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These are used by investors, market analysts, and creditors to evaluate a company's financial health and earnings.

• Statement of Financial Position

• Financial Statements

• Balance Sheet

• Cash flows

This is what the business owns.

• Assets

• Liablities

• Loans

• Owner's Equity

This is what the business owes.

• Assets

• Liabilities

• Loans

• Owner's Equity

Two types of Financial Statement Account:

• General and Journal Form

• Report and Account Form

• Statement of Cash flow and Income Statement

These are the cost of goods and services that are used or consumed in the operation of the business.

• Expenses

• Income

• Liabilities

An increase in economic benefits during the period of time in the form of inflows.

• Liabilities

• income

• expenses

If total assets are P100, 000, while total equity is P40, 000, the total liabilities in the SFP must be

• P140, 000

• P60, 000

• P40, 000

• P0

What is the primary purpose of the Statement of Financial Position?

• To provide a summary of cash flows

• To show the company's total assets, liabilities, and owner's equity

• To detail the company's expenses

• To show the company's total revenue

Which of the following is the correct Accounting Equation?

• Assets + Liabilities = Equity

• Assets = Liabilities - Equity

• Assets = Liabilities + Equity

• Assets + Equity = Liabilities

TRUE or FALSE

The revenue earned by a service business for rendering services for a fee is commonly referred to as Service Income or Service Revenue.

• TRUE

• FALSE