A business owned by two or more persons who bind themselves together to contribute money, property or industry to a common fund, with the intention of dividing the profit among themselves.

An artificial being created by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence.

Is a process of establishing common objectives, coordinating efforts towards those objectives and efficiently and effectively utilizing available resources so as to achieve certain goals.

Refers to how a business generates and manages its funds.

Refers to how goods are produced or services are rendered.

Refers to how goods or services are communicated to customers.

Provides a measure of how well the other facets of the business are performing.

Is a process of identifying, recording and communicating economic information that is useful in making economic decisions.

In 1494 he published his book, SUMMA DE ARITHMETICA, GEOMETRIA, PROPORTIONI ET PROPORTIONALITA (“Everything about Arithmetic, Geometry, Proportions and Proportionality”).

Receiving deposits, lending and investing money.

Selling the utilization or use of ___________.

Pooling of premiums of many to meet claims of few.

Growing or extracting of ___________

Selling people’s time.

Buying and selling products.

Conversion of raw materials into finished products.

The accountant analyzes each business transaction and identifies whether the transaction is an “accountable event” or not.

The accountant recognizes the accountable events he has identified.

At the end of each accounting period, the accountant summarizes the information processed in the accounting system in order to produce meaningful reports.

Concerned with the risk inherent in, and return provided by, their investments.

Interested in the information that enables them to determine whether their loans, and the interest attaching to them will be paid when due

Interested in information that enables them to determine whether amounts owing to them will be paid when due.

Interested in information about the stability and profitability of their employers. They are also interested in information which enables them to assess the ability of the entity to provide remuneration, retirement benefits and employment opportunities.

They have an interest in information about the continuance of an entity, especially when they have a long term involvement with, or are dependent on, the entity.

Interested in the allocation of resources and, therefore, the activities of entities. They also require information in order to regulate the activities of entities, determine taxation policies and as the basis for national income and similar statistics.

The financial statements may assist the ___________ by providing information about the trends and recent developments in the prosperity of the entity and the range of its activities.

THE CORRECT STEPS IN ACCOUNTING CYCLE:

It is the basic storage of information in accounting.

To gather information about transactions or events generally through the source documents.

To record the economic impact of transactions on the firm in a journal, which is a form that facilitates transfer to the accounts.

To transfer the information from the journal to the ledger for classification.

To provide a listing to verify the equality of debits and credits in the ledger.

The accounts are updated as of the reporting date on an accrual basis by recording accruals, expiration of deferrals, estimations and other events often not signaled by new source documents.

The equality of debits and credits are rechecked after adjustments are made.

These are the means by which the information processed is communicated to users.

To close temporary accounts and transfer profit to owner's equity.

To check the equality of debits and credits after closing entries.

To simplify the recording of certain regular transactions in the next accounting period.

Which is NOT an element of an account?

Which is the correct equation for accounting?

It is the accounting record where business transactions are first recorded.

When is debit used?

When is credit used?

Total debits for a transaction must always equal the total credits.