will accept at face value? It includes coins
and currencies, checks, money orders, and bank drafts

Answer 15

cash

Question 16

defined as the gross outflow of economic benefits during ordinary activities

Answer 16

expenses

Question 17

asset account that includes office tables, chairs, filing cabinets,
display cabinets, etc.

Answer 17

furnitures and fixtures

Question 18

decrease in resources resulting from the business operation

Answer 18

liabilities

Question 19

amounts due to third parties supported by a written note or
promise/written promissory note or promise to pay

Answer 19

notes payable

Question 20

service revenue, professional fees, rent income

Answer 20

revenue or income examples

Question 21

the gross inflow of the company’s economic benefit

Answer 21

revenues

Question 22

account title being decreased if an owner of the company paid for the
electric and water bill such as MERALCO and/or Laguna Water.

Answer 22

utility expense

Question 23

EFFECTS ON TRANSACTIONS (SITUATIONS) DECREASE

Answer 23

happens when someone loans from the bank: when you withdraw cash from
the bank: if an owner pays for the rent

Question 24

EFFECTS ON TRANSACTIONS (SITUATIONS) INCREASE

Answer 24

when the owner invested cash in the business (both assets and owner’s
equity increases)

Question 25

2 EXTENDED ACCOUNTING EQUATION/ELEMENTS

Answer 25

1. EXPENSES 2. REVENUES

Question 26

4 ELEMENTS THAT AFFECT THE OWNER’S EQUITY

Answer 26

1. INVESTMENTS 2. WITHDRAWALS 3. REVENUE 4. EXPENSES

Question 27

It allows for the analysis of a company's financial position

Answer 27

IMPORTANCE OF ACCOUNTING EQUATION

Question 28

It helps in making informed business decisions

Answer 28

IMPORTANCE OF ACCOUNTING EQUATION

Question 29

It is the foundation for understanding financial statements

Answer 29

IMPORTANCE OF ACCOUNTING EQUATION

Question 30

5 MAJOR ACCOUNTS

Answer 30

1. ASSETS 2. LIABILITIES 3. OWNER'S EQUITY 4. REVENUE 5. EXPENSES

Question 31

keeping and recording all relevant information on the accounting firm’s financial reports

Answer 31

full disclosure

Question 32

the accounting principle is demonstrated when the owner keeps personal transactions separate from business transactions

Answer 32

business entity

Question 33

when the owner prepares financial statements annually

Answer 33

time period

Question 34

when the customer purchase has been recorded in a certain amount

Answer 34

cost

Question 35

when the owner ensures all transactions are recorded correctly

Answer 35

reliability

Question 36

using dollars or peso in financial records

Answer 36

monetary unit

Question 37

SUPPLIES/EQUIPMENT CATEGORIZATION (ASSET)

Answer 37

if you have paid and/or purchased it

Question 38

SUPPLIES/EQUIPMENT CATEGORIZATION (EXPENSE)

Answer 38

if it is paid without getting it

Question 39

is an asset or item acquired with the goal of generating income or appreciation

Answer 39

investments

Question 40

occurs when funds are removed from an account for personal use

Answer 40

withdrawals

Question 41

is the total amount of income generated by the sale of goods or services related to the company’s primary operations

Answer 41

revenue

Question 42

is the cost of operations that a company incurs to generate revenue

Answer 42

expenses