FABM1
be matched with the revenue
Objectivity - It is an accounting
principle where Financial Statements
must be presented with supporting
evidence.
Going Concern - It is an accounting
principle where business is expected
to continue indefinitely.
Materiality - It is an accounting
principle where In case of assets that
are immaterial to make a difference in
the financial statements, the company
should instead record it as an
expense.
Conservatism - It is an accounting
principle where it is Also known as
prudence. In case of doubt, assets and
income should not be overstated while
liabilities and expenses should not be
understated.
MONETARY UNIT PRINCIPLE - stated
into a single monetary unit.
TIME PERIOD PRINCIPLE - divided into
specific time intervals.
COST PRINCIPLE – recorded initially
at cost.
ACCRUAL ACCOUNTING PRINCIPLE -
Revenue should be recognized when
earned regardless of collection and
expenses
MATCHING PRINCIPLE - Cost should
generated.
DISCLOSURE PRINCIPLE - information
should be reported.
Accounting - It is a service activity
whose function is to provide
quantitative information, primarily
financial in nature and about economic
entities that is intended to be useful in
making economic decisions.
Accounting - It is also known as “The
Language of Business “.
Management Accounting - It provides
timely and relevant information for
those internal users of accounting
information, such as the managers
and employees in their decision-
making needs.
Financial Accounting - It is the
broadest branch and is focused on the
needs of external users. It is also
primarily concerned with the
recognition, measurement and
communication of economic
activities. 
External Auditing - It refers to the
examination of financial statements by
an independent CPA with the purpose
of expressing an opinion as to fairness
of presentation and compliance with
the GAAP.
Internal Auditing - It deals with
determining the operational efficiency
of the company regarding the
protection of the company’s assets,
accuracy and reliability of the
accounting data, and adherence to
certain management policies.  financial performance that increases
Cost Accounting - It is very useful in
manufacturing businesses since they
have the most complicated costing
process.
Managerial accounting - involves
financial analysis, budgeting and
forecasting, cost analysis, evaluation.
Government accounting - is the
process of recording, analyzing, and
interpreting financial information
about the government
Communicating - It refers to the
accounting activity that occurs
through the preparation and
distribution of financial and other
accounting reports.
Tax accounting – tax planning and
preparation of tax determination of
income tax and other taxes, returns.
ACCOUNTING EDUCATION -
developing future accountants
Accounting research - search for new
knowledge
RECORDING - keeping a chronological
diary of events
IDENTIFYING - selecting economic
events
Income - It refers to the element of
in economic benefits during the
accounting period in the form of
inflows of cash or other assets or
decreases of liabilities that result in
increase in equity.
Expenses - It refers to the element of
financial performance that decreases
in economic benefits during the
accounting period in the
Owner’s Equity - It refers to the net
assets claimable by the owner.
210,000 - What would be the asset if
the liability is 90,000 and the owner’s
equity is 120,000?
363,000 - What would be the owner’s
equity if the liability is 585,000 and the
asset is 948,000?
5,000,500 - What would be the owner’s
equity if the asset is 5,999,100 and the
liability is 998, 600? 
4,000,000 - What would be the asset if
the owner’s equity is 3,000,000 and the
liability is 1,000,000?
418,000 - What would be the liability if
the owner’s equity is 532,000 and the
asset is 950,000? 
The owner invests his personal cash in making a new product, or product for
the business sale.

A=I L=NE OE=I HYBRID BUSINESS – more than one

type of business.
The company received cash from a
bank loan. Transaction - is defined as an
exchange of values between two
A=I L=I OE=NE
parties in monetary terms.
The company repays the suppliers.
Owner’s Capital - capital represents
A=NE L=D OE=NE investment made by the owner.
SOLE PROPRIETORSHIP - owned by Owner’s Drawing- drawing is a
one person. recovery of investment or withdrawal
of the business assets for personal
used by the owner.
PARTNERSHIP - owned by two
or more persons.

business organization - providing

goods or services.

