Accounting Reviewer

1 FAR - ACCOUNTING PROCESS (101001 - 101052)
101001 - THERE ARE __________ BASIC STEPS IN THE ACCOUNTING

2 CYCLE, WHICH INCLUDES 2 PHASES KNOWN AS __________ AND 10; RECORDING; SUMMARIZING
__________.
1. ANALYZING THE TRANSACTION
2. JOURNALIZING
3. POSTING
4. UNADJUSTED TRIAL BALANCE
101002 - STEPS IN THE SUMMARIZING PHASE OF ACCOUNTING CYCLE 5. ADJUSTING ENTRIES
3 (7 ITEMS) 6. ADJUSTED TRIAL BALANCE
7. FINANCIAL STATEMENTS
8. CLOSING ENTRIES
9. POST-CLOSING TRIAL BALANCE
10. REVERSING ENTRIES
101003 - THIS IS WHERE THE ACCOUNTANT GATHERS INFORMATION
4 FROM SOURCE DOCUMENTS AND DETERMINES THE IMPACT OF THE ANALYZING THE TRANSACTION
TRANSACTION ON THE FINANCIAL POSITION.
101004 - THIS IS THE PROCESS OF RECORDING THE TRANSACTIONS
5 JOURNALIZING
IN THE APPROPRIATE JOURNALS.
101005 - IS A CHRONOLOGICAL RECORD OF TRANSACTIONS ALSO
6 JOURNAL
KNOWN AS THE BOOK OF ORIGINAL ENTRY.
101006 - IS A JOURNAL WHERE ALL TRANSACTIONS COULD BE
7 GENERAL JOURNAL
RECORDED.
101007 - ARE JOURNALS USED IN RECORDING LARGE NUMBERS OF
8 SPECIAL JOURNALS
LIKE TRANSACTIONS.
1. SALES JOURNAL
2. CASH RECEIPTS JOURNAL
9 101008 - USUAL EXAMPLES OF SPECIAL JOURNALS (4 ITEMS) 3. PURCHASES JOURNAL
4. CASH DISBURSEMENTS
JOURNAL
101009 - IS A SPECIAL JOURNAL WHERE ONLY SALES OF
10 SALES JOURNAL
MERCHANDISE ON ACCOUNT ARE RECORDED.
101010 - IS A SPECIAL JOURNAL WHERE ALL TYPES OF CASH
11 CASH RECEIPTS JOURNAL
RECEIPTS ARE RECORDED.
101011 - IS A SPECIAL JOURNAL USED TO RECORD ALL PURCHASES
12 PURCHASES JOURNAL
ON ACCOUNT OF MERCHANDISE, EQUIPMENT, SUPPLIES, ETC.
101012 - IS A SPECIAL JOURNAL WHERE ALL PAYMENTS OF CASH FOR
13 CASH DISBURSEMENTS JOURNAL
ANY PURPOSE ARE RECORDED.
101013 - TYPES OF JOURNAL ENTRIES ACCORDING TO FORM (2 1. SIMPLE JOURNAL ENTRY
14 ITEMS) 2. COMPOUND JOURNAL ENTRY
101014 - IS A TYPE OF JOURNAL ENTRY WHICH CONTAINS A SINGLE
15 SIMPLE JOURNAL ENTRY
DEBIT AND A SINGLE CREDIT ELEMENT.
101015 - IS A TYPE OF JOURNAL ENTRY WHICH HAS TWO OR MORE
16 ELEMENTS IN EITHER OR BOTH DEBIT AND CREDIT SIDES AND OFTEN COMPOUND JOURNAL ENTRY
REPRESENTS TWO OR MORE TRANSACTIONS.
101016 - ARE THE STORAGE UNITS OF ACCOUNTING INFORMATION
17 AND USED TO SUMMARIZE CHANGES IN ASSETS, LIABILITIES AND ACCOUNTS
EQUITY INCLUDING INCOME AND EXPENSES.
101017 - ARE THE STATEMENT OF FINANCIAL POSITION OR SO
CALLED PERMANENT ACCOUNTS. THESE ACCOUNTS ARE NOT
18 REAL ACCOUNTS
CLOSED AND CARRYOVER TO THE NEXT ACCOUNTING PERIOD. (EX.
CASH, AR AND PPE)
19 101018 - ARE THE INCOME STATEMENT OR TEMPORARY CAPITAL NOMINAL ACCOUNTS
ACCOUNTS. THESE ACCOUNTS ARE CLOSED AT THE END OF THE
ACCOUNTING PERIOD. (EX. SALES AND EXPENSES)
101019 - WHILE STILL UNADJUSTED, REPRESENTS A COMBINATION OF
20 MIXED ACCOUNT
REAL AND NOMINAL ACCOUNTS. (EX. PREPAID EXPENSES)
101020 - IS THE GENERAL LEDGER ACCOUNT THAT SUMMARIZES THE
21 CONTROL ACCOUNT
DETAILED INFORMATION IN A SUBSIDIARY LEDGER.
101021 - IS AN ACCOUNT THAT HOLDS TEMPORARILY CERTAIN
22 SUSPENSE ACCOUNT
INFORMATION PENDING FOR DISPOSITION.
101022 - HAS A COUNTERPART IN ANOTHER BOOK WITH IN THE
23 RECIPROCAL ACCOUNT
ENTITY OR IN ANOTHER LEDGER OR ANOTHER ENTITY.
101023 - IS THE PROCESS OF TRANSFERRING DATA FROM THE
JOURNAL TO THE APPROPRIATE ACCOUNTS IN THE GENERAL
24 POSTING
LEDGER AND SUBSIDIARY LEDGER. THIS PROCESS CLASSIFIES ALL
ACCOUNTS THAT WERE RECORDED IN THE JOURNALS.
101024 - INCLUDES ALL THE ACCOUNTS APPEARING ON THE
25 GENERAL LEDGER
FINANCIAL STATEMENTS.
101025 - AFFORDS ADDITIONAL DETAIL IN SUPPORT OF CERTAIN
26 SUBSIDIARY LEDGER
GENERAL LEDGER ACCOUNTS.
101026 - A LIST OF GENERAL LEDGER ACCOUNTS WITH THEIR
27 TRIAL BALANCE
RESPECTIVE DEBIT OR CREDIT BALANCE.
101027 - ARE JOURNAL ENTRIES MADE AT THE END OF AN
ACCOUNTING CYCLE TO UPDATE CERTAIN REVENUE AND EXPENSE
28 ADJUSTING ENTRIES
ACCOUNTS AND TO MAKE SURE YOU COMPLY WITH THE MATCHING
PRINCIPLE.
1. USUALLY REFER TO
TRANSACTIONS THAT HAVE
EFFECTS ON MORE THAN ONE
ACCOUNTING PERIOD;
29 101028 - CHARACTERISTICS OF ADJUSTING ENTRIES (3 ITEMS) 2. INCLUDE AT LEAST 1 NOMINAL
ACCOUNT AND 1 REAL ACCOUNT;
AND
3. ARE GENERALLY NOT BASED ON
SOURCE DOCUMENTS.
1. PREPAYMENTS
2. DEFERRALS
3. ACCRUED EXPENSES
30 101029 - TYPICAL ADJUSTING ENTRY CLASSIFICATIONS (5 ITEMS)
4. ACCRUED INCOME
5. ESTIMATES
6. ENDING INVENTORY
101030 - ARE EXPENSE ITEMS ALREADY PAID FOR BUT NOT YET
31 PREPAYMENTS
INCURRED.
1. ASSET METHOD (DR. PREPAID
101031 - METHODS OF INITIALLY RECORDING PREPAYMENTS (2 EXPENSE; CR. CASH)
32 ITEMS) 2. EXPENSE METHOD (DR.
EXPENSE; CR. CASH)
101032 - PRO-FORMA ADJUSTING ENTRIES FOR PREPAYMENTS WHEN
DR. EXPENSE - "EXPIRED
33 THE ASSET METHOD WAS USED IN INTIALLY RECORDING THE
PORTION"; CR. PREPAID EXPENSE
TRANSACTION
101033 - PRO-FORMA ADJUSTING ENTRIES FOR PREPAYMENTS WHEN DR. PREPAID EXPENSE -
34 THE EXPENSE METHOD WAS USED IN INTIALLY RECORDING THE "REMAINING PORTION"; CR.
TRANSACTION EXPENSE
101034 - ARE INCOME ITEMS ALREADY COLLECTED IN CASH BUT NOT
35 DEFERRALS (DEFERRED INCOME)
YET EARNED.
36 101035 - METHODS OF INITIALLY RECORDING DEFERRALS (2 ITEMS) 1. LIABILITY METHOD (DR. CASH;
CR. UNEARNED INCOME)
2. INCOME METHOD (DR. CASH;
CR. INCOME)
101036 - PRO-FORMA ADJUSTING ENTRY FOR DEFERRALS WHEN
DR. UNEARNED INCOME; CR.
37 LIABILITY METHOD WAS USED IN INITIALLY RECORDING THE
INCOME - "EXPIRED PORTION"
TRANSACTION
101037 - PRO-FORMA ADJUSTING ENTRY FOR DEFERRALS WHEN THE
DR. INCOME; CR. UNEARNED
38 INCOME METHOD WAS USED IN INITIALLY RECORDING THE
INCOME - "REMAINING PORTION"
TRANSACTION
101038 - OCCUR IN TRANSACTIONS WHERE EXPENSE HAS ALREADY
39 ACCRUED EXPENSE
BEEN INCURRED BUT NOT YET PAID FOR IN CASH.
40 101039 - PRO-FORMA ADJUSTING ENTRY FOR ACCRUED EXPENSES DR. EXPENSE; CR. PAYABLE
101040 - OCCUR IN TRANSACTIONS WHERE INCOME HAS BEEN
41 ACCRUED INCOME
ALREADY EARNED BUT NOT YET COLLECTED IN CASH.
42 101041 - PRO-FORMA ADJUSTING ENTRY FOR ACCRUED INCOME DR. RECEIVABLE; CR. INCOME
101042 - ARE ADJUSTING ENTRIES THAT DO NOT INVOLVE CASH
43 ESTIMATES
FLOWS.
1. PROVISION FOR DOUBTFUL
101043 - COMMON EXAMPLES OF ESTIMATES THAT REQUIRE
44 ACCOUNTS
ADJUSTING ENTRIES (2 ITEMS)
2. DEPRECIATION
101044 - IS THE ESTIMATED AMOUNT OF BAD DEBT THAT WILL ARISE
PROVISION FOR DOUBTFUL
45 FROM ACCOUNTS RECEIVABLE THAT HAVE BEEN ISSUED BUT NOT
ACCOUNTS
YET COLLECTED.
101045 - IS THE SYSTEMATIC ALLOCATION OF THE COST OF A FIXED
46 DEPRECIATION
ASSET OVER ITS USEFUL LIFE.
101046 - IS AN ADJUSTMENT USED TO SET UP THE YEAR-END COUNT
47 OF THE INVENTORY. THIS ONLY APPLIES IF THE PERIODIC ENDING INVENTORY
INVENTORY SYSTEM IS USED.
101047 - IS THE MOST IMPORTANT PART OF THE SUMMARIZING
PREPARING THE FINANCIAL
48 PHASE. THIS IS WHERE THE PROCESSED INFORMATION IS
STATEMENTS.
COMMUNICATED TO USERS.
1. STATEMENT OF FINANCIAL
POSITION
2. INCOME STATEMENT OR
STATEMENT OF COMPREHENSIVE
49 101048 - BASIC FINANCIAL STATEMENTS (5 ITEMS) INCOME
3. STATEMENT OF CHANGES IN
EQUITY
4. STATEMENT OF CASH FLOWS
5. NOTES AND DISCLOSURES
101049 - ARE RECORDED AND POSTED FOR THE PURPOSE OF
CLOSING ALL NOMINAL OR TEMPORARY ACCOUNTS TO THE INCOME
50 SUMMARY ACCOUNT AND THE RESULTING NET INCOME OR LOSS IS CLOSING ENTRIES
AFTERWARDS CLOSED TO THE CAPITAL OR RETAINED EARNINGS
ACCOUNT.
101050 - ARE MADE AT THE BEGINNING OF THE NEW ACCOUNTING
51 PERIOD TO REVERSE CERTAIN ADJUSTING ENTRIES FROM THE REVERSING ENTRIES
PRECEDING ACCOUNTING PERIOD.
1. PREPAYMENTS WHEN EXPENSE
METHOD IS USED
2. DEFERRALS WHEN INCOME
52 101051 - ADJUSTING ENTRIES THAT MAY BE REVERSED (4 ITEMS)
METHOD IS USED
3. ACCRUED EXPENSE
4. ACCRUED INCOME
1. ALL TRIAL BALANCES
53 101052 - OPTIONAL STEPS IN THE ACCOUNTING CYCLE (2 ITEMS)
2. REVERSING ENTRIES
FAR - CONCEPTUAL FRAMEWORK (102001 - 101068)

102001 - THE PURPOSE OF _________ IS TO ASSIST THE IASB IN DEVELOPING AND
REVISING IFRSS THAT ARE BASED ON CONSISTENT CONCEPTS, TO HELP PREPARERS
CONCEPTUAL
2 TO DEVELOP CONSISTENT ACCOUNTING POLICIES FOR AREAS THAT ARE NOT
FRAMEWORK
COVERED BY A STANDARD OR WHERE THERE IS CHOICE OF ACCOUNTING POLICY,
AND TO ASSIST ALL PARTIES TO UNDERSTAND AND INTERPRET IFRS.
KAPAG ANG
STANDARDS (IFRS
AND IAS) AY
NAGLALAMAN NG
RULES NA KONTRA
SA SINASABI NG
CONCEPTUAL
FRAMEWORK, MAS
DAPAT SUNDIN ANG
3 102002 - EXPLAIN: “THE FRAMEWORK IS NOT A STANDARD OF ITSELF.” STANDARDS.
GAGAMITIN LANG
ANG CONCEPTUAL
FRAMEWORK KAPAG
WALANG SPECIFIC
NA RULES NA
IBINIGAY ANG
STANDARDS NA
APPLICABLE SA
TRANSACTION.
102003 - THE MAIN OBJECTIVE OF __________ IS TO PROVIDE THE FINANCIAL
INFORMATION ABOUT THE REPORTING ENTITY THAT IS USEFUL TO EXISTING AND GENERAL PURPOSE
4 POTENTIAL: INVESTORS, LENDERS, AND OTHER CREDITORS TO HELP THEM MAKE FINANCIAL REPORTS
VARIOUS DECISIONS.
102004 - MEANS THAT THE EVENTS SHOULD BE REFLECTED IN THE REPORTS IN THE
ACCRUAL
5 PERIODS WHEN THE EFFECTS OF TRANSACTIONS OCCUR, REGARDLESS THE
ACCOUNTING
RELATED CASH FLOWS.
1. CONTRIBUTE TO
TRANSPARENCY
2. STRENGTHEN
6 102005 - MISSION OF THE IASB IN DEVELOPING ACCOUNTING STANDARDS (3 ITEMS) ACCOUNTABILITY
3. CONTRIBUTE TO
ECONOMIC
EFFICIENCY
1. FUNDAMENTAL
QUALITATIVE
102006 - TYPES OF QUALITATIVE CHARACTERISTICS OF FINANCIAL INFORMATION CHARACTERISTICS
7 UNDER THE CONCEPTUAL FRAMEWORK (2 ITEMS) 2. ENHANCING
QUALITATIVE
CHARACTICS
FUNDAMENTAL
102007 - ARE QUALITATIVE CHARACTERISTICS OF FINANCIAL INFORMATION THAT ARE
8 QUALITATIVE
FOCUSED ON THE CONTENT OR SUBSTANCE OF FINANCIAL INFORMATION.
CHARACTERISTICS
ENHANCING
102008 - ARE QUALITATIVE CHARACTERISTICS OF FINANCIAL INFORMATION THAT ARE
9 QUALITATIVE
FOCUSED ON THE PRESENTATION OR FORM OF REPORT OF FINANCIAL INFORMATION.
CHARACTERISTICS
1. RELEVANCE
102009 - FUNDAMENTAL QUALITATIVE CHARACTERISTICS OF FINANCIAL INFORMATION
10 2. FAITHFUL
(2 ITEMS)
REPRESENTATION
102010 - IS THE CAPABILITY OF FINANCIAL INFORMATION TO MAKE A DIFFERENCE IN
11 RELEVANCE
THE USERS' DECISIONS.
1. PREDICTIVE VALUE
12 102011 - ELEMENTS OF RELEVANCE (2 ITEMS) 2. CONFIRMATORY
VALUE
13 102012 - HELPS USERS IN PREDICTING OR ANTICIPATING FUTURE OUTCOMES. PREDICTIVE VALUE
102013 - ENABLES USERS TO CHECK AND CONFIRM EARLIER PREDICTIONS OR CONFIRMATORY
14 EVALUATIONS. VALUE
102014 - IS AN ASPECT OF RELEVANCE DEFINED AS THE THRESHOLD ABOVE WHICH
15 MISSING OR INCORRECT INFORMATION IN FINANCIAL STATEMENTS IS CONSIDERED MATERIALITY
TO HAVE AN IMPACT ON THE DECISION MAKING OF USERS.
102015 - REQUIRES THAT TRANSACTIONS AND EVENTS SHOULD BE ACCOUNTED FOR
FAITHFUL
16 IN A MANNER THAT REPRESENT THEIR TRUE ECONOMIC SUBSTANCE RATHER THAN
REPRESENTATION
THE MERE LEGAL FORM.
1. COMPLETENESS
2. NEUTRALITY
17 102016 - COMPONENTS OF FAITHFUL REPRESENTATION (3 ITEMS)
3. FREE FROM
ERROR
102017 - DEALS WITH WHETHER ALL TRANSACTIONS AND ACCOUNTS THAT SHOULD
18 COMPLETENESS
BE IN THE FINANCIAL STATEMENTS ARE INCLUDED.
102018 - MEANS THAT INFORMATION CONTAINED IN THE FINANCIAL STATEMENTS
19 NEUTRALITY
MUST BE FREE FROM BIAS.
102019 - MEANS THERE ARE NO ERRORS AND INACCURACIES IN THE DESCRIPTION OF
20 THE PHENOMENON AND NO ERRORS MADE IN THE PROCESS BY WHICH THE FREE FROM ERROR
FINANCIAL INFORMATION WAS PRODUCED.
1. COMPARABILITY
2. VERIFIABILITY
102020 - ENHANCING QUALITATIVE CHARACTERISTICS OF FINANCIAL INFORMATION (4
21 3. TIMELINESS
ITEMS)
4.
UNDERSTANDABILITY
102021 - MEANS THAT INFORMATION SHOULD BE COMPARABLE BETWEEN DIFFERENT
22 COMPARABILITY
ENTITIES OR TIME PERIODS.
1. HORIZONTAL
COMPARABILITY
23 102022 - TYPES OF COMPARABILITY (2 ITEMS)
2. DIMENSIONAL
COMPARABILITY
102023 - IS A TYPE OF COMPARABILITY WHICH REFERS TO THE COMPARISON WITHIN HORIZONTAL
24 AN ENTITY FROM ONE PERIOD TO THE NEXT. COMPARABILITY
102024 - IS A TYPE OF COMPARABILITY WHICH REFERS TO THE COMPARISON DIMENSIONAL
25 BETWEEN TWO OR MORE ENTITIES IN THE SAME INDUSTRY. COMPARABILITY
102025 - MEANS THAT INDEPENDENT AND KNOWLEDGEABLE OBSERVERS SHOULD BE
26 VERIFIABILITY
ABLE TO VERIFY THE INFORMATION.
1. DIRECT
VERIFICATION - E.G.,
COUNTING CASH
ITEMS
27 102026 - TYPES OF VERIFICATION (2 ITEMS) 2. INDIRECT
VERIFICATION - E.G.,
COMPUTING
INVENTORY USING
FIFO
102027 - MEANS THAT INFORMATION SHOULD BE AVAILABLE IN TIME TO INFLUENCE
28 TIMELINESS
THE DECISIONS OF USERS.
102028 - MEANS THAT INFORMATION SHALL BE CLASSIFIED, PRESENTED CLEARLY
29 UNDERSTANDABILITY
AND CONSISELY.
102029 - IS A CONSTRAINT INCLUDED IN THE CONCEPTUAL FRAMEWORK WHICH
COST-BENEFIT
30 ASSERTS THAT THE BENEFIT OF THE INFORMATION MUST BE GREATER THAN THE
CONSTRAINT
COST OF PROVIDING IT.
31 102030 - IS THE SPAN OF TIME COVERED BY A SET OF FINANCIAL STATEMENTS. REPORTING PERIOD
102031 - (ALSO KNOWN AS PERIODICITY ASSUMPTION) IS AN ACCOUNTING PRINCIPLE
TIME PERIOD
32 WHICH STATES THAT THE LIFE OF A BUSINESS CAN BE DIVIDED INTO EQUAL TIME
ASSUMPTION
PERIODS.
102032 - IS AN ACCOUNTING PRINCIPLE THAT ASSUMES THAT BUSINESS
MONETARY UNIT
33 TRANSACTIONS OR EVENTS CAN BE MEASURED AND EXPRESSED IN TERMS OF
ASSUMPTION
MONETARY UNITS AND THAT THE MONETARY UNITS ARE STABLE AND DEPENDABLE.
102033 - IS AN ASSUMPTION THAT AN ENTITY WILL CONTINUE TO OPERATE FOR THE
34 GOING CONCERN
FORESEEABLE FUTURE (USUALLY 12 MONTHS AFTER THE REPORTING DATE).
102034 - IS AN ACCOUNTING PRINCIPLE THAT STATES THAT ALL TRANSACTIONAL
DATA ASSOCIATED WITH A SPECIFIC ENTITY IS ASSUMED TO BE CLEARLY ECONOMIC ENTITY
35 ATTRIBUTED TO THE ENTITY, AND DOES NOT INCLUDE OTHER TRANSACTIONAL DATA ASSUMPTION
ASSOCIATED WITH THE ENTITY'S OWNERS OR BUSINESS PARTNERS.
102035 - IS AN ENTITY WHO MUST OR CHOOSES TO PREPARE FINANCIAL
36 REPORTING ENTITY
STATEMENTS.
1. SINGLE ENTITY
2. PORTION OF AN
ENTITY (E.G.,
DIVISION)
37 102036 - TYPES OF REPORTING ENTITIES (3 ITEMS)
3. MORE THAN ONE
ENTITIES (E.G.,
PARENT AND
SUBSIDIARY(IES))
1. CONSOLIDATED
102037 - TYPES OF FINANCIAL STATEMENTS ACCORDING TO THE TYPE OF REPORTING
38 2. UNCONSOLIDATED
ENTITY (3 ITEMS)
3. COMBINED
CONSOLIDATED
102038 - IS A TYPE OF FINANCIAL STATEMENT CREATED WHEN A PARENT AND
39 FINANCIAL
SUBSIDIARIES REPORT AS A SINGLE ENTITY.
STATEMENT
UNCONSOLIDATED
102039 - IS A TYPE OF FINANCIAL STATEMENT CREATED WHEN A PARENT ALONE
40 FINANCIAL
PROVIDES THE REPORT.
STATEMENT
41 102040 - IS A TYPE OF FINANCIAL STATEMENT CREATED WHEN THE REPORTING COMBINED
ENTITY COMPRISES TWO OR MORE ENTITIES NOT LINKED BY PARENT-SUBSIDIARY FINANCIAL
RELATIONSHIP. STATEMENT
1. ASSET
2. LIABILITY
42 102041 - BASIC ELEMENTS OF FINANCIAL STATEMENTS (5 ITEMS) 3. EQUITY
4. INCOME
5. EXPENSES
102042 - IS A PRESENT ECONOMIC RESOURCE CONTROLLED BY THE ENTITY AS A
43 ASSET
RESULT OF PAST EVENTS.
102043 - IS A PRESENT OBLIGATION OF THE ENTITY TO TRANSFER AN ECONOMIC
44 LIABILITY
RESOURCE AS A RESULT OF PAST EVENTS.
102044 - IS THE RESIDUAL INTEREST IN THE ASSETS OF THE ENTITY AFTER
45 EQUITY
DEDUCTING ALL ITS LIABILITIES.
102045 - IS COMPOSED OF INCREASES IN ASSETS OR DECREASES IN LIABILITIES
46 RESULTING IN INCREASES IN EQUITY OTHER THAN CONTRIBUTIONS FROM EQUITY INCOME
HOLDERS.
102046 - IS COMPOSED OF DECREASES IN ASSETS OR INCREASES IN LIABILITIES
47 RESULTING IN DECREASES IN EQUITY OTHER THAN DISTRIBUTIONS TO EQUITY EXPENSES
HOLDERS.
102047 - IS THE PROCESS OF INCORPORATING IN THE BALANCE SHEET AN ITEM THAT
48 RECOGNITION
MEETS THE DEFINITION OF AN ELEMENT AND SATISFIES THE REQUIRED CRITERIA.
1. IT IS PROBABLE
THAT ANY FUTURE
ECONOMIC BENEFIT
ASSOCIATED WITH
THE ITEM WILL FLOW
49 102048 - CRITERIA FOR RECOGNITION (2 ITEMS) TO OR FROM THE
ENTITY; AND
2. THE ITEM'S COST
OR VALUE CAN BE
MEASURED WITH
RELIABILITY.
102049 - MEANS REMOVAL OF AN ASSET OR LIABILITY FROM THE STATEMENT OF
50 FINANCIAL POSITION AND NORMALLY IT HAPPENS WHEN THE ITEM NO LONGER DERECOGNITION
MEETS THE DEFINITION OF AN ASSET OR A LIABILITY.
102050 - INVOLVES THE ASSIGNMENT OF MONETARY AMOUNTS AT WHICH THE
51 MEASUREMENT
ELEMENTS OF FINANCIAL STATEMENTS ARE TO BE RECOGNIZED OR REPORTED.
1. HISTORICAL COST
52 102051 - BASIC MEASUREMENT BASES IN THE CONCEPTUAL FRAMEWORK (2 ITEMS)
2. CURRENT VALUE
102052 - IS A MEASUREMENT BASED ON THE TRANSACTION PRICE AT THE TIME OF
53 HISTORICAL COST
RECOGNITION OF THE ELEMENT (AN ENTRY PRICE).
102053 - IS A MEASUREMENT BASIS THAT IS UPDATED TO REFLECT THE CONDITIONS
54 CURRENT VALUE
AT THE MEASUREMENT DATE.
1. FAIR VALUE
2. VALUE IN USE
55 102054 - TYPES OF CURRENT VALUE MEASUREMENT BASES (4 ITEMS) 3. CURRENT COST
4. FULFILLMENT
VALUE
102055 - IS THE PRICE THAT WOULD BE RECEIVED TO SELL AN ASSET OR PAID TO
56 TRANSFER A LIABILITY IN AN ORDERLY TRANSACTION BETWEEN MARKET FAIR VALUE
PARTICIPANTS (AN EXIT PRICE).
102056 - IS THE PRESENT VALUE OF THE CASH FLOWS EXPECTED TO BE DERIVED
57 VALUE IN USE
FROM THE USE AND ULTIMATE DISPOSAL OF AN ASSET (AN EXIT PRICE).
58 102057 - IS THE COST OF REPLACING AN ASSET AT THIS TIME (AN ENTRY PRICE) CURRENT COST
102058 - IS THE PRESENT VALUE OF THE CASH EXPECTED TO BE TRANSFERRED FOR
59 FULFILLMENT VALUE
THE PAYMENT OF A LIABILITY.
102059 - IS THE PROCESS OF IDENTIFYING TRANSACTIONS TO BE RECORDED AS REVENUE
60 REVENUE IN AN ACCOUNTING PERIOD. RECOGNITION
1. AT THE POINT OF
SALE
2. DURING
61 102060 - METHODS OF RECOGNIZING REVENUE (3 ITEMS)
PRODUCTION
3. AT THE END OF
PRODUCTION
102061 - REQUIRES THAT REVENUES AND ANY RELATED EXPENSES BE RECOGNIZED MATCHING
62 TOGETHER IN THE SAME REPORTING PERIOD. PRINCIPLE
1. SYSTEMATIC AND
RATIONAL
ALLOCATION
(DEPRECIATION)
2. CAUSE AND
63 102062 - ACCEPTABLE BASES FOR THE RECOGNITION OF EXPENSE (3 ITEMS) EFFECT
ASSOCIATION (COST
OF SALE)
3. IMMEDIATE
RECOGNITION
(RANDD EXPENSE)
1. GROUP SIMILAR
ITEMS AND
SEPARATE
DISSIMILAR ITEMS.
2. AGGREGATE
INFORMATION, BUT
102063 - REQUIREMENTS FOR EFFECTIVE COMMUNICATION OF INFORMATION IN THE
64 DO NOT PROVIDE
FINANCIAL STATEMENTS (3 ITEMS)
UNNECESSARY
DETAIL.
3. AVOID EXCESSIVE
AGGREGATION TO
OBSCURE THE
INFORMATION.
1. FINANCIAL
65 102064 - CONCEPTS OF CAPITAL IN THE CONCEPTUAL FRAMEWORK (2 ITEMS) CAPITAL
2. PHYSICAL CAPITAL
102065 - IS A CONCEPT OF CAPITAL SYNONYMOUS WITH THE NET ASSETS OR EQUITY
66 FINANCIAL CAPITAL
OF THE ENTITY.
102066 - IS A CONCEPT OF CAPITAL THAT REFERS TO THE PRODUCTIVE CAPACITY OF
67 PHYSICAL CAPITAL
THE ENTITY BASED ON, FOR EXAMPLE, UNITS OF OUTPUT PER DAY.
102067 - UNDER THE _________ THE PROFIT IS EARNED ONLY WHEN THE AMOUNT OF
THE NET ASSETS AT THE END OF THE PERIOD IS GREATER THAN THE AMOUNT OF FINANCIAL CAPITAL
68 NET ASSETS IN THE BEGINNING AFTER EXCLUDING CONTRIBUTIONS FROM AND MAINTENANCE
DISTRIBUTIONS TO EQUITY HOLDERS (MANDATED BY STANDARDS).
102068 - UNDER THE _________ THE PROFIT IS EARNED IF PHYSICAL PRODUCTIVE
PHYSICAL CAPITAL
69 CAPACITY INCREASES DURING THE PERIOD AFTER EXCLUDING THE MOVEMENTS
MAINTENANCE
WITH EQUITY HOLDERS.
1 FAR - CASH AND CASH EQUIVALENTS (103001 - 103118)

