CHAPTER 1

1. Accounting definition: explain

1.1 “Accounting is a service activity”. Explain.
1.2 “Accounting is the language of Business”. Explain.
1.3 “Accounting is an art and a discipline”. Explain.
2. What is Accounting Information System?
3. What is an Accounting cycle?
4. 3 aspects of the accounting process. Explain.
5. The 2 phases of the communicating aspects of accounting
6. The recording phase of Accounting. (2)
7. Why are journals called the “book of original entries”?
8. Why are ledgers called the “book of final entries”?
9. The purpose of adjusting entries.
10. The purpose of closing entries
11. The purpose of reversing entries.
12. Reversing entries are made on adjusting entries for?
13. The summarizing phase of accounting (4). Expound each.
13.1 preparation of trial balance
13.2 preparation of working paper
13.3 preparation of post-closing trial balance
13.4 preparation of financial statements
14. steps of the accounting cycle.
15. What is a journal entry?
16. Give at least seven classification of adjusting entry.
17. What is accrual?
18. What is accrued revenue?
19. How to journalize accrued revenue?
20. What is accrued expense?
21. How to journalize accrued expense?
22. What is deferred expenses?
23. What is asset method or balance sheet method?
24. How to journalize asset method?
25. What is statement of comprehensive income method?
26. How to journalize statement of other comprehensive income method?
27. What is deferred income?
28. What is pre-collections or deferred revenue?
29. What is liability method or SFP method?
30. How to journalize liability method?
31. What is Revenue method?
32. How to journalize revenue method?
33. What is depreciation according to PAS 16?
 34. How to compute for annual depreciation expense?
35. What is the residual or salvage value?
36. What is estimated useful life?
37. What is amortization?
38. How to compute for annual amortization expense?
39. What is uncollectible account?
40. Two methods of determining EUA: Definition
40.1 direct method
40.2 allowance method
41. what is a merchandised inventory?
42. How to journalize ending inventory?
43. What is bank reconciliation?
44. Common reconciling items: Define
44.1 Deposit in transit
44.2 Outstanding check
44.3 Bank credit note
44.4 Bank debit note
44.5 Clerical errors
45. What is a correcting entry?
46. What is accounting errors?
47. Types of accounting errors: Define and exemplify.
47.1 omission
47.2 amount recorded
47.3 account title
47.4 accounting treatment
48. two main categories of the nature of accounting errors.
49. What is perpetual accounting error?
50. What is counter-balancing error?

Chapter 2
1.