Entrepreneurship

● Create one for your business

enterprise

MEASURE OF CENTRAL TENDENCY Business model

● A sketch that summarizes the

1. Mean
plan of the business to deliver
● It is when we refer to as
products and/or services in
“average”
exchange for earning profit.
● Example: GWA
● Can be computed by adding all Basic considerations in creating a

the value in a set, then diving the business model

sum by the frequency of values.

● Specific product or service

2. Median ● Target market

● It is the middle value given in a ● Anticipated expenses (how to be

set. incurred)
● Example:
● Anticipated revenue (how to gain)
1, 2, 3, 3, 4, 5, 6, 7, 9 = 4 (odd)

3. Mode ORGANIZATIONAL PLAN

● Most value observed
● Example:
1, 2, 3, 3, 4, 5, 6, 7, 9, = 3
1, 2, 2, 3, 3, 4, 5, 6, 7, 9, = 2 & 3
● Forms of business organization in
terms of ownership
● Holdings & liability of owners

1, 2, 2, 3, 4, 5, 5, 7, 9, = 2, 3, & 5 ● Organizational structure

1, 2, 3, 4, 5, 6, 7, 8, 9, = no mode
● Roles & responsibilities

What we need to do?

● Describe business model Considerations in Starting and
Enterprise
 1. Needs and Wants ● Cash is used to pay outstanding
2. Value debts and expenses
3. Justification of business ● Sometimes you are force to pay
operation extra just because you need cash
4. Capitalization now

Types of Liquidity Test What is Liquidity?

1. Current Ratio ● Liquidity refers to the ease of
- This considers the total current converting an asset into cash
assets and total current liabilities ● Easy Conversion means that an
of the business is liquid
- Current ratio= Current Assets/ *yan talaga nakalagay sa ppt muntanga
Current Liabilities
Example: What is Financial Ratio?
Current Ratio= 200,000/ 40,000 ● Financial ratios are analysis tools
= 5 or 5/1 or 5:1 created with the use of numerical
values to generate meaningful
2. Acid Test or Quick Ratio information about a business’
- This test measures the ability of financial health.
business to pay off short-term
debts Purposes of Financial Ratios
- Acid Test= (Current ● Track company performance
Assets-Inventories)/ Current ● Make comparative judgements
Liabilities between businesses
Example: ● Basis for decision-making
Acid Test= (200,000-80,000)/ 40,000
= 120,000/ 40,000 Types of Journal
= 3 or 3/1 or 3:1 ● General Journal
● Special Journals
Why do we convert assets into cash? 1. Sales Journal
2. Cash Receipts Journal
 3. Purchase Journal

Accounting Equation 4-step Transaction Analysis

● A= L + O.E. 1. Identify the accounts (What is
● Asset= Liabilities + Owner’s Gained, What is Lost?
Equity (not sure tho, letter lang 2. Classify the accounts. (Asset,
kasi nakalagay sa ppt asjkkssk) Drawing, Expense, Credit,
Liability, Revenue)
Transaction 3. Identify the effect in each
● It is the exchange of goods account. (Increase or Decrease)
and/or services for money or 4. Decide the side. (Debit or Credit)
money’s worth.

Normal Balances Major types of accounts

-indicates which side (Debit or Credit) ● Expense
does an account increases 1. Rent Expense
2. Salaries Expense
● Accounts that increase in Debit
3. Utilities Expense
- Asset, Drawing, Expense
4. Freight

● Accounts that increase in Credit

● Income
- Capital, Liability,
1. Service Income (ser. bus)
Revenue
2. Sales (merch. bus)
3. Interest Income
Double-Entry System
4. Fees (e.g. Royalties)
● There are always at least two
accounts for every transaction
● Capital
● These 2 accounts are
➢ The account bearing the
represented by debit and credit
owner’s name
● There is always at least 1 debit
representing the initial and
and 1 credit for every transaction
additional investment
● Liabilities
➢ Claims of external parties
to the assets of the
business
1. Payables

● Assets
➢ Anything owned by the
business that has a
monetary value
1. Cash
2. Receivables
3. Equipment
4. Furniture and Fixture
5. Supplies
6. Prepaid