FABM REVIEWER SHS ABM A TYCOONS

11-12
RANDOM LESSONS AND DATA

• IT IS CREATED OR MAINTAINED IF INDIVIDUALIZED DATA IS NEEDED FOR A SPECIFIC

GENERAL LEDGER ACCOUNT. SUBSIDIARY LEDGERS
• IT IS USED TO RECORD ALL CASH RECEIVED BY THE BUSINESS.THE SOURCE DOCUMENT
FOR THIS JOURNAL IS THE OFFICIAL RECEIPTS OR CASH RECEIPTS ISSUED BY THE
BUSINESS. CASH RECEIPTS JOURNAL
• ANOTHER TERM FOR LEDGER.ALL THE BALANCES IN THE LEDGER ARE USED IN THE
PREPARATION OF FINANCIAL STATEMENTS. BOOK OF FINAL ENTRY
• IT IS THE PROCESS OF RECORDING IN A JOURNAL. BUSINESSES PREPARE SEPARATE
JOURNAL ENTRIES FOR EACH TRANSACTION. JOURNALIZING
• IT IS USED TO RECORD ALL PURCHASES OF MERCHANDISE ON ACCOUNT. PURCHASE
JOURNAL
• IT IS A GROUPING OF ALL ACCOUNTS USED IN THE PREPARATION OF FINANCIAL
STATEMENTS. GENERAL LEDGER
• IT IS USED TO RECORD ALL SALES INCLUDING SALES OF MERCHANDISE ON ACCOUNT.
SALES JOURNAL
• IT IS COMMONLY CALLED THE BOOK OF ORIGINAL ENTRY. JOURNALS
• IT IS THE VALUE RECEIVED IN EVERY ACCOUNTABLE BUSINESS TRANSACTION. DEBIT
• IT IS THE SIMPLEST FORM OF AN ACCOUNT WHICH CAN BE USED AS AN INFORMAL TOOL
TO ANALYZE THE EFFECT OF BUSINESS TRANSACTION IN THE ASSETS, LIABILITIES,
OWNER EQUITIES, REVENUE AND EXPENSES. T-ACCOUNT
• THESE ARE THE RESOURCES OWNED AND CONTROLLED BY THE COMPANY. ASSETS
• THE ACCOUNTS RECEIVED BY A BUSINESS EARNED AS A RESULT OF SELLING
SOMETHING OR RENDERING SERVICES. REVENUE
• ALLOWS COMPANIES TO ORGANIZE THEIR RAW FINANCIAL DATA AND FORM IT INTO A
CLEAR AND LOGICAL INFORMATION. CHART OF ACCOUNTS
• IT IS THE REMAINING INTEREST OF THE OWNERS IN THE BUSINESS’ ASSETS AFTER
CONSIDERING ALL ITS LIABILITIES. EQUITY
• THESE ARE OBLIGATIONS OF THE FIRM ARISING FROM PAST EVENTS WHICH ARE TO BE
SETTLED IN THE FUTURE. LIABILITIES
• IT IS CREATED OR MAINTAINED IF INDIVIDUALIZED DATA IS NEEDED FOR A SPECIFIC
GENERAL LEDGER ACCOUNT. SUBSIDIARY LEDGER
• IT IS USED TO RECORD ALL CASH RECEIVED BY THE BUSINESS. THE SOURCE DOCUMENT
FOR THIS JOURNAL IS THE OFFICIAL RECEIPTS OR CASH RECEIPTS ISSUED BY THE
BUSINESS. CASH RECEIPTS JOURNAL
• THE LEDGER IS ALSO CALLED ______ BECAUSE ALL THE BALANCES IN THE LEDGER ARE
USED IN THE PREPARATION OF FINANCIAL STATEMENTS. BOOK OF FINAL ENTRY
• IT IS THE PROCESS OF RECORDING IN A JOURNAL. BUSINESSES PREPARE SEPARATE
JOURNAL ENTRIES FOR EACH TRANSACTION. JOURNALIZING
• IT IS USED TO RECORD ALL PURCHASES OF MERCHANDISE ON ACCOUNT. PURCHASE
JOURNAL
• IT IS A GROUPING OF ALL ACCOUNTS USED IN THE PREPARATION OF FINANCIAL
STATEMENTS. GENERAL LEDGER
• IT IS USED TO RECORD ALL SALES INCLUDING SALES OF MERCHANDISE ON ACCOUNT.
SALES JOURNAL
• IT IS COMMONLY CALLED THE BOOK OF ORIGINAL ENTRY. JOURNALS
• IT IS THE VALUE RECEIVED IN EVERY ACCOUNTABLE BUSINESS TRANSACTION. DEBIT
• IT IS THE SIMPLEST FORM OF AN ACCOUNT WHICH CAN BE USED AS AN INFORMAL TOOL
TO ANALYZE THE EFFECT OF BUSINESS TRANSACTIONS IN THE ASSETS, LIABILITIES,
OWNER’S EQUITY, REVENUE AND EXPENSES. T ACCOUNT
• IT IS THE AMOUNT OF INCOME DIRECTLY EARNED BY A BUSINESS OPERATION.
OPERATING INCOME
• IT IS OBTAINED AFTER SUBTRACTING NET SALES BY COST OF GOODS SOLD. GROSS
PROFIT
• THESE ARE INCURRED TO SELL GOODS OR SERVICES TO CUSTOMERS. SELLING
EXPENSES
• THESE ARE SPENT TO KEEP THE NORMAL BUSINESS OPERATIONS WHICH MAY INCLUDE
OFFICE SUPPLIES, ADVERTISING EXPENSE, STORE SUPPLIES, AND DEPRECIATION OF
FURNITURE AND EQUIPMENT. GENERAL AND ADMINISTRATIVE EXPENSES
