HISTORY/DEFINITION
What does the French word “compter” mean?
to count or to score
What is defined as the process of IDENTIFYING, RECORDING, and COMMUNICATING economic events of an organization to interested users?
ACCOUNTING
What is the accounting equation?
ASSETS = LIABILITIES + OWNER'S EQUITY
Juan Dela Cruz started a delivery service on Jan 1, 2021. The following transactions occurred during the month of January. He invested PHP700,000 cash and Cars amounting to PHP300,000. How much is the liability?
0
What is the first step of the Accounting Cycle?
IDENTIFYING TRANSACTIONS
Who is the Italian father of modern accounting?
Note: Spell It Out
LUCA PACIOLI
What does GAAP stand for?
Generally Accepted Accounting Principles
Complete the statement. For every transaction, the accounting equation should always be _____.
BALANCED
Dela Cruz borrowed PHP200,000 cash from Hagonoy Bank for use in his business. What account title should be used?
LOANS PAYABLE
What is known as transferring information from journal to ledger?
POSTING
Which of the following supports that accounting is an art?
a. Accounting is all about judgement creation.
b. Accounting is the combination of analysis and creative judgement.
c. Accounting is the combination of skills and creative judgement.
d. All of the above.
c. Accounting is the combination of skills and creative judgement.
Which of the following accounting principles would require that all goods and services purchased be recorded at cost?
COST PRINCIPLE
These are decreases in economic benefits during the accounting period in the form of outflows of assets or incidences of liabilities that result in decreases in equity.
EXPENSES
Various equipment were purchased on account from Sphinx for PHP75,000. What account title should be used?
ACCOUNTS PAYABLE
What is described as a bookkeeping worksheet in which the balance of all ledgers is compiled into debit and credit account column?
TRIAL BALANCE
What book was published by the Father of Accounting containing a detailed chapter on double-entry bookkeeping?
Summa de Arithmetica
Marian Mosely is the owner of Mosely Accounting Services. Which accounting principle requires Marian to keep her personal financial information separate from the financial information of Mosely Accounting Services.
Business Entity Principle
What refers to the book of original entry wherein for each transaction the journal shows the debit and credit effects on specific accounts?
JOURNAL
Dela Cruz made a cash withdrawal of PHP10,000 for personal use. What elements in the accounting equation are affected?
ASSETS AND OWNER'S EQUITY
Which entries bring the accounts up to date?
ADJUSTING ENTRIES
Cite two natures of accounting.
Accounting is an art
If expenses are not directly linked to business revenue, they are included on the statement from the period in which they are used or expired. What principle governs this?
What is defined as the most basic journal and typically has spaces for dates, account titles and explanations, references, and two amount columns?
GENERAL JOURNAL
What is the total amount of assets if the liabilities is Php. 250,000.00 and equity is Php. 385,275.00?
Php. 635,275.00
When would an event qualify as a business transaction?
I. When it affects one or more elements of the financial statements.
II. When it has a measurable monetary value assigned to it.
III. When it results in a change in assets.
IV. When the event is related to the operations of the business.
a. When I and II are satisfied.
b. When III is satisfied.
c. When I, II, III, and IV are satisfied.
d. When I and IV is satisfied.
c. When I, II, III, and IV are satisfied.