Technology Livelihood Technology Mid Quarter Examination PDF

TECHNOLOGY LIVELIHOOD TECHNOLOGY MID QUARTER EXAMINATION TOPIC SUBTOPIC SUBTOPIC OF SUBTOPIC KEY WORDS/PHRASES 1. Nature of Accounting The service...

TECHNOLOGY LIVELIHOOD TECHNOLOGY MID QUARTER EXAMINATION TOPIC SUBTOPIC SUBTOPIC OF SUBTOPIC KEY WORDS/PHRASES 1. Nature of Accounting The service activity of an accountant begins when they accumulate business transactions making organized and meaningful financial reports. a. Accounting Is a business language, it serves as a means of communication. It communicates the results of busines operations. Is a system that measures business activities, processes informantion into reports. It only deals with quantifiable financial transactions. b. Functions of Accoiunting 1. Recording - All business transactions are recorded in systematic manner. - It is recorded in a Journal. 2. Classifying - Organizing transactions into categories. - Organized in a Ledger. 3. Summarizing - Presenting the data in a understandable manner.  - For example : statement of income, statement of financial position. 4. Analyzing and Interpreting - The end point, users can now make meaningful decisions regarding the financial condition and profitability of the business operation. 2. Types of Business as to its Oporation a. Service - Provides a service or aiding customers in said service - Example : Coffee shops, Law firms, and ect. b. Manafacturing - Converting raw materials into products - Example : Automotive Companies, Bakeries, and ect. c. Merchandising - Buys and then resells products to consumers - Example: Grocery, Drug store, and ect. 3. Forms of Business Organazation A business is a orgnaztion that supplies customers by utilizing information. a. Sole proprietorship - Owned and managed by one person. - Easiest to set up and dissolve out of all the types - There is no distinction between business and owner, due to that the lifespan of the business is attached its owner. AKA owner = business - Legally speaking the owner has forever liabilities b. Partnership - Owned by two or people who are binded to the business. - Has the intention of dividing the profits. - The owners are expected to share their assets for the business - Each partners decision will be binding even if they do not consult the other owners. - The lifespan is dependent on the partnership between owners. c. Corporation - Is under the opporation of law, the capital will be divided into shares for the shareholders - Due to its nature its lifespan is never ending. 4. Five Major Accounts A. Account Title - Ensures the consistency and clarity in financial reporting. B. Assets - Items owned with the value. a. Current items : - Cash on hand and/or in a bank. - Accounts / Notes recievable - Prepaid Expenses b. Non - Current items - Delivery equipment - Office equipment, supplies and buildings - Furniture and Fixtures C. LIabilities - Things and/or owed. a. Current liabilities - Notes payable - Accounts payable b. Long - Term liabilities - Mortage payable D. Proprietorship (Owners Equity) - Residual interest in the assets after deducting the liabilities or - A-L=P  a. Types of Proprietorship - Expense - Personal / Drawing - Income - Initial and Additional Expense remember to rest! good luckies everyone! - dylan and kirsten