This is where the accountant gathers information from source documents and determines the impact of the transaction on the financial position.

(a)  

This is the process of recording the transactions in the appropriate journals.

(a)  

It is a chronological record of transactions. It is also known as the book of original entry.

(a)  

It is a journal where all transactions could be recorded.

(a)  

These are journals used in recording large numbers of like transactions.

(a)  

It is a special journal where only sales of merchandise on account are recorded

(a)  

It is a special journal where all types of cash receipts are recorded.

(a)  

It is a special journal used to record all purchases on account of merchandise, equipment, supplies, etc.

(a)  

It is a special journal where all payments of cash for any purpose are recorded.

(a)  

It is a type of journal entry which contains a single debit and a single credit element.

(a)  

It is a type of journal entry which has two or more elements in either or both debit and credit sides and often represents two or more transactions.

(a)  

These are the storage units of accounting information and are used to summarize changes in assets, liabilities, and equity including income and expenses.

(a)  

These are the statement of financial position accounts or so-called permanent accounts which are not closed and are carried over to the next accounting period (i.e., assets, liabilities, and equity accounts).

(a)  

These are the income statement accounts or temporary capital accounts which are closed at the end of the accounting period (i.e., income and expense accounts).

(a)  

While still unadjusted, it represents a combination of real and nominal accounts (e.g., prepaid expenses).

(a)  

It is the general ledger account that summarizes the detailed information in a subsidiary ledger

(a)  

It is an account that holds temporarily certain information pending for disposition.

(a)  

It is an account that has a counterpart in another book within the entity or in another ledger of another entity.

(a)  

It is the process of transferring data from the journal to the appropriate accounts in the general ledger and subsidiary ledger. This process classifies all accounts that were recorded in the journals.

(a)  

It is a book containing accounts in which the classified and summarized information from the journals is posted as debits and credits. It is also known as the book of final entry.

(a)  

It includes all the accounts appearing on the financial statements.

(a)  

It affords additional detail in support of certain general ledger accounts.

(a)  

It is a list of general ledger accounts with their respective debit or credit balances.

(a)  

These are journal entries made at the end of an accounting period to update certain revenue and expense accounts and to make sure the entity complies with the matching principle.

(a)  

Characteristics of Adjusting Entries

a. Usually refer to transactions that have effects on more than one accounting period;

b. Include at least one (1) nominal account and one (1) real account; and

c. Are generally not based on source documents.

d. ALL OF THE ABOVE

(a)  

These are expense items already paid for but not yet incurred.

(a)  

It refers to an income item that is already collected in cash but not yet earned.

(a)  

It occurs in a transaction where expense has already been incurred but not yet paid for in cash.

(a)  

It occurs in a transaction where income has been already earned but not yet collected in cash.

(a)  

These are items of adjusting entries that do not involve cash flows.

(a)  

It is the estimated amount of bad debts that will arise from accounts receivable that have been issued but not yet collected.

(a)  

It is the systematic allocation of the cost of a fixed asset over its useful life.

(a)  

These are recorded and posted for the purpose of closing all nominal or temporary accounts to the income summary account and the resulting net income or loss is afterwards closed to the capital or retained earnings account.

(a)  

These are made at the beginning of the new accounting period to reverse certain adjusting entries from the preceding accounting period.

(a)  

Missions of IASB in Developing Accounting Standards

a. Contribute to transparency – by enhancing international comparability and quality of financial information.

b. Strengthen accountability – of the people entrusted with the entity.

c. Contribute to economic efficiency – by helping investors identify opportunities and risks across the world.

D. ALL OF THE ABOVE

(a)  

It refers to the financial condition of the reporting entity represented by the economic resources it owns and claims of other entities against these.

(a)  

It means that the events should be reflected in the reports in the periods when the effects of transactions occur, regardless the related cash flows.

(a)  

These are considered important information used to assess the management’s ability to generate future cash flows.

(a)  

Financial information possessing this qualitative characteristic is capable of making a difference in the users’ decisions.

(a)  

It requires that accounting transactions and events should be recorded in a manner that represents their true economic substance.

(a)  

It helps the users of financial statements in predicting future trends of the business.

(a)  

It helps the users of financial statements in confirming or correcting any past predictions they have made.

(a)  

It is the threshold above which missing or incorrect information in financial statements is considered to have an impact on the decision making of users. It is an entity-specific aspect of relevance based on the nature or magnitude (or both) of the items to which the information relates in the context of an individual entity’s financial report.

