ENTREP REVIEWER

• invoice


  commercial business document issued by seller to the buyer
• purchase order


  official business document issued by the buyer to the seller of goods
• official receipts


  indicates payment or receipts or cash
• delivery receipts 


  an evidenced that the goods services are received
• receiving reports 


  used within the business upon receipt of the goods shipped by the courier or forwarder
• check


  document that orders a payment of money from the current account maintaned in the bank
• voucher


  internal business document that authorizes the incurrence or payment of obligation
• 1. Income or revenue section - Sales, Sales returns and allowances, Sales discount
• Raw material inventory - materials that were not used or consumed on december 31
• Work in process inventory - materials that have been started but remained unfinished on december 31
• finished goods inventory - of goods that have been completed but remained unsold on december 31
• If trials balance is not balance, errors in book keeping such as 1. erroneous recording in the journal, 2. erroneous posting to the ledger, 3. mathematical mistakes, 4. Omission
• trial balance - listing of the debit and credit balances of accounts, to prove the equality of credit and debit, to determine the nominal aacounts to be closed, to serve as basis for making financial statement
• Book keeping - refers to the recording of business transaction in the books of the business ; assets, liabilities, capital, income and expense
• Journal - also known as the book of original entry. All business transaction are recorded in the journal for the first time
• Ledger - is also known as the book of final entry. information in the journal are transferred to the ledger through the process of POSTING
• Income Statement - is a structured financial statement that presents the amount income, expense, net income or net loss realized or incurred during the given period
• Service - a service entity provides or renders services to it's customers, the cost of services is usually composed of items that are directly involved in providing the services
• major section of income statement are; revenue or income section, cost of goods sold section, operating expenses section
• Inventory - refers to goods that remain unsold or unconsumed at the end of the accounting period (1 year) hence most financial statement are dated december 31
• (book keeping procedure) 1.arrange and file in chronological order all the business documents that serve as evidence of transaction
• (book keeping procedure) 2. Record daily the business transaction in the two column general journal
• (book keeping procedure)3. transfer or post all the entries in the general journal to the ledger
• (book keeping procedure) 4. after the posting process has been completed foot or add the amounts of the debit and credit in the ledger
• (book keeping procedure)5. prepare the trial balance
• (procedure observed in posting) Step 1 check the completeness and arrangement of the ledger
• (procedure observed in posting) Step 2 arrange the ledger in accordance with the listing appearing in the chart of accounts, otherwise arrange it this way; assets, liabilities, capital, income and expense
• (procedure observed in posting) Step 3 Label the different section of the ledger properly
• (procedure observed in posting) Step 4 Start the process with the first debit entry found in the journal; A. tranfer the date followed by the amount B. indicate the page number of the journal D. make brief explanation in the particulars
• (procedure observed in posting) Step 5 repeat all the procedures in step 4 for the credit entry
• (procedure observed in posting) Step 5 repeat step 4 and 5 in the next entry
• 2. Cost of goods sold section - or the cost of sale represents the amount cost in selling the product or providing service
• Merchandising - buys and sells goods products without changing the apperance
• manufacturing - most complicated because the busines involved in converting raw materials to finished products with the use of direct labor
• 3. Operating expense section - presents the different expenses incurred by the business during the period, Salaries and wages, utilities expenses, travelling expenses
• Balance sheet - new name for balance sheet is statement of financial position,
• Financial condition - refers to the liquidity and solvency or stability of the business
• liquidity - refers to the ability of the business to currently pay maturing obligations from the date of the balance sheet
• MAJOR SECTION OF BALANCE SHEET; 1. Asset Section, 2. Liability Section, 3. Owners equity section
• Asset section - refers to the properties owned or controlled by the business, it can TANGIBLE or INTANGIBLE