Lesson 1/SFP
Income that is already earned but not yet collected.
Accrued Income
In an income statement, there are 2 forms, natural and..?
Functional
What is the owner's right to the assets of the business?
Owner’s Equity
In the statement of cash flows, there are 2 methods, what are they?
Direct and Indirect methods
Which of the following is not considered as a quick asset? Cash, Accrued Income, Accounts Receivable?
Accrued Income
There are 2 formats of SFP, one is the report form and the other is?
Account Form
In an accounting period, there are 2 years, fiscal year and..?
Calendar Year
A business when only managed/owned by one person.
Sole Proprietorship
What list the cash receipts and payments for investing and financing activities in a business.
Direct Method
This is the entity’s ability to meet long term obligations as they become due.
Solvency
It shows the company’s ability to sustain its current operations.
Current Assets
Fare of buying merchandise from suppliers paid by the business.
Freight-in
What account is used when a business owner withdraws money from the business permanently?
Last name, Capital
Used mostly by companies who prefer accrual method of accounting rather than cash method.
Indirect Method
This measures the frequency of accounts receivable being converted into cash.
Accounts Receivable turnover ratio
? = liabilities + owner’s equity
Assets
Reduction in owner’s equity is attributable solely to expenses incurred by an entity. True or False?
False
Share in the business losses debit or credit?
Debit
There are 3 activities in the cash flow statement, the first is operating activities, what are the other 2?
Investing and Financing activities
If current assets amounting to 600,000 PHP and current liabilities amounted to 200,000 PHP, what is the current ratio of the entity?
3.00
Included in the merchandise inventory is finished goods, goods in process, raw materials, and..?
Factory Supplies
Which of the following is a contra-asset: cash, accounts receivable, or accumulated depreciation?
Accumulated Depreciation
Capital contributors are called?
Stockholders
What year that cash flow statements are required in USA?
1988
If the average inventory is 80,000 PHP and the inventory turnover ratio is 20, how much is the cost of goods sold in the company?
1,600,000