Basic accounting
What is the accounting equation that serves as the fundamental basis for recording and analyzing all business transactions?
ASSESTS= LIABILITIES+EQUITY
A detailed projection of income and expenses over a certain period is called.
BUDGET
This document shows the difference between the bank's records and a company's cash account.
BANK RECONCILIATION STATEMENT
This is the government's compulsory charge on income, goods, or services.
TAX
These are obligations a business owes to outsiders, usually settled over time with money, goods, or services.
LIABILITIES
Which accounting principle requires that expenses be recorded in the same accounting period as the revenues they helped generate, ensuring accurate profit measurement?
MATCHING PRINCIPLE
The process of forecasting the financial results and determining how best to use the company’s money.
FINANCIAL PLANNING
This term refers to checks issued by a company but not yet cleared by the bank.
OUTSTANDING CHECKS
This type of tax is based on the income earned by individuals or corporations.
INCOME TAX
This statement shows a company's assets, liabilities, and equity at a specific point in time.
BALANCE SHEET
A company is unsure whether to record an asset at a higher estimated value or a lower conservative value. To avoid overstating its financial position, which accounting principle should guide their decision?
CONSERVATISM PRINCIPLE
This budget shows the expected cash inflows and outflows for a certain period, helping to avoid liquidity problems.
CASH BUDGET
This is the process of recording a bank service charge in the company's books.
ADJUSTING JOURNAL ENTRY
This type of tax is included in the price of goods and services in the Philippines, usually at 12%.
VALUE-ADDED TAX (VAT)
This financial statement explains how cash enters and leaves the business over a period.
STATEMENT OF CASH FLOW
This financial statement shows a company’s revenues, expenses, and net income over a period of time.
INCOME STATEMENT
A plan that includes all individual budgets and summarizes the company's financial position at the end of the period.
MASTER BUDGET
This bank reconciling item occurs when the bank records a deposit that the company has not yet recorded.
CREDIT MEMORANDUM (CREDIT MEMO)
This tax principle states that those who earn more should contribute a larger percentage of their income.
ABILITY-TO-PAY PRINCIPLE
This section of the statement of cash flows shows cash paid to buy property, equipment, or investments.
INVESTING ACTIVITIES
An auditor is reviewing a company’s financial statements and finds no signs of liquidation or shutdown plans. Under which accounting principle can the business assume it will continue operating for the foreseeable future?
GOING CONCERN PRINCIPLE
A retail store expects higher sales during the holiday season but also anticipates large supplier payments in the same period. Which budgeting tool should the store use to plan cash inflows and outflows so it can cover expenses and avoid cash shortages?
CASH BUDGET
This is the adjusted balance in the company's cash account after reconciling all differences between the bank statement and the company's ledger.
ADJUSTED BOOK BALANCE
This is the deadline for filing annual income tax returns for individuals in the Philippines.
APRIL 15
After a year of operations, a company wants to summarize the changes in the owners’ capital—such as additional investments, withdrawals, and net income. Which financial statement should it prepare to show these changes?
STATEMENT OF CHANGES IN EQUITY