Single Entry

1. Purchase invoice 2. Memoranda 3. Correspondence & consultation with creditors

Ex. how AP & NP could be determined from

1. From unpaid sales invoices and 2. promissory notes

Ex. how AR & NR could be summarized

1. By count (COH) 2. By examining nabk statements (COB)

Ex. how cash may be determined

1. Deeds of sale 2. Other docs evidencing ownership of title

Ex. how cost of PPE may be established

1. Inventorying 2. Counting 3. Verification

3 procedures involved in preparation of SFP to determine the nature and amount of most of the assets and liabilities

1. Cash 2. AR 3. AP 4. PPE 5. Taxes paid

5 records normally maintained under a single entry system

OE or capital

A - L = ?

Face value

NR discounted is added back at what value?

1. Net income 2. Net loss

Net income or loss: 1. any increase in capital/ RE 2. any decrease in capital / RE

Debits and credits

all transactions are normally analyzed and recorded in terms of?

1. Deducted 2. Deducted 3. Deducted 4. Added

effect of the increase/decrease of the following in computation of: 1. Mi - COGs 2. PPe - depn 3. Prep exp - exp 4. Unearned/deferred inc

1. Increase NA 2. Increase NA 3. Decrease NA 4. Decrease NA

effects of the ff. on net assets 1. increase in assets 2. decrease in liabilities 3. increase in liabilities 4. decrease in assets

CA of PPE, beg + Cost of property acquired - CA of PPE, end - CA of property sold

formula in computing depreciation under single entry

1. Sales 2. Purchases 3. Income other than sales 4. Expenses in general

formulas used in cash to accrual useful in the preparation of IS under single entry

1. By count 2. From purchase invoices

how merch on hand, supplies and other inventories are dtermined

Cashbook

major record under the single entry system

Capt, end + Withdrawals - Capt, beg - Additional inv

net assets approach computation for net income or loss for proprietorships and partnerships

RE end + Dividends declared or paid + Other items that DECREASE RE but NOT P/L - RE beg - Other items that INCREASE RE but not P/L

net assets approach in computing net income or loss for corporation

1. Cash receipts and disbursements 2. Changes in assets and liabilities

preparation of IS under single entry involves the computation of individual revenue and expense balances by reference to 2 things?

Fair value

recognition for stock dividend if it is less than 20%

Bare essentials

represents the record maintained under the single entry system

1. Receipts 2. Disbursements

shown by the cashbook

Net assets approach / Capital maintenance apprach

sigle entry method of determining net income or loss

1. Single entry method of determining net income ot loss 2. Preparation of IS 3. Preparation of SFP

single entry problems include

Double entry system of bookkeeping

system of bookkeeping where transactions have a dual effect (debit and credit) on the accounting equation

Single entry system

system of recordkeeping in which transactions are not analyzed and recorded in the double entry framework

True

t/f: net income computed under the double entry system is the same under single entry

A description thereof

the only thing made for receipts and disbursements, since there is no specific accounts debited or credited for them

List of customers and creditors, with their corresponding balances

the only things made with respect to AR and AP under single entry system

Analysis of the dual effect of each transaction on the basic accounting model

very heart of the accounting process

Same formulas apply to income and expenses, but there will be modification for selected items.

what happens to the increase/decrease rule when the only items or info given are for assets and liabilities?

Single entry basis

where the records are not complete, they are said to be maintained on what basis?