(a)  

It asserts that financial information must be complete in all material respects, since omissions of important data may be misleading.

(a)  

It asserts that financial information must be free from bias or not prepared with the purpose to influence certain decisions of the users.

(a)  

It asserts that financial information must not contain any inaccuracies or omissions.

(a)  

It is the exercise of caution when making judgements under conditions of uncertainty such that assets and income are not overstated and expenses and liability are not understated.

(a)  

It asserts that information about a reporting entity is more useful if it can be compared with a similar information about other entities and with similar information about the same entity for another period or another date.

(a)  

It helps to assure users that information represents faithfully the economic phenomena it purports to represent. It means that different knowledgeable and independent observers could reach consensus, although not necessarily complete agreement, that a particular depiction is a faithful representation.

(a)  

It means verifying an amount or other representation through direct observation (e.g., counting cash items).

(a)  

It is verifying the carrying amount of inventory by checking the inputs (quantities and costs) and recalculating the ending inventory using the same cost flow assumption (e.g., computing inventory using first-in, first-out or FIFO method).

(a)  

These are written records that convey the business activities and position of a reporting entity.

(a)  

It contains information about the assets, liabilities and equity of the reporting entity at a point in time.

(a)  

These contain information about the income and expenses of the reporting entity over a period of time.

(a)  

It contains information about the flow of cash to and out of the entity during a reporting period.

(a)  

It contains information about the contributions from and distributions to equity holders.

(a)  

These statements contain information about the accounting methods, assumptions, judgments used and their changes.

(a)  

It means that an entity will continue to operate for the foreseeable future (usually 12 months after the reporting date).

(a)  

It refers to financial statements prepared by a parent and its subsidiaries reporting as a single entity.

(a)  

It refers to financial statements provided by one entity only (e.g., parent alone).

(a)  

It refers to financial statements whose reporting entity comprises of two or more entities not linked by a parent-subsidiary relationship.

(a)  

It is a present economic resource controlled by the entity as a result of past events.

(a)  

It is a present obligation of the entity to transfer an economic resource as a result of past events.

(a)  

It is the residual interest in the assets of the entity after deducting all its liabilities.

(a)  

It refers to increases in assets or decreases in liabilities resulting in increases in equity, other than contributions from equity holders.

(a)  

It refers to decreases in assets or increases in liabilities resulting in decreases in equity, other than distributions to equity holders.

(a)  

It refers to income from primary activities.

(a)  

It refers to income from incidental activities.

(a)  

It refers to expenses incurred from events which are not part of operating activities.

(a)  

It is the process of incorporating in the balance sheet or income statement an item that meets the definition of an element and satisfies the criteria for recognition.

(a)  

It means the removal of an asset or liability from the statement of financial position and normally it happens when the item no longer meets the definition of an asset or a liability.

(a)  

It involves the assignment of monetary amounts at which the elements of the financial statements are to be recognized and reported.

(a)  

This measurement is based on the transaction price at the time of recognition of the element (based on entry price).

(a)  

It measures the element in a manner which is updated to reflect the conditions at the measurement date.

(a)  

It is the price that would be received to sell an asset or paid to settle a liability in an orderly transaction between market participants at measurement date (based on exit price)

(a)  

It is the present value of cash flows expected to be derived from the used and ultimate disposal of an asset (based on exit price).

(a)  

It is the present value of the cash expected to be transferred for the payment of a liability (based on exit price).

(a)  

It is the cost that would be required to replace an asset in the current period (based on entry price).

(a)  

It is the standard medium of exchange in business transactions. it refers to the currency and coins which are in circulation and legal tender.

(a)  

In the context of accounting, it includes money and any other negotiable instrument that is payable in money and acceptable by the bank for deposit and immediate credit.

(a)  

It is a document that orders a bank to pay a specific amount of money from the person's account to the person in whose name the same has been issued. In general, it is included in the books as cash provided that the same is payable to the reporting entity.

(a)  

It is a check drawn by a bank on its own funds in another bank. If it is payable to the reporting entity, it is included in the books as cash.

(a)  

It is a paper document, similar to a check, used for making payments. it is prepaid, so it is only issued after a buyer pays for the same with cash or another form of guaranteed funds. If it is payable to the reporting entity, it is included in the books as cash.

(a)  

It is a check written by the drawer (payor) for a date in the future. it may only be cashed or deposited on or after the date written on it. If it is payable to the reporting entity, it is not included in the books as cash. If it is payable to a different party, it should not be excluded in the total cash balance.