CORPORATION - organized as a
separate legal entity

COOPERATIVE - owners are called

members who contribute equitably, or
duly registered association of persons
with a common bond of interest.

SERVICE BUSINESS - professional

skills.

MERCHANDISING BUSINESS - buys at

wholesale and later sells the products
at retail.

MANUFACTURING BUSINESS - buys

raw materials and uses them in

STATISTICS AND PROBABILITY
Random variable - It is a set of numerical
values assigned to a sample space.
Variance and Standard deviation - These
are two values that describe how scattered
or spread out the scores are from the mean
value of the random variable.
The amount of liquid in bottled water. -
The following are examples of discrete
variables EXCEPT one.
Random variable - It is a numerical
quantity that is assigned to the outcome of
an experiment.
Mean - It is the central or average of its
corresponding probability mass function.
Yes, it is a random variable. - You decided
to conduct a survey of families with six
children. You are interested in counting the
number of girls in each family. Is this a
random variable?
3 - If two coins are tossed once, which is
NOT a possible value of the random variable
for the number of heads?
Sample Space - It is the set of all possible
outcomes of an experiment.
Discrete - This term can be best described
as a variable that can be counted.
Continuous variable - It is a variable which
can take infinite information or data or a set
of values.
-1.67 - What is the z – score if the area
under the normal curve is 0.04746?
Discrete - Which of the following does not
describe a normal curve?
Simple random sampling - The teacher
writes all the names of students on a piece
of paper and puts it in a box for the graded
recitation. What type of sampling method is
used? *
Systematic sampling - What sampling
technique in which members of the
population are listed and samples are
selected in intervals called sample intervals.
95% - What percent of the area under a
normal curve is within 2 standard
deviations?
1 - What is the total area in the distribution
under the normal curve?
Sampling Distribution - It is the probability
distribution that describes the probability
for each mean of all the samples with the
same sample size n.
Population - Which refers to the entire
group that is under study or investigation?
6 - Consider the population of four values
(3, 4, 8, 9). Find the population mean.
Mean - Which value is found at the center
of the normal curve?
Mean - To which is the graph of a normal
distribution symmetrical?
-1.25 - A random variable x has a mean of
12 and a standard deviation of 3.2. What is
the corresponding z – score for x = 8?
Stratified sampling - There are 20 toddlers,
40 teenagers, 45 middle aged and 55 senior
citizens in a certain area. Samples are taken
according to the total number of people in
the area. What type of sampling method is
used?
Systematic sampling - Every five files out
of 500 files will be chosen. What type of
sampling method is used?
Sample - Which is a subset taken from a
population, either by random or nonrandom
sampling techniques?
2,3,4,5,6,7,8,9,10,11 and 12 - A pair of dice
is rolled. Let Y be the random variable
denoting the sum of the points on the
upturned faces of dice. Find the values of
the random variable Y.
1 – If pair of dice is rolled, which is not a
possible value of the random variable for
the sum of the points on the upturned faces
of the dice?
(S 1H,1T,2H,2T,3H,3T,4H,4T,5H,5T,6H,6T)
- It is the sample space of rolling a die and
tossing a coin simultaneously.
1 -The probabilities that a printer produces
0,1,2 and 3 misprints are 42%, 28%,18% and
12% respectively. What is the mean value of
the random variable?
1.9 - The random variable X, representing
the number of raisins in a a chocolate bar
has the following probability distribution,
what is the mean?
The sum of all values of P(x) is equal to
one - What makes the distribution below a
probability distribution?
(P(H) =1/16, 1/16,6/16,4/16,1/16) - Four
coins are tossed. Let H be the random
variable representing the number of heads
that occur. What is the probability
distribution of the random variable?
5 - Compute for the variance of the
probability distribution table of the random
variable x.
2.24 - Compute for the standard deviation
of the probability distribution table of the
random variable x.
5 - What is the mean of the given
probability distribution?