Reviewer Acc 2
Reviewer Acc 2
1.) transferable unit of ownership in a corporation 13.)They represent the claims of creditors on the
enterprise's assets.
Creditor
Owners equity
2.) a person or organization to whom debt is owned
14.)The excess of assets over liabilities. The amount of
Information system
the owner's investment in the business,plus profits from
3.) a collection of people, procedure, successful operations that have been retained in the
software,hardware and data which works together to business.
provide information essential to running an
Sole proprietorship
organization
15.) An unincorporated business owned by a single
Corporation
individual
4.) A business organized as a separate legal entity and
Positive cash flow
chartered by state, with ownership divided into
transferable shares of capital stock 16.) Increases in cash that add to the enterprise's cash
balance.
Prepaid expenses
Unearned revenue
5.) these are expense paid in advance
17.) Entity received as cash payment in advanced before
Financing activities
providing its customers with goods and services
6.) a major category in the statement of cash flow that
Retained earnings
reflects the result of debts and equity financing
transactions 18.) the portion of stockholders equity that has
accumulated as a result of profitable operation
Inflation
Liquidity
7.) an increase in the general price level,resulting in a
decline in the purchasing power of the monetary unit 19.) having the financial ability to pay short-term debts
as they become due
Expense
Stockholders
8.) past,present, or future reduction in cash required to
generate revenues 20.) owners of capital stock in corporation
9.) a declaration of information believed to be true 21.) it encompasses revenues and gains
communicated in monetary terms
Stable-peso assumption
System software
22.) an assumption by accountants that the monetary
10.) A background software that helps a computer unit used in the preparation of financial statements is
manage its internal resources (operating system) stable over time or changes at a sufficiently slow rate
that the resulting impact on financial statement does
Liabilities
not distort the information
11.) Debt or obligations of an entity that resulted from
Statement of financial position
past transactions.
23.) same as balance sheet
Income summary
24.) it performs useful work on general-purpose 35.) A decline in the general price level, resulting in an
problems. These are classified as basic and advance increase in the purchasing power of the monetary unit.
25.) measures taken by management to make business 36.)The accounting principle of providing financial
look as strong as possible in its balance sheet , income statements with any financial and other facts that are
statement, and statement of cash flows necessary for proper interpretation of the financial
statement
Accounting equation
Intangible assets
26.) assets are equal to the sum of liabilities plus the
owners equity 37.)These include goodwill, patents, copyrights,
licenses, franchise etc.
Articulation
Going-concern assumption
27.) The close relationship that exists among the
financial statements that are prepared on the basis of 38.) An assumption by accountants that a business will
the same underlying transaction information. operate in the foreseeable future unless specific
evidence suggests that this is not a reasonable
Assets
assumption
28.) Economic resources controlled by an entity as a
Manual system
result of past event.
39.)it is a system that utilizes paper-based journals and
Input-process-output
ledgers
29.)A progression followed of processing raw data into
Depreciation expense
useful accounting information to arrive a summarized
report. 40.) a portion of the cost of property ,plant and
equipment expired due to time and usage as allocated
Database management system
or charged during the period
30.)Organize and manage data and information.
Accountable event
Balance sheet
41.) an economic occurrence that causes changes in
31.) The financial statement showing the financial entity’s assets , liabilities and/or equity
position of an enterprise by summarizing its assets,
Control
liabilities, and owner's equity
42.)its the ability to direct the use of economic benefits
Business entity
that may flow from entity
32.) An economic unit that controls resources, incurs
Income statement
obligations, and engages in business activities.
43.) an activity statement that substract from the
Cost principle
enterprise revenue those expenses required to
33.) The widely used principle of accounting for assets generate the revenues,resulting in a net income or net
at their original cost to the current owner. loss
34.) The occurrence of an event or a condition that 44.) A major category in the statement of cash flows
affects financial position and can reliably be recorded. that reflects the result of purchases and sales of
asset,such as land,buildings,and equipment
Negative cash flow
Operating activities
Partnership
Revenues