FABM1 (4th Quarter)

Question 1

Is referred to as the relationship between a company’s assets, liabilities, and equity.
It is one of the most important

Answer 1

Accounting Equation

Question 2

It is one of the most important equations in accounting and is used for preparing the balance sheet.

Answer 2

Accounting Equation

Question 3

book of Frater Luca Bartolomeo Pacioli, 36 chapters were devoted to describing double-entry bookkeeping and other commerce-related concepts.

Answer 3

Summa de Arithmetica, Geometria, Proportioni et Proportionalita

Question 4

is a system in which at least one debit entry (left side) and at least one credit entry (right side) are entered for each transaction.

Answer 4

Double-entry bookkeeping

Question 5

Is a fundamental convention of accounting that necessitates the recognition of all aspects of an accounting transaction.

Answer 5

Duality

Question 6

What are the formulas?

Answer 6

˚Assets = Liabilities + Capital (Owner’s Equity)
˚ Owner’s Equity = Assets - Liabilities
˚ Liabilities= Assets - Owner’s Equity
˚

Question 7

Each specific account title has two sides:

Answer 7

Left side for debit, Right side for credit

Question 8

Each specific account title has two sides: This is commonly know as

Answer 8

T-Account

Question 9

• Is a listing of all the accounts and is usually tailored to the operations of the business.

Answer 9

Chart of Accounts

Question 10

• It functions as a guide to the accountant or the bookkeeper in
  Sals of Asset rand suidiss Once
  Fumiture & Equipmart, Serice Vehicie or
  ensuring uniformity and consistency in the use of all the accounts in recording business transactions.

Answer 10

Chart of Accounts