Starting a Dance Studio Business

False (B)

6 months

<p>Salcedo Village</p> Signup and view all the answers

<p>Class fees collected = Daily Rent payment = Weekly Utility bills = Monthly Instructor payments = Daily and/or Monthly</p> Signup and view all the answers

<p>Going Concern (B)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>The matching principle ensures that expenses are recorded in the same period as the revenues they help generate.</p> Signup and view all the answers

<p>consistency</p> Signup and view all the answers

<p>Going Concern = The business is expected to continue operating for the foreseeable future. Accrual Basis = Revenues and expenses are recorded when they are earned or incurred. Matching Principle = Expenses are recorded in the same period as the revenues they help generate. Materiality = Small transactions are handled more simply.</p> Signup and view all the answers

<p>Dance Studio Fixtures and Mirrors (C)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>₱400,000</p> Signup and view all the answers

<p>Expense</p> Signup and view all the answers

<p>Current Asset = Balance Sheet Revenue = Income Statement Current Liability = Balance Sheet Expense = Income Statement</p> Signup and view all the answers

<p>P 78,000 (B)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>P 14,000</p> Signup and view all the answers

<p>P 500,000</p> Signup and view all the answers

<p>B = Dance supplies C = Studio supplies F = Utilities I = Costume rental M = Marketing expenses N = SSS and HDMF contribution R = Dance costumes S = Rent</p> Signup and view all the answers

The initial investment used to start a business. It covers essential assets and expenses needed to operate.

Physical items a business needs to operate. These could be buildings, equipment, and furniture.

The cost of leasing a place or space to operate a business, usually paid monthly.

The regular payments made to employees for their work. In this case, instructors are paid for teaching dance classes.

The money that business owners plan to make. In this case, the owner aims to make a profit within six months.

A list of accounts used by a business to categorize and track financial transactions. It includes assets, liabilities, equity, revenue, and expenses.

A type of asset that is expected to be used up or converted to cash within one year. Examples include cash, accounts receivable, and inventory.

A type of liability that is expected to be paid within one year. Examples include accounts payable, salaries payable, and accrued expenses.

A general term for all costs incurred by a business in generating revenue.

The accounting equation states that Assets are equal to Liabilities plus Equity. It is the foundation of double-entry bookkeeping.

A business is expected to continue operating for a long time. This principle means Santino should invest in assets like a dance floor with long-term use, promoting sustainable operations.

Revenues and expenses are recoded as they happen, not when cash is exchanged. This includes recognizing income even if someone pays later, and recording teacher salary when a class is taught, even if payment is delayed.

Expenses are recorded in the same period as the revenues they help create. For example, an instructor's salary is recorded during the period of the class to match income earned from that class.

The same accounting methods are used consistently over time. This makes it easier to track the business's progress and compare financial performance.

Small, unimportant transactions can be simplified. For example, small office supply purchases can be grouped together instead of individually tracked.

Transactions that involve both cash and credit/accounts, like paying for dance supplies using a combination of cash and a loan.

Expenses related to promoting the dance studio, like advertising or promotional materials.

Fees paid by students for participating in dance classes, which is a major source of income for the studio.

A short-term loan obtained for a specific purpose, usually for a period of less than a year.

Costs related to maintaining the dance studio's basic running expenses, such as electricity and water bills.