FABM 1 2nd Semester 2023-2024

• 1. T-Accounts


  An informal term for a set of financial records that uses double-entry bookkeeping
• Journal


  A detailed account that records all the financial transactions of a business, to be used for the future reconciling of accounts and the transfer of information to other official accounting records, such as the general ledger
• assets


  debit for increase, credit for increase
• Account titles


  Identifications or brief descriptions of items that fall to same kind, class or nature
• Assets


  Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events
• Current assets


  All assets that are expected to be realized, sold or consumed within the enterprise's normal operating cycle
• Non-current assets


  A company's long term investments for which the full value will not be realized within the accounting year
• Cash


  Money, either in paper or in coins and money substitutes like check
• Petty cash fund


  Money placed and set aside for petty or small expenses
• Cash equivalent


  Short-term, highly liquid instruments that are readily convertible into cash
• Notes receivable


  Promissory note received by the business from the customer arising from rendering of service, and sale of merchandise
• Accounts receivable


  Amounts collectible arising from services rendered to a customer or client on credit
• Uncollectible account


  Provides for possible losses from uncollected accounts
• Inventory


  Raw materials, work in progress, and goods available for sale that a company owns
• Prepaid expenses


  Advanced payments for goods or services to be received in the future
• Unused supplies


  Cost of stationery and other supplies purchased for use but are left on hand and still unused
• Property and equipment


  Tangible assets which are held by an enterprise for use in production or supply of goods and services, for rental to others, or for administrative purposes, and are expected to be used during more than one period
• Land


  Site where the building used as office, store or shop, are constructed
• Building


  Finished construction owned by the business where operations and transactions took place
• Machinery and equipment

  • Shop equipment
  • Office equipment
  • Transportation delivering equipment
• Shop equipment


  • Welding equipment
  • Compressors equipment
  • Other tools
• Office equipment

  • Calculators
  • Adding machines
  • Computers
  • Steel filing cabinets
• Transportation equipment


  • Trucks
  • Jeeps
  • Vans
  • Other motor vehicles
• Delivery equipment


  Equipment used in delivering goods
• Furniture and fixtures


  • Chairs
  • Tables
  • Counters
  • Display and cases
• Accumulated depreciation


  An "asset offset" or "contra-asset" account, a "Valuation Account" which is shown as a deduction from property and equipment
• Intangible assets


  Identifiable non-monetary assets without physical substance
• Intangible assets


  • Patent
  • Copyrights
  • Franchise
  • Goodwill
• Uncollectible accounts are for a random customer who does not pay for his purchases
• Accounts receivable are for a classmate who will pay for the bought cookies next week
• Liabilities


  Something a person or company owes, usually sum of money
• Current liabilities


  The short term obligations that are expected to be paid within one year, such as accounts payable
• Non-current liabilities


  Long term financial obligations listed on a company's balance sheet
• Accounts payable


  A financial obligation of an enterprise that constitutes an oral or verbal promise to pay
• Notes payable


  Same as Accounts Payable in nature but only the obligation is evidenced by a promissory note
• Accrued expense


  Expenses incurred by the enterprise but are not yet paid
• Unearned revenue


  Money received by an individual or company for a service or product that has yet to be provided or delivered
• Notes payable (non-current)


  Requires payment for more than a year
• Mortgage payable


  A financial obligation of the enterprise which requires a fixed or tangible property to be pledged as a collateral to ensure payment
• Owner's equity


  The amount of money that would be returned to a company's shareholders if all of the assets were liquidated and all of the company's debt was paid off in the case of liquidation