103001 - IS THE STANDARD MEDIUM OF EXCHANGE IN
BUSINESS TRANSACTIONS. IT REFERS TO THE CURRENCY
2 MONEY
AND COINS WHICH ARE IN CIRCULATION AND LEGAL
TENDER.
103002 - (IN THE CONTEXT OF ACCOUNTING) INCLUDES
MONEY AND ANY OTHER NEGOTIABLE INSTRUMENT THAT IS
3 CASH
PAYABLE IN MONEY AND ACCEPTABLE BY THE BANK FOR
DEPOSIT AND IMMEDIATE CREDIT.
103003 - IS A DOCUMENT THAT ORDERS A BANK TO PAY A
CHECK (IF PAYABLE TO THE REPORTING
SPECIFIC AMOUNT OF MONEY FROM THE PERSON'S
4 ENTITY, GENERALLY INCLUDED IN THE
ACCOUNT TO THE PERSON IN WHOSE NAME THE SAME HAS
BOOKS AS CASH)
BEEN ISSUED.
BANK DRAFT (IF PAYABLE TO THE
103004 - IS A CHECK DRAWN BY A BANK ON ITS OWN FUNDS
5 REPORTING ENTITY, INCLUDED IN THE
IN ANOTHER BANK.
BOOKS AS CASH)
103005 - IS A PAPER DOCUMENT, SIMILAR TO A CHECK,
MONEY ORDER (IF PAYABLE TO THE
USED FOR MAKING PAYMENTS. IT IS PREPAID, SO IT IS ONLY
6 REPORTING ENTITY, INCLUDED IN THE
ISSUED AFTER A BUYER PAYS FOR THE SAME WITH CASH
BOOKS AS CASH)
OR ANOTHER FORM OF GUARANTEED FUNDS.
103006 - IS A CHECK WRITTEN BY THE DRAWER (PAYOR) POSTDATED CHECK (IF PAYABLE TO THE
7 FOR A DATE IN THE FUTURE. IT MAY ONLY BE CASHED OR REPORTING ENTITY, NOT INCLUDED IN THE
DEPOSITED ON OR AFTER THE DATE WRITTEN ON IT. BOOKS AS CASH)
1. CASH ON HAND
103007 - CASH ITEMS INCLUDED IN THE ACCOUNTING 2. CASH IN BANK
8 BOOKS (3 ITEMS) 3. CASH FUND SET ASIDE FOR CURRENT
PURPOSES
103008 - INCLUDES UNDEPOSITED CASH COLLECTIONS AND
9 CASH ON HAND
OTHER CASH ITEMS AWAITING DEPOSIT.
103009 - INCLUDES DEMAND DEPOSIT OR CHECKING
10 ACCOUNT AND SAVING DEPOSIT WHICH ARE CASH IN BANK
UNRESTRICTED AS TO WITHDRAWAL.
11 103010 - CASH OR NONCASH: PETTY CASH FUND CASH
12 103011 - CASH OR NONCASH: DIVIDEND FUND CASH

NONCASH (NONCURRENT ASSET - WHEN
BONDS BECOME DUE WITHIN 12 MONTHS
13 103012 - CASH OR NONCASH: BOND SINKING FUND
AFTER THE END OF THE REPORTING
PERIOD FUND BECOMES CURRENT ALSO)
14 103013 - CASH OR NONCASH: PAYROLL FUND CASH
15 103014 - CASH OR NONCASH: REVOLVING FUND CASH
16 103015 - CASH OR NONCASH: TAX FUND CASH

103016 - CASH OR NONCASH: FUND HELD FOR FUTURE
17 NONCASH (NONCURRENT ASSET - ALWAYS)
PLANT EXPANSION
18 103017 - CASH OR NONCASH: INTEREST FUND CASH
103018 - CASH OR NONCASH: PREFERENCE SHARE
19 NONCASH (NONCURRENT ASSET - ALWAYS)
REDEMPTION FUND
103019 - ARE SHORT-TERM AND HIGHLY LIQUID
INVESTMENTS THAT ARE READILY CONVERTIBLE INTO CASH
20 AND SO NEAR THEIR MATURITY THAT THEY PRESENT CASH EQUIVALENTS
INSIGNIFICANT RISK OF CHANGES IN VALUE BECAUSE OF
CHANGES IN INTEREST RATES.
21 103020 - CRITERIA FOR AN ITEM TO QUALIFY AS CASH ONLY HIGHLY LIQUID INVESTMENTS THAT
ARE ACQUIRED THREE MONTHS BEFORE
EQUIVALENT MATURITY CAN QUALIFY AS CASH
EQUIVALENTS.
103021 - __________ CANNOT QUALIFY AS CASH
22 EQUIVALENTS BECAUSE _________ DO NOT HAVE A EQUITY SECURITIES; SHARES
MATURITY DATE.
103022 - _________ WITH SPECIFIED REDEMPTION DATE AND
23 ACQUIRED THREE MONTHS BEFORE REDEMPTION DATE PREFERENCE SHARES
CAN QUALIFY AS CASH EQUIVALENTS.
1. CASH AND CASH EQUIVALENTS
(CURRENT)
103023 - CLASSIFICATIONS OF INVESTMENT OF EXCESS 2. SHORT-TERM FINANCIAL ASSETS OR
24 CASH (3 ITEMS) TEMPORARY INVESTMENTS (CURRENT)
3. LONG-TERM INVESTMENTS
(NONCURRENT)
103024 - IF THE TERM IS MORE THAN THREE MONTHS BUT SHORT-TERM FINANCIAL ASSETS OR
25 WITHIN ONE YEAR, SUCH INVESTMENTS ARE CLASSIFIED AS TEMPORARY INVESTMENTS; CURRENT
__________ AND PRESENTED SEPARATELY AS _________. ASSETS
103025 - IF THE TERM IS MORE THAN ONE YEAR, SUCH NONCURRENT OR LONG-TERM
26 INVESTMENTS ARE CLASSIFIED AS __________. INVESTMENTS
103026 - IF LONG-TERM INVESTMENTS BECOME DUE WITHIN
27 ONE YEAR FROM THE END OF THE REPORTING PERIOD, CURRENT OR TEMPORARY INVESTMENTS.
THEY ARE RECLASSIFIED AS _________.
28 103027 - MEASUREMENT OF CASH (IN GENERAL) FACE VALUE
29 103028 - MEASUREMENT OF CASH IN FOREIGN CURRENCY CURRENT EXCHANGE RATE

103029 - MEASUREMENT OF CASH HELD BY A BANK OR
30 FINANCIAL INSTITUTION UNDER BANKRUPTCY OR ESTIMATED REALIZABLE VALUE
FINANCIAL DIFFICULTY
103030 - DEPOSITS IN FOREIGN BANK WHICH ARE SUBJECT
TO FOREIGN EXCHANGE RESTRICTION, IF MATERIAL,
31 NONCURRENT ASSETS
SHOULD BE CLASSIFIED SEPARATELY AMONG __________
AND THE RESTRICTION CLEARLY INDICATED.
103031 - CLASSIFICATION OF CASH FUND RELATED TO A CLASSIFICATION SHOULD BE PARALLEL
32 LIABILITY WITH SUCH RELATED LIABILITY.
SUCH FUND SHOULD BE CLASSIFIED AS
103032 - CLASSIFICATION OF CASH FUND SET ASIDE FOR
33 NONCURRENT REGARDLESS OF THE YEAR
THE ACQUISITION OF A NONCURRENT ASSET
OF DISBURSEMENT.
103033 - OCCURS WHEN THE CASH IN A BANK ACCOUNT
34 HAS A CREDIT BALANCE RESULTING FROM THE ISSUANCE OVERDRAFT
OF CHECKS IN EXCESS OF DEPOSITS.
GR: CURRENT LIABILITY AND SHOULD NOT
BE OFFSET AGAINST OTHER BANK
ACCOUNTS WITH DEBIT BALANCES;
XPN1: IF THERE ARE OTHER ACCOUNTS IN
35 103034 - CLASSIFICATION OF BANK OVERDRAFT THE SAME BANK AS THE ACCOUNT WITH
THE CREDIT BALANCE, OFFSETTING WITH
SUCH OTHER ACCOUNTS IS ALLOWED.
XPN2: IF THE AMOUNT IS IMMATERIAL,
OFFSETTING IS ALLOWED.
103035 - GENERALLY TAKES THE FORM OF MINIMUM
CHECKING OR DEMAND DEPOSIT ACCOUNT BALANCE THAT
36 COMPENSATING BALANCE
MUST BE MAINTAINED IN CONNECTION WITH A BORROWING
ARRANGEMENT WITH A BANK.
1. IF NOT LEGALLY RESTRICTED
(INFORMAL) - PART OF CASH
2. IF LEGALLY RESTRICTED (FORMAL) -
103036 - CLASSIFICATION OF COMPENSATING BALANCE (2
37 CURRENT OR NONCURRENT DEPENDING
ITEMS)
ON THE TERM OF THE RELATED LOAN.
RULE IF THE PROBLEM IS SILENT:
UNRESTRICTED
103037 - IS A CHECK THAT IS MERELY DRAWN AND
38 RECORDED BUT NOT GIVEN TO THE PAYEE BEFORE THE UNRELEASED OR UNDELIVERED CHECKS
END OF REPORTING PERIOD.
DR. CASH IN BANK; CR. EXPENSE OR
LIABILITY (THE ENTRY MADE UPON
103038 - ADJUSTMENT REQUIRED FOR UNDELIVERED OR
39 ISSUANCE OF SAID CHECK SHOULD BE
UNRELEASED CHECKS
REVERSED BECAUSE IN ESSENCE, NO
PAYMENT HAS REALLY BEEN MADE.)
103039 - IS A CHECK DRAWN, RECORDED AND ALREADY
40 GIVEN TO THE PAYEE BUT IT BEARS A DATE SUBSEQUENT POSTDATED CHECK DELIVERED
TO THE END OF REPORTING PERIOD.
DR. CASH IN BANK; CR. EXPENSE OR
LIABILITY (THE ENTRY MADE UPON
103040 - ADJUSTMENT REQUIRED FOR POSTDATED CHECKS
41 ISSUANCE OF SAID CHECK SHOULD BE
DELIVERED
REVERSED BECAUSE IN ESSENCE, NO
PAYMENT HAS REALLY BEEN MADE.)
103041 - IS A CHECK NOT ENCASHED BY THE PAYEE WITHIN STALE CHECK OR CHECK LONG
42 A RELATIVELY LONG PERIOD OF TIME. OUTSTANDING
103042 - IN BANKING PRACTICE, A CHECK BECOMES STALE
43 IF NOT ENCASHED WITHIN __________ FROM THE TIME OF 6 MONTHS
ISSUANCE.
1. IF THE AMOUNT IS MATERIAL - DR. CASH
IN BANK; CR. ACCOUNTS PAYABLE OR
103043 - ADJUSTMENT REQUIRED FOR ISSUED CHECKS APPROPRIATE ACCOUNT
44 THAT BECAME STALE 2. IF THE AMOUNT IS IMMATERIAL - DR.
CASH IN BANK; CR. MISCELLANEOUS
INCOME
1. INITIAL ENTRY (DR. CASH SHORT OR
OVER; CR. CASH)
2. IF THE CASHIER OR CASH CUSTODIAN IS
HELD RESPONSIBLE FOR THE CASH
SHORTAGE (DR. DUE FROM CASHIER; CR.
45 103044 - JOURNAL ENTRIES FOR CASH SHORTAGE (3 ITEMS)
CASH SHORT OR OVER)
3. IF REASONABLE EFFORTS FAIL TO
DISCLOSE THE CAUSE OF THE SHORTAGE
(DR. LOSS FROM CASH SHORTAGE; CR.
CASH SHORT OR OVER)
1. INITIAL ENTRY (DR. CASH; CR. CASH
SHORT OR OVER)
2. IF THERE IS NO CLAIM ON THE OVERAGE
(DR. CASH SHORT OR OVER; CR.
46 103045 - JOURNAL ENTRIES FOR CASH OVERAGE (3 ITEMS) MISCELLANEOUS INCOME)
3. IF THE CASH OVERAGE IS PROPERLY
FOUND TO BE THE MONEY OF THE
CASHIER (DR. CASH SHORT OR OVER; CR.
PAYABLE TO CASHIER)
47 103046 - IS A SYSTEM OF CONTROL OF CASH WHICH IMPREST SYSTEM
REQUIRES THAT ALL CASH RECEIPTS SHOULD BE
DEPOSITED INTACT AND ALL CASH DISBURSEMENTS
SHOULD BE MADE BY MEANS OF CHECK.
103047 - METHODS OF HANDLING THE PETTY CASH FUND (2 1. IMPREST FUND SYSTEM
48 ITEMS) 2. FLUCTUATING FUND SYSTEM
1. ESTABLISHMENT OF THE FUND (DR.
PETTY CASH FUND; CR. CASH IN BANK)
2. PAYMENT OF EXPENSES OUT OF THE
FUND (MEMORANDUM ENTRY IN THE PETTY
CASH JOURNAL)
3. REPLENISHMENT OF PETTY CASH
PAYMENTS (DR. EXPENSES; CR. CASH IN
103048 - JOURNAL ENTRIES FOR HANDLING THE PETTY
49 BANK)
CASH UNDER IMPREST FUND SYSTEM (6 ITEMS)
4. ADJUSTING ENTRY IF NO
REPLENISHMENT IS MADE AT YRAR-END
(DR. EXPENSES; CR. CASH IN BANK)
5. INCREASE IN FUND (DR. PETTY CASH
FUND; CR. CASH IN BANK)
6. DECREASE IN FUND (DR. CASH IN BANK;
CR. PETTY CASH FUND)
1. ESTABLISHMENT OF THE FUND (DR.
PETTY CASH FUND; CR. CASH IN BANK)
2. PAYMENT OF EXPENSES OUT OF THE
PETTY CASH FUND (DR. EXPENSES; CR.
PETTY CASH FUND)
103049 - JOURNAL ENTRIES FOR HANDLING THE PETTY 3. REPLENISHMENT OR INCREASE OF THE
50 CASH FUND UNDER THE FLUCTUATING FUND SYSTEM (5 FUND (DR. PETTY CASH FUND; CR. CASH IN
ITEMS) BANK)
4. ADJUSTING ENTRY IF NO
REPLENISHMENT IS MADE AT YEAR-END
(NO ENTRY REQUIRED)
5. DECREASE OF THE FUND (DR. CASH IN
BANK; CR. PETTY CASH FUND)
103050 - IS THE CURRENT ACCOUNT OR CHECKING
ACCOUNT OR COMMERCIAL DEPOSIT WHERE DEPOSITS
51 ARE COVERED BY DEPOSIT SLIPS AND WHERE FUNDS ARE DEMAND DEPOSIT
WITHDRAWABLE ON DEMAND BY DRAWING CHECKS
AGAINST THE BANK.
103051 - IN A ________, THE DEPOSITOR IS GIVEN A
PASSBOOK UPON INITIAL DEPOSIT. THE PASSBOOK IS
52 SAVINGS DEPOSIT
REQUIRED WHEN MAKING DEPOSITS AND WITHDRAWALS.
THIS TYPE OF BANK DEPOSIT IS INTEREST BEARING.
103052 - IS A BANK DEPOSIT EVIDENCED BY A FORMAL
AGREEMENT CALLED CERTIFICATE OF DEPOSIT. IT IS
53 INTEREST BEARING AND MAY BE PRETERMINATED OR TIME DEPOSIT
WITHDRAWN ON DEMAND OR AFTER A CERTAIN PERIOD OF
TIME AGREED UPON.
DR. CASH OR CASH IN BANK; CR.
103053 - JOURNAL ENTRY USED TO RECORD COLLECTION
54 ACCOUNTS RECEIVABLE OR ANY OTHER
OF CASH IN THE BOOKS OF THE REPORTING ENTITY
APPROPRIATE ACCOUNT
103054 - JOURNAL ENTRY USED BY THE BANK TO RECORD
DR. CASH; CR. BANK ACCOUNT OF
55 COLLECTION OF CASH BY THE REPORTING ENTITY AND
REPORTING ENTITY
SUBSEQUENT DEPOSIT TO THE BANK
103055 - JOURNAL ENTRY USED TO RECORD DR. EXPENSES OR ANY OTHER
56 DISBURSEMENTS OF CASH IN THE BOOKS OF THE APPROPRIATE ACCOUNT; CR. CASH OR
REPORTING ENTITY CASH IN BANK
103056 - JOURNAL ENTRY USED BY THE BANK TO RECORD DR. BANK ACCOUNT OF REPORTING
57 WITHDRAWALS OF CASH BY THE REPORTING ENTITY ENTITY; CR. CASH IN BANK
103057 - IS A STATEMENT WHICH BRINGS INTO AGREEMENT
58 THE CASH BALANCE PER BOOK AND CASH BALANCE PER BANK RECONCILIATION
BANK.
103058 - IS A MONTHLY REPORT OF THE BANK TO THE
DEPOSITOR SHOWING DATA ABOUT THE TRANSACTIONS OF
59 THE REPORTING ENTITY WITH THE BANK DURING THE BANK STATEMENT
PERIOD AND THE BEGINNING AND ENDING BALANCES OF
ITS BANK ACCOUNT.
103059 - ARE THE CHECKS (ATTACHED TO THE BANK
60 STATEMENT UPON RECEIPT) ISSUED BY THE DEPOSITOR CANCELLED CHECKS
AND PAID BY THE BANK DURING THE MONTH.
1. CREDIT MEMOS
61 103060 - BOOK RECONCILING ITEMS (3 ITEMS) 2. DEBIT MEMOS
3. ERRORS
1. DEPOSITS IN TRANSIT
62 103061 - BANK RECONCILING ITEMS (3 ITEMS) 2. OUTSTANDING CHECKS
3. ERRORS
103062 - REFER TO ITEMS NOT REPRESENTING DEPOSITS
CREDITED BY THE BANK TO THE ACCOUNT OF THE
63 CREDIT MEMOS
DEPOSITOR BUT NOT YET RECORDED BY THE DEPOSITOR
AS CASH RECEIPTS.
1. NOTES RECEIVABLE COLLECTED BY
BANK IN FAVOR OF THE DEPOSITOR
2. PROCEEDS OF BANK LOAN
64 103063 - EXAMPLES OF CREDIT MEMOS (3 ITEMS)
3. MATURED TIME DEPOSITS
TRANSFERRED BY THE BANK TO THE
CURRENT ACCOUNT OF THE DEPOSITOR
103064 - REFER TO ITEMS NOT REPRESENTING CHECKS
PAID BY BANK WHICH ARE CHARGED OR DEBITED BY THE
65 DEBIT MEMOS
BANK TO THE ACCOUNT OF THE DEPOSITOR BUT NOT YET
RECORDED BY THE DEPOSITOR AS CASH DISBURSEMENTS.
1. NSF CHECKS OR DAIF CHECKS
2. TECHNICALLY DEFECTIVE CHECKS
66 103065 - EXAMPLES OF DEBIT MEMOS (3 ITEMS)
3. BANK SERVICE CHARGES
4. REDUCTION OF LOAN
NSF (NO SUFFICIENT FUND) OR DAIF
103066 - ARE CHECKS DEPOSITED BUT NOT RETURNED BY
67 (DRAWN AGAINST INSUFFICIENT FUND)
THE BANK BECAUSE OF INSUFFICIENCY OF FUND.
CHECKS
103067 - ARE COLLECTIONS ALREADY RECORDED BY THE
68 DEPOSITOR AS CASH RECEIPTS BUT NOT YET REFLECTED DEPOSITS IN TRANSIT
ON THE BANK STATEMENT.
103068 - ARE CHECKS ALREADY RECORDED BY THE
69 DEPOSITOR AS CASH DISBURSEMENTS BUT NOT YET OUTSTANDING CHECKS
REFLECTED ON THE BANK STATEMENT.
103069 - IS A CHECK WHERE THE BANK HAS STAMPED ON
70 ITS FACE THE WORD "ACCEPTED" OR "CERTIFIED" CERTIFIED CHECKS
INDICATING SUFFICIENCY OF FUND.
CERTIFIED CHECKS SHOULD BE DEDUCTED
FROM THE TOTAL OUTSTANDING CHECKS
71 103070 - ACCOUNTING TREATMENT FOR CERTIFIED CHECKS (IF INCLUDED THEREIN) BECAUSE THEY
ARE NO LONGER OUTSTANDING FOR BANK
RECONCILIATION PURPOSES.
1. ADJUSTED BALANCE METHOD
72 103071 - FORMS OF BANK RECONCILIATION (3 ITEMS) 2. BANK TO BOOK METHOD
3. BOOK TO BANK METHOD
103072 - IS A FORM OF BANK RECONCILIATION WHERE THE
BOOK BALANCE AND THE BANK BALANCE ARE BROUGHT TO
73 ADJUSTED BALANCE METHOD
A CURRENT CASH BALANCE THAT MUST APPEAR ON THE
BALANCE SHEET.
BOOK BALANCE IS RECONCILED WITH THE BANK BALANCE
74 BOOK TO BANK METHOD
OR THE BOOK BALANCE IS ADJUSTED TO EQUAL THE BANK
BALANCE.
BANK BALANCE IS RECONCILED WITH THE BOOK BALANCE
75 BANK TO BOOK METHOD
OR THE BANK BALANCE IS ADJUSTED TO EQUAL THE BOOK
BALANCE.
103075 - FORMULA TO COMPUTE FOR THE ADJUSTED BOOK BOOK BALANCE + CREDIT MEMOS - DEBIT
76 BALANCE UNDER THE ADJUSTED BALANCE METHOD OF MEMOS ± EFFECT OF ERRORS = ADJUSTED
BANK RECONCILIATION BOOK BALANCE
103076 - FORMULA TO COMPUTE FOR THE ADJUSTED BANK BANK BALANCE + DEPOSITS IN TRANSIT -
77 BALANCE UNDER THE ADJUSTED BALANCE METHOD OF OUTSTANDING CHECKS ± EFFECT OF
BANK RECONCILIATION ERRORS = ADJUSTED BANK BALANCE
BOOK BALANCE + CREDIT MEMOS +
103077 - FORMULA USED UNDER THE BOOK TO BANK OUTSTANDING CHECKS - DEBIT MEMOS -
78 METHOD OF BANK RECONCILIATION DEPOSITS IN TRANSIT ± EFFECT OF
ERRORS = BANK BALANCE
BANK BALANCE + DEPOSITS IN TRANSIT +
103078 - FORMULA USED UNDER THE BANK TO BOOK DEBIT MEMOS - OUTSTANDING CHECKS -
79 METHOD OF BANK RECONCILIATION CREDIT MEMOS ± EFFECT OF ERRORS =
BOOK BALANCE
103079 - IS A RECONCILIATION OF THE GENERAL LEDGER
CASH BALANCE AT BOTH THE BEGINNING AND END OF A
PERIOD, COMBINED WITH A RECONCILIATION OF CASH
80 PROOF OF CASH
DEPOSITED FOR THE PERIOD WITH THE CASH RECEIPTS
JOURNAL, AND A RECONCILIATION OF CHECKS FOR THE
PERIOD WITH THE CASH DISBURSEMENTS JOURNAL.
BEGINNING OF MONTH BALANCE PER BOOK
103080 - COMPUTATION OF END OF MONTH BALANCE PER + BOOK DEBITS DURING THE MONTH -
81 BOOK BOOK CREDITS DURING THE MONTH = END
OF MONTH BALANCE PER BOOK
103081 - REFER TO CASH RECEIPTS OR ALL ITEMS DEBITED
82 BOOK DEBITS
TO THE CASH IN BANK ACCOUNT.
103082 - REFER TO CASH DISBURSEMENTS OR ALL ITEMS
83 BOOK CREDITS
CREDITED TO THE CASH IN BANK ACCOUNT.
BEGINNING OF MONTH BALANCE PER BANK
103083 - COMPUTATION OF END OF MONTH BALANCE PER + BANK CREDITS DURING THE MONTH -
84 BANK BANK DEBITS DURING THE MONTH = END
OF MONTH BALANCE PER BANK
103084 - REFER TO ALL ITEMS CREDITED TO THE ACCOUNT
85 OF THE DEPOSITOR WHICH INCLUDE DEPOSITS BANK CREDITS
ACKNOWLEDGED BY BANK AND CREDIT MEMOS.
103085 - REFER TO ALL ITEMS DEBITED TO THE ACCOUNT
86 OF THE DEPOSITOR WHICH INCLUDES CHECKS PAID BY BANK DEBITS
BANK AND DEBIT MEMOS.
BEGINNING OF MONTH DEPOSITS IN
TRANSIT + BOOK DEBITS - CM FROM
103086 - COMPUTATION OF END OF MONTH DEPOSITS IN
87 PREVIOUS MONTH - BANK CREDITS + CM
TRANSIT
FROM CURRENT MONTH = END OF MONTH
DEPOSITS IN TRANSIT
103087 - PROOF OF CASH PROCEDURE: CREDIT MEMOS OF ADD TO BEGINNING BOOK BALANCE,
88 THE PREVIOUS MONTH DEDUCT FROM BOOK RECEIPTS
103088 - PROOF OF CASH PROCEDURE: CREDIT MEMOS OF ADD TO BOOK RECEIPTS, ADD TO ENDING
89 THE CURRENT MONTH BOOK BALANCE
103089 - PROOF OF CASH PROCEDURE: DEBIT MEMOS OF DEDUCT FROM BEGINNING BOOK BALANCE,
90 THE PREVIOUS MONTH DEDUCT FROM BOOK DISBURSEMENTS
103090 - PROOF OF CASH PROCEDURE: DEBIT MEMOS OF ADD TO BOOK DISBURSEMENTS, DEDUCT
91 THE CURRENT MONTH FROM ENDING BOOK BALANCE
103091 - PROOF OF CASH PROCEDURE: DEPOSITS IN ADD TO BEGINNING BANK BALANCE,
92 TRANSIT AS OF BEGINNING OF THE CURRENT MONTH DEDUCT FROM BANK RECEIPTS
103092 - PROOF OF CASH PROCEDURE: DEPOSITS IN ADD TO BANK RECEIPTS, ADD TO ENDING
93 TRANSIT AS OF END OF THE CURRENT MONTH BANK BALANCE
103093 - PROOF OF CASH PROCEDURE: OUTSTANDING DEDUCT FROM BEGINNING BANK BALANCE,
94 CHECKS AS OF BEGINNING OF THE CURRENT MONTH DEDUCT FROM BANK DISBURSEMENTS
103094 - PROOF OF CASH PROCEDURE: OUTSTANDING ADD TO BANK DISBURSEMENTS, DEDUCT
95 CHECKS AS OF END OF THE CURRENT MONTH FROM ENDING BANK BALANCE
103095 - PROOF OF CASH PROCEDURE: OVERSTATED
RECORDING OF CASH RECEIPTS IN THE CASH IN BANK DEDUCT FROM BEGINNING BOOK BALANCE,
96 ACCOUNT (COMMITTED DURING THE PREVIOUS MONTH, ADD TO BOOK RECEIPTS
DISCOVERED IN THE CURRENT MONTH)
RECORDING OF CASH RECEIPTS IN THE CASH IN BANK DEDUCT FROM BOOK RECEIPTS, DEDUCT
97 ACCOUNT (COMMITTED DURING THE CURRENT MONTH, FROM ENDING BOOK BALANCE
DISCOVERED UPON THE RECEIPT OF BANK STATEMENT)
RECORDING OF CASH RECEIPTS IN THE CASH IN BANK DEDUCT FROM BOOK RECEIPTS, DEDUCT
98 ACCOUNT (COMMITTED AND DISCOVERED DURING THE FROM BOOK DISBURSEMENTS
CURRENT MONTH)
103098 - PROOF OF CASH PROCEDURE: UNDERSTATED
RECORDING OF CASH RECEIPTS IN THE CASH IN BANK ADD TO BEGINNING BOOK BALANCE,
99 ACCOUNT (COMMITTED DURING THE PREVIOUS MONTH, DEDUCT FROM BOOK RECEIPTS
DISCOVERED IN THE CURRENT MONTH)
RECORDING OF CASH RECEIPTS IN THE CASH IN BANK ADD TO BOOK RECEIPTS, ADD TO ENDING
100 ACCOUNT (COMMITTED DURING THE CURRENT MONTH, BOOK BALANCE
DISCOVERED UPON THE RECEIPT OF BANK STATEMENT)
RECORDING OF CASH RECEIPTS IN THE CASH IN BANK
101 NO ADJUSTMENT REQUIRED.
ACCOUNT (COMMITTED AND DISCOVERED DURING THE
CURRENT MONTH)
RECORDING OF CASH DISBURSEMENTS IN THE CASH IN ADD TO BEGINNING BOOK BALANCE,
102 BANK ACCOUNT (COMMITTED DURING THE PREVIOUS DEDUCT FROM BOOK RECEIPTS
MONTH, DISCOVERED IN THE CURRENT MONTH)
RECORDING OF CASH DISBURSEMENTS IN THE CASH IN
DEDUCT FROM BOOK DISBURSEMENTS,
103 BANK ACCOUNT (COMMITTED DURING THE CURRENT
ADD TO ENDING BOOK BALANCE
MONTH, DISCOVERED UPON THE RECEIPT OF BANK
STATEMENT)
RECORDING OF CASH DISBURSEMENTS IN THE CASH IN DEDUCT FROM BOOK RECEIPTS, DEDUCT
104 BANK ACCOUNT (COMMITTED AND DISCOVERED DURING FROM BOOK DISBURSEMENTS
THE CURRENT MONTH)
105 103104 - PROOF OF CASH PROCEDURE: UNDERSTATED DEDUCT FROM BEGINNING BOOK BALANCE,
BANK ACCOUNT (COMMITTED DURING THE PREVIOUS DEDUCT FROM BOOK DISBURSEMENTS
MONTH, DISCOVERED IN THE CURRENT MONTH)
ADD TO BOOK DISBURSEMENTS, DEDUCT
106 BANK ACCOUNT (COMMITTED DURING THE CURRENT
FROM ENDING BOOK BALANCE
MONTH, DISCOVERED UPON THE RECEIPT OF BANK
STATEMENT)
BANK ACCOUNT (COMMITTED AND DISCOVERED DURING
THE CURRENT MONTH)
RECORDING OF CASH DEPOSIT IN THE BANK ACCOUNT OF DEDUCT FROM BEGINNING BANK BALANCE,
108 REPORTING ENTITY (COMMITTED DURING THE PREVIOUS DEDUCT FROM BANK DISBURSEMENTS
MONTH, CORRECTED IN THE CURRENT MONTH)
RECORDING OF CASH DEPOSIT IN THE BANK ACCOUNT OF DEDUCT FROM BANK RECEIPTS, DEDUCT
109 REPORTING ENTITY (COMMITTED DURING THE CURRENT FROM ENDING BANK BALANCE
MONTH, STILL UNCORRECTED AS PER BANK STATEMENT)
RECORDING OF CASH DEPOSIT IN THE BANK ACCOUNT OF DEDUCT FROM BANK RECEIPTS, DEDUCT
110 REPORTING ENTITY (COMMITTED AND CORRECTED IN THE FROM BANK DISBURSEMENTS
CURRENT MONTH)
RECORDING OF CASH DEPOSIT IN THE BANK ACCOUNT OF ADD TO BEGINNING BANK BALANCE,
111 REPORTING ENTITY (COMMITTED DURING THE PREVIOUS DEDUCT FROM BANK RECEIPTS
MONTH, CORRECTED IN THE CURRENT MONTH)
RECORDING OF CASH DEPOSIT IN THE BANK ACCOUNT OF ADD TO BANK RECEIPTS, ADD TO ENDING
112 REPORTING ENTITY (COMMITTED DURING THE CURRENT BANK BALANCE
RECORDING OF CASH DEPOSIT IN THE BANK ACCOUNT OF
REPORTING ENTITY (COMMITTED AND CORRECTED IN THE
CURRENT MONTH)
RECORDING OF CHECK PAYMENT IN THE BANK ACCOUNT ADD TO BEGINNING BANK BALANCE,
114 OF REPORTING ENTITY (COMMITTED DURING THE DEDUCT FROM BANK RECEIPTS
PREVIOUS MONTH, CORRECTED IN THE CURRENT MONTH)
RECORDING OF CHECK PAYMENT IN THE BANK ACCOUNT DEDUCT FROM BANK DISBURSEMENTS,
115 OF REPORTING ENTITY (COMMITTED DURING THE CURRENT ADD TO ENDING BANK BALANCE
RECORDING OF CHECK PAYMENT IN THE BANK ACCOUNT DEDUCT FROM BANK RECEIPTS, DEDUCT
116 OF REPORTING ENTITY (COMMITTED AND CORRECTED IN FROM BANK DISBURSEMENTS
THE CURRENT MONTH)
RECORDING OF CHECK PAYMENT IN THE BANK ACCOUNT DEDUCT FROM BEGINNING BANK BALANCE,
117 OF REPORTING ENTITY (COMMITTED DURING THE DEDUCT FROM BANK DISBURSEMENTS
PREVIOUS MONTH, CORRECTED IN THE CURRENT MONTH)
118 103117 - PROOF OF CASH PROCEDURE: UNDERSTATED ADD TO BANK DISBURSEMENTS, DEDUCT
RECORDING OF CHECK PAYMENT IN THE BANK ACCOUNT FROM ENDING BANK BALANCE
OF REPORTING ENTITY (COMMITTED DURING THE CURRENT
RECORDING OF CHECK PAYMENT IN THE BANK ACCOUNT
OF REPORTING ENTITY (COMMITTED AND CORRECTED IN
THE CURRENT MONTH)
1 FAR - RECEIVABLES (104001 - 104170)

