ENTREP PERIODICAL EXAM

• daily recording of a business’s or company’s financial transactions.

  Bookkeeping
• what are the ESSENTIAL TRANSACTIONS of bookkeeping

  Customer or Clients Invoice

  Payroll

  Payments to Supplier

  Bank Accounts
• It is considered important because it gives businesses a reliable and accurate measure of their performance

  Bookkeeping
• what are the TYPES OF BOOKKEPING?

  Single-Entry

  Double-Entry
• list of the items that the business owns or controls for the main purpose of producing income. (ex: Cash, Property, Equipment, Vehicle)

  Assets
• the amount of money that a business owns to its creditors. (ex: Bank Loans, Account Payables, Credit Cards)

  Liabilities
• the three high-level accounts that appear on the balance sheet are assets, liabilities, and equity.

  Double-Entry System in Balancing Sheet
• – it is one of the financial statements that summarize the effects of trading (i.e., income and expenses) and show the financial performance of a business.


  Profit and Loss Account (Income Statement)
• what are the EXPENSE AND INCOME ACCOUNTS

  Revenue

  Cost of Sales

  Gross Profit

  Expenses

  Net Profit

  Net Loss

  Sundry Income
• it is the income generated from the profit-making activities of the business.

  Revenue
• the cost of buying, producing, and manufacturing goods that are meant for resale.

  Cost of Sales
• It is the amount of profit after deducting the cost of sales from the total revenue.

  Gross profit
• It is the amount of profit after deducting the cost of sales from the total revenue

  Expenses
• It refers to the profit remaining after expenses have already been deducted

  Net profit
• it is the profit remaining after expenses have already been deducted

  Net Loss
• it is the income generated from sources other than those from the operations and investments of the business.

  Sundry Income
• are normally treated as assets that are primarily used for paying third parties.

  Expense Accounts
• it refers to the method of reviewing, analyzing, and assessing the financial reports of a business to be able to gauge its past, present, and projected performance.


  Interpretation of Financial Statement
• – to pinpoint the strengths and weaknesses of the business.

  Interpretation of Financial Statement