Here’s a concise **reviewer** based on the exact words from the slides: --- ### **Accounting Equation** - **Assets = Liabilities + Equity** - **Equity Components:** - Capital (original investment, additional investment) - Drawing - Income (+) - Expenses (-) --- ### **Income and Expenses** - **Income:** - Service Income - Sales - **Expenses:** - Salary Expense - Utility Expenses (water, electricity, internet) - Advertising Expense - Office Supplies Expense --- ### **Liabilities** - Accounts Payable (verbal) - Notes Payable (promissory note) - Unearned Income --- ### **Assets** - Delivery Truck - Furniture and Fixture - Land - Building - Cash - Accounts Receivable (verbal) - Notes Receivable (promissory note) - Office Supplies - Prepaid Expenses - Inventory - Office Equipment / Computer Equipment --- ### **Accounting Elements** 1. Assets 2. Liabilities 3. Equity 4. Income 5. Expenses --- ### **Accounting Information Systems (AIS)** - Refers to the *computer-based method* used by companies to *collect, store, and process accounting and financial data*. - Internal users use AIS to report information to stakeholders (creditors, investors, tax authorities, etc.). --- ### **Characteristics of Accounting Information** 1. **Completeness** – No essential information should be missing. 2. **Summarization** – Information should be aggregated based on user needs. - Low-level management >> highly detailed information. - Higher-level management >> less detailed or highly summarized. 3. **Relevance** – The *contents of a report* must serve a purpose. 4. **Timeliness** – The *age of information* is critical; it must be no older than the time of the action it supports. 5. **Accuracy** – Information must be *free from material errors*. --- ### **Accounting Information** 1. **Financial Position** (Balance Sheet) 2. **Results of Operations** (Income Statement) 3. **Cash Flows** --- ### **Users of Financial Statements** 1. **Internal Users:** - Management - Employees 2. **External Users:** - Investors - Creditors - Suppliers - Government --- ### **What is Accounting?** - Accounting is a service activity. Its function is to provide **quantitative information**, primarily financial in nature, about economic entitis. This information is intended to be useful in making economic decisions and reasoned choices among alternative courses of action. --- This reviewer is structured for quick reference and easy memorization, using the exact words from the slides

What was the Silk Road?

A vast network of trade routes established during the Han Dynasty of China, connecting the East to the West.

Why was the Silk Road named 'Silk Road'?

It was named after silk, the most valuable commodity traded along the route.

What other goods were traded along the Silk Road besides silk?

Spices, tea, porcelain, and precious metals.

During which dynasty was the Silk Road established?

The Han Dynasty of China.

What was the significance of the Silk Road?

It facilitated trade and cultural exchange between the East and the West.