104001 - ARE FINANCIAL ASSETS THAT REPRESENT A
2 CONTRACTUAL RIGHT TO RECEIVE CASH OR RECEIVABLES
ANOTHER FINANCIAL ASSET FROM ANOTHER ENTITY.
104002 - REFER TO CLAIMS ARISING FROM SALE OF
MERCHANDISE OR SERVICES IN THE ORDINARY
3 TRADE RECEIVABLES
COURSE OF BUSINESS (E.G., ACCOUNTS
RECEIVABLE, NOTES RECEIVABLE, ETC.).
104003 - ARE OPEN ACCOUNTS ARISING FROM THE
ACCOUNTS RECEIVABLE, CUSTOMERS'
SALE OF GOODS AND SERVICES IN THE ORDINARY
4 ACCOUNTS, TRADE DEBTORS, OR TRADE
COURSE OF BUSINESS AND NOT SUPPORTED BY
ACCOUNTS RECEIVABLE
PROMISSORY NOTES.
104004 - ARE RECEIVABLES SUPPORTED BY FORMAL
5 NOTES RECEIVABLE
PROMISES TO PAY IN THE FORM OF NOTES.
104005 - REPRESENT CLAIMS ARISING FROM
SOURCES OTHER THAN THE SALE OF MERCHANDISE
6 NONTRADE RECEIVABLES
OR SERVICES IN THE ORDINARY COURSE OF
BUSINESS.
TO BE CLASSIFIED AS CURRENT ASSETS, THEY
104006 - CRITERIA FOR TRADE RECEIVABLES TO BE MUST BE EXPECTED TO BE REALIZED IN CASH
7 CLASSIFIED AS CURRENT ASSETS WITHIN THE NORMAL OPERATING CYCLE OR ONE
YEAR, WHICHEVER IS LONGER.
TO BE CLASSIFIED AS CURRENT ASSETS, THEY
104007 - CRITERIA FOR NONTRADE RECEIVABLES TO MUST BE EXPECTED TO BE REALIZED IN CASH
8 BE CLASSIFIED AS CURRENT ASSETS WITHIN ONE YEAR, THE LENGTH OF THE
OPERATING CYCLE NOTWITHSTANDING.
104008 - CURRENT OR NONCURRENT ASSET::
GR: CURRENT ASSET
ADVANCES TO OR RECEIVABLES FROM
9 XPN: NONCURRENT ASSET IF STATED TO BE
SHAREHOLDERS, DIRECTORS, OFFICERS OR
COLLECTIBLE BEYOND 1 YEAR
EMPLOYEES
104009 - CURRENT OR NONCURRENT ASSET:
10 NONCURRENT (LONG-TERM INVESTMENT)
ADVANCES TO AFFILIATES
GR: DEDUCTION FROM SUBSCRIBED SHARE
104010 - CURRENT OR NONCURRENT ASSET: CAPITAL
11 SUBSCRIPTION RECEIVABLE XPN: CURRENT ASSET IF STATED TO BE
COLLECTIBLE WITHIN 1 YEAR
104011 - CURRENT OR NONCURRENT ASSET: DEBIT GR: CURRENT ASSET
BALANCES IN CREDITORS' ACCOUNTS RESULTING XPN: IF THE AMOUNT IS IMMATERIAL, OFFSET
12 FROM OVERPAYMENTS AND RETURNS AND AGAINST THE CREDITORS' ACCOUNTS WITH
ALLOWANCES CREDIT BALANCES
13 104012 - CURRENT OR NONCURRENT ASSET: SPECIAL GR: NONCURRENT ASSET
DEPOSITS ON CONTRACT BIDS XPN: CURRENT ASSET IF STATED TO BE
COLLECTIBLE WITHIN 1 YEAR
104013 - CURRENT OR NONCURRENT ASSET:
ACCRUED INCOME (E.G., DIVIDENDS RECEIVABLE,
14 ACCRUED RENT INCOME, ACCRUED ROYALTIES CURRENT ASSET
INCOME, ACCRUED INTEREST ON BOND
INVESTMENTS, ETC.)
104014 - CURRENT OR NONCURRENT ASSET: CLAIMS
RECEIVABLE (E.G., CLAIMS AGAINST COMMON
15 CARRIERS FOR LOSSES OR DAMAGES, CLAIM FOR CURRENT ASSET
REBATES AND TAX REFUNDS, CLAIMS FROM
INSURANCE ENTITIES, ETC.)
104015 - CLASSIFICATION OF CUSTOMERS' CREDIT GR: CURRENT LIABILITY
BALANCES RESULTING FROM OVERPAYMENTS, XPN: IF THE AMOUNT IS IMMATERIAL, OFFESET
16 RETURNS AND ALLOWANCES, AND ADVANCE AGAINST CUSTOMERS' ACCOUNTS WITH DEBIT
PAYMENTS FROM CUSTOMERS BALANCES
104016 - INITIAL MEASUREMENT OF ACCOUNTS FAR VALUE (FACE AMOUNT OR ORIGINAL INVOICE
17 RECEIVABLE AMOUNT)
AMORTIZED COST (NET REALIZABLE VALUE OF
104017 - SUBSEQUENT MEASUREMENT OF ACCOUNTS
18 ACCOUNTS RECEIVABLE OR GROSS ACCOUNTS
RECEIVABLE
RECEIVABLE LESS ALLOWANCES)
104018 - ALLOWANCES USUALLY DEDUCTED FROM 1. ALLOWANCE FOR FREIGHT CHARGE
ACCOUNTS RECEIVABLE TO GET ITS ESTIMATED 2. ALLOWANCE FOR SALES RETURN
19 RECOVERABLE AMOUNT OR NET REALIZABLE VALUE 3. ALLOWANCE FOR SALES DISCOUNT
(4 ITEMS) 4. ALLOWANCE FOR DOUBTFUL ACCOUNTS
104019 - IS A SHIPPING TERM WHICH MEANS THAT
20 OWNERSHIP OF THE GOODS PURCHASED IS VESTED FOB DESTINATION
IN THE BUYER UPON RECEIPT THEREOF.
104020 - IS A SHIPPING TERM WHICH MEANS THAT
21 OWNERSHIP OF THE GOODS PURCHASED IS VESTED FOB SHIPPING POINT
IN THE BUYER UPON SHIPMENT THEREOF.
104021 - SELLER OR BUYER: RESPONSIBLE FOR THE
22 SELLER
FREIGH CHARGE UNDER FOB DESTINATION
104022 - SELLER OR BUYER: RESPONSIBLE FOR THE
23 BUYER
FREIGH CHARGE UNDER FOB SHIPPING POINT
104023 - MEANS THAT FREIGHT CHARGE ON THE
24 GOODS SHIPPED IS NOT YET PAID WHEN THE GOODS FREIGHT COLLECT
WERE SHIPPED (TO BE PAID BY THE BUYER).
104024 - MEANS THAT FREIGHT CHARGE ON THE
25 GOODS SHIPPED WAS ALREADY PAID (BY THE FREIGHT PREPAID
SELLER) WHEN THE GOODS WERE SHIPPED
104025 - JOURNAL ENTRY TO RECORD SHIPMENT OF
DR. ACCOUNTS RECEIVABLE, FREIGHT OUT; CR.
26 MERCHANDISE SOLD FREIGHT COLLECT UNDER FOB
SALES, ALLOWANCE FOR FREIGHT CHARGE
DESTINATION
DR. ACCOUNTS RECEIVABLE, FREIGHT OUT; CR.
27 MERCHANDISE FREIGHT PREPAID UNDER FOB
SALES, CASH
DESTINATION
28 MERCHANDISE SOLD FREIGHT COLLECT UNDER FOB DR. ACCOUNTS RECEIVABLE, CR. SALES
SHIPPING POINT
DR. ACCOUNTS RECEIVABLE (INVOICE AMOUNT +
29 MERHCANDISE SOLD FREIGHT PREPAID UNDER FOB
FREIGHT CHARGE); CR. SALES, CASH
SHIPPING POINT
104029 - JOURNAL ENTRY TO RECORD PROBABLE DR. SALES RETURN; CR.ALLOWANCE FOR SALES
30 RETURN OF MERCHANDISE SOLD TO CUSTOMER RETURN
104030 - IS A DISCOUNT THAT IS ALLOWED BY THE
WHOLESALER TO THE RETAILER, CALCULATED ON
31 TRADE DISCOUNT
THE LIST PRICE OF THE PRODUCT. NO LEDGER
ACCOUNT IS OPENED FOR THIS KIND OF DISCOUNT.
104031 - IS A DISCOUNT ALLOWED TO STIMULATE
32 CASH DISCOUNT
INSTANT PAYMENT OF THE GOODS PURCHASED.
104032 - METHODS OF RECORDING CREDIT SALES (2 1. GROSS METHOD
33 ITEMS) 2. NET METHOD
104033 - IS A METHOD OF RECORDING CREDIT SALES
WHERE THE ACCOUNTS RECEIVABLE AND SALES ARE
34 GROSS METHOD
RECORDED AT GROSS AMOUNT OF THE INVOICE
(MORE COMMONLY USED).
104034 - IS A METHOD OF RECORDING CREDIT SALES
WHERE THE ACCOUNTS RECEIVABLE AND SALES ARE
35 RECORDED AT NET AMOUNT OF THE INVOICE, NET METHOD
MEANING THE INVOICE PRICE MINUS THE CASH
DISCOUNT.
104035 - JOURNAL ENTRY TO RECORD SALE OF DR. ACCOUNTS RECEIVABLE (GROSS AMOUNT OF
36 MERCHANDISE ON ACCOUNT UNDER GROSS METHOD INVOICE); CR. SALES
104036 - JOURNAL ENTRY TO RECORD COLLECTION
DR. CASH, SALES DISCOUNT; CR. ACCOUNTS
37 OF CUSTOMER'S ACCOUNT WITHIN THE DISCOUNT
RECEIVABLE
PERIOD UNDER GROSS METHOD
38 OF CUSTOMER'S ACCOUNT BEYOND THE DISCOUNT DR. CASH; CR. ACCOUNTS RECEIVABLE
PERIOD UNDER GROSS METHOD
104038 - JOURNAL ENTRY TO RECORD SALE OF DR. ACCOUNTS RECEIVABLE (INVOICE PRICE -
39 MERCHANDISE ON ACCOUNT UNDER NET METHOD CASH DISCOUNT); CR. SALES
40 OF CUSTOMER'S ACCOUNT WITHIN THE DISCOUNT DR. CASH; CR. ACCOUNTS RECEIVABLE
PERIOD UNDER NET METHOD
DR. CASH; CR. ACCOUNTS RECEIVABLE, SALES
41 OF CUSTOMER'S ACCOUNT BEYOND THE DISCOUNT
DISCOUNT FORFEITED
PERIOD UNDER NET METHOD
104041 - CLASSIFICATION OF SALES DISCOUNT
42 OTHER INCOME
FORFEITED
DR. SALES DISCOUNT; CR. ALLOWANCE FOR
104042 - JOURNAL ENTRY TO RECORD EXPECTED SALES DISCOUNT
43 SALES DISCOUNT (THIS ENTRY MAY BE REVERSED AT THE
BEGINNING OF THE NEXT PERIOD.)
104043 - IS AN EXPENSE THAT A BUSINESS INCURS
ONCE THE REPAYMENT OF CREDIT PREVIOUSLY
44 BAD DEBT
EXTENDED TO A CUSTOMER IS ESTIMATED TO BE
UNCOLLECTIBLE.
104044 - METHODS OF ACCOUNTING FOR BAD DEBTS 1. ALLOWANCE METHOD
45 (2 ITEMS) 2. DIRECT WRITEOFF METHOD
104045 - IS A METHOD OF ACCOUNTING FOR BAD
DEBTS WHICH REQUIRES THE RECOGNITION OF A
BAD DEBT LOSS IF THE ACCOUNTS ARE DOUBTFUL
46 ALLOWANCE METHOD
OF COLLECTION (I.E., A PROVISION FOR DOUBTFUL
ACCOUNTS IS REQUIRED AT THE END OF REPORTING
PERIOD).
47 104046 - IS A METHOD OF ACCOUNTING FOR BAD DIRECT WRITEOFF METHOD
DEBTS WHICH REQUIRES RECOGNITION OF A BAD
DEBT LOSS ONLY WHEN THE ACCOUNTS ARE
PROVED TO BE WORTHLESS OR UNCOLLECTIBLE.
104047 - IS THE AMOUNT OF AN EXPENSE THAT AN
ENTITY ELECTS TO RECOGNIZE NOW, BEFORE IT HAS
48 PROVISION
PRECISE INFORMATION ABOUT THE EXACT AMOUNT
OF THE EXPENSE.
104048 - IS A REDUCTION IN THE RECORDED AMOUNT
OF AN ASSET WHICH OCCURS UPON THE
49 REALIZATION THAT AN ASSET NO LONGER CAN BE WRITEOFF
CONVERTED INTO CASH, CAN PROVIDE NO FURTHER
USE TO A BUSINESS, OR HAS NO MARKET VALUE.
104049 - JOURNAL ENTRY TO RECORD PROVISION
DR. DOUBTFUL ACCOUNTS EXPENSE; CR.
50 FOR DOUBTFUL ACCOUNTS UNDER ALLOWANCE
ALLOWANCE FOR DOUBTFUL ACCOUNTS
METHOD
104050 - JOURNAL ENTRY TO RECORD WRITEOFF OF
DR. ALLOWANCE FOR DOUBTFUL ACCOUNTS; CR.
51 ACCOUNTS PROVED TO BE WORTHLESS OR
ACCOUNTS RECEIVABLE
UNCOLLECTIBLE UNDER ALLOWANCE METHOD
104051 - JOURNAL ENTRY TO RECORD RECOVERY
DR. CASH; CR. ALLOWANCE FOR DOUBTFUL
52 AND COLLECTION OF ACCOUNT PREVIOUSLY
ACCOUNTS
WRITTEN OFF UNDER ALLOWANCE METHOD
104052 - JOURNAL ENTRY TO RECORD WRITEOFF OF
DR. BAD DEBTS EXPENSE; CR. ACCOUNTS
53 ACCOUNTS PROVED TO BE WORTHLESS OR
RECEIVABLE
UNCOLLECTIBLE UNDER DIRECT WRITEOFF METHOD
104053 - JOURNAL ENTRY TO RECORD RECOVERY
54 AND COLLECTION OF ACCOUNT PREVIOUSLY DR. CASH; CR. BAD DEBTS EXPENSE
WRITTEN OFF UNDER ALLOWANCE METHOD
1. DISTRIBUTION COST - IF THE GRANTING OF
CREDIT AND COLLECTION OF ACCOUNTS ARE
UNDER THE CHARGE OF THE SALES MANAGER.
104054 - CLASSIFICATION OF DOUBTFUL ACCOUNTS 2. ADMINISTRATIVE EXPENSE - IF THE GRANTING
55 OR BAD DEBTS EXPENSE IN THE INCOME STATEMENT OF CREDIT AND COLLECTION OF ACCOUNTS ARE
(2 ITEMS) UNDER THE CHARGE OF AN OFFICER OTHER
THAN SALES MANGER.
(IF THE PROBLEM IS SILENT, ADMINISTRATIVE
EXPENSE)
1. AGING OF ACCOUNTS RECEIVABLE
104055 - METHODS OF ESTIMATING DOUBTFUL
56 2. PERCENTAGE OF ACCOUNTS RECEIVABLE
ACCOUNTS (3 ITEMS)
3. PERCENTAGE OF SALES
104056 - STATEMENT OF FINANCIAL POSITION
1. AGING OF ACCOUNTS RECEIVABLE
57 APPROACHES IN ESTIMATING DOUBTFUL ACCOUNTS
2. PERCENGTAGE OF ACCOUNTS RECEIVABLE
(2 ITEMS)
104057 - INCOME STATEMENT APPROACH IN
58 PERCENTAGE OF SALES
ESTIMATING DOUBTFUL ACCOUNTS
104058 - REFERS TO THE METHOD OF ESTIMATING
DOUBTFUL ACCOUNTS WHERE THE RECEIVABLES
ARE CLASSIFIED BY DUE DATE. THE ALLOWANCE IS
THEN DETERMINED BY MULTIPLYING THE TOTAL OF
59 EACH CLASSIFICATION BY THE RATE OR PERCENT OF AGING OF ACCOUNTS RECEIVABLE
LOSS EXPERIENCED BY THE ENTITY FOR EACH
CATEGORY (ACCURATE AND SCIENTIFIC; PRESENTS
FAIRLY THE ACCOUNTS RECEIVABLE AT NET
REALIZABLE VALUE).
60 104059 - IS A METHOD OF ESTIMATING DOUBTFUL PERCENTAGE OF ACCOUNTS RECEIVABLE
ACCOUNTS WHERE A CERTAIN RATE IS MULTIPLIED
BY THE OPEN ACCOUNTS AT THE END OF THE
PERIOD IN ORDER TO GET THE REQUIRED
ALLOWANCE BALANCE.
104060 - IS A METHOD OF ESTIMATING DOUBTFUL
ACCOUNTS WHERE THE AMOUNT OF SALES FOR THE
61 PERCENTAGE OF SALES
YEAR IS MULTIPLIED BY A CERTAIN RATE TO GET THE
DOUBTFUL ACCOUNTS EXPENSE.
104061 - RESULT OF USING AGING OF ACCOUNTS
62 ENDING ALLOWANCE FOR DOUBTFUL ACCOUNTS
RECEIVABLE
104062 - RESULT OF USING PERCENTAGE OF
63 ENDING ALLOWANCE FOR DOUBTFUL ACCOUNTS
RECEIVABLES
DOUBTFUL ACCOUNTS EXPENSE FOR THE
64 104063 - RESULT OF USING PERCENTAGE OF SALES
PERIOD
1. INADEQUATE ALLOWANCE - DR. DOUBTFUL
ACCOUNTS EXPENSE; CR. ALLOWANCE FOR
104064 - JOURNAL ENTRY TO RECORD CORRECTION
DOUBTFUL ACCOUNTS
65 IN ALLOWANCE FOR DOUBTFUL ACCOUNT AS A
2. EXCESSIVE ALLOWANCE - DR. ALLOWANCE
CHANGE IN ACCOUNTING ESTIMATE (2 ITEMS)
FOR DOUBTFUL ACCOUNTS; CR. DOUBTFUL
ACCOUNTS EXPENSE
104065 - IS THE LOSS ALLOWANCE REQUIRED TO BE
66 RECOGNIZED FOR EXPECTED CREDIT LOSSES ON ALLOWANCE FOR IMPAIRMENT
FINANCIAL ASSETS MEASURED AT AMORTIZED COST.
104066 - RULE ON ASSESSMENT FOR IMPAIRMENT THESE SHOULD BE CONSIDERED FOR
67 REGARDING INDIVIDUALLY SIGNIFICANT ACCOUNTS IMPAIRMENT SEPARATELY AND IF IMPAIRED, THE
RECEIVABLE IMPAIRMENT LOSS IS RECOGNIZED.
THESE SHOULD BE COLLECTIVELY ASSESSED
104067 - RULE ON ASSESSMENT FOR IMPAIRMENT FOR IMPAIRMENT (USE OF A COMPOSITE RATE
68 REGARDING ACCOUNTS RECEIVABLE WHICH ARE THAT CAN APPROPRIATELY MEASURE
NOT INDIVIDUALLY SIGNIFICANT IMPAIRMENT ON ALL ACCOUNTS IN THE
CATEGORY).
THESE SHOULD BE INCLUDED WITH OTHER
104068 - RULE ON ASSESSMENT FOR IMPAIRMENT ACCOUNTS RECEIVABLE (THOSE NOT
69 REGARDING INDIVIDUALLY SIGNIFICANT ACCOUNTS INDIVIDUALLY SIGNIFICANT) WITH SIMILAR
RECEIVABLE CREDIT-RISK CHARACTERISTICS AND
COLLECTIVELY ASSESSED FOR IMPAIRMENT.
104069 - JOURNAL ENTRY TO RECORD IMPAIRMENT DR. DOUBTFUL ACCOUNTS EXPENSE; CR.
70 LOSS ON ACCOUNTS RECEIVABLE ALLOWANCE FOR DOUBTFUL ACCOUNTS
104070 - IS AN UNCONDITIONAL PROMISE MADE IN
WRITING MADE BY ONE PERSON TO ANOTHER,
SIGNED BY THE MAKER, ENGAGING TO PAY ON
71 NEGOTIABLE PROMISSORY NOTE
DEMAND OR AT A FIXED OR DETERMINABLE FUTURE
TIME A SUM CERTAIN IN MONTY TO ORDER OR TO
BEARER.
104071 - IS THE STATUS OF A PROMISSORY NOTE
72 THAT HAS ALREADY MATURED BUT IS STILL UNPAID DISHONORED
AFTER ITS PRESENTMENT FOR PAYMENT.
THESE (FACE AMOUNT, INTEREST AND OTHER
104072 - TREATMENT FOR DISHONORED NOTES CHARGES) SHOULD BE REMOVED FROM THE
73 RECEIVABLE NOTES RECEIVABLE ACCOUNT AND
TRANSFERRED TO ACCOUNTS RECEIVABLE.
FAIR VALUE PLUS TRANSACTION COSTS WHICH IS
EQUAL TO:
104073 - INITIAL MEASUREMENT OF NOTES
74 GR: PRESENT VALUE
RECEIVABLE
XPN:SHORT-TERM NOTES RECEIVABLE SHALL BE
MEASURED AT FACE VALUE.
75 104074 - IS THE SUM OF ALL FUTURE CASH FLOWS PRESENT VALUE
DISCOUNTED USING THE PREVAILING MARKET RATE
OF INTEREST FOR SIMILAR NOTES.
104075 - IS THE INTEREST RATE WRITTEN ON THE
76 NOMINAL INTEREST RATE (FORM)
FACE OF AN INSTRUMENT.
104076 - IS THE PREVAILING MARKET RATE OF
77 EFFECTIVE INTEREST RATE (SUBSTANCE)
INTEREST.
1. INTEREST-BEARING NOTE (NOMINAL RATE =
EFFECTIVE INTEREST RATE)
2. INTEREST-BEARING NOTE (NOMINAL RATE >
104077 - CLASSIFICATION OF NOTES RECEIVABLE AS
78 EFFECTIVE INTEREST RATE)
TO THE INTEREST THEY CONTAIN (4 ITEMS)
3. INTEREST-BEARING NOTE (NOMINAL RATE <
EFFECTIVE INTEREST RATE)
4. NONINTEREST-BEARING NOTE
104078 - TREATMENT FOR INTEREST-BEARING NOTE
IT IS RECORDED AT FACE VALUE (WHICH IS
79 RECEIVABLE WITH NOMINAL RATE EQUAL TO THE
EQUAL TO ITS PRESENT VALUE UPON ISSUANCE).
EFFECTIVE INTEREST RATE
104079 - TREATMENT FOR INTEREST-BEARING NOTE
IT IS RECORDED AT FACE VALUE (WHICH IS
80 RECEIVABLE WITH NOMINAL RATE GREATER THAN
EQUAL TO ITS PRESENT VALUE UPON ISSUANCE).
THE EFFECTIVE INTEREST RATE
104080 - TREATMENT FOR INTEREST-BEARING NOTE IT IS MEASURED AT PRESENT VALUE WHICH IS
81 RECEIVABLE WITH NOMINAL RATE LESS THAN THE THE DISCOUNTED VALUE OF FUTURE CASH
EFFECTIVE INTEREST RATE FLOWS USING THE EFFECTIVE INTEREST RATE.
IT IS MEASURED AT PRESENT VALUE WHICH IS
104081 - TREATMENT FOR NON-INTEREST BEARING
82 THE DISCOUNTED VALUE OF FUTURE CASH
NOTE RECEIVABLE
FLOWS USING THE EFFECTIVE INTEREST RATE.
104082 - IS AN INTEREST RATE THAT IS NOT
83 IMPLICIT INTEREST RATE
EXPLICITLY STATED IN A DEBT AGREEMENT.
104083 - SUBSEQUENT MEASUREMENT OF NOTES AT AMORTIZED COST USING THE EFFECTIVE
84 RECEIVABLE INTEREST METHOD
INITIAL MEASUREMENT OF NOTE RECEIVABLE
- PRINCIPAL REPAYMENT
104084 - FORMULA FOR AMORTIZED COST OF NOTE +/- CUMULATIVE AMORTIZATION
85 RECEIVABLE (EFFECTIVE INTEREST METHOD) - REDUCTION FOR IMPAIRMENT OR
UNCOLLECTIBILITY
= AMORTIZED COST OF NOTE RECEIVABLE
104085 - IS A FINANCIAL ASSET ARISING FROM A LOAN
86 GRANTED BY A BANK OR OTHER FINANCIAL LOAN RECEIVABLE
INSTITUTION TO A BORROWER OR CLIENT.
FAIR VALUE PLUS TRANSACTION COSTS THAT
ARE DIRECTLY ATTRIBUTABLE TO THE
104086 - INITIAL MEASUREMENT OF LOAN
87 ACQUISITION OF THE FINANCIAL ASSET
RECEIVABLE
(TRANSACTION PRICE + DIRECT ORIGINATION
COSTS - ORIGINATION FEE)
104087 - ARE INCREMENTAL DIRECT COSTS OF LOAN
ORIGINATION RESULTING FROM DEALINGS WITH
INDEPENDENT THIRD PARTIES FOR THAT LOAN AND
VARIOUS DIRECT COSTS FROM SPECIFIC ACTIVITIES
88 DIRECT ORIGINATION COSTS
OF THE LENDER FOR THAT LOAN SUCH AS
EVALUATING THE PROSPECTIVE BUYER’S ECONOMIC
CONDITION, EVALUATING AND RECORDING
GUARANTEES, ETC.
GR: INCLUDED IN THE INITIAL MEASUREMENT OF
104088 - TREATMENT FOR DIRECT ORIGINATION LOAN RECEIVABLE.
89 COSTS XPN: EXPENSED OUTRIGHT IF THE LOAN DID NOT
MATERIALIZE.
104089 - ARE OPERATING COSTS OF A LENDING
INSTITUTION NOT DIRECTLY INCURRED FOR A
90 SPECIFIC LOAN SUCH AS ADMINISTRATIVE COST, INDIRECT ORIGINATION COSTS
RENT, DEPRECIATION AND ALL OTHER OCCUPANCY
AND EQUIPMENT COSTS.
104090 - TREATMENT FOR INDIRECT ORIGINATION
91 EXPENSED AS INCURRED
COSTS
104091 - IS AN UPFRONT FEE CHARGED BY A LENDER
92 ORIGINATION FEE
FOR PROCESSING OF A NEW LOAN APPLICATION.
IT IS RECOGNIZED AS UNEARNED INTEREST
93 104092 - TREATMENT FOR ORIGINATION FEE INCOME AND AMORTIZED OVER THE TERM OF
THE LOAN.
104093 - SUBSEQUENT MEASUREMENT OF LOAN AT AMORTIZED COST USING THE EFFECTIVE
94 RECEIVABLE INTEREST METHOD
INITIAL MEASUREMENT OF LOAN RECEIVABLE
- PRINCIPAL REPAYMENT
104094 - FORMULA FOR AMORTIZED COST OF LOAN +/- CUMULATIVE AMORTIZATION
95 RECEIVABLE (EFFECTIVE INTEREST METHOD) - REDUCTION FOR IMPAIRMENT OR
UNCOLLECTIBILITY
= AMORTIZED COST OF LOAN RECEIVABLE
104095 - ARE THE PRESENT VALUE OF ALL CASH
96 SHORTFALLS FROM A LOAN RECEIVABLE OR ANY CREDIT LOSSES
SIMILAR FINANCIAL ASSET.
104096 - IS THE RISK THAT ONE PARTY TO A
FINANCIAL INSTRUMENT WILL CAUSE A FINANCIAL
97 CREDIT RISK
LOSS FOR THE OTHER PARTY BY FAILING TO
DISCHARGE AN OBLIGATION.
104097 - IS MEASURED AS THE DIFFERENCE
BETWEEN THE CARRYING AMOUNT AND THE
98 PRESENT VALUE OF ESTIMATED FUTURE CASH IMPAIRMENT LOSS ON LOAN RECEIVABLE
FLOWS DISCOUNTED AT THE ORIGINAL EFFECTIVE
RATE.
104098 - IS THE FINANCIAL FLEXIBILITY OR
99 CAPABILITY OF AN ENTITY TO RAISE MONEY OUT OF RECEIVABLE FINANCING
ITS RECEIVABLES.
1. PLEDGE OF ACCOUNTS RECEIVABLE
2. ASSIGNMENT OF ACCOUNTS RECEIVABLE
100 104099 - FORMS OF RECEIVABLE FINANCING (4 ITEMS)
3. FACTORING OF ACCOUNTS RECEIVABLE
4. DISCOUNTING OF NOTES RECEIVABLE
104100 - IS A FORM OF RECEIVABLE FINANCING
WHERE A BUSINESS USES ITS ACCOUNTS
101 PLEDGE OF ACCOUNTS RECEIVABLE
RECEIVABLE AS COLLATERAL ON A LOAN, USUALLY A
LINE OF CREDIT.
104101 - IS THE PRESET BORROWING LIMIT THAT A
102 LINE OF CREDIT
BORROWER CAN USE AT ANY TIME.
104102 - EXISTS WHEN THE INTEREST FOR THE TERM
103 DISCOUNT ON NOTES PAYABLE
OF THE LOAN IS DEDUCTED IN ADVANCE.
104103 - JOURNAL ENTRY TO RECORD THE LOAN IN
WHICH ACCOUNTS RECEIVABLE HAVE BEEN DR. CASH, DISCOUNT ON NOTE PAYABLE (IF
104 PLEDGED (EVIDENCED BY A DISCOUNTED DISCOUNTED); CR. NOTE PAYABLE
PROMISSORY NOTE)
105 104104 - JOURNAL ENTRY TO RECORD AMORTIZATION DR. INTEREST EXPENSE; CR. DISCOUNT ON NOT
OF DISCOUNT ON NOTE PAYABLE AT THE END OF PAYABLE
REPORTING PERIOD OR AT THE DATE OF
SETTLEMENT
104105 - FORMULA FOR CARRYING AMOUNT OF NOTE PAYABLE - DISCOUNT ON NOTE PAYABLE =
106 DISCOUNTED NOTE PAYABLE CARRYING AMOUNT OF NOTE PAYABLE
104106 - JOURNAL ENTRY TO RECORD PAYMENT OF
107 DR. NOTE PAYABLE; CR. CASH
BANK LOAN
WHERE A BORROWER CALLED THE ASSIGNOR
108 TRANSFER RIGHTS IN SOME ACCOUNTS RECEIVABLE ASSIGNMENT OF ACCOUNTS RECEIVABLE
TO A LENDER CALLED THE ASSIGNEE IN
CONSIDERATION FOR A LOAN.
104108 - KINDS OF ASSIGNMENT OF ACCOUNTS
1. NONNOTIFICATION BASIS
109 RECEIVABLE AS TO THE REQUIREMENT TO INFORM
2. NOTIFICATION BASIS
CUSTOMERS ABOUT THE ASSIGNMENT (2 ITEMS)
104109 - IS A KIND OF ASSIGNMENT OF ACCOUNTS
RECEIVABLE WHERE THE CUSTOMERS ARE NOT
110 NONNOTIFICATION BASIS
INFORMED THAT THEIR ACCOUNTS HAVE BEEN
ASSIGNED (MORE COMMONLY PRACTICED).
104110 - IS A KIND OF ASSIGNMENT OF ACCOUNTS
RECEIVABLE WHERE THE CUSTOMERS ARE NOTIFIED
111 THAT THEIR ACCOUNTS HAVE BEEN ASSIGNED TO NOTIFICATION BASIS
HAVE THEM MAKE THEIR PAYMENTS DIRECTLY TO
THE ASSIGNEE.
104111 - IS THE INTEREST FOR THE LOAN THAT AN
SERVICE CHARGE, FINANCING CHARGE OR
112 ASSIGNEE CHARGES FOR THE ASSIGNMENT
COMMISSION
AGREEMENT.
104112 - IS THE DIFFERENCE BETWEEN THE
ACCOUNTS RECEIVABLE ASSIGNED AND THE NOTE
113 EQUITY IN ASSIGNED ACCOUNTS RECEIVABLE
PAYABLE FROM BANK THAT SHALL BE DISCLOSED BY
THE ENTITY.
104113 - JOURNAL ENTRY TO RECORD SEPARATION
DR. ACCOUNTS RECEIVABLE - ASSIGNED; CR.
114 OF ASSINGED ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE
(NONNOTIFICATION BASIS)
104114 - JOURNAL ENTRY TO RECORD THE LOAN FOR
WHICH SPECIFIC ACCOUNTS RECEIVABLE ARE DR. CASH, SERVICE CHARGE; CR. NOTE PAYABLE
115 ASSIGNED WITH SERVICE CHARGE - BANK
104115 - JOURNAL ENTRY TO RECORD THE ISSUANCE
OF A CREDIT MEMO FOR SALES RETURN TO A DR. SALES RETURN; CR. ACCOUNTS RECEIVABLE
116 CUSTOMER WHOSE ACCOUNT WAS ASSIGNED - ASSIGNED
104116 - JOURNAL ENTRY TO RECORD THE
COLLECTION OF CASH FROM ASSIGNED ACCOUNTS DR. CASH, SALES DISCOUNT; CR. ACCOUNTS
117 RECEIVABLE LESS CASH DISCOUNT RECEIVABLE - ASSIGNED
REMITTANCE OF COLLECTIONS FROM ASSIGNED DR. NOTE PAYABLE - BANK, INTEREST EXPENSE;
118 ACCOUNTS RECEIVABLE TO THE BANK (ASSIGNEE) CR. CASH
PLUS INTEREST (NONNOTIFICATION BASIS)
104118 - JOURNAL ENTRY TO RECORD THE WRITEOFF
DR. ALLOWANCE FOR DOUBTFUL ACCOUNTS; CR.
119 OF ASSIGNED ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE
120 104119 - JOURNAL ENTRY TO RECORD THE DR. ACCOUNTS RECEIVABLE; CR. ACCOUNTS
TRANSFER OF ASSIGNED ACCOUNTS RECEIVABLE TO RECEIVABLE - ASSIGNED
ACCOUNTS RECEIVABLE AFTER MAKING THE LAST
REMITTANCE OF COLLECTIONS PAYING OFF THE
LOAN BALANCE PLUS INTEREST (NONNOTIFICATION
BASIS)
104120 - JOURNAL ENTRY TO RECORD SEPARATION
DR. ACCOUNTS RECEIVABLE - ASSIGNED; CR.
121 OF ASSINGED ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE
(NOTIFICATION BASIS)
104121 - JOURNAL ENTRY TO RECORD RECEIPT OF
NOTICE FROM BANK ABOUT COLLECTION OF DR. NOTE PAYABLE - BANK, SALES DISCOUNT; CR.
122 ACCOUNTS RECEIVABLE ASSIGNED WITH CASH CASH
DISCOUNT (NOTIFICATION BASIS)
104122 - JOURNAL ENTRY TO RECORD SENDING OF
CHECK TO BANK FOR INTEREST DUE ON LOAN FOR
123 DR. INTEREST EXPENSE; CR. CASH
WHICH ACCOUNTS RECEIVABLE WERE ASSIGNED
(NOTIFICATION BASIS)
104123 - JOURNAL ENTRY TO RECORD RECEIPT OF
NOTICE FROM BANK ABOUT COLLECTION OF
ASSIGNED ACCOUNTS RECEIVABLE ALLOWING FOR
DR. CASH, INTEREST EXPENSE, NOTE PAYABLE -
124 THE FINAL SETTLEMENT OF THE LOAN (WITH
BANK; CR. ACCOUNTS RECEIVABLE - ASSIGNED
INTEREST) AND THE REMITTANCE OF EXCESS
COLLECTIONS AND RETURN OF UNCOLLECTED
ASSIGNED ACCOUNTS (NOTIFICATION BASIS)
TRANSFER OF ASSIGNED ACCOUNTS RECEIVABLE TO DR. ACCOUNTS RECEIVABLE; CR. ACCOUNTS
125 ACCOUNTS RECEIVABLE AFTER THE LOAN HAS BEEN RECEIVABLE - ASSIGNED
SETTLED (NOTIFICATION BASIS)
104125 - IS THE SELLING OF ACCOUNTS RECEIVABLES
126 TO A THIRD PARTY TO RAISE CASH (NOTIFICATION FACTORING OF ACCOUNTS RECEIVABLE
AND NONRECOURSE).
104126 - IS THE BANK OR FINANCE ENTITY TO WHICH
127 THE ACCOUNTS RECEIVABLE ARE SOLD IN FACTOR
FACTORING.
1. CASUAL FACTORING
128 104127 - FORMS OF FACTORING (2 ITEMS) 2. FACTORING AS A CONTINUING AGREEMENT -
ALL ACCOUNTS RECEIVABLE ARE PURCHASED
DR. CASH, ALLOWANCE FOR DOUBTFUL
ACCOUNTS (IF ANY), LOSS ON FACTORING
129 FACTORING OF ACCOUNTS RECEIVABLE (CASUAL
(BALANCING FIGURE); CR. ACCOUNTS
FACTORING)
RECEIVABLE
104129 - IS REQUIRED BEFORE A MERCHANDISE IS
SHIPPED TO A CUSTOMER WHEN THE REPORTING
130 FACTOR'S CREDIT APPROVAL
ENTITY'S ACCOUNTS RECEIVABLE ARE UNDER A
FACTORING AS A CONTINUING AGREEMENT.
104130 - IS CHARGED BY THE FACTOR FOR ITS
SERVICES OF CREDIT APPROVAL, BILLING,
131 FACTORING FEE OR COMMISSION
COLLECTING AND ASSUMING UNCOLLECTIBLE
FACTORED ACCOUNTS.
104131 - IS A PREDETERMINED AMOUNT WITHHELD
BY THE FACTOR AS A PROTECTION AGAINST
132 FACTOR'S HOLDBACK
CUSTOMER RETURNS AND ALLOWANCES AND OTHER
SPECIAL ADJUSTMENTS.
104132 - JOURNAL ENTRY TO RECORD FACTORING OF
DR. CASH, SALES DISCOUNT, COMMISSION
ACCOUNTS RECEIVABLE (INVOICE IS SUBJECT TO
(BALANCING FIGURE), RECEIVABLE FROM
133 CREDIT TERMS ALLOWING FOR AVAILMENT OF CASH
FACTOR (FACTOR'S HOLDBACK); CR. ACCOUNTS
DISCOUNT) WITH COMMISSION AND FACTOR'S
RECEIVABLE
HOLDBACK (CONTINUING AGREEMENT)
104133 - JOURNAL ENTRY TO RECORD RETURN OF DR. SALES RETURNS AND ALLOWANCES (INVOICE
MERCHANDISE BY CUSTOMER WHOSE ACCOUNT PRICE OF GOODS RETURNED); CR. SALES
134 WAS PREVIOUSLY FACTORED (CONTINUING DISCOUNT (INVOICE PRICE * DISCOUNT RATE),
AGREEMENT) RECEIVABLE FROM FACTOR (BALANCING FIGURE)
104134 - JOURNAL ENTRY TO RECORD FINAL
SETTLEMENT WITH THE FACTOR AFTER ALL THE
135 DR. CASH; CR. RECEIVABLE FROM FACTOR
RECEIVABLES FACTORED ARE COLLECTED BY HIM
(CONTINUING AGREEMENT)
104135 - IS A PLASTIC CARD WHICH ENABLES THE
HOLDER TO OBTAIN CREDIT UP TO A
136 PREDETERMINED LIMIT FROM THE ISSUER OF THE CREDIT CARD
CARD FOR THE PIRCHASE OF GOODS AND SERVICES
(SOMEWHAT SIMILAR TO FACTORING).
104136 - JOURNAL ENTRY TO RECORD CREDIT CARD DR. ACCOUNTS RECEIVABLE - CREDIT CARD
137 SALES COMPANY; CR. SALES
DR. CASH, CREDIT CARD SERVICE CHARGE; CR.
104137 - JOURNAL ENTRY TO RECORD PAYMENT
138 ACCOUNTS RECEIVABLE - CREDIT CARD
FROM CREDIT CARD COMPANY
COMPANY
WHERE A NOTE RECEIVABLE IS CONVERTED INTO
139 DISCOUNTING OF NOTE RECEIVABLE
CASH BY SELLING THEM TO A FINANCIAL INSTITUTION
AT A DISCOUNT.
104139 - IS THE TRANSFER OF RIGHT TO A
140 NEGOTIABLE INSTRUMENT BY SIMPLY SIGNING AT ENDORSEMENT
THE BACK OF THE INSTRUMENT.
104140 - MEANS THAT THE ENDORSER SHALL PAY
141 THE ENDORSEE IF THE MAKER DISHONORS THE ENDORSEMENT WITH RECOURSE
NOTE.
104141 - MEANS THAT THE ENDORSER AVOIDS
142 FUTURE LIABILITY EVEN IF THE MAKER REFUSES TO ENDORSEMENT WITHOUT RECOURSE
PAY THE ENDORSEE ON THE DATE OF MATURITY.
104142 - ASSUMPTION IF THE PROBLEM IS SILENT
143 REGARDING WHETHER AN ENDORSEMENT IS WITH WITH RECOURSE
OR WITHOUT RECOURSE
104143 - REFER TO THE DISCOUNTED VALUE OF THE
144 NOTE RECEIVED BY THE ENDORSER FROM THE NET PROCEEDS
ENDORSEE.
145 104144 - FORMULA FOR NET PROCEEDS NET PROCEEDS = MATURITY VALUE - DISCOUNT
104145 - IS THE AMOUNT DUE ON THE NOTE AT THE
146 MATURITY VALUE
DATE OF MATURITY.
MATURITY VALUE = PRINCIPAL + INTEREST OVER
147 104146 - FORMULA FOR MATURITY VALUE
THE WHOLE TERM OF THE NOTE
104147 - IS THE DATE ON WHICH THE NOTE SHOULD
148 MATURITY DATE
BE PAID.
104148 - IS THE AMOUNT APPEARING ON THE FACE
149 PRINCIPAL
OF THE NOTE (FACE VALUE).
104149 - IS THE AMOUNT OF INTEREST FOR THE FULL
150 INTEREST
TERM OF THE NOTE.
151 104150 - FORMULA FOR INTEREST INTEREST = PRINCIPAL * RATE * TIME
104151 - IS THE RATE APPEARING ON THE FACE OF
152 INTEREST RATE
THE NOTE.
104152 - IS THE PERIOD WITHIN THICH THE INTEREST
153 TIME
SHALL ACCRUE (DATE OF NOTE TO MATURITY DATE).
104153 - IS THE AMOUNT OF INTEREST DEDUCTED BY
154 DISCOUNT
THE BANK IN ADVANCE.
DISCOUNT = MATURITY VALUE * DISCOUNT RATE *
155 104154 - FORMULA FOR DISCOUNT
DISCOUNT PERIOD
104155 - IS THE RATE USED BY THE BANK IN
156 DISCOUNT RATE
COMPUTING THE DISCOUNT.
104156 - ASSUMPTION IF THE PROBLEM IS SILENT
THE INTEREST RATE CAN BE SAFELY ASSUMED
157 REGARDING WHETHER AN ENDORSEMENT IS WITH
AS THE DISCOUNT RATE.
OR WITHOUT RECOURSE
104157 - IS THE PERIOD OF TIME FROM DATE OF
158 DISCOUNTING TO MATURITY DATE (UNEXPIRED TERM DISCOUNT PERIOD
OF THE NOTE).
DISCOUNT PERIOD = TERM OF THE NOTE -
159 104158 - FORMULA FOR DISCOUNT PERIOD EXPIRED PORTION UP TO THE DATE OF
DISCOUNTING
DR. CASH, LOSS ON NOTE RECEIVABLE
104159 - JOURNAL ENTRY TO RECORD DISCOUNTING DISCOUNTING; CR. NOTE RECEIVABLE, INTEREST
160 OF NOTE RECEIVABLE WITHOUT RECOURSE INCOME (PRINCIPAL * INTEREST RATE * TIME
FROM DATE OF NOTE TO DATE OF DISCOUNTING)
104160 - ACCOUNTING TREATMENTS FOR
1. CONDITIONAL SALE (APPLICABLE BY DEFAULT)
161 DISCOUNTING OF NOTES RECEIVABLE WITH
2. SECURED BORROWING
RECOURSE (2 ITEMS)
104161 - IS A WAY OF ACCOUNTING FOR NOTE
RECEIVABLE DISCOUNTING WHICH TREATS THE
TRANSACTION AS THE SALE OF NOTE RECEIVABLE
162 CONDITIONAL SALE
SUBJECT TO A CONDITION (THE ENDORSER HAS TO
REFUND THE ENDORSEE IN CASE THE NOTE IS
SUBSEQUENTLY DISHONORE
104162 - IS A WAY OF ACCOUNTING FOR NOTE
RECEIVABLE DISCOUNTING WHICH TREATS THE
TRANSACTION AS THE BORROWING OF CASH BY THE
163 SECURED BORROWING
ENDORSER FROM THE ENDORSEE WITH THE NOTE
RECEIVABLE HELD AS SECURITY BY THE LATTER FOR
SUCH BORROWING.
DR. CASH, LOSS ON NOTE RECEIVABLE
DISCOUNTING (BALANCING FIGURE); CR. NOTE
104163 - JOURNAL ENTRY TO RECORD THE RECEIVABLE DISCOUNTED (A CONTRA-ASSET
164 DISCOUNTING OF NOTE RECEIVABLE (CONDITIONAL DEDUCTED FROM OTHER NOTES RECEIVABLE,
SALE) REQUIRES DISCLOSURE OF CONTINGENT
LIABILITY EQUAL TO THIS AMOUNT), INTEREST
INCOME
104164 - JOURNAL ENTRY TO RECORD THE PAYMENT DR. NOTE RECEIVABLE DISCOUNTED
165 BY THE MAKER OF DISCOUNTED NOTE RECEIVABLE (CONTINGENT LIABILITY IS EXTINGUISHED ALSO.);
ON MATURITY (CONDITIONAL SALE) CR. NOTE RECEIVABLE
1. TO RECORD THE PAYMENT TO ENDORSEE: DR.
104165 - JOURNAL ENTRY TO RECORD THE ACCOUNTS RECEIVABLE; CR. CASH
166 DISHONOR OF DISCOUNTED NOTE BY THE MAKER 2. TO RECORD THE EXTINGUISHMENT OF
(CONDITIONAL SALE) CONTINGENT LIABILITY: DR. NOTE RECEIVABLE
DISCOUNTED; CR. NOTE RECEIVABLE
104166 - JOURNAL ENTRY TO RECORD THE DR. CASH, INTEREST EXPENSE (BALANCING
167 DISCOUNTING OF NOTE RECEIVABLE (CONDITIONAL FIGURE); CR. LIABILITY FOR NOTE RECEIVABLE
SALE) DISCOUNTED, INTEREST INCOME
104167 - JOURNAL ENTRY TO RECORD THE PAYMENT
DR. LIABILITY FOR NOTE RECEIVABLE
168 BY THE MAKER OF DISCOUNTED NOTE RECEIVABLE
DISCOUNTED; CR. NOTE RECEIVABLE
ON MATURITY (SECURED BORROWING)
1. TO RECORD THE PAYMENT TO ENDORSEE: DR.
ACCOUNTS RECEIVABLE; CR. CASH
2. TO RECORD THE DERECOGNITION OF LIABILITY
169 DISHONOR OF DISCOUNTED NOTE BY THE MAKER
FOR NOTE RECEIVABLE DISCOUNTED: DR.
(SECURED BORROWING)
LIABILITY FOR NOTE RECEIVABLE DISCOUNTED;
CR. NOTE RECEIVABLE
104169 - IS THE DISCOUNTING OF A PROMISSORY
170 NOTE WHERE THE MAKER IS NOT A CUSTOMER BUT DISCOUNTING OF OWN NOTE
THE REPORTING ENTITY ITSELF.
DR. CASH, DISCOUNT ON NOTE PAYABLE; CR.
104170 - JOURNAL ENTRY TO RECORD DISCOUNTING
171 NOTE PAYABLE (PRIMARY LIABILITY INSTEAD OF
OF OWN NOTE
CONTINGENT LIABILITY)
AFAR - PARTNERSHIP FORMATION

