FABM ENDTERM

Question 1

defined in accounting as any increase in capital other67y\
han the owners’ initial or further contributions.

Answer 1

Income

Question 2

which provides for a
constructive receipt of income.

Answer 2

National Internal Revenue Code (NIRC)

Question 3

is the process by which the government collects revenue in order to pay for its
expenses.

Answer 3

taxation

Question 4

It is a process or means by which the sovereign, through its law-making body,
raises income to defray the necessary expenses of government.

Answer 4

taxation

Question 5

are imposed in every country, mostly to fund government spending.

Answer 5

Taxes

Question 6

is a body of rules under which a public authority has a claim on taxpayers, requiring them to transfer to the authority part of their income or property. T

Answer 6

tax law

Question 7

the imposition of taxes on the income of individuals derived from
compensation, business trade, self-employed, or practice of a profession or from
property less deductions authorized by the law.

Answer 7

Income taxes

Question 8

not dependent upon the will of the taxpayer.

Answer 8

Enforced contributions

Question 9

Congress makes tax laws

Answer 9

Imposed by legislative body-

Question 10

– The ability to pay principle is the basic rule in collecting taxes.
Those who earn more contribute to the government’s coffer more than those with lesser
earnings.

Answer 10

Proportionate in character

Question 11

money is the preferred payment of taxes. If property is
taken to satisfy tax liability, it is sold through public auction to satisfy the tax obligation.

Answer 11

Payable in the form of money –

Question 12

taxes are the primary source of government
revenue

Answer 12

. Imposed for the purpose of raising revenue –

Question 13

money is taken from the public and returned to them in the form
of public benefits.

Answer 13

. Used for public purpose –

Question 14

a Filipino citizen who lives or resides here in
the Philippines

Answer 14

Resident citizen

Question 15

citizen to a foreign country and does not
reside in the Philippines

Answer 15

A non- resident
citizen

Question 16

a citizen of another foreign country but
resides in the Philippines

Answer 16

Resident Alien

Question 17

Non-VAT registered businesses are required to pay a 3% of
gross sales or receipts

Answer 17

Percentage taxes

Question 18

It is a record of the bank’s client set up by the bank.

Answer 18

BANK ACCOUNT

Question 19

– It refers to the money placed in a bank or other financial
institution for safekeeping.

Answer 19

Savings Account

Question 20

– It is also referred to as a current account.

Answer 20

Checking Account

Question 21

It is also known as a deposit certificate.

Answer 21

Time Deposit –

Question 22

It is a bank document used by a bank client or depositor if
he/she wants to put money in the bank for safekeeping.

Answer 22

DEPOSIT SLIP –

Question 23

It is a bank document that a bank customer uses to
withdraw or receive cash from his or her bank account

Answer 23

WITHDRAWAL SLIP

Question 24

It is a payment instrument issued by a person to cover the cost of goods
and services.

Answer 24

CHECK –

Question 25

This is a written order instructing a person's bank to pay a specific amount of money to be drawn against the person's checking account in exchange for the bank's certification that the person's signature on the check is genuine and that the person has sufficient funds in his or her checking account to cover the amount.

Answer 25

CHECK

Question 26

A check wherein the issue date or date or the date of check is past six months or one hundred eighty days or more is considered as

Answer 26

stale check

Question 27

a check dated at a future date is considered a

Answer 27

post-dated check

Question 28

person or entity who makes the check

Answer 28

Drawer

Question 29

the bank or other financial institution where the check can be presented for payment.

Answer 29

Drawee,

Question 30

It is a schedule prepared by the company to bring the depositor’s cash balance and the related bank’s cash balance into agreement.

Answer 30

Bank reconciliation

Question 31

It shows the items causing the discrepancies between the balance per bank and balance per book

Answer 31

Bank reconciliation

Question 32

– It is a monthly report released by the bank to the account holder of the checking account.

Answer 32

Bank Statement

Question 33

This method simply adjusts the unadjusted balance per book.

Answer 33

Unadjusted Bank to Book Balance Method

Question 34

– This method simply adjusts the unadjusted balance per book in order to arrive at the unadjusted balance per bank.

