Accounting Prelim Part 1

It is the statement of financial condition or financial position of the company.

• Balance Sheet

• Income Statement

• Statement of Cash Flow

It is the statement of the results of operation.

• Balance Sheet

• Income Statement

• Statement of Cash Flow

It is the statement that gives information to the users about the cash sources and the cash uses of the business enterprise.

• Balance Sheet

• Income Statement

• Statement of Cash Flow

_______ is considered the language of business.

• Bookkeeping

• Accounting

It refers to as the systematic and chronological recording of business transactions, observing therein the fundamental principles of accounting.

• Bookkeeping

• Accounting

The three types of business organization.

• Service

• Trading

• Manufacturing

• Partnership

• Sole Proprietorship

It means writing down of business transactions in the official book of accountants.

• Recording

• Classifying

• Summarizing

It means sorting of business transactions to their specific accounts.

• Classifiying

• Summarizing

• Interpretation

It is the summing up of the business transactions recorded in the book of accounts.

• Summarizing

• Recording

• Interpretation

It is to be used appropriately in decision-making process.

• Interpretation

• Recording

• Financial Statement