to enable him/her to
- Journalize transactions,
- Post transactions,
- Prepare trial balance,
- Prepare financial reports and review internal control system.
The following are qualified to apply for assessment and certification:
- Graduates of formal, non-formal and informal including enterprise-based training program (for example those who graduated from Business Administration, accountancy and commerce can take the exam without training)
- Experienced Workers (wage employed or self-employed) (you just need to submit evidence of your working experience e.g Certificate of Employment or Service Record)
The assessment/ bookkeeping exam will be composed of two parts.
The first one will be a mix of multiple choice and a little bit of problem solving and true or false. Most of it were terms used in bookkeeping and the internal control system Some of it came from these terms in Trainers Regulation in Bookkeping NC III :
Account
is a formal
record that represents, in words, money or other unit of measurement, certain
resources, claims to such resources, transactions or other events that result
in changes to those resources and claims
Accounting is the recording and reporting of
financial transactions, including the origination of the transaction, its
recognition, processing, and summarization in the FINANCIAL STATEMENTS
Accounting
equation is
assets equals liabilities plus equity. (A = L + E)
Accounting
period/year is a
period of 12 consecutive months chosen by an entity as its ACCOUNTING period
which may or may not be a calendar year.
Accounts
Payable is the amount
owed to a CREDITOR for delivered goods or completed services
Accounts
receivable are
amounts collectible from its customers. It is the claim against a DEBTOR for an
uncollected amount, generally from a completed transaction of sales or services
rendered.
Adjusting
journal entries
are accounting entries to account for a periods changes, omissions or other
financial data required to be reported "in the books"
Adjusted
Trial Balance reflects
totals after the adjusting entries are posted to the general ledger.
Asset represents future benefit to the company with reliable
measurement
Accounting
Manual is a
document prepared to provide bookkeepers
with direction and guidance in connection with those bookkeeping requirements of entities
Balance is the Sum of DEBIT entries minus the
SUM of CREDIT entries in an ACCOUNT. If positive, the difference is called a
DEBIT BALANCE; if negative, a CREDIT BALANCE
Balance
Sheet reports the
financial position at a point in time (end of the quarter or year).
Bookkeeping
is the recording of all financial transactions undertaken by a business (or an
individual). A bookkeeper (or book-keeper), sometimes called an
accounting clerk in the is a person who keeps the books of an
organization. The organization might be a business, a charity or even a local sports club
Business
is the social
science of managing people to organize and maintain collective productivity toward accomplishing
particular productive goals, which is usually to generate
profit
Capital
is called equity.
Cash Payments
Journal is a book used to record all payments
made in cash such as for accounts payable, merchandise purchases, and
operating expenses; also termed cash disbursements journal
Cash Receipts Journals is
a book used to record all collections made in cash such as for accounts
receivable , merchandise sold, and interest income.
Chart of Accounts is a
systematic listing of all accounts used by an entity.
Closing
entries are
prepared after the financial statements have been completed.
Corporation - is a form of doing business
pursuant to a charter granted by government.
Credit
(cr) - means an
entry to the right hand side of an account. Entry on the right side of a
DOUBLE-ENTRY BOOKKEEPING system that represents the reduction of an ASSET or
expense or the addition to a LIABILITY or REVENUE. (See DEBIT.)
Debit
(dr) - means an
entry to the left hand side of an account. Entry on the left side of a
DOUBLE-ENTRY BOOKKEEPING system that represents the addition of an ASSET or
expense or the reduction to a LIABILITY or REVENUE. (See CREDIT.)
Depreciation is the process of allocating the cost
of property, plant and equipment assets to the periods that will benefit from
its use
Dividend
income is income
received from ownership shares in a corporation. A dividend is a distribution
to a corporations stockholders usually in cash;
Documents are bases of recording transactions
in bookkeeping. This may include but not limited to sales invoice and official
receipts.
Drawing is when a business proprietor draws
money for personal needs
Equity
represents the
residual claims of owners
Expenses
represent the
outflow of assets (or increases in liabilities) due to a company’s operating
activities.
Financial
statements report
the business activities during the year and the financial condition at the end
of the year. It is also the presentation of financial data including BALANCE
SHEETS, INCOME STATEMENTS and STATEMENTS OF CASH FLOW, or any supporting
statement that is intended to communicate an entity's financial position at a
point in time and its results of operations for a period then ended.
Generally
accepted accounting standards (GAAP) determine what to record, when to record, and amount to record. It
is also the rules, and procedures necessary to define accepted accounting
practice at a particular time.
General
Journal is the
most basic of journals. It is a chronological list of transactions.
General Ledger is the collection of all ASSET,
LIABILITY, owners EQUITY, REVENUE, and expense accounts. This is a book of
accounts in which data from transactions recorded in journals are posted and
thereby classified and summarized. Also called ledger.
Income
is the inflow of
REVENUE during a period of time. This also
money received by a person or organization because of effort (work), or
from return on investments.
