CB LECTURE 101

Question 1

Is a process of identifying, recording, and communicating information that is useful in making economic decisions.

Answer 1

Accounting

Question 2

Accountable or Not Accountable

Answer 2

Identifying

Question 3

Journalizing & Posting

Answer 3

Recording

Question 4

Financial Reporting

Answer 4

Communicating

Question 5

Refers to the process of recording transactions of the entity.

Answer 5

Bookkeeping

Question 6

One Individual
DTI

Answer 6

Sole Proprietorship

Question 7

More than one (Partners) Contractual Agreement
SEC

Answer 7

Partnership

Question 8

More than one (shareholders) Operation of Law
SEC

Answer 8

Corporation

Question 9

More than one (members) Cooperative Code
CDA

Answer 9

Cooperative

Question 10

1.Control - exclusive right to enjoy benefits
2.Resulted from past event
3.Can provide economic benefits

Answer 10

assets

Question 11

1.Present Obligation
2.Resulted from past event
3.Requires you to give up economic resources when settling them

Answer 11

liabilities

Question 12

What the owner owns

Answer 12

equity

Question 13

revenue & gain

Answer 13

income

Question 14

income arises from the ordinary activities of a business

Answer 14

revenue

Question 15

income arises from activities other than from the ordinary activities of a business

Answer 15

gain

Question 16

1. arises from the ordinary activities of a business

Answer 16

expenses

Question 17

expenses arises from activities other than from the ordinary activities of a business

Answer 17

loss

Question 18

includes money or its equivalent that is readily available for unrestricted use (e.g. Cash on Hand and Cash in Bank)

Answer 18

Cash

Question 19

receivables supported by oral or informal promises to pay (a customer bought a milk tea worth 1,000 from Mr. Pogi and told that he will pay for it next week)

Answer 19

A/R

Question 20

receivables supported by written or formal promises to pay in the form of promissory notes (A customer bought a milk tea worth 1,000 from Mr. Pogi and he wrote a promissory note that he will pay for it within 30 day)

Answer 20

Notes receivable

Question 21

represents the goods that are held for sale by a business (Mr. Pogi purchased milk worth 3,000 to be used as ingredient for his milk tea business).

Answer 21

inventory

Question 22

consist of various assets such as machineries, vehicles, furniture & fixtures to be used in the business (Mr. Pogi purchased a sealing machine worth 5,000).

Answer 22

Equipment

Question 23

obligations supported by oral or informal promises to pay by the debtor (Mr. Pogi bought ingredients worth 3,000 from a supplier and told that he will pay for it next week)

Answer 23

Accounts Payable

Question 24

obligations supported by written of formal promises to pay the debtor in the form of promissory notes ( Mr. Pogi borrowed money from the bank and he qrote a promissory note that he will pay for it within 5 years)

Answer 24

Notes Payable

Question 25

the residual amount of assets after deducting liabilities (Mr. Pogi invested 3,000 for his milk tea business )

Answer 25

Owner’s Capital/Owner’s Equity

Question 26

this account is used to record the temporary withdrawals of the owner during the period.

Answer 26

Owner’s Drawing

Question 27

revenues earned from rendering services

Answer 27

Service Fees

Question 28

revenues earned from sale of goods
Ex. Sale of milk tea

Answer 28

Sales

Question 29

income earned that are not classified as revenues

Answer 29

Gains

Question 30

represents the value of inventories that have been sold
Ex. The cost of the milk tea that was sold for 1,000 is 800.

Answer 30

Cost of Goods Sold

Question 31

represents the sellers’ cost of delivering goods to customers.
Ex. The total cost of gasoline used in delivering milk tea to customer amounted to 1,000

Answer 31

Freight-out

Question 32

salaries earned by employees for the services they have rendered in the business
Ex. Mr Pogi hired a cashier and her salary for the month is 5,000

Answer 32

Salaries Expense

Question 33

represents the rentals that have been used up
Ex. Mr. Pogi rent a space for his milk tea business, 2,000 per month.

Answer 33

Rent Expense