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ENTREPRENEURSHIP (2ND QUARTER) > MODULE 8 > Flashcards

MODULE 8 Flashcards

1
Q

____ is the process of recording business transactions in a systematic and chronological manner

A

Bookkeeping

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2
Q

Bookkeeping is ___ because it follows procedures and principles. On the other hand, it is ___ because the transactions are recorded in order of the date of occurrence.

A

Systematic, Chronological

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3
Q

IT IS THE STARTING POINT OF THE ACCOUNTING PROCESS and is the foundation for gathering the information necessary to answer questions related to the profitability, solvency, and liquidity of the business

A

Bookkeeping

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4
Q

Each business has a ___ who is IN CHARGE TO RECORD, MAINTAIN, AND UPDATE BUSINESS RECORDS from all sorts of financial transactions using account title that can be found in the charts of accounts already set up by the Accountant.

A

Bookkeeper

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5
Q

The ___ DICTATES THE BOOKKEEPER to keep track of all financial transactions of the business.

A

Bookkeeping function

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6
Q

Only transactions that has ___ will be recorded.

A

Monetary value

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7
Q

The bookkeeper uses this to RECORD THE BUSINESS TRANSACTIONS WHICH IS TO BE CONSOLIDATED later to help construct financial statement such as the Trial Balance, Income Statement and Balance Sheet.

A

Book of Accounts

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8
Q

The book of accounts are composed of the ___

A

Journal and Ledger

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9
Q

It refers to the book of ORIGINAL ENTRY

A

Journal

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10
Q

It refers to the book of FINAL ENTRY

A

Ledger

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11
Q

It is the most BASIC JOURNAL which provides columns for date, account titles and explanations, folio or references and a separate column for debit and credit entries

A

General Journal

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12
Q

A general journal provides columns for:

A
  1. Date
  2. Account titles and explanations
  3. Folio or references
  4. Debit and Credit Card Entries
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13
Q

The ___ is a GROUPING OF ALL ACCOUNTS DIRECTLY TRACEABLE TO THE CHART OF ACCOUNTS. These accounts will be reflected in the financial statements as a summary of all financial activities that have taken place as recorded in the general journal and subsidiary ledgers

A

General Ledger

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14
Q

The ___ is a group of accounts DIRECTLY ASSOCIATED FROM THE GENERAL LEDGER. This record is created TO MAINTAIN INDIVIDUAL ACCOUNTS FOR CUSTOMERS AND VENDORS WHOSE CASH IS NOT BEING USED AS A MEDIUM OF EXCHANGE when purchasing or selling merchandise

A

Subsidiary ledger

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15
Q

What is included in a subsidiary ledger?

A

Accounts Receivable and Accounts Payable

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16
Q

In the process of journalization, following the rules of ___ are an essential part to ensure accurate recording and sound decision-making

A

Debit and Credit

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17
Q

Debit is abbreviated as __ while __ for Credit.

A

DR, CR

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18
Q

When cash or non-cash items are RECEIVED, the said cash or non-cash items must be recorded in the ___ column. This means that the debit balance increased. It is called ___.

A

Debit, Value Received

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19
Q

When cash or non-cash items are GIVEN, the said cash or non-cash items must be recorded in the ___ column. This means that the credit balance is increased. It is called ___

A

Credit, Value parted with

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20
Q

The following steps will be undertaken in determining account balances for every account title such as cash, account receivable, etc.:

A
  1. Add all the debit side to generate total debit
  2. Add all the credit side to generate total credit.
  3. Subtract total debit to the total credit.
  4. Determine the balance of each account.
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21
Q

It is a LIST OF ALL LEDGER ACCOUNTS WITH CLOSED OR FINAL BALANCES ON A CERTAIN PERIOD arranged according to the rules of debit and credit.

A

Trial balance

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22
Q

In the trial balance, the debit and credit columns must be ___ in total amount. This is the first report prior to financial statement preparation

A

Equal

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23
Q

What are the five major accounts?

A
  1. Assets
  2. Liabilities
  3. Owner’s Equity
  4. Revenue
  5. Expense Accounts
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24
Q

The trial balance report has two phases. What are they?

A
  1. Unjusted trial balance
  2. Adjusted trial balance
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25
Q

On the first phase of the trial balance, the first phase___ is a REPORT OF ALL BALANCES AFTTER POSTING OF THE GENERAL LEDGER ACCOUNTS.

A

Unadjusted trial balance

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26
Q

the second phase is the ___. This phase is a
FINAL REPORT OF THE TRIAL BALANCE AFTER ALL NECESSARY ADJUSTMENTS IN JOURNAL ENTRIES ARE POSTED IN THE GENERAL LEDGER.

A

Adjusted trial balance

27
Q

Making an ___ helps the bookkeeper
CAPTURE ALL FINANCIAL EVENTS THAT HAPPENED OVER A PERIOD OF TIME WITHIN THE ACCOUNTING CYCLE. It is essential in keeping the financial record updated.

A

Adjusting entry

28
Q

This is a METHOD OF ALLOCATING THE COST OF AN ASSET TO AN EXPENSE OVER THE ACCOUNTING PERIODS THAT MAKE UP THE ASSET’S USEFUL LIFE.