1. BY THE CONTRACT OF __________, TWO OR MORE PERSONS BIND THEMSELVES TO
CONTRIBUTE MONEY, PROPERTY OR INDUSTRY TO A COMMON FUND WITH THE
INTENTION OF DIVIDING THE PROFITS AMONG THEMSELVES.PARTNERSHIP
2. CHARACTERISTICS OF A PARTNERSHIP AS A FORM OF BUSINESS ORGANIZATION (6

ITEMS)
SEPARATE LEGAL PERSONALITY
EASE OF FORMATION
CO-OWNERSHIP OF PARTNERSHIP PROPERTY AND PROFITS
LIMITED LIFE
MUTUAL AGENCY
UNLIMITED LIABILITY
3. IS A CHARACTERISTIC OF PARTNERSHIPS WHICH REFERS TO THE FACT THAT A

PARTNERSHIP MAY ACQUIRE PROPERTY IN ITS OWN NAME AND MAY ENTER INTO
CONTRACTS.SEPARATE LEGAL PERSONALITY
4. IS A CHARACTERISTIC OF PARTNERSHIPS WHICH REFERS TO THE FACT THAT THE

FORMATION OF A PARTNERSHIP DOES NOT REQUIRE AS MANY FORMALITUES AS A
CORPORATION.EASE OF FORMATION
5. 6 IS A CHARACTERISTIC OF PARTNERSHIPS WHICH REFERS TO THE FACT THAT EACH

PARTNER HAS A PROPRIETARY INTEREST IN THE ASSETS AND PROFITS OF THE
PARTNERSHIP.CO-OWNERSHIP OF PARTNERSHIP PROPERTY AND PROFITS
6. IS A CHARACTERISTIC OF PARTNERSHIP WHICH REFERS TO THE FACT THAT ANY

CHANGE IN THE AGREEMENT OF THE PARTNERS TERMINATES THE PARTNERSHIP. A
PARTNERSHIP MAY ALSO EXPIRE DUE TO CHANGES IN THE RELATIONSHIP OF THE
PARTNERS (DEATH, WITHDRAWAL, ETC.). LIMITED LIFE
7. IS CHARACTERISTIC OF PARTNERSHIPS WHICH REFERS TO THE FACT THAT EACH

PARTNER HAS AN EQUAL RIGHT TO ACT FOR THE PARTNERSHIP AND TO ENTER INTO
CONTRACTS BINDING UPON IT, AS LONG AS HE ACTS WITHIN THE NORMAL SCOPE OF
BUSINESS OPERATIONS.MUTUAL AGENCY
8. IS A CHARACTERISTIC OF PARTNERSHIPS WHICH REFERS TO THE FACT THAT EACH

PARTNER MAY BE HELD PERSONALLY LIABLE FOR ALL THE DEBTS OF THE
PARTNERSHIP.UNLIMITED LIABILITY
9. PARTNER'S LEDGER ACCOUNTS (3 ITEMS)

CAPITAL ACCOUNTS
DRAWING OR PERSONAL ACCOUNTS
ACCOUNTS FOR LOANS TO OR FROM PARTNERS
10. TRANSACTIONS WHERE A PARTNER'S CAPITAL ACCOUNT IS CREDITED FOR (3 ITEMS)

Original investment
Additional investment
Partner's share of the profits (after being closed to the drawing account)
11. TRANSACTIONS WHERE A PARTNER'S CAPITAL ACCOUNT IS DEBITED FOR (3 ITEMS)

Permanent withdrawal of capital
Debit balance of the drawing account at the end of the period
Partner's share in the losses (after being closed to the drawing account)
12. TRANSACTIONS WHERE A PARTNER'S DRAWING ACCOUNT IS CREDITED FOR (3 ITEMS)

Partnership obligations assumed or paid by a partner
Personal funds or claims of partner collected and retained by the partnership
Periodic partner's salaries depending on agreement by the partners
13. TRANSACTIONS WHERE A PARTNER'S DRAWING ACCOUNT IS DEBITED FOR (3 ITEMS)

Withdrawal of assets by the partners in anticipation of net income (temporary withdrawals)
Partner's personal indebtedness paid or assumed by the partnership
Funds or claims of partnership collected and retained by the partner
14. RULE ON THE VALUATION OF ASSETS CONTRIBUTED BY PARTNERS

IN ORDER OF PRIORITY:
1. AGREED VALUE
2. FAIR MARKET VALUE/APPRAISAL VALUE
NOTE: ASSESSED VALUE IS NEVER USED
15. RULE ON THE ASSUMPTION OF S PARTNER'S PERSONAL LIABILITY BY THE

PARTNERSHIP
IF THE PROBLEM IS SILENT, THE PARTNERSHIP WILL NOT ASSUME SUCH
LIABILITY. ASSUMPTION MUST BE EXPRESSLY STATED IN THE PROBLEM BEFORE
SUCH LIABILITY IS RECORDED IN THE PARTNERSHIP BOOKS.
16. FORMULA FOR CONTRIBUTED CAPITAL

Contributed Assets - Liabilities Assumed By The Partnership = Contributed Capital
17. IS THE AMOUNT OF CAPITAL OF EACH PARTNER AFTER FORMATION.

