Account MIDTERM Reviewer (Chap. 1-6) Questions and Answers Fully Solved Latest Version 2025-
2026
Expenses - AnswersAll expenses used for the business.
Budgeting - AnswersThe process of receiving money, planning and allocating it according to one's needs.
Net Worth - Answers- Assets less liabilities.
- Also called owner's equity
- Your wealth is measured in the form of
properties or assets.
- Give a picture of your financial state.
- Affects your status in life
- Big net worth means stable life
Net worth and Accounting - AnswersThe best way accounting can help you is to make a diary or record.
Bookkeeping - Answers- Track down business activities,
- Analyze, calculate (or measure) and record these
activities, and
- Prepare progress reports
Financial Analysis - AnswersInterpretation of the financial reports
GENERAL PURPOSE FINANCIAL STATEMENTS - Answers- Statement of Financial Position
- Income Statement
- Statement of Cash Flow
- Statement of Owners Net worth
Statement of Financial Position - Answersprogress report showing a list of assets and
liabilities.
Income statement - Answersperformance report of revenues against costs
and expenses.
Statement of Cash Flow - Answerscash report showing where we got and where
, we used the money.
Assets - AnswersCash or properties owned by the business, be it personal or real.
It represents your net worth.
Fr. Luca Pacioli - AnswersAn italian mathematician, wrote the book
"Summa de Aritmetika
Business - Answers- An economic unit that engages in buying and selling of goods and services.
- Major concern is how to best use its resources.
- Primary reason is to earn profit.
Investor/Owner - AnswersPrimary source of Capital
Net income / Profit - Answers- The amount of revenues left after deducting all expenses.
- Revenues less expense.
Micro finance programs - AnswersTulay sa Pag-unlad Inc.
Business Risk - Answers- Any money- making venture is risky
- Risk is the element of uncertainty in an outcome.
FORMS OF BUSINESS - AnswersSole Proprietorship
Partnership
Corporate
Sole proprietorship - Answers- a business is set up and managed by one person
Partnership - Answersbusiness owned by two or more persons called partners.
Corporation - Answersa business organized as a separate legal entity from investors.
Types of Business Operation - AnswersServices activities
Merchandising activities
Manufacturing activities
Service business - Answersone which provides service.
2026
Expenses - AnswersAll expenses used for the business.
Budgeting - AnswersThe process of receiving money, planning and allocating it according to one's needs.
Net Worth - Answers- Assets less liabilities.
- Also called owner's equity
- Your wealth is measured in the form of
properties or assets.
- Give a picture of your financial state.
- Affects your status in life
- Big net worth means stable life
Net worth and Accounting - AnswersThe best way accounting can help you is to make a diary or record.
Bookkeeping - Answers- Track down business activities,
- Analyze, calculate (or measure) and record these
activities, and
- Prepare progress reports
Financial Analysis - AnswersInterpretation of the financial reports
GENERAL PURPOSE FINANCIAL STATEMENTS - Answers- Statement of Financial Position
- Income Statement
- Statement of Cash Flow
- Statement of Owners Net worth
Statement of Financial Position - Answersprogress report showing a list of assets and
liabilities.
Income statement - Answersperformance report of revenues against costs
and expenses.
Statement of Cash Flow - Answerscash report showing where we got and where
, we used the money.
Assets - AnswersCash or properties owned by the business, be it personal or real.
It represents your net worth.
Fr. Luca Pacioli - AnswersAn italian mathematician, wrote the book
"Summa de Aritmetika
Business - Answers- An economic unit that engages in buying and selling of goods and services.
- Major concern is how to best use its resources.
- Primary reason is to earn profit.
Investor/Owner - AnswersPrimary source of Capital
Net income / Profit - Answers- The amount of revenues left after deducting all expenses.
- Revenues less expense.
Micro finance programs - AnswersTulay sa Pag-unlad Inc.
Business Risk - Answers- Any money- making venture is risky
- Risk is the element of uncertainty in an outcome.
FORMS OF BUSINESS - AnswersSole Proprietorship
Partnership
Corporate
Sole proprietorship - Answers- a business is set up and managed by one person
Partnership - Answersbusiness owned by two or more persons called partners.
Corporation - Answersa business organized as a separate legal entity from investors.
Types of Business Operation - AnswersServices activities
Merchandising activities
Manufacturing activities
Service business - Answersone which provides service.
