I.Q. TIME! INQUIRIES CHAP3.4

It refers to the systematic process of measuring and reporting relevant financial information about the activities of an economic organization or unit.

• Accountancy

• accountant

• accounting

• financial

Fundamental accounting equation

• Assets = Depreciation + Liabilities

• Assets = Liabilities + Owner's Equity

• Liabilities - Assets + Owner's Equity

• Owner's Equity = Liabilities + Assets

It is called as Statement of Financial Position

• Balance Sheet

• Income Sheet

• Statement of Owner's Equity

• Cash Flow

it include debts, obligations to pay, and claims of the creditors on the assets of the business.

• Assets

• Liabilities

• Capital

• Owner's Equity

This is the amount collectible from the customer to whom sales have been made or services have been rendered on account or credit

• notes receivable

• interest receivable

• advances to employees

• accounts receivable

it includes debts arising from the purchase of an asset or the acquisition of services on account evidenced by a promissory note.

• Accounts payable

• Notes payable

• Loan payable

• Utilities payable

It is a form or type of income statement that usually used in a service business

• service form

• functional form

• natural form

• business form

It refers to an expenses related to the use of electricity, fuel, water, and telecommunications.

• Salaries expense

• Utilities expense

• Supplies expense

• Depreciation expense

It include supplies bought for use in the business or services and benefits to be received by the business in the future paid in advance.

• Prepaid expenses

• Prepaid income

• Accumulated depreciation

• Doubtful accounts

It refers to the long-term debt of the business with security or collateral in the form of real properties.

• Accrued liabilities

• Non-current liabilities

• Bonds payable

• Mortgage payable