FABM 2-Quiz

Also known as the income statement.

• STATEMENT OF FINANCIAL POSITION

• TEMPORARY ACCOUNTS

• STATEMENT OF COMPREHENSIVE INCOME

• CONTRA ACCOUNTS

Also known as nominal accounts. These are the accounts found under the SCI.

• STATEMENT OF FINANCIAL POSITION

• TEMPORARY ACCOUNTS

• STATEMENT OF COMPREHENSIVE INCOME

• CONTRA ACCOUNTS

They are called such because at the end of the accounting period, balances under these

accounts are transferred to the capital account, thus having only temporary amounts and resulting

to zero beginning balances at the beginning of the following year

• STATEMENT OF FINANCIAL POSITION

• TEMPORARY ACCOUNTS

• STATEMENT OF COMPREHENSIVE INCOME

• CONTRA ACCOUNTS

Contains the results of the company’s operations for a specific period of time which is called net income if it is a net positive result while a net loss if it is a net negative result. This can be prepared for a month,

a quarter or a year.

• STATEMENT OF FINANCIAL POSITION

• TEMPORARY ACCOUNTS

• STATEMENT OF COMPREHENSIVE INCOME

• CONTRA ACCOUNTS

all revenues are listed down in one section while all expenses are listed in another

• Single-step

• Multi-step

there are several steps needed in order to arrive at the company’s net income

• Single-step

• Multi-step

Salaries of admin personnel

• general and administrative expenses

• selling expenses

• N/A

Salaries of janitors

• general and administrative expenses

• selling expenses

• N/A

Salaries of sales agents

• general and administrative expenses

• selling expenses

• N/A

Utilities of home office

• general and administrative expenses

• selling expenses

• N/A