FABM1 WEEK 4 finalOKCHECKED
FABM1 WEEK 4 finalOKCHECKED
FABM1 WEEK 4 finalOKCHECKED
What I Know
Activity 1. Choose the letter that best describe the statement. Write
your answer in a separate sheet of paper.
Activity 2. Identify the statement below. Choose your answer from the
box. Write your answer on the space provided for before each number.
ASSETS
Current Assets
• Cash is money on hand, or in banks, and other items considered as medium
of exchange in business transactions.
• Accounts Receivable is amounts due from customers arising from credit
sales or credit services.
• Notes Receivable is amounts due from clients supported by promissory
notes.
• Inventories are assets held for resale
• Supplies are items purchased by an enterprise which are unused as of the
reporting date.
• Prepaid Expenses are expenses paid in advance. They are assets at the time
of payment and become expenses through the passage of time.
• Accrued Income is revenue earned but not yet collected
• Short term investments are the investments made by the company that are
intended to be sold immediately
Non-Current Assets
• Property, Plant and Equipment are long-lived assets which have been
acquired for use in operations.
• Long term Investments are the investments made by the company for long-
term purposes
• Intangible Assets are assets without a physical substance. Examples
include franchise and copyright.
LIABILITIES
Current Liabilities
• Accounts Payable is amounts due, or payable to, suppliers for goods
purchased on account or for services received on account.
• Notes Payable are amounts due to third parties supported by promissory
notes.
• Accrued Expenses are expenses that are incurred but not yet paid
(examples: salaries payable, taxes payable)l
• Unearned Income is cash collected in advance; the liability is the services
to be performed or goods to be delivered in the future
Non-Current Liabilities
• Loans Payable
• Mortgage Payable
OWNER’S EQUITY
• Capital is the value of cash and other assets invested in the business
by the owner of the business.
INCOME
EXPENSE
2. Prepare the assets first, then liabilities, then equity, then revenue and
expenses. 3. List all assets, liabilities, equity, revenue and expenses
account in the first column.
Chart of Accounts
Assets
Code Account Description
1
2
3
4
5
Liabilities
Code Account Description
1
2
3
Capital
Code Account Description
1
2
ANSWER KEY
Activity 1
1. a
2. b
3. c
4. b
5. b
Activity 2.
1. Liabilities
2. Property, Plant and Equipment
3. Intangible Assets
4. Owner’s Equity
5. Cash
6. Rent Expense
7. Assets
8. Notes Receivable
Assessment 1
1. Assets
2. Cash on Hand
3. Accounts Receivable
4. Interest Income
5. Accounts Payable
6. Cash in Bank
7. Interest Expense
8. Notes Receivable
9. Notes Payable
10. Petty Cash Fund
11. Prepaid Expenses/Prepayments
12. Service Income
13. Sales
14. Owner’s Equity/Capital
15. Building
References