• IT IS A MAJOR EXPENSE IN MERCHANDISING COMPANIES. COST OF GOODS SOLD
• IT REFERS TO THE OWNER OF SOLE PROPRIETORSHIP. SOLE PROPRIETOR
• IT PORTRAYS CHANGES IN THE CAPITAL BALANCE OF A BUSINESS OVER AN REPORTING
PERIOD. STATEMENT OF CHANGES IN EQUITY
• THIS ACCOUNT REPRESENTS THE PART OF THE BUSINESS THAT BELONGS TO THE
OWNERS. CAPITAL ACCOUNT
• THIS ACCOUNT IS USED TO RECORD WITHDRAWALS OF THE OWNER. OWNER’S DRAWING
ACCOUNT
• IT IS THE RESULT OF SUBTRACTING THE OWNER’S WITHDRAWAL FROM THE SUM OF THE
INCOME AND THE BEGINNING CAPITAL BALANCE IN THE SOLE PROPRIETORSHIP.
ENDING BALANCE IN THE CAPITAL ACCOUNT
• THIS STATEMENT INCLUDES THE AMOUNTS OF THE COMPANY’S TOTAL ASSETS,
LIABILITIES AND OWNER’S EQUITY WHICH IN TOTALITY PROVIDES THE CONDITION OF
THE COMPANY ON A SPECIFIC DATE. STATEMENT OF FINANCIAL POSITION
• IT REPORTS THE SUMMARY OF THE COMPANY’S OPERATION FOR A GIVEN ACCOUNTING
PERIOD. STATEMENT OF COMPREHENSIVE INCOME
• IT INCLUDE LANDS, BUILDINGS, MACHINERIES, AND OTHER PLANT, PROPERTY AND
EQUIPMENT. TANGIBLE ASSETS
• LIABILITIES WHICH ARE TO BE PAID FOR MORE THAN A YEAR. NON
CURRENT LIABILITIES
• ACTIVITIES THAT INCREASES ASSETS AND DECREASES LIABILITIES. INCOME
• IT IS THE DIFFERENCE BETWEEN TOTAL REVENUE AND TOTAL EXPENSES. NET INCOME
• THESE ARE INCOME FROM OPERATIONS OF THE BUSINESS. REVENUES
• THIS IS NET INCOME +- CHANGES IN EQUITY FROM NON OWNER TRANSACTIONS.
COMPREHENSIVE INCOME
• ACTIVITIES THAT DECREASES ASSETS AND OR INCREASES LIABILITIES. EXPENSES
• THIS INCLUDES COMMON STOCK,PREFFERED STOCK, ADDITIONAL PAID IN CAPITAL AND
RETAINED EARNINGS OR NET INCOME. EQUITY
• A FINANCIAL STATEMENT THAT PROVIDES AN ANALYSIS OF INFLOWS AND OR
OUTFLOWS OF CASH FROM/TO OPERATING, INVESTING AND FINANCING ACTIVITIES.
CASH FLOW STATEMENT
• ACTIVITIES THAT ARE DIRECTLY RELATED TO THE MAIN REVENUE-PRODUCING
ACTIVITIES OF THE COMPANY SUCH AS CASH FROM CUSTOMERS AND CASH PAID TO
SUPPLIERS/EMPLOYEES. OPERATING ACTIVITIES
• THIS ACTIVITIES INCLUDE CASH TRANSACTIONS RELATED TO CHANGES IN EQUITY AND
BORROWINGS. FINANCING ACTIVITIES
• THE NET AMOUNT OF CHANGE IN CASH WHETHER IT IS AN INCREASE OR DECREASE FOR
THE CURRENT PERIOD. NET CHANGE IN CASH
• THE BALANCE OF THE CASH ACCOUNT AT THE END OF THE ACCOUNTING PERIOD
COMPUTED USING THE BEGINNING BALANCE PLUS THE NET CHANGE IN CASH FOR THE
CURRENT PERIOD. ENDING BALANCE
• THIS EXPRESSES THE RELATIONSHIP AMONG SELECTED ITEMS OF FINANCIAL
STATEMENT DATA. RATIO ANALYSIS
• THIS MEASURES THE ABILITY OF THE COMPANY TO UTILIZE ITS ASSETS.IT IS
MEASURED BASED ON THE COMPANY’S ABILITY TO GENERATE SALES FROM THE
UTILIZATION OF ITS ASSETS, AS A WHOLE OR INDIVIDUALLY.
OPERATIONAL EFFICIENCY RATIO
• THIS REFERS TO THE COMPANY’S CAPACITY TO PAY THEIR LONG TERM LIABILITIES.
SOLVENCY
• THIS MEASURES THE PERCENTAGE OF GROSS PROFIT ON SALES.IT ALSO MEASURES
THE PERCENTAGE OF GROSS MARGIN AVAILABLE TO COVER THE OPERATING EXPENSES
FOR THE PERIOD.IT ALSO REVEALS THE PERCENTAGE OF COST OF SALES. GROSS
PROFIT RATIO
• THIS MEASURES THE OVERALL OPERATING RESULTS OF AN ENTITY. THE MEASURE
CONSIDERS ALL INCOME RECOGNIZED AND ALL EXPENSES INCURED DURING THE
PERIOD. NET PROFIT MARGIN
ACCOUNTING EQUATION FORMULA:

ASSETS= LIABILITIES + CAPITAL (EQUITY)

LIABILITIES= ASSETS – CAPITAL (EQUITY)

EQUITY (CAPITAL) = ASSETS – LIABILITIES

THE BEST OF LUCK RAMCEL!!!!!!

END OF REVIEWER FABM
BUSINESS CLASS REFLECTIONS