INITIAL CAPITAL CREDIT
18. RULE ON THE AMOUNT OF INITIAL CAPITAL CREDIT TO BE RECEIVED BY A PARTNER

IN ORDER OF PRIORITY:
1. AGREED CAPITAL (USING THE RATIO AGREED UPON)
2. CONTRIBUTED CAPITAL
19. IS A METHOD USED WHEN PARTNERS AGREE ON CAPITAL INTERESTS THAT ARE NOT
EQUAL TO THEIR NET ASSETS. THIS METHOD DOES NOT RECOGNIZE ANY ADDITIONAL
GOODWILL NOR REVALUE ANY OF THE CONTRIBUTED ASSETS BUT REFERS TO THE
MERE TRANSFER OF CAPITAL BETWEEN PARTNERS.
BONUS METHOD
20. IS AN INTANGIBLE ASSET RECORDED ONLY AS A RESULT OF AN ACQUISITION MADE
BY A REPORTING ENTITY (BUSINESS COMBINATION).
GOODWILL
1 AFAR - PARTNERSHIP OPERATIONS (202001 - 202017)
2 202001 - METHOD OF DIVISION OF PARTNERSHIP PROFITS AND IN ORDER OF PRIORITY:
LOSSES 1. METHOD AS STIPULATED BY
THE PARTNERS
2. IN PROPORTION TO THE
ORIGINAL CAPITAL
CONTRIBUTION OF THE
PARTNERS
3 202002 - IS THE RATIO IN WHICH PARTNERSHIP PROFITS AND LOSSES PROFIT AND LOSS RATIO (OR
ARE DIVIDED P/L RATIO)
4 202003 - POSSIBLE METHODS OF DIVIDING NET INCOME OR LOSS 1. EQUALLY
AMONG PARTNERS (6 ITEMS) 2. UNEQUAL OR ARBITRARY
RATIO
3. RATIO OF PARTNERS'
CAPITAL ACCOUNT BALANCES
ON A PARTICULAR DATE
4. RATIO OF THE PARTNERS'
AVERAGE CAPITAL ACCOUNT
BALANCES DURING THE YEAR
5. INTEREST
6. SALARIES
7. BONUS
5 202004 - FORMULA FOR SIMPLE AVERAGE CAPITAL BALANCE OF A SIMPLE AVERAGE CAPITAL
PARTNER BALANCE = (BEGINNING
CAPITAL BALANCE + ENDING
CAPITAL BALANCE) / 2
6 202005 - FORMULA FOR WEIGHTED AVERAGE CAPITAL BALANCE WEIGHTED AVERAGE CAPITAL
BALANCE = SUMMATION OF
(CAPITAL BALANCE AT EACH
DATE OF PARTNER
INVESTMENT OR WITHDRAWAL
* FRACTION OF THE YEAR
UNCHANGED)
7 202006 - IS A SCHEDULE USED TO COMPUTE THE DISTRIBUTION OF PROFIT DISTRIBUTION
NET INCOME OR LOSS TO THE PARTNERS ACCORDING TO THEIR SCHEDULE OR PROFIT
AGREEMENT. DISTRIBUTION TABLE
8 202007 - IS AN INSTRUMENT OF DISTRIBUTING PROFITS TO PARTNERS INTEREST
USED TO ENCOURAGE CAPITAL INVESTMENTS.
9 202008 - IS AN INSTRUMENT OF DISTRIBUTING PROFITS TO PARTNERS SALARY
FOR THE SERVICES THEY RENDER FOR THE PARTNERSHIP.
1 202009 - IS AN INSTRUMENT OF DISTRIBUTING PROFITS TO MANAGING BONUS
PARTNERS EQUAL TO A SPECIFIED PERCENTAGE OF INCOME.
0
1 202010 - FORMS OF BONUS THAT MAY BE ALLOWED TO MANAGING 1. BONUS AS PERCENTAGE OF
PARTNERS (4 ITEMS) NET INCOME
1
2. BONUS AS PERCENTAGE OF
NET INCOME AFTER SALARIES
NET INCOME AFTER INTEREST
NET INCOME AFTER BONUS
5. COMBINATION OF ANY OF
ITEMS 2-4
1 202011 - FORMULA FOR BONUS AS A PERCENTAGE OF NET INCOME BONUS = BONUS RATE * (NET
INCOME)
2
AFTER SALARIES INCOME - SALARIES)
3
AFTER INTEREST INCOME - INTEREST)
4
AFTER BONUS INCOME - BONUS)
5
1 202015 - IS A PHRASE THAT MEANS NO FURTHER DISTRIBUTION OF UP TO THE EXTENT OF
PROFITS USING INTEREST, SALARY OR BONUS SHALL BE MADE IF THE RANKING ONLY
6
VALUE OF REMAINING NET INCOME GOES BELOW ZERO.
1 202016 - PROCEDURE TO BE MADE IF THERE IS A CHANGE IN THE 1. ADJUST ALL ASSETS AND
PROFIT AND LOSS RATIO OF THE PARTNERS LIABILITIES TO REFLECT THEIR
7
FAIR VALUES.
2. RECORD ANY UNRECORDED
ASSETS OR LIABILITIES, IF ANY.
3. THESE SHOULD BE MADE TO
THE PARTNERS' CAPITAL
ACCOUNT IN ACCORDANCE
WITH THEIR OLD PROFIT AND
LOSS RATIO.
1 202017 - PROCEDURE TO BE MADE TO CORRECT PARTNERSHIP NET 1. DETERMINE THE CORRECT
INCOME OR LOSS OF PRIOR PERIOD NET INCOME OR LOSS OF THE
8
PRIOR PERIOD.
2. COMPUTE THE PROPER
SHARE OF EACH PARTNER
USING THE PROFIT AND LOSS
RATIO IN THE YEAR IN WHICH
THE ERROR OCCURRED.
3. COMPUTE THE DIFFERENCE
BETWEEN THE SHARE IN THE
PROFIT THAT EACH PARTNER
ACTUALLY RECEIVED AND THE
SHARE EACH WOULD HAVE
RECEIVED FROM NO. 2.
4. ADJUST THE PARTNERS'
CAPITAL ACCOUNTS BY THE
AMOUNT IN NO. 3.
1 IS A PROCESS IN WHICH THE RELATIONSHIP BETWEEN THE DISSOLUTION
PARTNERS ARE DISSOLVED OR TERMINATED WHICH MAY, AT TIMES,
9
LEAD TO THE LIQUIDATION OF THE PARTNERSHIP BUSINESS.
2 IS THE PROCESS OF CLOSING THE PARTNERSHIP BUSINESS AND LIQUIDATION
DISTRIBUTING ITS ASSETS TO CREDITORS AND THE PARTNERS.
0
2 CAUSES OF PARTNERSHIP DISSOLUTION DUE TO CHANGES IN 1. ADMISSION OF A PARTNER
INTERESTS (4 ITEMS) 2. RETIREMENT OF A PARTNER
1
3. DEATH OF A PARTNER
4. INCORPORATION OF A
PARTNERSHIP
2 WAYS A NEW PARTNER MAY BE ADMITTED TO AN EXISTING 1. PURCHASE OF ALL OR PART
PARTNERSHIP (2 ITEMS) OF THE INTEREST OF ONE OR
2
MORE OF THE EXISTING
PARTNERS; OR
2. INVESTMENT OF ASSETS IN
THE PARTNERSHIP BY THE
INCOMING PARTNER.
2 TREATMENT FOR CASH PAID BY THE INCOMING PARTNER FOR THE
PURCHASE OF INTEREST OF ONE OR MORE OF THE EXISTING
3
PARTNERS
2 METHODS OF ACCOUNTING FOR ADMISSION OF A NEW PARTNER BY 1. BONUS METHOD OR SIMPLE
PURCHASE OF INTEREST FROM EXISTING PARTNERS (2 ITEMS) TRANSFER OF CAPITAL
4
2. REVALUATION OF ASSETS
2 JOURNAL ENTRY TO RECORD SALE OF INTEREST TO INCOMING DR. EXISTING PARTNER(S),
PARTNER TREATED AS SIMPLE TRANSFER OF CAPITAL CAPITAL; CR. INCOMING
5
PARTNER, CAPITAL
2 JOURNAL ENTRY TO RECORD SALE OF INTEREST TO INCOMING DR. IDENTIFIABLE ASSETS
PARTNER WITH UPWARD REVALUATION OF NET ASSETS (BALANCING FIGURE OR CAN
6
BE GIVEN IN THE PROBLEM),
EXISTING PARTNER(S) -
CAPITAL (PERCENTAGE OF
EXISTING INTEREST ACQUIRED
BY INCOMING PARTNER); CR.
INCOMING PARTNER - CAPITAL
(CASH PAID BY INCOMING
PARTNER)
2 PROCEDURE ON THE DIVISION OF CASH PAID BY THE INCOMING 1. DETERMINE THE AMOUNTS
PARTNER AMONG THE SELLING PARTNERS IF THERE ARE MORE THAN OF CAPITAL BALANCES
7
ONE (2 ITEMS) TRANSFERRED BY THE
EXISTING PARTNERS.
2. APPORTION ANY EXCESS
(OR DEFICIENCY) IN THE
ORIGINAL PARTNERS' PROFIT
AND LOSS RATIO.
2 METHOD OF ACCOUNTING FOR THE ADMISSION OF A NEW PARTNER SIMPLE RECORDING OF THE
BY INVESTMENT IF THE INVESTMENT COST EQUALS AGREED CAPITAL INVESTMENT AND
8
FOR THE INCOMING PARTNER RECOGNITION OF INCOMING
PARTNER'S CAPITAL EQUAL TO
SUCH INVESTMENT.
2 ALTERNATIVE METHODS OF ACCOUNTING FOR THE ADMISSION OF A 1. REVALUATION OF NET
NEW PARTNER BY INVESTMENT IF THE INVESTMENT COST IS ASSETS UP TO FAIR VALUE
9
GREATER THAN THE AGREED CAPITAL FOR THE INCOMING PARTNER AND ALLOCATION TO OLD
(2 ITEMS) PARTNERS; OR
2. ALLOCATION OF BONUS TO
OLD PARTNERS.
3 ALTERNATIVE METHODS OF ACCOUNTING FOR THE ADMISSION OF A 1. REVALUATION OF NET
NEW PARTNER BY INVESTMENT IF THE INVESTMENT COST IS LESS ASSETS DOWN TO FAIR VALUE
0
THAN THE AGREED CAPITAL FOR THE INCOMING PARTNER (2 ITEMS) AND ALLOCATION TO OLD
PARTNERS; OR
2. ASSIGNMENT OF BONUS TO
NEW PARTNER.
3 SETTLEMENT OPTIONS AVAILABLE IF A PARTNER RETIRES OR 1. THE REMAINING PARTNERS
WITHDRAWS (INCLUDING DEATH) FROM THE PARTNERSHIP (2 ITEMS) MAY BUY OUT THE RETIRING
1
PARTNER'S INTEREST; OR
2. THE PARTNERSHIP MAY
ACQUIRE THE RETIRING
PARTNER'S INTEREST.
3 ADJUSTMENTS TO THE CAPITAL BALANCE OF THE RETIRING PARTNER 1. PROFIT OR LOSS FROM
TO COMPUTE FOR HIS INTEREST (2 ITEMS) PARTNERSHIP OPERATIONS
2
FROM THE LAST CLOSING DATE
TO THE DATE OF HIS
RETIREMENT; AND
2. CHANGES IN THE VALUATION
OF ALL ASSETS AND
LIABILITIES (BOOK VALUES TO
FAIR VALUES).
3
3
METHOD OF ACCOUNTING FOR THE RETIREMENT OF A PARTNER SIMPLE RECORDING OF THE
WHERE SETTLEMENT EQUALS THE WITHDRAWING PARTNER'S ASSETS PAID TO RETIRING
INTEREST PARTNER AND CLOSING OF HIS
CAPITAL ACCOUNT (NO
REVALUATION NOR BONUS).
3 METHOD OF ACCOUNTING FOR THE RETIREMENT OF A PARTNER 1. REVALUATION OF NET
WHERE SETTLEMENT IS GREATER THAN THE WITHDRAWING ASSETS UP TO FAIR VALUE
4
PARTNER'S INTEREST AND ALLOCATION TO ALL
PARTNERS; OR
2. ASSIGNMENT OF BONUS TO
RETIRING PARTNER..
3 METHOD OF ACCOUNTING FOR THE RETIREMENT OF A PARTNER 1. REVALUATION OF NET
WHERE SETTLEMENT IS LESS THAN THE WITHDRAWING PARTNER'S ASSETS DOWN TO FAIR VALUE
5
INTEREST AND ALLOCATION TO ALL
PARTNERS; OR
2. ALLOCATION OF BONUS TO
REMAINING PARTNERS..
3 PROCEDURE TO BE FOLLOWED UPON INCORPORATION OF A 1. REVALUE THE ASSETS; AND
PARTNERSHIP WHEN THE PARTNERSHIP BOOKS ARE RETAINED (2 2. CLOSE THE PARTNERS'
6
ITEMS) CAPITAL ACCOUNTS TO THE
CORPORATE CAPITAL
ACCOUNTS.
3 PROCEDURE TO BE FOLLOWED UPON INCORPORATION OF A 1. REVALUE THE ASSETS TO
PARTNERSHIP WHEN NEW BOOKS ARE OPENED FOR THE FAIR VALUE;
7
CORPORATION (3 ITEMS) 2. RECORD THE TRANSFER OF
ASSETS AND LIABILITIES TO
THE CORPORATION AND THE
RECEIPT OF CAPITAL STOCKS
BY THE PARTNERSHIP; AND
3. RECORD THE DISTRIBUTION
OF STOCKS TO THE PARTNERS
IN SETTLEMENT OF THE
BALANCES OF THEIR CAPITAL
ACCOUNTS.
3 OBJECTIVES OF A PARTNERSHIP DURING THE LIQUIDATION PROCESS 1. TO CONVERT THE
(2 ITEMS) PARTNERSHIP ASSETS TO
8
CASH (REALIZATION OF
ASSETS); AND
2. TO PAY OFF PARTNERSHIP
OBLIGATIONS AND TO
DISTRIBUTE CASH AND ANY
UNREALIZED ASSETS TO THE
INDIVIDUAL PARTNERS.
3 ORDER OF PRIORITY IN THE DISTRIBUTION OF CASH TO PARTIES (3 1. FIRST, TO OUTSIDE
ITEMS) CREDITORS;
9
2. SECOND, TO PARTNERS FOR
LOAN ACCOUNTS; AND
3. THIRD, TO PARTNERS FOR
CAPITAL ACCOUNTS.
4 METHODS OF PARTNERSHIP LIQUIDATION (2 ITEMS) 1. LUMP-SUM
LIQUIDATION/TOTAL
0
LIQUIDATION/SINGLE
DISTRIBUTION
2. INSTALLMENT
LIQUIDATION/INSTALLMENT
DISTRIBUTION
4 IS A METHOD OF PARTNERSHIP LIQUIDATION IN WHICH ALL THE LUMP-SUM LIQUIDATION
ASSETS ARE CONVERTED INTO CASH WITHIN A VERY SHORT TIME,
1
OUTSIDE CREDITORS ARE PAID, AND A SINGLE, LUMP-SUM PAYMENT
IS MADE TO THE PARTNERS FOR THEIR TOTAL INTERESTS.
4 IS A SALE MADE BY A LIQUIDATING PARTNERSHIP IN WHICH ITS GOING-OUT-OF-BUSINESS SALE
INVENTORY IS MARKED DOEN WELL BELOW NORMAL SELLING PRICE
2
TO ENCOURAGE IMMEDIATE SALE.
4 COMPONENTS OF A PARTNER'S INTEREST IN THE PARTNERSHIP (2 1. HIS CAPITAL ACCOUNT
ITEMS) BALANCE; AND
3
2. HIS LOAN BALANCE(S).
4 TREATMENT FOR LOSS ON REALIZATION OF NONCASH ASSETS SOLD SUCH LOSS SHALL BE
IN THE LIQUIDATION PROCESS ALLOCATED AMONG THE
4
PARTNERS (DEBIT TO CAPITAL
ACCOUNTS) BASED ON THEIR
PROFIT AND LOSS SHARING
RATIO.
4 TREATMENT FOR LIQUIDATION EXPENSES INCURRED (E.G., LEGAL SUCH EXPENSES SHALL BE
AND ACCOUNTING EXPENSES, ETC.) ALLOCATED AMONG THE
5
PARTNERS (DEBIT TO CAPITAL
ACCOUNTS) BASED ON THEIR
PROFIT AND LOSS SHARING
RATIO.
4 LUMP-SUM LIQUIDATION PROCEDURES (6 ITEMS) 1. REALIZATION OF ASSETS
AND DISTRIBUTION OF GAIN OR
6
LOSS ON REALIZATION AMONG
THE PARTNERS;
2. PAYMENT OF EXPENSES;
3. PAYMENT OF LIABILITIES;
4. ELIMINATION OF PARTNER'S
CAPITAL DEFICIENCIES
5. PAYMENT TO PARTNERS OF
THEIR LOAN ACCOUNT
BALANCES; AND
6. PAYMENT TO PARTNERS OF
THEIR CAPITAL ACCOUNT
BALANCES.
4 REFERS TO A CAPITAL ACCOUNT WITH A DEBIT OR NEGATIVE CAPITAL DEFICIENCY
BALANCE.
7
4 METHODS OF ELIMINATING A PARTNER'S CAPITAL DEFICIENCY (3 IN ORDER OF PRIORITY:
ITEMS) 1. IF THE DEFICIENT PARTNER
8
HAS A LOAN BALANCE,
EXERCISE THE RIGHT OF
OFFSET;
2. IF THE DEFICIENT PARTNER
IS SOLVENT, MAKE HIM INVEST
CASH TO ELIMINATE HIS
DEFICIENCY; OR
3. IF THE DEFICIENT PARTNER
IS INSOLVENT, LET THE OTHER
PARTNERS ABSORB HIS
DEFICIENCY (BASED ON THEIR
PROFIT/LOSS RATIO).
4 METHODS OF DETERMINING INSTALLMENT CASH PAYMENTS TO 1. PREPARATION OF SCHEDULE
PARTNERS UNDER INSTALLMENT LIQUIDATION (2 ITEMS) OF SAFE PAYMENTS
9
2. PREPARATION OF CASH
DISTRIBUTION PROGRAM OR
CASH PRIORITY PROGRAM
5 IS A METHOD OF DETERMINING INSTALLMENT CASH PAYMENTS TO PREPARATION OF SCHEDULE
PARTNERS WHEREBY CASH IS DISTRIBUTED TO A PARTNER ONLY IF OF SAFE PAYMENTS
0
HE HAS AN EXCESS CREDIT BALANCE IN HIS PARTNERSHIP INTEREST
AFTER ABSORPTION OF HIS SHARE OF THE MAXIMUM POSSIBLE LOSS
THAT MAY OCCUR (JUST TO BE SAFE).
5 COMPONENTS OF MAXIMUM POSSIBLE LOSS (2 ITEMS) 1. TOTAL VALUE OF REMAINING
(UNREALIZED) NONCASH
1
ASSETS
2. CASH WITHHELD TO PAY FOR
ANTICIPATED EXPENSES AND
UNRECORDED LIABILITIES
THAT MAY ARISE
5 FORMULA FOR COMPUTATION OF SAFE PAYMENTS TO PARTNERS PARTNER'S INTEREST -
ALLOCATED POSSIBLE LOSS =
2
PAYMENT
5 IS A METHOD OF DETERMINING INSTALLMENT CASH PAYMENTS TO PREPARATION OF CASH
PARTNERS WHEREBY SUCH PAYMENTS ARE PREDETERMINED DISTRIBUTION PROGRAM OR
3
THROUGH A PLAN THAT IS DESIGNED TO ALLOW FOR THE SAFE CASH PRIORITY PROGRAM
DISTRIBUTION OF CASH WHEN IT BECOMES AVAILABLE.
5 PROCEDURES TO PREPARE A CASH DISTRIBUTION PROGRAM (3 1. COMPUTE THE LOSS
ITEMS) ABSORPTION POTENTIAL OF
4
EACH PARTNER;
2. DETERMINE THE PRIORITY
OF PAYMENTS TO PARTNERS;
AND
3. COMPUTE THE AMOUNT OF
CASH TO BE PAID TO THE
PARTNERS UNDER EACH
PRIORITY.
5 FORMULA FOR COMPUTATION OF A PARTNER'S LOSS ABSORPTION PARTNER'S INTEREST /
POTENTIAL PARTNER'S PROFIT AND LOSS
5
PERCENTAGE = PARTNER'S
LOSS ABSORPTION POTENTIAL
5 RULE IN THE DETERMINATION OF PRIORITY OF PAYMENTS TO THE PARTNER WHO HAS THE
PARTNERS BIGGEST LOSS ABSORPTION
6
POTENTIAL HAS THE FIRST
PRIORITY.
5 FORMULA FOR COMPUTATION OF AMOUNT OF CASH TO BE PAID TO PARTNER'S EXCESS LOSS
THE PARTNERS UNDER EACH PRIORITY ABSORPTION POTENTIAL OVER
7
THE PARTNER WHOSE
PRIORITY IS NEXT TO HIS *
PARTNER'S PROFIT AND LOSS
SHARE PERCENTAGE = CASH
PRIORITIZED TO BE PAID TO
PARTNER
5 TREATMENT FOR ANY AMOUNT IN EXCESS OF TOTAL PRIORITY SUCH AMOUNT SHALL BE PAID
PAYMENTS AVAILABLE FOR CASH DISTRIBUTION TO THE PARTNERS
8
ACCORDING TO THEIR PROFIT
AND LOSS SHARING
AGREEMENT.
1 AFAR - LONG TERM CONSTRUCTION CONTRACTS (204001 - 204???)
REFERS TO A CONTRACT SPECIFICALLY NEGOTIATED FOR THE
CONSTRUCTION OF AN ASSET OR A COMBINATION OF ASSETS THAT CONSTRUCTION
2 ARE CLOSELY INTERRELATED OR INTERDEPENDENT IN TERMS OF CONTRACT
THEIR DESIGN, TECHNOLOGY OR THEIR ULTIMATE PURPOSE OR USE.
LONG TERM
ARE CONSTRUCTION PROJECTS THAT EXTEND THRU MORE THAN
3 CONSTRUCTION
ONE ACCOUNTING PERIOD.
CONTRACTS
1. FIXED PRICE
CONTRACT
4 TYPES OF CONSTRUCTION CONTRACTS (2 ITEMS)
2. COST PLUS
CONTRACT
IS A CONSTRUCTION CONTRACT IN WHICH THE CONTRACTOR
AGREES TO A FIXED CONTRACT PRICE, OR A FIXED RATE PER UNIT
5 FIXED PRICE CONTRACT
OF OUTPUT, WHICH IN SOME CASES IS SUBJECT TO COST
ESCALATION CLAUSES.
6 IS A CONSTRUCTION CONTRACT IN WHICH THE CONTRACTOR IS COST PLUS CONTRACT
REIMBURSED FOR ALLOWABLE OR OTHERWISE DEFINED COST, PLUS
A PERCENTAGE OF THESE COSTS OR A FIXED FEE.
FAIR VALUE OF THE
MEASUREMENT OF REVENUE FROM LONG TERM CONSTRUCTION CONSIDERATION
7 CONTRACTS RECEIVED OR
RECEIVABLE
1. CHANGE IN THE
SCOPE OF WORK AS
PER AGREEMENT
2. COST ESCALATION
CLAUSES (INCREASE)
3. PENALTIES FOR
DELAYS (DECREASE)
4. CHANGE IN THE
NUMBER OF UNITS IF
THE CONTRACT
CAUSES OF CHANGES IN THE AMOUNT OF CONTRACT REVENUE
8 INVOLVES A FIXED
FROM LONG TERM CONSTRUCTION CONTRACTS (5 ITEMS)
PRICE PER UNIT OF
OUTPUT
5. INCENTIVE
PAYMENTS FOR EARLY
COMPLETION OR
ATTAINMENT OF
SPECIFIC
PERFORMANCE
STANDARDS
(INCREASE)
ARE COSTS THAT RELATE DIRECTLY TO THE SPECIFIC CONTRACT;
ARE ATTRIBUTABLE TO CONTRACT ACTIVITY IN GENERAL AND CAN
9 BE ALLOCATED TO THE CONTRACT; AND ARE SPECIFICALLY CONTRACT COSTS
CHARGEABLE TO THE CUSTOMER UNDER THE TERMS OF THE
CONTRACT.
1. COSTS INCURRED TO
DATE (ALREADY
INCURRED)
10 TYPES OF CONTRACT COSTS (2 ITEMS)
2. ESTIMATED COSTS
TO COMPLETE (TO BE
INCURRED)
ARE COSTS THAT INCLUDE PRECONTRACT COSTS AND COSTS COSTS INCURRED TO
11 INCURRED AFTER CONTRACT ACCEPTANCE (UP TO DATE). DATE
ARE THE ANTICIPATED COST OF MATERIALS, LABOR,
ESTIMATED COSTS TO
12 SUBCONTRACTING COSTS AND INDIRECT COSTS (OVERHEAD)
COMPLETE
REQUIRED TO COMPLETE A PROJECT AT A SCHEDULED TIME.
COST INCURRED TO
DATE = DIRECT
MATERIALS + DIRECT
LABOR + OVERHEAD +
DEPRECIATION OF NON-
IDLE CONSTRUCTION
EQUIPMENT + ANY
13 COMPUTATION OF COST INCURRED TO DATE REIMBURSABLE COST +
BORROWING COSTS +
UNUSED SUPPLIES OR
MATERIALS WITHOUT
ALTERNATIVE USE -
INCIDENTAL INCOME
FROM SALE OF SCRAP
MATERIALS
ARE COSTS INCURRED BEFORE A CONTRACT HAS BEEN ENTERED
INTO (E.G., ARCHITECTURAL DESIGNS), WITH THE EXPECTATION
14 PRECONTRACT COSTS
THAT THE CONTRACT WILL BE ACCEPTED AND THESE COSTS WILL
THEREBY BE RECOVERABLE THROUGH BILLINGS.
1, THEY ARE CAPABLE
OF BEING IDENTIFIED
SEPARATELY.
2. THEY CAN BE
15 CRITERIA FOR RECOGNITION OF PRECONTRACT COSTS (3 ITEMS)
MEASURED RELIABLY.
3. IT IS PROBABLE THAT
THE CONTRACT WILL BE
OBTAINED.
IS THE PRACTICE OF ASSIGNING, OR OUTSOURCING, PART OF THE
16 OBLIGATIONS AND TASKS UNDER A CONTRACT TO ANOTHER PARTY SUBCONTRACTING
KNOWN AS A SUBCONTRACTOR.
THE AMOUNT IS BILLED
DIRECTLY TRACEABLE
17 TREATMENT FOR SUBCONTRACTOR COSTS TO THE PROJECT
(INCLUDED IN CIP
ACCOUNT).
SUCH COSTS SHOULD
NOT BE TREATED AS
COSTS INCURRED FOR
THE PURPOSES OF
COMPUTING THE
TREATMENT FOR COST OF MATERIALS PURCHASED IN ADVANCE OF
18 PERCENTAGE OF
THEIR USE
COMPLETION RATIO
UNTIL THE MATERIALS
HAVE BEEN
PHYSICALLY USED IN
PRODUCTION.
IS DONE TO A GROUP OF CONTRACTS IF THEY ARE SO CLOSELY
COMBINING OF
19 RELATED THAT THEY ARE, IN SUBSTANCE, PARTS OF A SINGLE
CONTRACTS
PROJECT WITH AN OVERALL PROFIT MARGIN.
IS A PROCESS OF BREAKING UP A LARGER UNIT INTO SMALLER SEGMENTING A
20 UNITS FOR ACCOUNTING PURPOSES. CONTRACT
1. PERCENTAGE-OF-
METHODS OF ACCOUNTING FOR LONG TERM CONSTRUCTION COMPLETION METHOD
21 CONTRACTS (2 ITEMS) 2. ZERO PROFIT
METHOD
IS THE METHOD OF ACCOUNTING FOR LONG TERM CONSTRUCTION
CONSTRUCTION CONTRACTS TO BE USED WHEN THE OUTCOME OF
THE CONSTRUCTION CONTRACT CAN BE ESTIMATED RELIABLY (I.E.,
PERCENTAGE-OF-
22 THE ESTIMATE OF COSTS TO COMPLETE AND THE EXTENT OF
COMPLETION METHOD
PROGRESS TOWARD COMPLETION OF LONG-TERM CONTRACTS ARE
REASONABLY DEPENDABLE). THIS IS USED WHEN THE PROBLEM IS
SILENT.
1. INPUT MEASURES OR
COST TO COST METHOD
METHODS OF MEASURING THE PROGRESS OF THE CONSTRUCTION
23 2. OUTPUT MEASURES
(2 ITEMS)
OR UNITS OF DELIVERY
METHOD
IS A METHOD OF MEASURING THE PROGRESS OF CONSTRUCTION
WHERE THE DEGREE OF COMPLETION IS DETERMINED BY INPUT MEASURES OR
24 COMPUTING THE RATIO OF THE COSTS ALREADY INCURRED TO THE COST TO COST METHOD
TOTAL ESTIMATED COSTS TO COMPLETE THE PROJECT.
PERCENTAGE OF
COMPLETION = COSTS
INCURRED TO DATE /
TOTAL COST
FORMULA FOR PERCENTAGE OF COMPLETION UNDER THE COST TO
25 COST METHOD (INPUT MEASURES)
WHERE: TOTAL COST =
COSTS INCURRED TO
DATE + ESTIMATED
COSTS TO COMPLETE
IS A METHOD OF MEASURING THE PROGRESS OF CONSTRUCTION
OUTPUT MEASURES OR
WHERE REVENUE IS RECOGNIZED WHEN CERTAIN PHASES OF THE
26 UNITS OF DELIVERY
PROJECT ARE COMPLETED AND ACCEPTED BY THE BUYER (E.G.,
METHOD
CONSTRUCTION OF SEVERAL CONDOMINIUM UNITS).
PERCENTAGE OF
COMPLETION = TOTAL
FORMULA FOR PERCENTAGE OF COMPLETION UNDER THE UNITS OF UNITS PRODUCED /
27 DELIVERY METHOD (OUTPUT MEASURES) TOTAL UNITS TO BE
PRODUCED AS PER
CONTRACT
IS A METHOD OF ACCOUNTING FOR LONG TERM CONSTRUCTION
CONTRACTS WHERE REVENUE IS RECOGNIZED IN AN AMOUNT
28 EXACTLY EQUAL TO COSTS INCURRED UNTIL REASONABLE ZERO PROFIT METHOD
OBJECTIVE ESTIMATES OF THE PERCENTAGE OF COMPLETION ARE
AVAILABLE.
IS A PERCENTAGE OF THE TOTAL CONTRACT PRICE DEDUCTED
FROM THE AMOUNT DUE AND RETAINED BY THE CLIENT FOR THE RETENTION (OR
29 PURPOSE OF ENSURING THAT THE CONTRACTOR COMPLETES THE CONTRACT RETENTION)
ACTIVITIES REQUIRED OF THEM UNDER THE CONTRACT.
1. RECEIVABLE
2. DOES NOT HAVE AN
30 TREATMENT FOR CONTRACT RETENTION (3 ITEMS) INCOME ELEMENT
3. REDUCES
COLLECTION
1. DR. CASH; CONTRACT

