Accepting an engagement Audit Planning

Considering internal
control

Completing the Audit Issuing a report

Licenses Franchise

Trademark

Government Grants Goodwill

Onerous Principal

Implied

Commutative Consensual
Non-resident Alien Resident Citizen

Resident Alien

Foreign Corporation NRA-NETB

Direct Materials Selling Expense

Direct Labor

Factory Overhead General Expense

 PASS THE
MESSAGE
DIFFICULT

1. A file for recording individual sales, cash receipts, ands

sales returns and allowances for each custmoer is the
- ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER

2. An audit procedure that involves examining records,.documentd,

or tangible assets.
- INSPECTION

3. Another term for carrying value

- BOOK VALUE

4. A common ratio that indicates a company's liquidity

- CURRENT RATIO

5. Accounts receivable are reported at

- NRV

6. Working capital, the current ratio, and the quick ratio are
indicators of a company's, what?
- LIQUIDITY

7. Used to measure a company’s ability to collect cash from credit

customers
- ACCOUNT RECEIVABLE TURNOVER

8.One company taking over controlling interest in another

company.
- AQUISITION

9. Anong year inopen ang BSA program sa CHCCi?

10. ENUMERATE LAHAT NG INSTRUCTORS SA BSA, note

mga CPA profs lang.
 PASS THE
MESSAGE
EASY

1. Father of accounting
- FRA LUCA PACIOLI

2. Normal balance of Sales return and allowances

- DEBIT

3. what is asset= liabilities + equity

- ACCOUNTING EQUATION

4. Is a the liability of a property owner to pay a loan that is secured by

the property
-MORTGAGE PAYABLE

5. Revenues are recognized when earned and expenses are recognized when
incurred, regradless of when cash received or paid.
- ACCRUAL BASIS

6. is also a systematic process of objectively obtaining and evaluating

evidence regarding assertions about economic events to ascertain
- AUDITING

7. It refers to the difference between assets and liabilites of an entity

-NET ASSETS

8. An artificial being creates by operation of law, which have right of

succession.
-CORPORSTION

9. Accounting process is the recognition or norecognition of business

activities as accountable events
-IDENTIFYING

10. principle is the assumption that a business will continue to exist in

the near future
-GOING CONCERN
 PASS THE
MESSAGE
MEDIUM

1. Balance sheet that displays assets, liabilities, and equity vertically

-REPORT FORMAT

2. The checking account balance is reported on the balance sheet as part

of this asset
- CASH

3. Recording P845 instead of P854 is referred to as a error.

- TRANSPOSITION

4. The allocation of a long-term asset's cost to expense over the useful life of
an asset
- DEPRECIATION

5.The minimum number of accounts in an adjusting entry.

- TWO

6. These entries are used to avoid the potential double-counting of

accrued expenses and accrued revenues
-REVERSING ENTRIES

7. costs are reported as assets

- UNEXPIRED/UNUSED

8. Account are not part of a chart of accounts

-BALANCES

9. Series of tasks and records of an entity by which transactions

are processed as a means of maintainimg financial records.
-ACCOUNTING SYSTEM

10. A document prepared to initiate shipment of the goods sold is the;

- BILL OF LADING
 ACCOUNTING
JEOPARDY
1: When you buy office supplies for cash, what would the journal entry look like?
Answer: Date: [date of purchase]
Office Supplies (to increase the asset account)
Cash (to decrease the asset account)

2: If a business receives payment for services in advance, how is it

recorded? Answer: Cash (increase in asset)
Unearned Revenue (liability account, as the service has not yet been
provided)

3: What is the journal entry when a business pays off part of its loan?
Answer: Loan Payable (reducing the liability)
Cash (reducing the asset)

4: Explain the difference between a debit and a credit.

Answer: In accounting: Debit is used to increase assets or expenses and to decrease
liabilities, equity, or revenue. Credit is used to decrease assets or expenses and to
increase liabilities, equity, or revenue.

5: How do you record a purchase made on credit?

Answer: Inventory or Expense (increase in asset or expense account)
Accounts Payable (increase in liability)

6: What is the journal entry when an owner invests cash into the business?
Answer: Cash (increase in asset)
Owner’s Capital (increase in equity)

7: Describe the journal entry when a business earns revenue on account.

