Reviewer Accounting
Reviewer Accounting
IN
ACCOUNTING
Modern bookkeeping can be traced from the book Summa de Aritmetika written
by this author
Luca Pacioli
Amount paid for telephone and electric power services received by the business.
*
Expenses
Jewelries, cars, cash and other properties or resources owned by the business. *
Assets
Sharing profits *
Partnership
Limited liability *
Corporation
Inexpensive to establish *
Sole Proprietorship
The payment of cash to the bank for money borrowed by the business will *
At the beginning of the year, the liabilities of Caltex Service station amounted to
P120,000 but it decreased by P50,000 during the year. The assets increased by
P160,000 during the year and at the end of the year amounted to P360,000. The
owner’s equity at the start of the year is *
P1060,000
P80,000
P240,000
P260,000
P200,000
The assets of the business at the start of the month is P1,000,000 and the owner’s
equity is P800,000. Equipment worth P500,000 were purchased during the month
of which only P150,000 were paid for At the end of the month, owner’s equity will
become *
P550,000
P1,150,000
P800,000
P1,000,000
An accounting concept that disallows the presentation of the personal assets and
liabilities of the owner in the statement of financial position of the owner's
business. *
Entity
An accounting concept that requires assets to be recognized the date when the
assets were acquired by the business *
Cost
A transaction caused a P10,000 decrease in total assets This could have been
due to a/an *
payment of a note
Objectivity Principle
A service provided now although not paid by your client should be immediately
recorded as a revenue. *
Accrual principle
Recording assets received requires the use of an exchange price
Cost Principle
Emy has two businesses: a travel agency and an internet shop. She has to
maintain two separate sets of books to record the activities of her businesses.
Entity Principle
Financial reports are prepared by the accountant after every twelve months. *
Reporting Period
Going Concern
Accounting Principles
A tool or device used to represent each asset, liability, net worth, revenue or
expense *
Account
Venetian Model
exchange of values
in terms of money
The financial structure may be stated in the following accounting equation except
*
Owner took home some goods costing P500 for personal use.
Two employees were hired and signed a six-month contract for P50,000
An increase in liability
all of these
P8,000,000
The assets of the business at the start of the month totalled P1,000,000 with
owner’s equity at P800.000 Before the month ended equipment P500,000 were
purchased, with a down payment of P150,000, the balance on credit. At the start
of the month, liabilities are *
P200,000
The assets of the business at the start of the month totalled P1,000,000 with
owner’s equity at P800.000 Before the month ended equipment P500,000 were
purchased, with a down payment of P150,000, the balance on credit. At the end of
the month, liabilities are
P550,000
A transaction caused a P10,000 decrease in total assets. This could have been
due to a/an *
payment of a loan
Allen Nature Trip, a travel agency, purchased equipment for P120,000, made a
down payment of P50,000 and signed a note for the balance. This transaction will.
On January 1, the assets were P500,000 and the liabilities were P200,000 During
the year the assets increased by P100,000 and the liabilities decreased by
P50,000. Owner's equity on January I was
P300,000
On January 1, the assets were P500,000 and the liabilities were P200,000 During
the year the assets increased by P100,000 and the liabilities decreased by
P50,000. Owner's equity on December 31 was *
P450,000
The firm regularly prepares and presents financial statements for two periods- the
current year and the preceding year It follows the qualitative characteristic of
Comparability
Reliability
The accountant prepares and distributes general purpose reports common to all
users based on the qualitative characteristic of *
Neutrality
Materiality
Controlled resources of an enterprise resulting from past events and for which
economic benefits are expected to flow to the enterprise *
Assets
Present obligations of a firm arising from past events, expected to decrease the
assets when it will be the liquidated in the future *
Liabilities
The owner wrote on a piece of paper electric bill that supposedly was incurred by
the firm. The accountant refused to reimburse the owner and record this as
business expense *
Objectivity