RETENTION; CR.
ACCOUNTS
RECEIVABLE
31 2. UPON COMPLETION
JOURNAL ENTRY FOR CONTRACT RETENTION (2 ITEMS)
OF PROJECT: DR. CASH;
CR. CONTRACT
RETENTION
IS A FEE CHARGED BY A CONTRACTOR THE PROCEEDS OF WHICH
ARE TO BE USED FOR THE ACTIVATION OF THE CONTRACTOR'S
32 MOBILIZATION FEE
PHYSICAL AND MANPOWER RESOURCES (E.G., TRANSFER TO A
CONSTRUCTION SITE).
IT DOES NOT HAVE AN
33 TREATMENT FOR MOBILIZATION FEE
INCOME ELEMENT.
DR. CASH; CR.
34 JOURNAL ENTRY FOR MOBILIZATION FEE ADVANCES FROM
CUSTOMERS
35 COMPUTATION OF ADJUSTED PRICE BILLING ADJUSTED PRICE
BILLING = CONTRACT
PRICE + ESCALATION
CLAUSE -
DEESCALATION CLASUE
- PENALTY CLAUSE +
INCENTIVE PAYMENTS
+/- MODIFICATION OR
CHANGE ORDER OR
VARIATION
1 AFAR - FRANCHISE ACCOUNTING (205001 - 205018)

IS A TYPE OF LICENSE THAT A PARTY
(FRANCHISEE) ACQUIRES TO ALLOW THEM TO
HAVE ACCESS TO A BUSINESS'S (FRANCHISOR)
2 PROPRIETARY KNOWLEDGE, PROCESSES, AND FRANCHISE
TRADEMARKS IN ORDER TO ALLOW THE PARTY TO
SELL A PRODUCT OR PROVIDE A SERVICE UNDER
THE BUSINESS'S NAME.
IS A FEE THAT A PERSON (FRANCHISEE) PAYS TO
OPERATE A FRANCHISE BRANCH OF A LARGER
3 FRANCHISE FEE
COMPANY (FRANCHISOR) AND ENJOY THE PROFITS
THEREFROM.
1. INITIAL FRANCHISE FEE
4 TYPES OF FRANCHISE FEES (2 ITEMS)
2. CONTINUING FRANCHISE FEE
IS A TYPE OF FRANCHISE FEE WHICH REPRESENTS
THE INITIAL PAYMENT FOR ESTABLISHING THE
5 FRANCHISE AGREEMENT, AND FOR PROVIDING INITIAL FRANCHISE FEE
CERTAIN INITIAL SERVICES ASSOCIATED WITH THE
AGREEMENT.
1. UPFRONT OR PAID IMMEDIATELY
PAYMENT SCHEMES FOR THE INTIAL FRANCHISE 2. FOR AN EXTENDED PERIOD OF TIME
6 FEE (3 ITEMS) 3. DOWNPAYMENT WITH THE BALANCE PAYABLE
FOR AN EXTENDED PERIOD OF TIME
IS A TYPE OF FRANCHISE FEE WHICH REPRESENTS
THE CONTINUING PAYMENT TO THE FRANCHISOR
FOR PROVIDING SPECIFIC FUTURE SERVICES,
7 SUCH AS ADVERTISING, AND FOR THE CONTINUED CONTINUING FRANCHISE FEE
USE OF INTANGIBLE RIGHTS BY THE FRANCHISEE.
THIS IS USUALLY BASED ON THE OPERATIONS OF
FRANCHISES.
1. THE POINT AT WHICH THE FEE IS TO BE
FACTORS TO BE CONSIDERED IN THE CONSIDERED EARNED; AND
8 RECOGNITION OF REVENUE FROM INITIAL 2. THE ASSURANCE OF COLLECTIBILITY OF ANY
FRANCHISE FEES (2 ITEMS) UNPAID PORTION OF THE FEEM IF THE TOTAL INITIAL
FRANCHISE FEE IS NOT PAID IN FULL.
AS A GENERAL RULE, UPON THE CONSUMMATION OF
POINT IN TIME AT WHICH THE FRANCHISOR IS
THE TRANSACTION, WHICH OCCURS WHEN ALL
9 ALLOWED TO START RECOGNIZING REVENUE
MATERIAL SERVICES OR CONDITIONS OF THE SALE
FROM FRANCHISE FEE
HAVE BEEN SUBSTANTIALLY PERFORMED.
METHODS OF RECOGNIZING REVENUE FROM 1. ACCRUAL BASIS
10 INITIAL FRANCHISE FEE IF THE SAME IS PAYABLE 2. INSTALLMENT BASIS OR COST RECOVERY
OVER AN EXTENDED PERIOD OF TIME (2 ITEMS) METHOD
IS THE METHOD USED IN RECOGNIZING REVENUE
FROM INITIAL FRANCHISE FEE COLLECTIBLE OVER
11 AN EXTENDED PERIOD OF TIME WHEN THE ACCRUAL BASIS
COLLECTIBILITY OF THE UNPAID PORTION OF THE
INITIAL FRANCHISE FEE IS REASONABLY ASSURED.
IS THE METHOD USED IN RECOGNIZING REVENUE
FROM INITIAL FRANCHISE FEE COLLECTIBLE OVER
AN EXTENDED PERIOD OF TIME WHEN THE
12 INSTALLMENT BASIS OR COST RECOVERY METHOD
COLLECTIBILITY OF THE UNPAID PORTION OF THE
INITIAL FRANCHISE FEE IS NOT REASONABLY
ASSURED.
1. NON-REFUNDABLE DOWNPAYMENT - RECOGNIZED
AS REVENUE UPON RECEIPT
TREATMENT FOR THE RECEIPT OF DOWNPAYMENT 2. REFUNDABLE DOWNPAYMENT (ASSUMED TO BE
13 BY THE FRANCHISOR (2 ITEMS) TRUE IF THE PROBLEM IS SILENT) - RECOGNIZED AS
REVENUE EITHER ON AN ACCRUAL OR INSTALLMENT
BASIS
THESE COSTS SHALL BE DEFERRED UNTIL THE
TREATMENT FOR DIRECT FRANCHISE COSTS OF
14 RELATED REVENUE IS RECOGNIZED (MATCHING
INITIAL SERVICES RENDERED BY THE FRANCHISOR
PRINCIPLE).
TREATMENT FOR INDIRECT COSTS INCURRED BY THESE COSTS SHOULD BE EXPENSED WHEN
15 THE FRANCHISOR ON A REGULAR BASIS INCURRED (OPERATING EXPENSES).
REVENUE FROM CONTINUING FRANCHISE FEES ARE
RECOGNITION OF REVENUE FROM CONTINUING
16 RECOGNIZED AS REVENUE WHEN ACTUALLY
FRANCHISE FEES
EARNED AND RECEIVABLE FROM THE FRANCHISEE.
PERCENTAGE-OF-COMPLETION METHOD:
(COST OF SERVICING EACH INDIVIDUAL FRANCHISE
RECOGNITION OF REVENUE FROM AREA IN THE ARE / TOTAL COST OF FRANCHISES THAT
17 FRANCHISE FEES ARE EXPECTED TO BE OPENED IN THE AREA) *
TOTAL INITIAL FRANCHISE FEE = REVENUE TO BE
RECOGNIZED
18 TREATMENT FOR TANGIBLE ASSETS (E.G., THE EXCESS OF FAIR MARKET VALUE OVER THE
CARRYING AMOUNT OF THE TANGIBLE PROPERTY IS
RECOGNIZED AS REVENUE WHEN TITLE TO SUCH
PROPERTY PASSES TO THE FRANCHISEE, EVEN
THOUGH SUBSTANTIAL PERFORMANCE HAS NOT
INVENTORYM SIGNS, EQUIPMENT, ETC.) SOLD WITH OCCURED FOR OTHER SERVICES INCLUDED IN THE
THE FRANCHISE (I.E., THE PRICE IS INCLUDED IN FRANCHISE AGREEMENT.
THE INITIAL FRANCHISE FEE) DEFERRED REVENUE FROM IFF = TOTAL INITIAL
FRANCHISE FEE EXCLUDING INTEREST - CARRYING
AMOUNT OF THE TANGIBLE PROPERTY - EXCESS OF
FAIR MARKET VALUE OVER THE CARRYING OF THE
TANGIBLE PROPERTY
THE INITIAL FRANCHISE FEE IS TO BE DEFERRED.
TREATMENT FOR THE OPTION TO PURCHASE THE WHEN THE OPTION IS EXERCISED AND THE
FRANCHISE BUSINESS GRANTED TO THE FRANCHISOR ACQUIRES THE FRANCHISE BUSINESS,
19 FRANCHISOR AT THE TIME THE FRANCHISE THE DEFERRED REVENUE FROM THE INITIAL
AGREEMENT WAS SIGNED FRANCHISE FEE IS TREATED AS A REDUCTION FROM
THE FRANCHISOR'S INVESTMENT.
AFAR - BUSINESS COMBINATION

1. IS THE TERM APPLIED TO EXTERNAL EXPANSION IN WHICH SEPARATE ENTERPRISES ARE BROUGHT
TOGETHER INTO ONE ECONOMIC ENTITY AS A RESULT OF ONE ENTERPRISE OBTAINING CONTROL
OVER THE NET ASSETS AND OPERATIONS OF ANOTHER ENTERPRISE.
BUSINESS COMBINATION
2. BUSINESS COMBINATION IS A TRANSACTION OR OTHER EVENT IN WHICH A/AN __________ OBTAINS

CONTROL OF ONE OR MORE BUSINESSES REFERRED TO AS THE __________.
ACQUIRER; ACQUIREE
3. IS AN INTEGRATED SET OF ACTIVITIES AND ASSETS THAT IS CAPABLE OF BEING CONDUCTED AND
MANAGED FOR THE PURPOSE OF PROVIDING A RETURN IN THE FORM OF DIVIDENDS, LOWER COSTS
OR OTHER ECONOMIC BENEFITS DIRECTLY TO INVESTORS OR OTHER OWNERS, MEMBERS OR
PARTICULAR.
BUSINESS
4. BASIC ELEMENTS OF A BUSINESS (3 ITEMS)

INPUTS
PROCESSES
OUTPUTS
5. IS ANY ECONOMIC RESOURCE THAT CREATES, OR HAS THE ABILITY TO CREATE OUTPUTS WHEN ONE
OR MORE PROCESSES ARE APPLIED TO IT.
INPUTS
6. IS ANY SYSTEM, STANDARD, PROTOCOL, CONVENTION OR RULE THAT WHEN APPLIED TO AN INPUT
OR INPUTS, CREATES OR HAS THE ABILITY TO CREATE OUTPUTS.
PROCESS
7. IS THE RESULT OF INPUTS AND PROCESS OR PROCESSES APPLIED TO THOSE INPUTS THAT WILL
PROVIDE OR HAVE THE ABILITY TO PROVIDE A RETURN IN THE FORM OF DIVIDENDS.
OUTPUT
8. WAYS ON HOW CONTROL OVER ANOTHER COMPANY MAY BE ACHIEVED (2 ITEMS)

1. ACQUISITION OF ASSETS - ACQUISITION OF ALL THE ASSETS OF THE TARGET COMPANY
2. STOCK ACQUISITION - ACQUISITION OF A CONTROLLING INTEREST (USUALLY OVER 50 PERCENT)
IN THE TARGET COMPANY'S VOTING COMMON STOCK
9. REFERS TO THE ACQUISITION OF THE ASSETS AND ASSUMPTION OF THE EXISTING LIABILITIES OF
THE ACQUIRED COMPANY.
ACQUISITION OF NET ASSETS
10. LEGAL FORMS OF BUSINESS COMBINATION (2 ITEMS)

STATUTORY COMBINATION
STATUTORY MERGER
11. REFERS TO THE COMBINING OF TWO OR MORE EXISTING LEGAL ENTITIES INTO ONE NEW LEGAL
ENTITY.
STATUTORY COMBINATION
12. REFERS TO THE ABSORPTION OF ONE OR MORE EXISTING LEGAL ENTITIES BY ANOTHER EXISTING
COMPANY THAT CONTINUES AS THE SOLE SURVIVING LEGAL ENTITY.
STATUTORY MERGER
13. IS THE OTHER TERM FOR THE ACQUIRING COMPANY OR ACQUIRER IN STOCK ACQUISITION.
PARENT
14. IS THE OTHER TERM FOR THE ACQUIRED COMPANY OR ACQUIREE IN STOCK ACQUISITION.
SUBSIDIARY
15. IS THE METHOD MANDATED BY THE STANDARDS TO BE USED IN ACCOUNTING FOR BUSINESS
COMBINATIONS.
ACQUISITION METHOD
16. STEPS TO BE FOLLOWED IN THE APPLICATION OF THE ACQUISITION METHOD (4 ITEMS)

1. INDENTIFY THE ACQUIRER.
2. DETERMINE THE ACQUISITION DATE.
3. DETERMINE THE CONSIDERATION GIVEN (PRICE PAID) BY THE ACQUIRER.
4. RECOGNIZE AND MEASURE SPECIFIC ACCOUNTS AS PROVIDED BY IFRS 3.
17. ACCOUNTS TO BE RECORDED AND MEASURED IN BUSINESS COMBINATION (4 ITEMS)

1. MEASURE ANY TANGIBLE OR INTANGIBLE ASSETS AND LIABILITIES THAT WERE ACQUIRED OR
ASSUMED.
2. MEASURE THE AMOUNT OF ANY NON-CONTROLLING INTEREST IN THE ACQUIRED BUSINESS
(APPLICABLE ONLY TO STOCK ACQUISITION).
3. MEASURE THE AMOUNT OF CONSIDERATION PAID
18. MEASUREMENT OF THE CONSIDERATION GIVEN BY THE ACQUIRER

FAIR VALUE AT ACQUISITION DATE
19. FORMS OF CONSIDERATION THAT CAN BE GIVEN BY THE ACQUIRER

ASSETS TRANSFERRED BY THE ACQUIRER
LIABILITIES INCURRED BY THE ACQUIRER TO FORMER OWNERS OF THE ACQUIREE
EQUITY INTERESTS ISSUED BY THE ACQUIRER
CONTINGENT CONSIDERATION
20. IS AN OBLIGATION OF THE ACQUIRER TO TRANSFER ADDITIONAL ASSETS OR EQUITY INTERESTS TO

THE FORMER OWNERS OF AN ACQUIREE AS PART OF THE EXCHANGE FOR CONTROL OF THE
ACQUIREE IF SPECIFIED FUTURE EVENTS OCCUR OR CONSIDERATIONS ARE MET. HOWEVER, IT MAY
ALSO GIV
CONTINGENT CONSIDERATION
21. CLASSIFICATION OF OBLIGATION TO PAY FOR A CONTINGENT CONSIDERATION (2 ITEMS)

FINANCIAL LIABILITY - PAYING ADDITIONAL CASH CONSIDERATION
EQUITY INSTRUMENT - ISSUING ADDITIONAL EQUITY INSTRUMENT
22. FAIR VALUE OF CONTINGENT CONSIDERATION

EXPECTED VALUE BASED ON THE PROBABILITY THAT THE CONDITION(S) WILL OCCUR
23. ARE THE COSTS THE ACQUIRER INCURS TO EFFECT A BUSINESS COMBINATION, SUCH AS BROKER'S
FEES; ACCOUNTING, LEGAL AND OTHER PROFESSIONAL FEES; GENERAL ADMINISTRATIVE COSTS,
INCLUDING THE COSTS OF MAINTAINING AN INTERNAL ACQUISITION DEPARTMENT.
ACQUISITION-RELATED COSTS
24. TREATMENT FOR ACQUISITION-RELATED COSTS INBUSINESS COMBINATIONS

THESE ARE NOT INCLUDED IN THE PRICE OF THE COMPANY ACQUIRED AND ARE EXPENSED.
25. TREATMENT FOR STOCK ISSUANCE COSTS IN BUSINESS COMBINATIONS

GR: DEDUCTION FORM ADDITIONAL PAID-IN CAPITAL (APIC) OR SHARE PREMIUM FROM PREVIOUS
SHARE ISSUANCE.
XPN: IN CASE APIC IS REDUCED TO ZERO, THE REMAINING STOCK ISSUANCE COSTS IS TREATED AS
A CONTRA ACCOUNT FROM RETAINED EARNINGS PRESENTED AS A SEPARATE LINE
26. MEASUREMENT OF IDENTIFIABLE ASSETS ACQUIRED AND LIABILITIES ASSUMED FROM THE
ACQUIREE BY THE ACQUIRER
FAIR VALUE
27. IS THE AMOUNT THAT AN ASSET OR LIABILITY WOULD BE BOUGHT OR SOLD FOR IN A CURRENT,
NORMAL SALE BETWEEN WILLING PARTIES.
FAIR VALUE
28. IS AN ASSET OF AN ACQUIRED COMPANY THAT CAN BE ASSIGNED A FAIR VALUE AND CAN BE
REASONABLY EXPECTED TO PROVIDE A BENEFIT FOR THE PURCHASING COMPANY IN THE FUTURE.
IDENTIFIABLE ASSET
29. IS AN UNIFENTIFIABLE INTANGIBLE ASSET THAT IS CREATED WHEN A COMPANY PURCHASES

ANOTHER COMPANY FOR A PRICE HIGHER THAN THE FAIR MARKET VALUE OF THE TARGET
COMPANY'S NET ASSETS.
GOODWILL
30. IS RECORDED WHEN THE PRICE PAID BY THE ACQUIRER IS ACTUALLY LESS THAN THE FAIR VALUE
ASSIGNED TO THE NET ASSETS.
GAIN ON ACQUISITION OR GAIN ON BARGAIN PURCHASE
31. GOODWILL THAT IS RECORDED IN BUSINESS COMBINATIONS

A. SHOULD BE RECORDED - NEW GOODWILL BASED ON THE PRICE PAID BY THE ACQUIRER
B. SHOULD NOT BE RECORDED - GOODWILL THAT MAY EXIST ON THE ACQUIREE'S BOOKS
32. MEASUREMENT PERIOD FOR VALUATION OF IDENTIFIABLE ASSETS AND LIABILITIES

IT TAKES TIME TO ESTABLISH THE MOST ACCURATE FAIR VALUE OF INDENTIFIABLE ASSETS AND
LIABILITIES. THEREFORE, A MEASUREMENT PERIOD OF UP TO ONE YEAR IS ALLOWED FOR
MEASUREMENT. TEMPORARY VALUES
33. FAIR VALUE OF CASH AND CASH EQUIVALENTS PAID AS CONSIDERATION FOR BUSINESS
COMBINATION
FACE VALUE OR NOMINAL VALUE
34. IS A PORTION OF THE PURCHASE PRICE THAT IS PAYABLE BY THE BUYER IN THE FUTURE.
DEFERRED CONSIDERATION
35. FAIR VALUE OF DEFERRED CONSIDERATION

PRESENT VALUE OF THE CONSIDERATION DISCOUNTED USING THE ACQUIRER'S CURRENT
BORROWING COST
36. FAIR VALUE OF EQUITY INSTRUMENTS TRANSFERRED AS CONSIDERATION

A. QUOTED EQUITY INSTRUMENTS - PUBLISHED PRICE AT THE DATE OF EXCHANGE (ACQUISITION
DATE)
B. UNQOTED EQUITY INSTRUMENTS - ESTIMATED USING CERTAIN METHODS
37. FAIR VALUE OF NON-FINANCIAL ASSETS TRANSFERRED AS CONSIDERATION

A. MARKET PRICES
B. ESTIMATED REALIZABLE VALUES
C. INDEPENDENT VALUATIONS
D. OTHER AVAILABLE INFORMATION RELEVANT TO THE VALUATION
38. TREATMENT WHEN THE FAIR VALUE OF NON-FINANCIAL ASSET TRANSFERRED AS CONSIDERATION
DIFFERS FROM THE CARRYING AMOUNT AS AT THE ACQUISITION DATE
THE ACQUIRER REMEASURES THE CARRYING AMOUNT TO FAIR VALUE AND RECOGNIZES THE
RESULTING GAIN OR LOSS IN PROFIT OR LOSS.
39. TREATMENT FOR FUTURE LOSSES OR OTHER COSTS EXPECTED TO BE INCURRED BY THE ACQUIRER
AS A RESULT OF A COMBINATION
NOT TREATED AS LIABILITIES ASSUMED BY THE ACQUIRER IN EXCHANGE FOR CONTROL OF THE
ACQUIREE, AND ARE NOT, THEREFORE, INCLUDED AS PART OF THE COST OF COMBINATION.
40. TREATMENT WHEN PROPERTY IS TRANSFERRED TO THE ACQUIREE RATHER THAN TO ITS FORMER
SHAREHOLDERS
THE ACQUIRER SHALL MEASURE THE NON-MONETARY ASSETS TRANSFERRED AT THEIR CARRYING
AMOUNTS RATHER THAN AT THEIR FAIR VALUE.
B
A
1 AFAR - COST ACCOUNTING PART 1 (213001 - 213210)

