Abm Accountancy

Monetary Unit

Transactions are expressed in monetary measure

GAAP

General Accepted Accounting Principle

FASBM

Financial Accounting Standard Board

PFRS

Philippine Financial Reporting Standard

PAS

Philippine Accounting Standard

Calendar Year

January 1 - December 31

Fiscal Year

Any Starting point + 12 months

Buy And Sell

Products are bought from manufacturers

Income

Increases in economic benefits during the accounting period in the form of Inflow or enhancements of assets or decreases in liabilities that result in increases in equity, other than those relating to contribution from equity participants

Expenses

Are decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity than those relating to distribution to equity participants

Account

is an individual accounting record of the movement specific account its used in double entry book keeping to capture and record economics events and transactions

Liability

Is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits

Asset

Is a resources controlled by the entity as a result of past events and from which economic benefits are expected flow to entity

Equity

Is the residual interest in the assets of the entity after deducting all its liabilities

Generally Accepted Accounting Principle

Refers to a common set of accounting principles, standards, and procedures issued by the Financial Accounting Standards Board (FASBM)

Economic Entity

The personal transactions of the owner are separate from those of the business he/she owns

Accrual Basis of Accounting

Revenue is recorded when earned . Expenses are rebonded when it happens. Regardless of when cash is received or paid

Going Concern

The company will continue operating indefinitely until the foreseeable future, and the company’s closure is net imminent

Accounts Receivable

the income you receive

Account Payable

The expenses you need to pay off.

Cash

Is medium of exchange that bank will accept for deposit of face value.

Cash equivalents

are start-term highly liquid investments, that are acquired 3 months before the maturity date or earlier.

Allowance for Doubtful account

is a contra- account, which refers to the portion of accounts receivable that is estimated to be uncollectible at the end of a particular accounting period.

Notes Receivable

Represents the many customers or debaters of the business, evidenced by a promissory note. A promissory note is a written and signed promise to pay by the maker to the receiver

Inventors

and assets held for sale in the ordinary course of business; in the process of reproduction for sale, or in the form of materials or suppliers to be consumed in the production process or in the rendering of services.

Unused supplies

represents supplies that remained unused at the end of accounting periods.

Prepaid Expenses

are expenses paid for the business in advance (Advance payments). The prepaid items represent future expenses.

Property, Plant and equipment

A group of tangible (Long term of assets that are held by an enterprise for use inproduction, rental administrative etc.

Land

Refers to the physical site owned by the business subject to depreciation.

Machinery and Equipment

Represents manual or automated machines used in the business, and they include photocopying equipment, Computers, Etc

Furniture and fixtures

Are assets such as tables, chairs, and filing cabinets, and display racks, Etc.

Building

Refers to the physical structure owned by and used by the business to conduct its operations.

Accumulated Depreciation.

Are Contra- Valuation account, which refers to the aggregate portion of the total cost of property, plant, and equipment that has been managed to expense. It is the cumulative amount of the PPE decrease in value