A

Depreciation

28
Q

The five basic sources of adjusting entries:

A
  1. Depreciation expense
  2. Deferred expenses of prepaid expenses
  3. Deferred income of unearned income
  4. Accrued expenses of accrued liabilities
  5. Accrued income or accrued assets
29
Q

Examples of assets subject to depreciation are:

A
  1. Store
  2. Office
  3. Building
  4. Transportation equipment
29
Q

___ can also be referred to as the DECREASE IN THE USEFULNESS of these types of assets

A

Depreciation

30
Q

The ___ is an allocated for all sixed assets except land.

A

Depreciation expense

31
Q

These are items that have been INITIALLY RECORDED AS LIABILITIES BUT ARE EXPECTED TO BECOME INCOME OVER TIME
or through the operations of the business.

A

Deferred income of unearned income

31
Q

These are items of expenses that HAVE BEEN INCURRED BUT HAVE NOT BEEN RECORDED AND PAID. These are receivables of the business

A

Accrued expenses of accrued liabilities

31
Q

These are items that have been INITIALLY RECORDED AS ASSETS BUT ARE EXPECTED TO BECOME EXPENSES OVER TIME or through the operations of the business

A

Deferred expenses or prepaid expenses

32
Q

If the result of operation is positive, then the business earns ___ otherwise, ___.

A

Net income, Net loss

32
Q

This statement is ONE OF THE MAJOR FINANCIAL REPORTS. Also known as profit and loss statement or statement of comprehensive income. This statement summarizes the results of company’s operations for a specific period of time.

A

Income statement

33
Q

Ledger accounts that can be found in the income statement are called ___. They are called such because at the end of the accounting period, balances under these accounts are transferred to the capital account, thus having only temporary amounts and resulting to zero beginning balances at the beginning of the following year.

A

Temporary accounts of Nominal account

34
Q

The different parts of income statement are:

A
  1. The heading or title of report
  2. Name of the company
  3. Date or period
  4. Income or revenues
  5. Expenses
  6. Net income/Net loss
35
Q

It consists of ALL INCOME RECEIVED WITHIN THE PERIOD UPON PROVISION OF SERVICES for service-concern business and sales for merchandising

A

Income or revenues

36
Q

MONEY SPENT during the conduct of business operations

A

Expenses

37
Q

The OUTCOME of business operations

A

Net income/Net loss

38
Q

Also known as the STATEMENT OF FINANCIAL POSITION. This statement SUMMARIZES THE TOTAL BALANCES of assets, liabilities and owner’s equity

A

Balance sheet

39
Q

The balance sheet is composed of ___. Permanent in nature because their balances remain intact and will be forwarded from one period to another.

A

Permanent accounts

40
Q

Asset account PRESENTED UNDER THE ASSET PORTION OF THE BALANCE SHEET
such as Allowance for Bad debts and Accumulated depreciation.

A

Contra asset

40
Q

The different parts of balance sheet are:

A
  1. The heading or title of report
  2. Name of the company
  3. Date or period covered
41
Q

Assets that CAN BE REALIZED (collected, sold, used up) one year after year-end date

A

Current assets

42
Q

Liabilities that FALL DUE (paid, recognized as revenue) within one year after year-end date

A

Current liabilities

43
Q

Assets that CANNOT BE REALIZED (collected, sold, used up) one year after yearend date

A

Non-current assets

44
Q

Liabilities that DO NOT FALL DUE (paid, recognized as revenue) within one year after year-end date

A

Non-current liabilities

45
Q

Capital is an item of balance sheet wherein the capital or interest of the owner of the business is listed

A

Owner’s Equity or Capital

46
Q

It has always been the OVERALL GOAL OF THE BUSINESS. It is of great achievement in the successful implementation of strategic, operating, and other plans

A

Profitability

47
Q

It will reveal the outcome of the business operations.

A

Financial statements

48
Q

A ___ is like a medical doctor who will conduct diagnosis by reading the financial report and render interpretations on it which will be used as the basis of a sound economic decision making.

A

Financial analyst

49
Q

It includes all of a FIRM’S INFLOW OF A CASH in a given financial period

A

Cash Receipt

50
Q

Two types of sale transactions

A
  1. Cash sales
  2. Credit sales
50
Q

The amount received in ___ transactions will be recorded in the cash receipt record book bearing the account cash. This will increase cash inflow.

A

Cash sales

50
Q

The credit sales transactions cannot be recorded in the cash receipt record book because there were no inflows of cash. Instead, it will be recorded in the account receivable account

A

Credit sales

50
Q

It is a record of all sales transactions

A

Sales report

51
Q

It RECORDS ALL CASH INFLOW OR OUT FLOW OF THE BUSINESS. Normally, it will report three business activities, namely, the operating, investing and financing activities

A

Cash Flow Report

52
Q

The operating activities involves the main operations of the business which the buying supplies (___) and selling (___) of its products.

A

Cash outflow, cash inflow

52
Q

The investing activities involves the acquisition of long term or fixed assets of the business (___) and selling the old one’s cash inflow.

A

Cash outflow

53
Q

The financing activities involves the acquisition of capital of the business thru borrowings or investors (___) and payments of investors and creditors (___).

A

Cash inflow, Cash outflow

ENTREPRENEURSHIP (2ND QUARTER) (3 decks)

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