What is the second step in the accounting cycle?

It is the language of business.

It is the systematic process of keeping track of all financial transactions, such as sales, purchases, and payments.

In what year did the study and development of accounting begin?

It is one of the main functions of accounting that groups similar transactions into categories.

It is the process of condensing classified data into a concise form to prepare financial statements.

He is the author of the book “On Trade and the Perfect Merchant”

In what year did the Industrial Revolution begin, which highlighted the importance of fixed assets and mass production?

Who is credited with introducing the double-entry bookkeeping system to France?

Who is the father of accounting?

The following are the nature of accounting, EXCEPT:

It is the process of identifying, measuring, and communicating financial transactions related to a business for the use of external parties.

It is the process of identifying, measuring, and communicating information about costs.

It is the process of examining and evaluating the financial records, statements, and operations of an organization to ensure accuracy.

It is the process of identifying, measuring & communicating information of an entity for tax purposes.

 It deals with the creation of new knowledge.

 It is the process of identifying, measuring, and communicating economic information, whether financial or non-financial, to assist management in performing its functions effectively.

These are people inside the organization who use financial information to make decisions about daily operations.

They are the main source of income of a business.

They are people outside the organization who use financial information to make decisions about the company.

A principle stating that the recording and reporting of financial information should be performed independently and free from bias.

A principle stating that assets and transactions are recorded and reported at their historical cost in financial reports.

A concept stating that transactions are summarized and reported at regular time intervals.

Refers to the impact of an omission or misstatement of information in a company's financial statements on the user of those statements.

A principle that matches revenues with expenses to know the profit of the business.

A concept stating that a company is expected to continue operating in the foreseeable future and will not shut down or be forced to liquidate.

Revenue is recognized when goods are sold or services are rendered, regardless of when cash is received.

A principle stating that when there are two acceptable alternatives in a situation, the one that results in lesser income or resource value should be chosen.

It provides sufficient information to enable users to make informed judgments.

It is an accounting method where revenues and expenses are recorded when they are earned or incurred, not when cash is received or paid.

A concept stating that the personal transactions of the owner are kept separate from those of the business.

The following are definitions of Generally Accepted Accounting Principles (GAAP), EXCEPT:

 It is the owner’s claim on the business after all liabilities have been settled.

Resources owned by a business that have economic value and can provide future benefits.

It refers to the outflows of resources or costs incurred to earn revenue.

It refers to the inflows of assets (usually cash or receivables) from providing goods or services.

Which of the following represents the basic accounting equation?

A company has total assets of ₱200,000 and liabilities of ₱80,000. What is the owner’s equity?

If liabilities of a company are ₱120,000 and total assets are ₱200,000, what is the owner’s equity?

Which book of accounts is used to record all cash receipts and cash payments?

A book of account where all transactions are recorded.

Which financial statement shows the profit or loss of a business for a period?

Which book of accounts records credit sales of merchandise?

What financial statement reports cash inflows and outflows?

Which account appears in the Balance Sheet?

Which financial statement shows changes in the owner’s capital?

A business earned service revenue of ₱20,000 and incurred expenses of ₱12,000 for the month. What is the net income to be reported in the Income Statement?

The cash account shows ₱15,000 at the beginning of the month. The business received ₱10,000 cash from customers and paid ₱6,000 for expenses. What is the ending cash balance?

A business paid ₱8,000 cash for rent covering two months. How much should be reported as rent expense for one month?