213001 - IS A QUANTIFICATION OR MEASUREMENT OF THE
ECONOMIC SACRIFICE MADE TO ACHIEVE A GIVEN
2 OBJECTIVE. IT IS, THEREFORE, A MEASUREMENT OF THE COST
AMOUNT OF RESOURCES SACRIFICED IN ATTAINING A
SPECIFIED GOAL.
213002 - IS AN ACTIVITY FOR WHICH A SEPARATE
3 COST OBJECT OR COST UNIT
MEASURE OF COST IS DESIRED.
223003 - IS A MEMBER OF THE ACCOUNTING DEPARTMENT
RESPONSIBLE FOR COLLECTING PRODUCT COSTS AND
4 COST ACCOUNTANT
PREPARING ACCURATE AND TIMELY REPORTS TO
EVALUATE AND CONTROL COMPANY OPERATIONS.
223004 - IS AN ACTIVITY THAT USES ENGINEERING, TIME
AND MOTION STUDIES, TIMEKEEPER'S RECORDS AND
5 COST ANALYSIS
PLANNING SCHEDULES FROM PRODUCTION
SUPERVISORS.
223005 - IS A PART OF THE ORGANIZATION IN WHICH A
MANAGER WHO HAS A BUDGET IS MADE RESPONSIBLE
6 RESPONSIBILITY CENTER
FOR THE PLANS AND THE RESULTING INFORMATION ON
THE PERFORMANCE OF THE PLANS.
223006 - REFERS TO A PRODUCTION OR SERVICE
DEPARTMENT IN AN ORGANIZATION WHERE COSTS ARE
7 COST CENTER
INCURRED FOR THE PRODUCTION OF GOODS AND
SERVICES.
223007 - IS A PART OF ACCOUNTING THAT RELATES TO
THE PROVISION OF FINANCIAL INFORMATION TO PEOPLE
AND MANAGERS WITHIN THE ORGANIZATION TO AID IN
8 MANAGEMENT ACCOUNTING
THE EXECUTION OF MANAGEMENT FUNCTIONS SUCH AS
PLANNING, ORGANIZING, CONTROLLING, EVALUATION OF
PERFORMANCE AND DECISION
223008 - IS CONCERNED WITH THE PROVISION OF
INFORMATION TO PARTIES OUTSIDE THE ORGANIZATION.
THIS IS THE ANALYSIS, CLASSIFICATION AND RECORDING
9 FINANCIAL ACCOUNTING
OF FINANCIAL TRANSACTIONS AND THE ASCERTAINMENT
OF HOW SUCH INFORMATION WILL BE REPORTED FOR
VARIOUS USERS.
223009 - IS THE ARRANGEMENT OF COST ITEMS IN A
10 LOGICAL SEQUENCE HAVING REGARD TO THEIR NATURE COST CLASSIFICATION
AND PURPOSE TO BE FULFILLED.
223010 - COST OBJECTIVE: MANUFACTURING AND NON-
11 STOCK VALUATION
MANUFACTURING COSTS
12 223011 - COST OBJECTIVE: PERIOD AND PRODUCT COSTS STOCK VALUATION
13 223012 - COST OBJECTIVE: DIRECT AND INDIRECT COSTS STOCK VALUATION

223013 - COST OBJECTIVE: COST BEHAVIOR SUCH AS
14 DECISION MAKING
VARIABLE, FIXED AND SEMI-VARIABLE
223014 - COST OBJECTIVE: RELEVANCE, OPPORTUNITY,
15 DECISION MAKING
SUNK COST, HISTORICAL COST, STANDARD COST
223015 - COST OBJECTIVE: CONTROLLABLE AND NON-
16 CONTROL PURPOSES
CONTROLLABLE COSTS
223016 - COST OBJECTIVE: AVOIDABLE AND NON-
17 CONTROL PURPOSES
AVOIDABLE COSTS
B
A
223017 - ARE THE COSTS INCURRED TO PRODUCE A
18 MANUFACTURING COSTS
PRODUCT.
1. DIRECT MATERIALS COST
19 223018 - ELEMENTS OF MANUFACTURING COSTS (3 ITEMS) 2. DIRECT LABOR COST
3. OVERHEAD COST
223019 - ARE EXPENSES INCURRED FOR A PARTICULAR
20 JOB, PROJECT OR SERVICE. THEY ARE TRACEABLE TO DIRECT EXPENSES
THAT SPECIFIC JOB.
223020 - REFERS TO ALL PHYSICAL INPUTS INTO THE
21 MATERIAL
PRODUCTION PROCESS.
223021 - ARE THOSE MATERIALS THAT CAN BE EASILY
22 TRACED TO A PRODUCT WITHOUT ANY EXTRA COST OR DIRECT MATERIALS
INCONVENIENCE.
223022 - ARE MATERIALS THAT BECAME AN INTEGRAL
PART OF THE FINISHED PRODUCT BUT MAY BE
23 INDIRECT MATERIALS
TRACEABLE INTO THE PRODUCT ONLY AT GREAT COST
OR INCONVENIENCE.
223023 - IS THE PHYSICAL AND MENTAL HUMAN INPUT IN A
24 LABOR
PRODUCTION PROCESS.
223024 - REFERS TO WAGES PAID TO WORKERS WHO ARE
DIRECTLY INVOLVED IN THE PRODUCTION OF EACH ITEM
25 DIRECT LABOR
PRODUCED. SUCH COST CAN BE PHYSICALLY TRACED TO
THE CREATION OF PRODUCT WITHOUT UNDUE COST.
223025 - REFERS TO WAGES PAID TO WORKERS WHOSE
26 EFFORTS CANNOT BE READILY INDENTIFIED WITH INDIRECT LABOR
SPECIFIC PRODUCT UNITS OR BATCHES.
223026 - INCLUDE ALL COSTS OF MANUFACTURING
EXCEPT DIRECT MATERIALS AND DIRECT LABOR. THEY
27 INCLUDE INDIRECT MATERIALS, INDIRECT LABOR AND OVERHEAD COSTS
OTHER INDIRECT EXPENSES THAT CANNOT BE TRACED
DIRECTLY TO A PRODUCT.
223027 - ARE COSTS INCURRED BY ALL ACTIVITIES THAT
28 NON-MANUFACTURING COSTS
SUPPORT THE PRODUCTION OF GOODS AND SERVICES.
223028 - IS THE SUM OF COSTS ASSOCIATED WITH THE
OVERALL MANAGEMENT OF THE ENTERPRISE, WHICH
29 ADMINISTRATIVE COST
CANNOT BE READILY IDENTIFIED WITH ONE OF THE
MAJOR FUNCTIONAL AREAS.
223029 - IS THE SUM OF COSTS ASSOCIATED WITH THE
30 SELLING COST
SECURING OF ORDERS FROM CUSTOMERS.
223030 - ARE COSTS ASSOCIATED WITH WAREHOUSING
THE PRODUCTS AND THEIR DELIVERY TO CUSTOMERS.
31 DISTRIBUTION COSTS
THEY ARE INCURRED IN GETTING THE FINISHED
PRODUCT TO CUSTOMERS.
223031 - ARE COSTS INCURRED TO SECURE FUNDS TO
32 FINANCE COSTS
FINANCE THE ORGANIZATION'S ACTIVITIES.
223032 - ARE COSTS THAT ARE INCURRED TO INVENT
NEW PRODUCTS OR TO MODIFY EXISTING ONES, AS WELL
33 RESEARCH AND DEVELOPMENT COSTS
AS COSTS INCURRED TO ACQUIRE MORE INFORMATION
ON SUCH PRODUCTS.
223033 - MEANS HOW COSTS WILL RESPOND TO
34 COST BEHAVIOR
CHANGES IN THE ACTIVITY LEVEL.
35 223034 - ARE COSTS THAT INCREASE OR DECREASE, IN VARIABLE COSTS
B
A
TOTAL, IN DIRECT PROPORTION TO CHANGES IN THE
TOTAL LEVEL OF ACTIVITY OR NUMBER OF UNITS
PRODUCED.
223035 - ARE COSTS WITH BOTH A FIXED AND VARIABLE
36 SEMI-VARIABLE COSTS
COST COMPONENTS.
223036 - ARE COSTS THAT DO NOT CHANGE WITH THE
37 LEVEL OF OUTPUT. IN OTHER WORDS, THEY REMAIN THE FIXED COSTS
SAME IRRESPECTIVE OF THE ACTIVITY LEVEL.
223037 - ARE COSTS WHICH ARE CONSTANT WITHIN A
CERTAIN PRODUCTION BAND BUT EVENTUALLY INCREASE
AT SOME CRITICAL POINT BY A CONSTANT AMOUNT TO
38 SEMI-FIXED COSTS OR STEPPED COSTS
ANOTHER FIXED LEVEL ONCE THE OUTPUT BAND
CHANGES. THIS IS A CLEAR ILLUSTRATION OF HOW FIXED
COSTS BEHAVE IN THE LONG RUN.
223038 - EXIST WHERE COSTS DO NOT VARY IN DIRECT
39 PROPORTION TO THE LEVEL OF ACTIVITY THUS GIVING A CURVILINEAR COSTS
NON-LINEAR FUNCTION.
223039 - ARE COSTS THAT CAN BE TRACED SPECIFICALLY
AND IDENTIFIED TO THE END PRODUCT OF THE
40 DIRECT COSTS
PRODUCTION PROCESS WITHOUT ANY EXTRA COST OR
INCONVENIENCE.
223040 - ARE COSTS THAT WILL NOT BE DIRECTLY
41 INDIRECT COSTS
ATTRIBUTABLE TO A SPECIFIC PRODUCT.
223041 - IS COMPOSED OF DIRECT MATERIALS AND
42 PRIME COST
DIRECT LABOR.
223042 - IS COMPOSED OF DIRECT LABOR AND
43 CONVERSION COST
MANUFACTURING OVERHEAD.
223043 - REFERS TO THE COST WHICH CAN BE
44 INFLUENCED BY THE ACTIONS OF A PERSON IN WHOM CONTROLLABLE COST
AUTHORITY FOR SUCH CONTROL IS VESTED.
223044 - IS A COST WHICH CANNOT BE INFLUENCED BY A
45 PERSON IN WHOM AUTHORITY FOR SUCH CONTROL IS NON-CONTROLLABLE COST
VESTED.
223045 - ARE COSTS THAT ARE EXPECTED TO BE
46 NORMAL OR STANDARD COSTS
INCURRED GIVEN A SPECIFIC LEVEL OF PRODUCTION.
223046 - ARE COSTS ABOVE THE NORMAL COSTS GIVEN A
47 ABNORMAL COSTS
SPECIFIC LEVEL OF ACTIVITY.
223047 - ARE COSTS THAT WERE INCURRED AT A GIVEN
48 HISTORICAL COSTS
TIME IN THE PAST.
223048 - ARE ESTIMATED COSTS THAT HAVE BEEN
49 PREDETERMINED COSTS
ESTIMATED FOR THE PURPOSES OF DECISION MAKING.
223049 - ARE ALL THE COSTS INCURRED IN THE
PRODUCTION OF UNITS DURING A TIME PERIOD
50 PRODUCT COSTS
(CAPITALIZED AND EXPENSED ONLY WHEN THE
MANUFACTURER SELLS INVENTORY).
223050 - ARE COSTS MAINLY INCURRED IN THE ORDINARY
51 PERIOD COSTS
RUNNING OF THE BUSINESS ENTERPRISE.
223051 - ARE THE COSTS WHICH HAVE ALREADY BEEN
INCURRED. THEY CANNOT BE CHANGED BY ANY
52 SUNK COSTS
DECISION MADE AFTER INCURRENCE (IRRELEVANT FOR
DECISION MAKING).
B
A
223052 - IS THE ADDITIONAL COST OF PRODUCING AN
53 MARGINAL COST
EXTRA UNIT OF OUTPUT.
223053 - IS DEFINED AS THE COST OF THE NEXT BEST
FORGONE ALTERNATIVE OR THE POTENTIAL BENEFIT
54 OPPORTUNITY COST
THAT IS LOST BY TAKING ONE COURSE OF ACTION AND
GIVING UP THE OTHER.
223054 - ARE COSTS THAT DIFFER AMONG ALTERNATIVES
55 DIFFERENTIAL COST/INCREMENTAL COST
(RELEVANT FOR DECISION MAKING).
223055 - IS AN EXPENSE NOT INCURRED DIRECTLY, BUT
56 IMPUTED COST
ACTUALLY BORNE.
223056 - IS THE AMOUNT THAT IT WOULD COST TO
57 REPLACEMENT COST
REPLACE AN ASSET AT CURRENT MARKET PRICES.
223057 - IS A MANAGEMENT TOOL USED TO ESTIMATE THE
58 OVERALL COST OF PRODUCTION, ASSUMING NORMAL STANDARD COST
OPERATIONS.
223058 - IS THE COST ESTIMATED TO BE INCURRED AND
59 BUDGETED COST
USED FOR BUDGETING PURPOSES.
223059 - ARE INVENTORIES KEPT BY FIRMS TO PROTECT
60 THEMSELVES AGAINST UNCERTAINTIES OF DEMAND AND BUFFER INVENTORIES
SUPPLY.
223060 - ARE INVENTORIES KEPT BY FIRMS IN
61 ANTICIPATION THAT FUTURE DEMAND FOR THEM WILL ANTICIPATION INVENTORY
HAPPEN.
223061 - ARE INVENTORIES HELD BY FIRMS IN
62 APPRECIATION INVENTORY
ANTICIPATION OF AN INCREASE IN PRICE.
223062 - IS THE LEVEL BELOW WHICH STOCKS (OF
63 MINIMUM STOCK LEVEL
INVENTORY) SHOULD NOT BE ALLOWED TO FALL.
MINIMUM STOCK LEVEL = REORDER LEVEL -
64 223063 - FORMULA FOR MINIMUM STOCK LEVEL (NORMAL CONSUMPTION * NORMAL
REORDER POINT)
223064 - IS A SITUATION IN WHICH THERE ARE NO GOODS
65 (RAW MATERIALS) OF A PARTICULAR KIND AVAILABLE FOR STOCK OUT
SALE (OR USE).
223065 - IS THE PERIOD OF TIME IN DAYS, WEEKS OR
66 MONTHS THAT ELAPSES BEFORE AN ORDER MADE IS REORDER PERIOD OR LEAD TIME
RECEIVED AND READY FOR USE.
223066 - IS THE UPPER LIMIT ABOVE WHICH STOCKS (OF
67 MAXIMUM STOCK LEVEL
INVENTORY) SHOULD NOT BE ALLOWED TO EXCEED.
MAXIMUM STOCK LEVEL = REORDER LEVEL +
68 223067 - FORMULA FOR MAXIMUM STOCK LEVEL REORDER QUANTITY - (MINIMUM
CONSUMPTION * MINIMUM REORDER POINT)
223068 - IS A POINT THAT LIES BETWEEN MINIMUM AND
MAXIMUM STOCK LEVELS AT WHICH PURCHASE ORDERS
69 MUST BE PLACED TO ENSURE THAT GOODS ORDERED REORDER LEVEL
ARE RECEIVED BEFORE THE MINIMUM STOCK LEVEL IS
REACHED.
REORDER LEVEL = MAXIMUM CONSUMPTION
70 223069 - FORMULA FOR REORDER LEVEL
* MAXIMUM REORDER PERIOD
223070 - IS THE QUANTITY OF STOCK ORDERED ONCE THE
71 REORDER QUANTITY
RE-ORDER POINT IS REACHED.
72 223071 - FORMULA FOR REORDER QUANTITY REORDER QUANTITY = MAXIMUM STOCK
B
A
LEVEL - REORDER LEVEL + (MINIMUM USAGE
* MINIMUM REORDER PERIOD)
1. PURCHASE COST
73 223072 - COSTS ASSOCUATED WITH MATERIALS (3 ITEMS) 2. CARRYING OR HOLDING COST
3. ORDERING AND PROCUREMENT COSTS
223073 - IS THE PRICE CHARGED BY THE SUPPLIER OF AN
74 PURCHASE COST
ITEM OF INVENTORY.
PURCHASE COST = ACQUISITION PRICE PER
75 223074 - FORMULA FOR PURCHASE COST
UNIT * NUMBER OF UNITS
223075 - IS THE COST INCURRED BECAUSE FIRMS OWN
76 CARRYING OR HOLDING COST
AND MAINTAIN INVENTORIES.
CARRYING COST = HANDLING COST PER
UNIT PER ANNUM * AVERAGE STOCK
77 223076 - FORMULA FOR CARRYING COST
QUANTITY ; WHERE AVERAGE STOCK
QUANTITY =
223077 - IS THE COST OF GETTING AN ITEM INTO THE
FIRM'S INVENTORY (E.G., CLERICAL COSTS OF
78 ORDERING AND PROCUREMENT COSTS
PREPARING PURCHASE ORDERS, RECEIVING DELIVERIES
AND PAYING INVOICES).
223078 - ARE COSTS INCURRED AS A RESULT OF AN ITEM
79 STOCK OUT COSTS
NOT BEING IN STOCK.
ORDERING COST = NUMBER OF ORDERS
MADE PER YEAR * COST PER ORDER;
80 223079 - FORMULA FOR ORDERING COST WHERE NUMBER OF ORDERS PER YEAR =
ANNUAL DEMAND / NUMBER OF UNITS
ORDERED EACH TIME
223080 - IS A SIMPLE MODEL THAT HELPS MANAGERS TO
81 DETERMINE THE OPTIMUM QUANTITY OF STOCK TO ECONOMIC ORDER QUANTITY (EOQ) MODEL
ORDER SO AS TO KEEP THE TOTAL COST AT A MINIMUM.
223081 - FORMULA FOR ECONOMIC ORDER QUANTITY EOQ = SQ. ROOT OF [(2 * ANNUAL DEMAND *
82 (EOQ) ORDERING COST) / CARRYING COST]
223082 - IS SIMILAR TO ECONOMIC ORDER QUANTITY
(EOQ) EXCEPT THAT IT IS ONLY APPLICABLE IN A
MANUFACTURING ENTITY WHERE PRODUCTION AND
83 ECONOMIC BATCH QUANTITY
CONSUMPTION OCCUR SIMULTANEOUSLY WITH
PRODUCTION RATE BEING HIGHER THAN THE
CONSUMPTION RATE.
1. ABC SYSTEM OR PARETO ANALYSIS
84 223083 - STOCK CONTROL SYSTEMS (3 ITEMS) 2. PERIODIC ORDER SYSTEM
3. CONTINUOUS REVIEW SYSTEM
223084 - IS A STOCK CONTROL SYSTEM WHERE ITEMS
ARE CATEGORIZED INTO THREE CLASSES: CLASS A (HIGH
COST, FAST MOVING AND HIGH USAGE ITEMS, HIGHLY
85 ABC SYSTEM OR PARETO ANALYSIS
CONTROL), CLASS B (MEDIUM MOVING GOODS,
MODERATELY CONTROLLED), CLASS C (SLOW MOVING
LOW VALUE ITEMS, LEAST CONTROLLED)
223085 - IS A STOCK CONTROL SYSTEM WHERE STOCK
86 LEVELS ARE REVIEWED AT FIXED INTERVALS AND A PERIODIC ORDER SYSTEM
REPLENISHMENT ORDER IS ISSUED WHERE NECESSARY.
87 223086 - IS A STOCK CONTROL SYSTEM WHERE THE FIRM CONTINUOUS REVIEW SYSTEM
PLACES ORDERS AT REGULAR INTERVALS BUT THE
ORDER QUANTITY VARIES ACCORDING TO HOW MUCH A
FIRM REQUIRES TO BRING THE LEVEL TO SOME
B
A
PREDETERMINED SIZE OR VALUE.
1. FIRST IN FIRST OUT (FIFO)
2. LAST IN FIRST OUT (LIFO) - OBSOLETE
223087 - METHODS OF MATERIAL INVENTORY VALUATION
88 3. WEIGHTED AVERAGE METHOD (WAM)
(5 ITEMS)
4. STANDARD COSTING
5. REPLACEMENT COSTING
223088 - IS A LOGICAL PRICING METHOD WHICH
PROBABLY REPRESENTS WHAT IS HAPPENING IN
89 FIRST IN FIRST OUT (FIFO)
PRACTICE, OLDEST ITEMS ARE USUALLY ISSUED FIRST
OUT.
223089 - IS A MATERIAL INVENTORY VALUATION METHOD
THAT ASSUMES THAT MATERIALS ARE ISSUED OUT OF
90 STOCK IN THE REVERSE ORDER TO WHICH THEY WERE LAST IN FIRST OUT (LIFO)
DELIVERED (I.E., THEY ARE VALUED AT THE PRICE OF
UNITS RECEIVED FIRST).
WHERE THE ISSUE PRICE IS RECALCULATED AFTER EACH
91 RECEIPT OF STOCKS TAKING INTO ACCOUNT BOTH WEIGHTED AVERAGE METHOD (WAM)
QUANTITIES AND MONEY VALUE OF THE STOCKS
RECEIVED.
WHERE ALL ISSUES ARE VALUED AT A PREDETERMINED
92 STANDARD COSTING
STANDARD PRICE WHICH MAY NOT BE THE SAME AS THE
ACTUAL PRICE FOR THE MATERIALS DELIVERED.
WHERE MATERIAL ISSUES AND CLOSING STOCK ARE
93 REPLACEMENT COSTING
VALUED AT A COST AT WHICH IDENTICAL MATERIALS CAN
BE BOUGHT.
SALARY IS PAID ON A FIXED BASIS, WHILE
94 223093 - DIFFERENCE BETWEEN SALARY AND WAGE
WAGES ARE PAID ON A PER HOUR BASIS.
223094 - REFERS TO THE PARTICULAR AMOUNT OF
95 MONEY AN EMPLOYEE IS PAID PRIOR TO THE BASIC SALARY OR WAGES
APPLICATION OF ANY ADDITIONS.
1. FIXED RATE OR FIXED SALARY PER
223095 - METHODS BY WHICH BASIC WAGES CAN BE PAID MONTH OR PER ANNUM
96 OUT (2 ITEMS) 2. PIECE RATE OR PIECE WORK
3. TIME RATE OR TIME WORK
223096 - IS A METHOD OF PAYING BASIC WAGES WHERE
FIXED RATE OR FIXED SALARY PER MONTH
97 THE EMPLOYEES EARN A FIXED AMOUNT DESPITE THE
OR PER ANNUM
AMOUNT OF WORK DONE.
98 THE EARNINGS DEPEND ON THE LEVEL OF ACTIVITY OR PIECE RATE OR PIECE WORK
OUTPUT ACHIEVED.
223098 - IS A PIECE RATE METHOD OF PAYING BASIC
WAGES WHERE THE BASIC RATE PER UNIT REMAINS
99 STRAIGHT PIECE RATE
CONSTANT IRRESPECTIVE OF THE NUMBER OF UNITS
PRODUCED.
223099 - FORMULA FOR EARNINGS UNDER STRAIGHT EARNINGS = OUTPUT IN UNITS * BASIC RATE
100 PIECE RATE PER UNIT
101 223100 - IS A PIECE RATE METHOD OF PAYING BASIC STRAIGHT PIECE RATE WITH A GUARANTEED
WAGES WHERE , ALTHOUGH THE EMPLOYEE IS PAID ON MINIMUM PAY
THE NUMBER OF UNITS PRODUCED, ONE IS GUARANTEED
OF SOME MAIN WAGE SINCE THERE ARE OCCASIONS
B
A
WHEN PRODUCTION DOES NOT TAKE PLACE DUE TO
POWER FAILURES, MACHINE BREAKDOWNS, ETC.
223101 - IS A PIECE RATE METHOD OF PAYING BASIC
WAGES WHERE THE EMPLOYEES' BASIC RATE OF PAY
102 DIFFERENTIAL PIECE RATE
PER UNIT CHANGES AS THE LEVEL OF ACTIVITY CHANGES
(USUALLY DIRECT RELATIONSHIP).
103 EMPLOYEES' EARNINGS DEPEND ON THE TIME SPENT ON TIME RATE OR TIME WORK
THE JOB.
223103 - IS A TIME RATE METHOD OF PAYING BASIC
WAGES WHERE THE BASIC RATE PER HOUR REMAINS
104 FLAT TIME RATE
CONSTANT IRRESPECTIVE OF THE NUMBER OF HOURS
WORKED.
223104 - IS A TIME RATE METHOD OF PAYING BASIC
WAGES WHERE, ALTHOUGH THE EMPLOYEE IS PAID ON
105 THE BASIS OF THE NUMBER OF HOURS WORKED, BEFORE MEASURED DAY RATE
SUCH PAYMENT IS MADE, ONE MUST HAVE COMPLETED A
GIVEN PIECE OF ASSIGNMENT.
223105 - IS THE COPENSATION PAID TO EMPLOYEES IN
ADDITION TO NORMAL WAGES FOR HOURS WORKED IN
106 OVERTIME PREMIUM
EXCESS OF NORMAL WORKING HOURS (TREATED AS
INDIRECT LABOR).
223106 - IS THE PAYMENT OF LABOR OVER AND ABOVE
THE STANDARD RATE WHEN THEY WORK ON SHIFTS
107 ESPECIALLY DURING NIGHTS OR PERIODS OUTSIDE THE SHIFT PREMIUM
NORMAL WORKING HOURS (TREATED AS INDIRECT
LABOR).
223107 - IS A PAYMENT IN ADDITION TO THE AMOUNT
CONTRACTED FOR (BASIC PAY), IN MOST CASES BASED
108 ON THE LEVEL OF PERFORMANCE OR PROFITABILITY. IT BONUS PAYMENTS
IS PAID TO ENCOURAGE EMPLOYEES TO BE MORE
EFFICIENT.
223108 - IS THE NONPRODUCTIVE TIME PAID FOR (E.G.,
WORKERS ARE STILL PAID THOUGH NO PRODUCTION IS
109 IDLE TIME
CONTINUING DUE TO POWER FAILURE OR MACHINE
BREAKDOWN). IT IS TREATED AS PERIOD COST.
IDLE TIME RATIO = IDLE TIME / TOTAL HOURS
110 223109 - FORMULA FOR IDLE TIME RATIO
WORKED
223110 - IS THE NUMBER OF EMPLOYEES LEAVING OR
111 LABOR TURNOVER
BEING RECRUITED IN A PERIOD OF TIME.
LABOR TURNOVER = REPLACEMENT /
112 223111 - FORMULA FOR LABOR TURNOVER AVERAGE NUMBER OF EMPLOYEES IN A
PERIOD
223112 - ARE COSTS OF LABOR TURNOVER WHICH REFER
113 TO COSTS INCURRED AS A RESULT OF HIRING A NEW REPLACEMENT COSTS
EMPLOYEE.
223113 - ARE COSTS OF LABOR TURNOVER WHICH REFER
114 TO COSTS INCURRED IN ORDER TO PREVENT PREVENTIVE COSTS
EMPLOYEES FROM LEAVING THE ORGANIZATION.
115 223114 - IS ONE OF THE DEPARTMENTS INVOLVED IN THE PERSONNEL DEPARTMENT
ACCUMULATION OF LABOR COSTS AND IS THE ONE
RESPONSIBLE FOR ENGAGEMENT, DISCHARGE, AND
TRANSFER OF EMPLOYEES, CLASSIFICATION AND
B
A
METHOD OF REMUNERATION.
223115 - IS ONE OF THE DEPARTMENTS INVOLVED IN THE
116 PRODUCTION PLANNING DEPARTMENT
RESPONSIBLE FOR SCHEDULING WORK AND ISSUING JOB
ORDERS TO THE PRODUCTION DEPARTMENT.
RESPONSIBLE FOR RECORDING THE ATTENDANCE TIME
117 TIME KEEPING DEPARTMENT
AND JOB TIME (I.E., TIME SPENT BY EACH WORKER IN A
FACTORY AND TIME SPENT BY EACH WORKER ON EACH
JOB).
223117 - IS A DOCUMENT ON WHICH THE STARTING AND
FINISHING TIME OF AN EMPLOYEE IS RECORDED FOR THE
118 CLOCK CARD
ASCERTAINMENT OF HIS TOTAL ACTUAL ATTENDANCE
TIME.
223118 - IS A DOCUMENT THAT RECORDS TIME SPENT ON
119 JOB CARD
A JOB.
223119 - IS A RECORD OF HOW A PERSON'S TIME HAS
120 BEEN SPENT DAILY OR WEEKLY (COMMONLY USED BY TIME SHEET
INDIRECT WORKERS).
121 WAGES DEPARTMENT
RESPONSIBLE FOR PREPARING THE PAYROLL AND THE
PAYMENT OF WAGES.
122 COST ACCOUNTING DEPARTMENT
RESPONSIBLE FOR THE ACCUMULATION AND
CLASSIFICATION OF ALL COSTS.
223122 - IS THE FIRST STEP IN DETERMINING HOW TO
123 OVERHEAD ANALYSIS
TREAT OVERHEADS.
223123 - IS THE PROCESS BY WHICH OVERHEADS
124 (WHETHER VARIABLE OR FIXED) ARE ABSORBED INTO ABSORPTION COSTING
PRODUCTION (FULL COSTING).
223124 - ARE DEPARTMENTS THAT PROVIDE SERVICES TO
125 PRODUCTION DEPARTMENTS. THEY DO NOT PROVIDE SERVICE COST CENTERS OR DEPARTMENTS
PRODUCTS TO BE USED EXTERNALLY.
1. STOCK VALUATION
223125 - REASONS FOR COMPILING PRODUCT COSTS (3
126 2. PRODUCT PRICING
ITEMS)
3. DECISION MAKING
223126 - POSSIBLE BASIS OF APPORTIONMENT: MACHINE TIME OR NUMBER OF HOURS
127 MAINTENANCE SPENT
223127 - POSSIBLE BASIS OF APPORTIONMENT:
128 VALUE OF ASSETS AND EXPOSURE TO RISK
INSURANCE/DEPRECIATION OF ASSETS
SIZE OF THE SPACE OCCUPIED (FLOOR
129 223128 - POSSIBLE BASIS OF APPORTIONMENT: RENT
AREA)
130 223129 - POSSIBLE BASIS OF APPORTIONMENT: SALARIES NUMBER OF EMPLOYEES
223130 - POSSIBLE BASIS OF APPORTIONMENT: CANTEEN
131 NUMBER OF PEOPLE
COSTS
223131 - POSSIBLE BASIS OF APPORTIONMENT: STORES
132 NUMBER OF REQUESTS
COST
133 223132 - POSSIBLE BASIS OF APPORTIONMENT: NUMBER OF HOURS SPENT
B
A
INSPECTION
223133 - IS THE PROCESS BY WHICH THE WHOLE COST
134 ITEMS ARE CHARGED DIRECTLY TO A COST UNIT OR AS A ALLOCATION OF OVERHEADS
COST CENTER.
223134 - OCCURES WHERE THE TOTAL VALUE OF AN
135 OVERHEAD ITEM IS SHARED BETWEEN TWO OR MORE APPORTIONMENT OF OVERHEADS
COST CENTERS THAT USE THE OVERHEADS.
1. DIRECT METHOD
223135 - METHODS OF ALLOCATION AND APPORTIONMENT 2. ALGEBRAIC APPROACH
136 OF OVERHEAD COSTS (3 ITEMS) 3. ELIMINATION METHOD OR STEPWISE
(STEP DOWN) METHOD
223136 - IS A METHOD OF ALLOCATION AND
APPORTIONMENT OF OVERHEAD COSTS WHERE COSTS
137 DIRECT METHOD
OF EACH SERVICE DEPARTMENT ARE ONLY CHARGED TO
PRODUCTION CENTERS.
APPORTIONMENT OF OVERHEAD COSTS THAT
138 ALGEBRAIC METHOD
RECOGNIZES THE RECIPROCAL NATURE OF SERVICE
DEPARTMENTS AND EXPRESSES IT AS AN EQUATION.
APPORTIONMENT OF OVERHEAD COSTS WHICH MHICH
ALLOCATES SERVICE COSTS TO OPERATING
DEPARTMENTS AND OTHER SERVICE DEPARTMENTS IN A ELIMINATION METHOD OR STEPWISE
139 SEQUENTIAL PROCESS (I.E., SERVICE DEPARTMENT WITH METHOD
HIGHEST TO LOWEST COST NOT ALLOWING COSTS TO BE
ALLOCATED BACK TO A DEPARTMENT THAT HAS ALREADY
HAD ALL OF ITS COSTS ALLOCATED).
223139 - ARISES WHEN THE ABSORBED OVERHEADS ARE
MORE THAN THE ACTUAL OVERHEADS INCURRED
140 OVER ABSORPTION
(OVERESTIMATION OF OVERHEAD USED TO CALCULATE
THE ABSORPTION RATE).
223140 - OCCURS WHEN THE OVERHEADS CHARGED TO
141 THE COST OF SALES ARE LESS THAN THE ACTUAL UNDER ABSORPTION
OVERHEADS INCURRED.
1. PURCHASE OF RAW MATERIALS
223141 - MAIN ACTIVITIES OF A MANUFACTURING 2. CONVERSION OF RAW MATERIALS INTO
142 CONCERN (3 ITEMS) FINISHED GOODS
3. SALE OF THE FINISHED GOODS
1. DIRECT MATERIALS
143 223142 - ELEMENTS OF PRODUCTION COST (3 ITEMS) 2. DIRECT LABOR
3. FACTORY OVERHEAD
1. ACTUAL
144 223143 - COSTING SYSTEMS (3 ITEMS) 2. NORMAL
3. STANDARD
223144 - IS A COSTING SYSTEM WHERE ALL PRODUCTION
145 ACTUAL COST SYSTEM
COSTS ARE MEASURED AT ACTUAL COSTS.
223145 - IS A COSTING SYSTEM WHERE DIRECT
MATERIALS AND DIRECT LABOR ARE MEASURED AT
146 NORMAL COST SYSTEM
ACTUAL COSTS WHILE FACTORY OVERHEAD IS
MEASURED USING A PREDETERMINED RATE (APPLIED).
223146 - IS A COSTING SYSTEM WHERE ALL PRODUCTION
147 STANDARD COST SYSTEM
COSTS ARE MEASURED AT STANDARD COSTS
B
A
1. FORMS
223147 - COMPONENTS OF AN ACCOUNTING SYSTEM (3 2. EQUIPMENT
148 ITEMS) 3. PROCEDURES
4. PEOPLE
223148 - ARE THE DOCUMENTS ON WHICH DATA IS
149 FORMS
RECORDED (E.G., INVOICES, CHECKS, JOURNALS, ETC.).
223149 - CONSISTS OF DEVICES AND MACHINES SUCH AS
150 PENS, FILE CABINETS, ADDING MACHINES, CASH EQUIPMENT
REGISTERS AND COMPUTERS.
223150 - ARE SERIES OF OPERATIONS OR STEPS THAT
151 PROCEDURES
MUST BE PERFORMED TO COMPLETE A TASK.
223151 - IS A LISTING OF ALL ACCOUNTS USED IN THE
152 CHART OF ACCOUNTS
GENERAL LEDGER OF AN ORGANIZATION.
223152 - IS AN ACCOUNT USED TO RECORD THE
153 BALANCES ON A NUMBER OF SUBSIDIARY ACCOUNTS CONTROL ACCOUNT
AND TO PROVIDE A CROSS-CHECK ON THEM.
223153 - IS ONE OF THE MEANS OF ESTABLISHING
INTERNAL CONTROL OVER THE EXPENDITURES OF THE
BUSINESS. UNDER IT, DIFFERENT PERSONS ARE
154 VOUCHER SYSTEM
RESPONSIBLE FOR AUTHORIZING THE EXPENDITURE,
RECEIVING THE ASSETS OR SERVICES, PREPARING AND
SIGNING THE CHECKS.
223154 - IS A FORM OR DOCUMENT WHICH CONTAINS A
DESCRIPTION OF TRANSACTION INVOLVING THE
155 PAYMENT OF CASH IMMEDIATELY OR IN THE FUTURE, VOUCHER
AND THE AUTHORIZATION TO MAKE THE PAYMENT AND
TO JOURNALIZE THE TRANSACTION.
1. PAID VOUCHERS FILE
156 223155 - FILES KEPT FOR THE VOUCHERS (2 ITEMS)
2. UNPAID VOUCHERS FILE
223156 - ARE VOUCHERS USUALLY FILED IN NUMERICAL
157 PAID VOUCHERS
ORDER.
223157 - ARE VOUCHERS FILED PREFERABLY ACCORDING
158 TO THE DATE ON WHICH THE DISCOUNT PERIOD ENDS OR UNPAID VOUCHERS
PAYMENT IS DUE.
223158 - IS A COLUMNAR SPECIAL JOURNAL OR BOOK OF
159 ORIGINAL ENTRY IN WHICH EVERY VOUCHER AND ITS VOUCHER REGISTER
DISTRIBUTION ARE RECORDED.
160 223159 - IS THE BASIS OF PREPARING A VOUCHER. INVOICE OR OTHER BUSINESS DOCUMENT
223160 - IS THE BASIS OFOR MAKING AN ENTRY IN THE
161 VOUCHER
VOUCHER REGISTER.
223161 - IS REPLACED BY THE VOUCHER REGISTER
162 PURCHASES JOURNAL
UNDER THE VOUCHER SYSTEM.
163 223162 - IS A RECORD OF ALL CHECKS ISSUED. CHECK REGISTER
223163 - IS REPLACED BY THE CHECK REGISTER UNDER
164 CASH PAYMENTS JOURNAL
THE VOUCHER SYSTEM.
223164 - CONTROL ACCOUNT : MATERIALS, SUBSIDIARY MATERIALS LEDGER CARDS (PERPETUAL
165 LEDGER OR RECORD : __________ INVENTORY)
223165 - CONTROL ACCOUNT : FACTORY OVERHEAD, EXPENSE LEDGER OR DEPARTMENT
166 SUBSIDIARY LEDGER OR RECORD : __________ EXPENSE SHEET ANALYSIS
167 223166 - CONTROL ACCOUNT : WORK-IN-PROCESS, - COST SHEETS (JOB ORDER COSTING)
SUBSIDIARY LEDGER OR RECORD : __________ - PRODUCTION REPORT (PROCESS
B
A
COSTING)
223167 - CONTROL ACCOUNT : FINISHED GOODS,
168 FINISHED GOODS LEDGER CARDS
SUBSIDIARY LEDGER OR RECORD : __________
223168 - CONTROL ACCOUNT : MACHINERY AND
169 EQUIPMENT, SUBSIDIARY LEDGER OR RECORD : PLANT LEDGERS
__________
223169 - JOURNAL ENTRY FOR PURCHASE OF RAW
170 DR. MATERIALS; CR. VOUCHERS PAYABLE
MATERIALS
223170 - JOURNAL ENTRY FOR PURCHASE RETURNS AND
171 DR. VOUCHERS PAYABLE; CR. MATERIALS
ALLOWANCES
223171 - JOURNAL ENTRY FOR PAYMENT OF ACCOUNTS DR. VOUCHERS PAYABLE; CR. MATERIALS,
172 WITH DISCOUNT CASH
223172 - JOURNAL ENTRY FOR FREIGHT-IN FOR RAW
173 DR. MATERIALS; CR. VOUCHERS PAYABLE
MATERIALS
223173 - JOURNAL ENTRY FOR ISSUANCE OF DIRECT DR. WORK-IN-PROCESS CONTROL - DIRECT
174 MATERIALS TO PRODUCTION MATERIALS; CR. MATERIALS
223174 - JOURNAL ENTRY FOR ISSUANCE OF INDIRECT DR. FACTORY OVERHEAD CONTROL; CR.
175 MATERIALS TO PRODUCTION MATERIALS
223175 - JOURNAL ENTRY FOR EXCESS RAW MATERIALS DR. MATERIALS; CR. WORK-IN-PROCESS
176 RETURNED TO STORE ROOM FROM PRODUCTION CONTROL - DIRECT MATERIALS
DR. PAYROLL; CR. WITHHOLDING TAX
177 223176 - JOURNAL ENTRY FOR PAYROLL ASSEMBLY PAYABLE, SSS AND MEDICARE PREMIUMS
PAYABLE, VOUCHERS PAYABLE
DR. WORK-IN-PROCESS CONTROL - DIRECT
LABOR, FACTORY OVERHEAD CONTROL,
223177 - JOURNAL ENTRY FOR PAYROLL ACCOUNT
178 SELLING EXPENSES CONTROL,
DISTRIBUTION
ADMINISTRATIVE EXPENSES CONTROL; CR.
PAYROLL
223178 - TREATMENT FOR OVERTIME PREMIUM IF THE JOB OVERTIME PREMIUM IS CHARGED TO
179 IS TAKEN AS A RUSH ORDER WITH THE KNOWLEDGE THAT PRODUCT (DR. WORK-IN-PROCESS; CR.
OVERTIME WILL BE NECESSARY PAYROLL)
OVERTIME PREMIUM IS CHARGED TO
223179 - TREATMENT FOR OVERTIME PREMIUM WHEN THE
FACTORY OVERHEAD CONTROL ACCOUNT
180 REGULAR ORDERS CANNOT BE COMPLETED WITHIN
(DR. FACTORY OVERHEAD CONTROL; CR.
REGULAR WORKING HOURS
PAYROLL)
DR. WORK-IN-PROCESS CONTROL -
223180 - JOURNAL ENTRY FOR APPLIED FACTORY
181 FACTORY OVERHEAD; CR. APPLIED
OVERHEAD
FACTORY OVERHEAD
223181 - JOURNAL ENTRY FOR ACTUAL FACTORY DR. FACTORY OVERHEAD CONTROL; CR.
182 OVERHEAD VOUCHERS PAYABLE
223182 - JOURNAL ENTRY FOR COST OF COMPLETED DR. FINISHED GOODS; CR. WORK-IN-
183 GOODS FOR THE PERIOD PROCESS CONTROL
223183 - JOURNAL ENTRY FOR SALES OF GOODS ON
184 DR. ACCOUNTS RECEIVABLE; CR. SALES
ACCOUNT
223184 - JOURNAL ENTRY FOR RECOGNITION OF COST OF DR. COST OF GOODS SOLD; CR. FINISHED
185 GOODS SOLD GOODS
DR. APPLIED FACTORY OVERHEAD, UNDER-
APPLIED FACTORY OVERHEAD (BALANCING
223185 - JOURNAL ENTRY FOR CLOSING OF OVERHEAD
186 FIGURE); CR. FACTORY OVERHEAD
ACCOUNTS
CONTROL, OVER-APPLIED FACTORY
OVERHEAD (BALANCING FIGURE)
B
A
223186 - JOURNAL ENTRY FOR CLOSING OF UNDER- DR. COST OF GOODS SOLD; CR. UNDER-
187 APPLIED FACTORY OVERHEAD APPLIED FACTORY OVERHEAD
223187 - JOURNAL ENTRY FOR CLOSING OF OVER- DR. OVER-APPLIED FACTORY OVERHEAD;
188 APPLIED FACTORY OVERHEAD CR. COST OF GOODS SOLD
THE OVER- OR UNDER-APPLICATION
SHOULD BE CLOSED NOT ONLY TO THE
COST OF GOODS SOLD BUT ALSO TO
223188 - RULE IF OVER- OR UNDER-APPLICATION OF
189 FINISHED GOODS AND WORK-IN-PROCESS IN
FACTORY OVERHEAD IS MATERIAL
PROPORTION TO THEIR BALANCES BEFORE
THE CLOSING OF OVER- OR UNDER-
APPLICATION OF FACTORY OVERHEAD.
223189 - SYSTEMS USED IN THE ACCUMULATION OF 1. JOB ORDER COSTING
190 COSTS (2 ITEMS) 2. PROCESS COSTING
223190 - IS A SYSTEM USED IN ACCUMULATION OF COSTS
WHERE EACH JOB IS TRATED AS AN ACCOUNTING UNIT IN
WHICH MATERIALS, LABOR AND FACTORY OVERHEAD
191 JOB ORDER COSTING
COSTS ARE ASSIGNED BY MEANS OF JOB ORDER
NUMBERS (USUALLY USED BY LOW VOLUME, HIGH
VARIETY MANUFACTURING COMPANIES).
223191 - IS A DOCUMENT WHERE THE COST OF EACH
192 ORDER FOR A GIVEN CUSTOMER OR THE COST OF EACH JOB COST SHEET
LOT TO BE PLACED IN STOCK IS RECORDED.
1. PREVENTION COSTS
193 223192 - CLASSIFICATIONS OF QUALITY COSTS (3 ITEMS) 2. APPRAISAL COSTS
3. FAILURE COSTS
223193 - ARE COSTS INCURRED TO PREVENT PRODUCT
194 PREVENTION COSTS
FAILURE.
223194 - ARE COSTS INCURRED IN ORDER TO DETECT
195 APPRAISAL COSTS
PRODUCT FAILURE.
223195 - ARE COSTS INCURRED WHEN A PRODUCT FAILS
196 AND DOES NOT MEET THE REQUIRED STANDARDS FOR FAILURE COSTS
QUALITY.
223196 - CONSISTS OF RECYCLABLE MATERIALS LEFT
197 OVER FROM PRODUCT MANUFACTURING OR SCRAP MATERIALS
CONSUMPTION.
223197 - JOURNAL ENTRY FOR SCRAP SALES VIEWED AS DR. CASH (OR ACCOUNTS RECEIVABLE); CR.
198 ADDITIONAL REVENUE SCRAP SALES (OR OTHER INCOME)
223198 - JOURNAL ENTRY FOR SCRAP SALES VIEWED AS
DR. CASH (OR ACCOUNTS RECEIVABLE); CR.
199 A REDUCTION OF COST OF GOODS SOLD DURING THE
COST OF GOODS SOLD
PERIOD
223199 - JOURNAL ENTRY FOR SCRAP SALES VIEWED AS
DR. CASH; (OR ACCOUNTS RECEIVABLE) CR.
200 A REDUCTION OF THE FACTORY OVERHEAD INCURRED
FACTORY OVERHEAD CONTROL
FOR THE PERIOD
223200 - JOURNAL ENTRY FOR SCRAP SALES WHEN DR, CASH (OR ACCOUNTS RECEIVABLE); CR.
201 SCRAP IS DIRECTLY TRACEABLE TO A PARTICULAR JOB WORK-IN-PROCESS
223201 - ARE GOODS THAT HAVE BEEN DESTROYED (AT
202 SOME POINT IN THE PRODUCTION PROCESS OR AFTER SPOILED GOODS
COMPLETION) AND CANNOT BE REPAIRED.
223202 - IS THE PROCESS OF CORRECTING DEFECTIVE
203 GOODS IN ORDER TO BRING THEM INTO A SALEABLE REWORK
CONDITION
204 223203 - ACCOUNTING TREATMENT FOR SPOILED GOODS 1. CHARGED TO A PARTICULAR JOB
B
A
AND REWORK (2 ITEMS) 2. CHARGED TO ALL PRODUCTION
223204 - NORMALLY CAUSED BY SOME ACTION TAKEN BY
THE CUSTOMER SUCH AS MODIFICATIONS AFTER THE SPOILAGE OR REWORK CHARGED TO A
205 JOB WAS BEGAN OR AN IMPOSITION OF HIGH QUALITY PARTICULAR JOB
STANDARDS BY THE CUSTOMER.
223205 - NORMALLY ARISES BECAUES OF INTERNAL
FAILURE SUCH AS AN EMPLOYEE ERROR OR WORN-OUT SPOILAGE OR REWORK CHARGED TO ALL
206 MACHINERY WHICH HAPPENED DURING THE PRODUCTION
PRODUCTION.
207 223206 - MEASUREMENT OF SPOILED GOODS INVENTORY MEASURED AT SCRAP VALUE
DR. SPOILED GOODS INVENTORY, FINISHED
223207 - JOURNAL ENTRY FOR COMPLETION OF JOB WITH
208 GOODS (COST OF JOB - SCRAP VALUE OF
SPOILED GOODS CHARGED TO A PARTICULAR JOB
SPOILED GOODS); CR. WORK-IN-PROCESS
DR. SPOILED GOODS INVENTORY, FACTORY
223208 - JOURNAL ENTRY FOR COMPLETION OF JOB WITH OVERHEAD CONTROL (COST OF SPOILED
209 SPOILED GOODS CHARGED TO ALL PRODUCTION GOODS - SCRAP VALUE), FINISHED GOODS
INVENTORY; CR. WORK-IN-PROCESS
223209 - JOURNAL ENTRY FOR REWORK CHARGED TO A DR. WORK-IN-PROCESS; CR. MATERIALS,
210 PARTICULAR JOB PAYROLL, APPLIED FACTORY OVERHEAD
DR. FACTORY OVERHEAD CONTROL; CR.
223210 - JOURNAL ENTRY FOR REWORK CHARGED TO ALL
211 MATERIALS, PAYROLL, APPLIED FACTORY
PRODUCTION
OVERHEAD
223211 - IS A SYSTEM USED IN ACCUMULATION OF COSTS
USED WHEN PRODUCTS ARE MANUFACTURED UNDER
212 PROCESS COSTING
CONDITIONS OF CONTINUOUS PROCESSING OR UNDER
MASS PRODUCTION METHODS.
1. SEQUENTIAL
213 223212 - FORMS OF PRODUCTION FLOW (3 ITEMS) 2. PARALLEL
3. SELECTIVE
223213 - IS A FORM OF PRODUCTION FLOW WHERE EACH
214 ITEM MANUFACTURED GOES THROUGH THE SAME SET OF SEQUENTIAL PRODUCTION FLOW
OPERATIONS.
223214 - IS A FORM OF PRODUCTION FLOW WHERE
CERTAIN PORTIONS OF THE WORK ARE DONE
215 SIMULTANEOUSLY AND THEN BROUGHT TOGETHER IN A PARALLEL PRODUCTION FLOW
FINAL PROCESS OR PROCESSES FOR COMPLETION AND
TRANSFER TO FINISHED GOODS INVENTORY.
223215 - IS A FORM OF PRODUCTION FLOW WHERE THE
PRODUCT MOVES TO DIFFERENT DEPARTMENTS WITHIN
216 SELECTIVE PRODUCTION FLOW
THE PLANT, DEPENDING UPON THE DESIRED FINAL
PRODUCT.
223216 - JOURNAL ENTRY FOR ISSUANCE OF MATERIALS DR. WORK-IN-PROCESS - DEPARTMENT A;
217 TO A DEPARTMENT UNDER PROCESS COSTING CR. MATERIALS
223217 - JOURNAL ENTRY FOR LABOR COSTS UNDER DR. WORK-IN-PROCESS - DEPARTMENT A;
218 PROCESS COSTING CR. PAYROLL
223218 - JOURNAL ENTRY FOR FACTORY OVERHEAD DR. WORK-IN-PROCESS - DEPARTMENT A;
219 COSTS UNDER PROCESS COSTING CR. FACTORY OVERHEAD CONTROL
223219 - JOURNAL ENTRY FOR TRANSFER OF PRODUCT
DR. WORK-IN-PROCESS - DEPARTMENT B;
220 UNITS FROM ONE DEPARTMENT TO ANOTHER UNDER
CR. WORK-IN-PROCESS - DEPARTMENT A
PROCESS COSTING
221 223220 - JOURNAL ENTRY FOR TRANSFER FROM ONE DR. WORK-IN-PROCESS DEPARTMENT - B,
DEPARTMENT TO ANOTHER WITH ABNORMAL SPOILAGE FACTORY OVERHEAD CONTROL - ABNORMAL
B
A
SPOILAGE; CR. WORK-IN-PROCESS -
UNDER PROCESS COSTING
DEPARTMENT A
223221 - JOURNAL ENTRY FOR TRANSFER OF COMPLETED
DR. FINISHED GOODS; CR. WORK-IN-
222 PRODUCT UNITS FROM FINAL PROCESSING DEPARTMENT
PROCESS - DEPARTMENT B
TO FINISHED GOODS
223222 - SUMMARIZES THE PRODUCTION AND COST
223 ACTIVITY WITHIN A DEPARTMENT FOR A REPORTING COST OF PRODUCTION REPORT
PERIOD.
223223 - MAIN PARTS OF A COST OF PRODUCTION 1. QUANTITY SCHEDULE
224 REPORT (2 ITEMS) 2. COST ANALYSIS