Income
Statement shows
the components of net income in detail. It is the summary of the effect of
REVENUES and expenses over a period of time.
Income
Taxes Payable is
income taxes due including current portion of deferred taxes.
Interest
Income includes
amounts from interest on all interest-bearing deposits and accounts.
Internal
Control is the process designed to provide
reasonable assurance regarding achievement of various management objectives
such as the reliability of financial reports.
Inventories are
products on hand for sale to customers
Journal
is a book where
all transactions are initially recorded.
Journal
entry are the
logging of business transactions and their monetary value into the t-accounts
of the accounting journal as either debits or credits. A journal entry is
usually backed up with a piece of paper; a receipt, a bill, an invoice, or some
other direct record of the transaction; making them easy to record and to
maintain traceability for each transaction.
Journalize
transactions is
the process of recording a business transaction in a journal.
Ledger
is a tool used
for classifying and summarizing information about increases, decreases, and
balances of items in the chart of
accounts.
Liability
represents
obligations, payables or debts owed. DEBTS or obligations owed by one entity
(DEBTOR) to another entity (CREDITOR) payable in money, goods, or services
Loans
Payable is the
account title used to record amounts to be paid for borrowed money. This is
also called Notes Payable.
Notes
Payable is the
account title used to record amounts to be paid for borrowed money and
evidenced by a promissory note. This is also called Loans Payable.
Official receipts is a document issued to acknowledge
receipt of cash.
Partnership is a form of entity with two or more
owners. Relationship between two or more persons based on a written, oral, or
implied agreement whereby they agree to carry on a trade or business for profit
and share the resulting profits.
Philippine
Financial Reporting Standards
often known as PFRS are a set of accounting standards. They are issued by the
Financial Reporting Standards Council. [FRSC].
Post
Closing Trial Balance
is balance sheet in trial balance form.
Preliminary
Trial Balance is
a listing of the accounts in the general ledger and their balances as of a
specified date. A trial balance is usually prepared at the end of an accounting
period and is used to see if additional adjustments are required to any of the
balances.
Posting
is the process of
transferring figures from the journal to the ledger accounts
Property
Plant and Equipment are
assets used in the production of goods and services
Purchase invoice is a
bill from a vendor for specific materials or supplies furnished or
services rendered. It is called sales invoice from the point of view of the
seller.
Purchases Journal. This is a payable system involves a Purchases Journal -- in which
all incoming merchandise invoices are recorded.
Ratio Analysis is the comparison of actual or
projected data for a particular company to other data for that company or
industry in order to analyze trends or relationships
Receivables
are amounts of
money due from customers or other DEBTORS
Rent expense is
the expenditure made to cover the rental for the premises.
Rent
income is money
received by a person or organization from rental of premises and/or other
assets.
Retained
Earnings are profits
of the business that have not been paid out to the owners as of the balance
sheet date.
Revenue
represents the
inflow of assets (or decrease in liabilities) due operating activities. This
may include sales of products, merchandise, and services; and earnings from
INTEREST, DIVIDEND, rents.
Routine
journal entries Recurring
financial activities reflected in the accounting records in the normal course
of business.
Salaries/wages expense is an account title used to record
salaries, wages, and benefits an employee receives from an employer.
Sales
Journal This is a receivables system involves a Sales Journal -- in which
all invoices outgoing to customers are recorded.
Sales
invoice is a
document issued by a vendor for specific materials or supplies furnished or
services rendered. It is called purchase invoice from the point of view of the
seller.
Sole Proprietorship is a form of entity with one owner
and the simplest possible form of business.
Statement
of Cash Flow
reports sources and uses of cash. This is one of the basic financial statements
that are required as part of a complete set of financial statements prepared in
conformity with generally accepted accounting principles. It categorizes net
cash provided or used during a period as operating, investing and financing
activities, and reconciles beginning and ending cash and cash equivalents
Statement of Changes in Equity explains the changes in contributed
capital and retained earnings during the period.
Subsidiary
Ledger is a group
of subsidiary accounts the sum of the balances of which is equal to the balance
of the related control account in the general ledger
Transactions
and events are
recorded as they occur, recorded even if cash is not received or paid and
affects the accounting equation.
Trial
balance confirms
that accounts are still in balance.
Utilities
expense is an
account title used to record amount incurred on heat, light, water, and power.
Vouchers is a written record of expenditure,
disbursement, or completed transaction.
Worksheet
is a document or schedule in which a
bookkeeper uses to gather information to
substantiate an account balance.
The second part will be the journalizing of transactions, preparing of trial balance and financial report and the critical aspects that the assessor will consider in your exam
Journalizing of
transactions
- Prepared chart of accounts
- Analyzed documents
- Prepared journal entry
Posting of transactions
- Prepared ledger
- Transferred journal entries
- Summarized each ledger account
Preparing of trial balance
- Transferred ledger balances
- Summarized trial balance
- Prepared trial balance
Financial
report
- Balance sheet
- Income statement
- Cash Flow Statement
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