Answer: Accounts Receivable (increase in asset)
Revenue (increase in revenue)

8: Formal record that represents, in words, money or other unit of measurement,

certain resources, claims to such resources, transactions or other events that result in
changes to those resources and claims.
Answer: Account

9: Amount owed to a CREDITOR for delivered goods or completed services.

Answer: Account Payable

10: Claim against a DEBTOR for an uncollected amount, generally from a completed
transaction of sales or services rendered.
Answer: Account Receivable

11: Person skilled in the recording and reporting of financial transactions.

Answer: Accountant

12: Recording and reporting of financial transactions, including the origination of

the transaction, its recognition, processing, and summarization in the Financial
Stataments Answer: Accounting
 ACCOUNTING
JEOPARDY
13: The sequence of steps followed in the accounting process to measure business
transactions and transform the measurements into Financial Statements for a specific
period.
Answer: Accounting cycle

14: Accrual Basis

Method of accounting that recognizes revenue when earned, rather than when collected.
Expenses are recognized when incurred rather than when paid.
Answer: Accrual Basis

15: An expense that has occurred but is not recognized in the accounts.
Answer: Accrued Expense

16: Total depreciation pertaining to an asset or group of assets from the time the assets
were placed in services until the date of the financial statement or tax return. This total
is the contra asset account to the related asset account.
Answer: Accumulated Depreciation

17: One company taking over controlling interest in another company

Answer: Acquisition

18: A trial balance prepared after all adjusting entries have been recorded and posted
to the accounts. Should have equal credit and debit totals.
Answer: Adjusted Trial Balance

19: A contra-asset account used to reduce ACCOUNTS RECEIVABLE to the

amount that is expected to be collected in cash.
Answer: Allowance for Doubtful Accounts

20: Gradual and periodic reduction of any amount, such as the periodic writedown
of a BOND premium, the cost of an intangible ASSET or periodic payment Of
MORTGAGES or other DEBT.
Answer: Amortization

21: Report to the stockholders of a company which includes the company's annual,
audited BALANCE SHEET and related statements of earnings, stockholders' or
owners' equity and cash flows, as well as other financial and business information.
Answer: Annual Report

22: Series of payments, usually payable at specified time intervals.

Answer: Annuity

23: An economic resource that is expected to be of benefit in the future. Probable future
economic benefits obtained as a result of past transactions or events.
Answer: Asset

24: At a price equal to the face, or nominal, value of a security.

Answer: At Par
 ACCOUNTING
JEOPARDY
25: Agreement between a CPA firm and its client to perform an AUDIT.
Answer: Audit engagement

26: Person who AUDITS financial accounts and records kept by others. Includes both
public accounting firms registered with the PCAOB and associated persons thereof.
Answer: Auditor

27: Maximum number of shares of any class a company may legally create under the
terms of its articles of incorporation.
Answer: Authorized shares

28: Bad Debt

All or portion of an ACCOUNT, loan, or note receivable considered to be
uncollectible.

29: Bank Reconciliation

A process by which an accountant determines whether and why there is a difference
between the balance shown on the bank statement and the balance of the cash account
in the firm’s GENERAL LEDGER.

30: Beginning Inventory

The quantity of merchandise available for sale at the beginning of an
ACCOUNTING period.

31: Bond
One type of long-term PROMISSORY NOTE, frequently issued to the public as a
SECURITY regulated under federal securities laws or state BLUE SKY LAWS.

32: Bond Discount

The amount below PAR VALUE that a BOND sells for.

33: Bookkeeping
The process of recording financial transactions and keeping financial records.

34: Break-Even Point

The point at which TOTAL REVENUES equals TOTAL COSTS.

35: Budget
Financial plan that serves as an estimate of future cost, REVENUES or both.

36: Capital Stock

Ownership shares of a CORPORATION authorized by its ARTICLES OF
INCORPORATION. The money value assigned to a corporation's issued shares. The
balance sheet account with the aggregate amount of the PAR VALUE or STATED
VALUE of all stock issued by a corporation.

