FABM2

Refers to controlled resources resulted from past transactions and events in which are expected to have economic benefits that flows in the business.

• Assets

• Liabilities

• Revenue

• Capital

It represents the right of the owner on the assets of the business (owner’s equity).

• Assets

• Liabilities

• Revenue

• Capital

Refers to the inflow of assets as a result of services rendered or sale of goods.

• Expenses

• Liabilities

• Revenue

• Capital

Current assets are assets that are expected to be converted to cash within a year.

• TRUE

• FALSE

Current liabilities are firm’s short-term financial obligation that needs to return within a year or within an operating period, for example, accounts payable, unearned revenue, and accrued expenses.

• TRUE

• FALSE

Noncurrent assets are firm’s long-term debt that are not due within a year or operating period, such as, lease and bonds payable.

• TRUE

• FALSE

Noncurrent liabilities are liabilities in which the full value will not be recognized within the accounting year.

• TRUE

• FALSE

It is also known as income statement, contains the results of the company’s operations for a specific accounting period in which have both positive and negative results.

• Statement of Comprehensive Income

• Statement of Changes in Equity

• Statement of Financial Position

• None of these

This event occurs when cash is not yet collected after rendering a service.

• Accrued income

• accrued expenses

• operating expenses

• net loss

Net Income refers to the difference between the Gross Profit and Expenses if the result is positive and net loss when the result is negative.

• TRUE

• FALSE