Q2 - Entrep 🛋📈🤝💰

Question 1

The systematic method of recording and processing financial transaction.

Answer 1

BOOKKEEPING

Question 2

An employee of a small to midsize entity that performs the processing and recording of the day-to-day financial operations of a business.

Answer 2

Bookkeeper

Question 3

After the bookkeeper records transactions, the ____ or the business owner will review the bookkeeper’s work and make the required adjusting entries before the company’s financial statements are finalized.

Answer 3

accountant

Question 4

After the ____ records transactions, the accountant or the business owner will review the bookkeeper’s work and make the required adjusting entries before the company’s financial statements are finalized.

Answer 4

bookkeeper

Question 5

The method of using debit and credit to record a transaction.

Answer 5

Double-entry bookkeeping

Question 6

Father of Modern Accounting

Answer 6

Luca Pacioli

Question 7

Italian Mathematician

Answer 7

Luca Pacioli

Question 8

Debits and credits are used to record ____, which have a monetary impact on the financial statements of an organization.

Answer 8

business transactions

Question 9

In the language of accounting, a ____ represents a transaction or relocation of funds from one account to another when using a double-entry accounting system.

Answer 9

Debit

Question 10

A debit represents a transaction or relocation of funds from one account to another when using ____.

Answer 10

a double-entry accounting system

Question 11

Instead of transactions with positive or neutral values, ____ represent a decrease in assets or an increase in liabilities.

Answer 11

credits

Question 12

Represents a transaction or relocation of funds from one account to another when using a double-entry accounting system.

Answer 12

Debit

Question 13

Represent a decrease in assets or an increase in liabilities.

Answer 13

Credits

Question 14

Under double-entry accounting, every debit always has an equal corresponding credit, which keeps the following equation in balance. Always
keep this in mind:

Answer 14

Assets = Liabilities + Equity

Question 15

Example of Assets:

Answer 15

Cash
Tangible assets (building, land, machinery, vehicles and inventory)

Question 16

Example of Liabilities:

Answer 16

Accounts Payable (A/P)
Interest expense, taxes, etc.

Question 17

Examples of Owner’s equity or Equity:

Answer 17

Rent, capital, profit

Question 18

Accountants call this the accounting
equation, and it’s the foundation of
double-entry bookkeeping. If at any
point this equation is out of balance,
that means the bookkeeper has
made a mistake somewhere along
the way.

Answer 18

Assets = Liabilities + Equity

Question 19

A report that shows the financial activities and performance of a business. It is used by lenders and investors to check a business’s financial health and earnings potential.

Answer 19

Financial Statement

Question 20

Focuses on the revenue, expenses, gains, and losses of a company during a particular period.

Answer 20

Income statement

Question 21

There is usually a very close relationship
between Sales and Cost of Sales (or Cost of
Goods Sold). Many Companies, in determining
their selling prices, conveniently add a specific
percentage mark-up or margin to the Cost of
Sales, thus establishing a predictable ratio
between the two items. If an enterprise decides
to slap a hundred percent mark-up on its Cost of
Sales, the Sales figure will double the Cost of
Sales. As a percentage, Cost of Sales will,
therefore, be fifty percent of Sales.

Answer 21

Income Statement Forecasting

Question 22

A financial report that summarizes the financial state of a business at a point in time. It provides an overview of the value of a business’s assets, liabilities, and owner’s equity.

Answer 22

Balance Sheet

Question 23

Forecasting what the Balance Sheet of an
enterprise will look like in the future
depends a lot on the future Sales. The
Current Assets of the balance Sheet
include Cash, Marketable Securities,
Accounts Receivables, Inventories (Raw
Materials, Work-in-Process, and Finished
Goods), and other current Assets. Assets
in the Balance Sheet must always equal
liabilities and owners’ equity.

Answer 23

Balance Sheet Forecasting

Question 24

The cash that flows into and out of various financial assets for specific periods of time. It’s usually measured on a monthly or quarterly basis. It doesn’t measure the performance of any single asset but emphasizes how cash is moving.

Answer 24

Funds Flow

Question 25

The financial forecaster should compute for the increase or decrease in the different items found in the Assets and Liabilities columns, when comparing the actual or previous year’s Balance Sheet and the Pro Forma Balance Sheet. Decreases in Assets and increases in Liabilities are sources of funds, while increases in Assets and Decreases in Liabilities are uses of funds.

Answer 25

Funds Flow Forecasting

Question 26

Is a measurement of the amount of cash that comes into and out of your business in a particular period of time.

Answer 26

Cash Flow

Question 27

The entrepreneur or finance manager is
concerned about the enterprise’s survival
on a day-to-day basis as well as its
long-term sustainability. Cash is a
precious commodity that will make the
enterprise live on and on. It is crucial,
therefore, to monitor and budget the
enterprise’s cash position on a daily,
weekly, monthly, and yearly basis.

Answer 27

Cash Flow Forecasting

Question 28

This was introduced as a
method to evaluate business
investments.

Answer 28

Income and Cash payback
period

Question 28

This would help the entrepreneur get a firmer grip on the viability of his or her enterprise.

Answer 28

Construction and forecasting of Financial Statements

Question 29

Is a decision-making tool used by many businesses to help in
budgeting, planning, and estimating future growth.

Answer 29

Forecasting

Question 29

In the simplest terms, ____ is the attempt to predict future
outcomes based on past events and management insight.

Answer 29

forecasting