37: Carrying Value

Amount, net or CONTRA ACCOUNT balances, that an ASSET or LIABILITY
shows on the BALANCE SHEET of a company. Also known as BOOK VALUE.
 ACCOUNTING
JEOPARDY
38: Cash
ASSET account on a balance sheet representing paper currency and coins,
negotiable money orders and checks, bank balances, and certain short-term
government securities.

29: Cash Dividend

Distribution of a CORPORATION’s earnings to stockholders in the form of CASH.

40: Cash Basis

Method of bookkeeping by which REVENUES and EXPENDITURES are recorded
when they are received and paid.

41: Cash Flows

Net of cash receipts and cash disbursements relating to a particular activity during a
specified accounting period.

42: Cash Ratio

Ratio of CASH and MARKETABLE SECURITIES to CURRENT LIABILITIES.

43: Casualty Loss

Any loss of an asset due to fire storm act of nature causing asset damage from
unexpected or accidental force. Generally it is deductible regardless of whether it is
business or personal.

44: Chief Executive Officer (CEO)

Officer of a firm principally responsible for the activities of a COMPANY.

45: Collateral
ASSET provided to a CREDITOR as security for a loan.

46: Commercial Paper

A way of borrowing money by using unsecured short-term loans sold directly to the
public, usually through professionally managed investments firms.

47: Common Stock

CAPITAL STOCK having no preferences generally in terms of dividends, voting rights
or distributions.

48: Compensate
To pay or make payment for something.

49: Consistency
ACCOUNTING postulate which stipulates that, except as otherwise noted in the
FINANCIAL STATEMENT, the same accounting policies and procedures have been
followed from period to period by an organization in the preparation and
presentation of its financial statements.

50: Consolidation
BUSINESS COMBINATION of two or more entities that occurs when the entities
transfer all of their NET ASSETS to a new entity created for that purpose.
51: On December 1, 2021, Mr. Donald Gray started Gray Electronic Repair Services by
investing 10,000
Cash 10,000
Mr. Gray, Capital 10,000

51: On December 5, Gray Electronic Repair Services paid registration and licensing fees
for the business, 370.
Taxes and licenses 370
Cash 370

52: On December 30, the company acquired a 12,000 short-term bank loan; the entire
amount plus a 10% interest is payable after 1 year.
Cash 12,000
Loan Payable 12,000

53: On 1st April 2023, Vinod started business with cash 1,000,000, furniture 2,000,000,
and Building 10,000,000.
Cash 1,000,000
Furniture 2,000,000
Building 10,000,000
Vinod, Capital 13,000,000

54: Earned revenue of 10,000, of which 3,500 is received in cash and the others on
account.
Cash 3,500
Bank 6,500
Revenue 10,000

55: Paid salaries 1,500, rent for July 900, and advertising expense 400.
Salaries Expense 1,500
Rent Expense 900
Advertising Expense 400
Cash 2,800

56: Purchased merchandise/goods on credit for 5,000 from Ali Store.

Purchases 5,000
Account Payable 5,000

57: Amount, net or CONTRA ACCOUNT balances, that an ASSET or LIABILITY

shows on the BALANCE SHEET of a company. Also known as CARRYING
VALUE.
Answer: Book Value

58: 1. Collection of formal, written rules governing the conduct of a

CORPORATION'S affairs (such as what officers it will have, what their responsibilities
are, and how they are to be chosen).
Answer: Bylaws

59: Cash Basis

Method of bookkeeping by which REVENUES and EXPENDITURES are recorded
when they are received and paid.

60: Cash Equivalents

Short-term (generally less than three months), highly liquid INVESTMENTS that are
convertible to known amounts of cash.
61: A $1,000 invoice from a supplier has terms of 2/10, n/30. The amount that should be
remitted to the supplier if the amount is paid within the discount period is $
Answer: $980
INVESTMENT
ASSOCIATES

PREPAID EXPENSES

RAW MATERIALS
INVENTORY

DIVIDEND PAYABLE

UNEARNED INCOME

RENT PAYABLE

SHARE CAPITAL
OWNER’S EQUITY

DIVIDENDS

INVESTMENT
INCOME

INTEREST INCOME

SALES RETURN