Answer 34

Unadjusted Book to Bank Balance Method

Question 35

This method adjusts both balances to the corrected cash balance that will be presented in the balance sheet

Answer 35

Adjusted Balance Method

Question 36

These are deposits already recorded in the company’s books thereby increasing the cash balance but not yet recorded in the bank record

Answer 36

Deposit in transit

Question 37

– These are checks issued by the company but not yet paid by the bank

Answer 37

Outstanding checks

Question 38

These are items erroneously recorded by the ban

Answer 38

Bank errors

Question 39

– These are deposits made by the bank in the company’s account but not yet reflected in the books or company’s records

Answer 39

Bank credits

Question 40

These are charges made by the bank against the company’s account but not yet reflected in the company’s records.

Answer 40

Bank Debits

Question 41

Examples: Collection of Customers, Proceeds from Loan, Interest Income

Answer 41

Bank Credits

Question 42

Examples: NSF Checks, Service Charges such as for checkbook printing

Answer 42

Bank debits

Question 43

It is considered as the book of original entry where the accountant debits and credits the correct account in the journal and enters the transaction for the first time in the books of accounts using the double-entry procedure

Answer 43

journal

Question 44

These are original entry columnar books used to record comparable transactions.

Answer 44

Special Journal –

Question 45

keeps track of all transactions involving cash inflows. I

Answer 45

Cash Receipts Journal

Question 46

It is a special journal where all transactions involving outflows or payment of cash are being recorded.

Answer 46

Cash Disbursement Journal –

Question 47

- All sales transactions on account or with a promissory note are recorded in the

Answer 47

Sales Journal

Question 48

-It is a special journal that is intended to keep track of any product that has been purchased on credit.

Answer 48

Purchase Journal

Question 49

Transactions that cannot be recorded in the special journals are recorded in the

Answer 49

General Journal -

Question 50

It is considered as the books of final entry.

Answer 50

ledger

Question 51

sometimes known as a nominal ledger

Answer 51

General Ledger

Question 52

is a bookkeeping ledger where accounting data from journals and subledgers such as accounts payable, accounts receivable, cash management, fixed assets, purchasing, and projects is posted.

Answer 52

General Ledger

Question 53

stores the details for a general ledger control account.

Answer 53

Subsidiary Ledger

Question 54

is a type of document that contains information related to a transaction

Answer 54

A business form

Question 55

It provides details such as the date of the transaction, the items bought or sold, and the name of the buyer and seller.

Answer 55

Business Forms

Question 56

These forms are being used for the internal transactions of the business.

Answer 56

Internal business forms

Question 57

. These forms document the personnel’s accountability for the transactions that have occurred.

Answer 57

Internal busines forms

Question 58

– It is an internal document filled out if there are any items that any of the department wants to purchase

Answer 58

Purchase requestion

Question 59

– It is a business form that is being used to document the quantity and quality of the items received by the personnel from the seller.

Answer 59

Receiving report

Question 60

This form documents the process for the preparation, verification, and authorization of check payments of the company’s payables.

Answer 60

check voucher

Question 61

These forms are issued or given mainly to parties outside the business as proof of a transaction done with the company.

Answer 61

External Business forms

Question 62

– It is a document to communicate the buyer’s exact order to the supplier.

Answer 62

Purchase order

Question 63

It is a form being prepared by the seller to document the delivery of the items ordered.

Answer 63

Delivery receipt

Question 64

It is a document that shows the exact amount of payment that is being asked by the seller to the buyer based on the items delivered and the agreed price.

Answer 64

Sales Invoice

Question 65

It is a form prepared by the seller and submitted to the buyer.

Answer 65

Statement of Account or Billing Statement

Question 66

It is issued in payment of assets

Answer 66

Cash

Question 67

A monthly report released by the bank

Answer 67

Bank statement

Question 68

It is the schedule prepared to brings the depositor's cash

Answer 68

Bank reconciliation

Question 69

It is a tax laid upon the privilege of engaging in business or pursuing an occupation, calling, or profession.

Answer 69

Business tax

Question 70

It is the VAT on sales transactions.

Answer 70

Output Vat

Question 71

. It is the amount of money coming to a person or corporation within a specified time, whether as payment for services, interest, or profits from investment

Answer 71

Income

Question 72

. It is a business tax imposed on persons or entities who sell or lease goods, properties or services in the course of trade or business whose gross annual sales or receipts do not exceed P3,000,000 and are not VAT-registered.

Answer 72

Percentage Tax

Question 73

the recipient of the money

Answer 73

payee