(a)  

It includes undeposited cash collections and other cash items awaiting deposit.

(a)  

It includes demand deposit or checking account and saving deposit which are unrestricted as to withdrawal.

(a)  

These are short-term and highly liquid investments that are readily convertible into cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates

(a)  

It is a restricted asset of a corporation that was required to set aside money for redeeming or buying back some of its bonds payable.

(a)  

It occurs when the cash in a bank account has a credit balance resulting from the issuance of checks in excess of deposits.

(a)  

It generally takes the form of minimum checking or demand deposit account balance that must be maintained in connection with a borrowing arrangement with a bank.

(a)  

It is a system of control of cash which requires that all cash receipts should be deposited intact and all cash disbursements should be made by means of check.

(a)  

Disbursements are immediately recorded in the general journal or cash disbursements journal. Replenishment of the fund may or may not be the same amount as the petty cash disbursement.No adjustment for unreplenished expenses is needed at the end of the reporting period because of the outright recording of expenses.

(a)  

It is the current account or checking account or commercial deposit where deposits are covered by deposit slips and where funds are withdrawable on demand by drawing checks against the bank.

(a)  

It is a bank account where the depositor is given a passbook upon initial deposit. the passbook is required when making deposits and withdrawals. this type of bank deposit is interest bearing.

(a)  

It is a bank deposit evidenced by a formal agreement called certificate of deposit. it is interest bearing and may be preterminated or withdrawn on demand or after a certain period of time agreed upon.

(a)  

It is a statement which brings into agreement the cash balance per book and cash balance per bank.

(a)  

It is a monthly report of the bank to the depositor showing data about the transactions of the reporting entity with the bank during the period and the beginning and ending balances of its bank accoun

(a)  

These are the checks (attached to the bank statement upon receipt) issued by the depositor and paid by the bank during the month.

(a)  

These refer to items not representing deposits credited by the bank to the account of the depositor but not yet recorded by the depositor as cash receipts

(a)  

These refer to items not representing checks paid by bank which are charged or debited by the bank to the account of the depositor but not yet recorded by the depositor as cash disbursements.

(a)  

These are collections already recorded by the depositor as cash receipts but not yet reflected on the bank statement.

(a)  

These are checks already recorded by the depositor as cash disbursements but not yet reflected on the bank statement.

(a)  

These are checks already recorded by the depositor as cash disbursements but not yet reflected on the bank statement.

(a)  

It calls for the physical counting of goods on hand at the end of the accounting period to determine quantities. This is generally used when individual inventory items are of large volume and have small peso investment (e.g., groceries, hardwars, etc.).

(a)  

It requires the maintenance of records called stock cards that usually offer a running summary of the inventory inflow and outflow. This is commonly used when the inventory items are of low volume and, treated individually, represent a relatively large peso investment (e.g., jewelry, cars, etc.).

(a)  

These are deductions from the list or catalog price in order to arrive at the invoice price which is the amount actually charged to the buyer. These are not recorded.

(a)  

These are deductions from the invoice price when payment is made within the discount period. The purpose of this type of discount is to encourage prompt payment. These are recorded as purchase discount by the buyer and sales discount by the seller.

(a)  

These are living animals and living plants used in agricultural activities.

(a)  

It is the harvested product of an entity’s biological assets.

(a)  

It is the law regulating the practice of accountancy in the Philippines

(a)  

It is the body authorized by law to promulgate rules & regulations affecting the practice of the accountancy profession in the Philippines.

(a)  

THE FIRST BOOK OF LUCA PACIOLI?

(a)  

It is the threshold above which missing or incorrect information in financial statements is considered to have an impact on the decision making of users. It is an entity-specific aspect of relevance based on the nature or magnitude (or both) of the items to which the information relates in the context of an individual entity’s financial report.

(a)  

Checks which are at least 180 days old (6 months) are considered (a)   Tellers in banks will sometimes reject a check if the date is over that limit. This does not prevent a check from clearing the bank when deposited through other means than a teller.

First Filipino CPA

(a)  

Filipino who topped the CPA and Bar exam

(a)  

the practice of covering a bad check from one bank account to another. Persons with multiple bank accounts use this advantage because it takes multiple days to process checks.

(a)  

in accounting means an effort made by the management to improve the appearance of a company's financial statements before it is publicly released.

(a)  

It is a fraudulent accounting techniques that occurs when an employee alters the financial records to hide cash stolen from the company. Basically, the employee will take subsequent cash received and apply it to an accounts receivable to cover the theft.

(a)