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1 FAR - ACCOUNTING PROCESS (101001 - 101052)

101001 - THERE ARE __________ BASIC STEPS IN THE ACCOUNTING

FAR - CONCEPTUAL FRAMEWORK (102001 - 101068)

1 FAR - CASH AND CASH EQUIVALENTS (103001 - 103118)

12 103011 - CASH OR NONCASH: DIVIDEND FUND CASH

15 103014 - CASH OR NONCASH: REVOLVING FUND CASH

16 103015 - CASH OR NONCASH: TAX FUND CASH

29 103028 - MEASUREMENT OF CASH IN FOREIGN CURRENCY CURRENT EXCHANGE RATE

1 FAR - RECEIVABLES (104001 - 104170)

AFAR - PARTNERSHIP FORMATION

2. CHARACTERISTICS OF A PARTNERSHIP AS A FORM OF BUSINESS ORGANIZATION (6

3. IS A CHARACTERISTIC OF PARTNERSHIPS WHICH REFERS TO THE FACT THAT A

4. IS A CHARACTERISTIC OF PARTNERSHIPS WHICH REFERS TO THE FACT THAT THE

5. 6 IS A CHARACTERISTIC OF PARTNERSHIPS WHICH REFERS TO THE FACT THAT EACH

6. IS A CHARACTERISTIC OF PARTNERSHIP WHICH REFERS TO THE FACT THAT ANY

7. IS CHARACTERISTIC OF PARTNERSHIPS WHICH REFERS TO THE FACT THAT EACH

8. IS A CHARACTERISTIC OF PARTNERSHIPS WHICH REFERS TO THE FACT THAT EACH

9. PARTNER'S LEDGER ACCOUNTS (3 ITEMS)

10. TRANSACTIONS WHERE A PARTNER'S CAPITAL ACCOUNT IS CREDITED FOR (3 ITEMS)

11. TRANSACTIONS WHERE A PARTNER'S CAPITAL ACCOUNT IS DEBITED FOR (3 ITEMS)

12. TRANSACTIONS WHERE A PARTNER'S DRAWING ACCOUNT IS CREDITED FOR (3 ITEMS)

13. TRANSACTIONS WHERE A PARTNER'S DRAWING ACCOUNT IS DEBITED FOR (3 ITEMS)

14. RULE ON THE VALUATION OF ASSETS CONTRIBUTED BY PARTNERS

15. RULE ON THE ASSUMPTION OF S PARTNER'S PERSONAL LIABILITY BY THE

16. FORMULA FOR CONTRIBUTED CAPITAL

17. IS THE AMOUNT OF CAPITAL OF EACH PARTNER AFTER FORMATION.

18. RULE ON THE AMOUNT OF INITIAL CAPITAL CREDIT TO BE RECEIVED BY A PARTNER

1. DR. CASH; CONTRACT

1 AFAR - FRANCHISE ACCOUNTING (205001 - 205018)

AFAR - BUSINESS COMBINATION

2. BUSINESS COMBINATION IS A TRANSACTION OR OTHER EVENT IN WHICH A/AN __________ OBTAINS

4. BASIC ELEMENTS OF A BUSINESS (3 ITEMS)

8. WAYS ON HOW CONTROL OVER ANOTHER COMPANY MAY BE ACHIEVED (2 ITEMS)

10. LEGAL FORMS OF BUSINESS COMBINATION (2 ITEMS)

16. STEPS TO BE FOLLOWED IN THE APPLICATION OF THE ACQUISITION METHOD (4 ITEMS)

17. ACCOUNTS TO BE RECORDED AND MEASURED IN BUSINESS COMBINATION (4 ITEMS)

18. MEASUREMENT OF THE CONSIDERATION GIVEN BY THE ACQUIRER

19. FORMS OF CONSIDERATION THAT CAN BE GIVEN BY THE ACQUIRER

20. IS AN OBLIGATION OF THE ACQUIRER TO TRANSFER ADDITIONAL ASSETS OR EQUITY INTERESTS TO

21. CLASSIFICATION OF OBLIGATION TO PAY FOR A CONTINGENT CONSIDERATION (2 ITEMS)

22. FAIR VALUE OF CONTINGENT CONSIDERATION

24. TREATMENT FOR ACQUISITION-RELATED COSTS INBUSINESS COMBINATIONS

25. TREATMENT FOR STOCK ISSUANCE COSTS IN BUSINESS COMBINATIONS

29. IS AN UNIFENTIFIABLE INTANGIBLE ASSET THAT IS CREATED WHEN A COMPANY PURCHASES

31. GOODWILL THAT IS RECORDED IN BUSINESS COMBINATIONS

32. MEASUREMENT PERIOD FOR VALUATION OF IDENTIFIABLE ASSETS AND LIABILITIES

35. FAIR VALUE OF DEFERRED CONSIDERATION

36. FAIR VALUE OF EQUITY INSTRUMENTS TRANSFERRED AS CONSIDERATION

37. FAIR VALUE OF NON-FINANCIAL ASSETS TRANSFERRED AS CONSIDERATION

1 AFAR - COST ACCOUNTING PART 1 (213001 - 213210)

13 223012 - COST OBJECTIVE: DIRECT AND INDIRECT COSTS STOCK VALUATION

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