Chapter 1

Question 1

Going into business means investing in activities that can make available goods and services needed in a community.

Answer 1

Concept of business

Question 2

Realize profit from investment , increase the value of the business itself as an economic entity , and improve the quality of life in the community.

Answer 2

Concept of business

Question 3

Its growth and stability enhances says also the economic conditions of the business where it is located

Answer 3

Concept of business

Question 4

Definition of business

Answer 4

Commercial activity customarily engage as means of livelihood.
An organization involves rendering services and selling goods to satisfy the needs of customer.
Place where enterprise is carried on.
Location where a transaction occur between the seller and the buyer.

Question 5

Goals of engage in into business

Answer 5

Earn profit out of investment
Improve the quality of life
Increase its own value as an economic entity

Question 6

Forms of business

Answer 6

Sole proprietorship
Partnership
Corporation
Cooperative

Question 7

Owned by one person and operates for their benefit

Answer 7

Sole proprietorship

Question 8

Has an unlimited liability for all obligations incurred whether from operating or judgment in the business

Answer 8

Sole proprietorship

Question 9

Generates own financial resources

Answer 9

Sole proprietorship

Question 10

Owned by two or more people

Answer 10

Partnership

Question 11

Each has unlimited liability for the debts incurred by the business

Answer 11

Partnership

Question 12

Owner of a corporation

Answer 12

Shareholders

Question 13

Has limited liability and the business has a separate legal personality from its owner

Answer 13

Corporation

Question 14

A limited liability business that can organize for nonprofit and for-profit.

Answer 14

Cooperative

Question 15

This has members that they share decision-making authority

Answer 15

Cooperative

Question 16

Types of business Organization

Answer 16

Servicing
Merchandising
Manufacturing

Question 17

Companies that performs services for a fee

Answer 17

Servicing

Question 18

Organization that generally purchases finish products or goods that are ready for sale to final customer

Answer 18

Merchandising

Question 19

This entity normally buy raw materials , processed them into products and once finish as products , this will be available for sale

Answer 19

Manufacturing

Question 20

Activities of business organization

Answer 20

Financing activities
Investing activities
Operating activities

Question 21

Activities of an organization use to obtain financial resources from financial markets. This is the means of funding of the business to be engage in

Answer 21

Financing activities

Question 22

Involves selection in physical resources that will be used to develop , produce goods and services such as buying of land , acquisition of necessary equipment and construction of building.

Answer 22

Investing activities

Question 23

The most activities that can found in business that involves the use of resources to design , produce and distribute goods and services to the customer that may include research and development activity , designing and engineering

Answer 23

Operating activities

Question 24

An economic activities that affect any of the basic accounting elements

Answer 24

Business Transaction

Question 25

Includes transfer of something of value between two entities

Answer 25

Business transaction

Question 26

Documents on paper or electric documents that represent in relation to external parties , such as letters , invoice , order sheets , credit notes and bills

Answer 26

Business documents

Question 27

This is what you call to the business documents that relate to sales of goods and services

Answer 27

Sales document

Question 28

It describes all the basic facts of the transaction such as the amount of transaction , to which the transaction was made , the purpose of the transaction , and the date of the transaction

Answer 28

Source document

Question 29

It is used as the basis to analyze and record transactions

Answer 29

Record of business

Question 30

An alternative and legally acceptable instrument used to buy groceries , pay bills , and purchase product. This is usually used to pay big amount of money

Answer 30

Check

Question 31

Itemized statement of the goods or services provided by a vendor or supplier. Indicates the quantity and price of each product or service provided

Answer 31

Purchase invoice

Question 32

Roll a paper which is used in cash register to print information when completing transaction

Answer 32

Cash register tape

Question 33

A commercial document issued by a seller to a buyer

Answer 33

Reddit memo for customer refund

Question 34

Used to record the x and employee is working punches in and out to mark the time they start and stop work

Answer 34

Employee time card

Question 35

A paper slips that banks use with customers for the purpose of depositing funds into their account

Answer 35

Validated deposit slip

Question 36

Report released on a fixed date every month by banks that list deposits, withdrawals, and check fades incurred on account.

Answer 36

Bank statements

Question 37

It sets forth the descriptions , quantities , prices , discounts , payment terms , date of performance, and identifies also as "order"

Answer 37

Purchase order

Question 38

A written or spoken agreement , specially one concerning employment , sales , or tenancy that is intended to be enforceable by law

Answer 38

Contracts

Question 39

It is also called a statement of account

Answer 39

Billing statement

Question 40

It is a list of charges that customer has accumulated over a period of time. it is a document issued by a supplier to its customer

Answer 40

Billing statement

Question 41

It is a written acknowledgement that shows money which has been received as an exchange for product and services

Answer 41

Official receipt

Question 42

A simply physical proof that the item has been delivered

Answer 42

Delivery receipt

Question 43

An itemized statement of goods or services provided to customer which indicates the quantity and price of each products delivered

Answer 43

Sales invoice

Question 44

Summary of the total manufacturing cost of an item that involves charges to a processing department and the allocation of the total cost between the ending work in progress inventory and the units completed and transferred out to the next department or finished goods inventory

Answer 44

Production report

Question 45

A signed document containing a written promise to pay a stated sum to a specified person or the barrier at the specified date or on-demand

Answer 45

Promissory notes