REVIEW FABM

This is a type of business activity wherein you produce the items to be sold. - This type of business incurs overhead costs aside from the wages and materials used in the production of goods. A rise in price in one of these costs causes an increase in the price of goods produced.

• Service

• Trading

• Merchandising

• Manufacturing

A type of business organization wherein the owners are called members who contribute equitably to the capital of the business. The members are expected to patronize their products and service. This form of business organization is regulated by the CDA.

• Cooperatives

• Corporation

• Partnership

• Single/Sole proprietorship

They are users with parties outside company and may not be directly involved in the company's operations but their decisions may significantly affect the business entity.

• Internal Users

• External Users

• Side Users

• Former Users

The details of the arrangement between the partners are outlined in a written document called ___________.

• Stock Certificate

• Articles of Ownership

• Partner Certificate

• Articles of Partnership

GAAP stands for:

• Generally Accepted Auditing Procedures

• Generally Accepted Accounting Procedures

• Generally Accepted Accounting Principles

• Generally Auditing Accounting Principles

These are economic obligations, debts or payables of the business.

• Assets

• Owner's Equity

• Liabilities

• Expense

Which of the following is not a business transaction?

• Bought furniture of ₹10,000 for business

• Paid for salaries of employees ₹5,000

• Paid son's fees from her personal bank account ₹20,000

• Paid son's fees from the business ₹2,000

Double entry in accounting means there must be________ entries for every transaction

• two

• Three

• six

• one

Users of accounting information include

• Creditors

• Lenders

• Customers

• All of the above

Which of the following is not an example of internal users?

• Government

• Investors

• Management

• Employees