ACCOUNTING CYCLE, WHICH INCLUDES 2 PHASES KNOWN 10; RECORDING; SUMMARIZING AS __________ AND __________. 1. ANALYZING THE TRANSACTION 2. JOURNALIZING 3. POSTING 4. UNADJUSTED TRIAL BALANCE 101002 - STEPS IN THE SUMMARIZING PHASE OF 5. ADJUSTING ENTRIES ACCOUNTING CYCLE (7 ITEMS) 6. ADJUSTED TRIAL BALANCE 7. FINANCIAL STATEMENTS 8. CLOSING ENTRIES 9. POST-CLOSING TRIAL BALANCE 10. REVERSING ENTRIES 101003 - THIS IS WHERE THE ACCOUNTANT GATHERS INFORMATION FROM SOURCE DOCUMENTS AND ANALYZING THE TRANSACTION DETERMINES THE IMPACT OF THE TRANSACTION ON THE FINANCIAL POSITION. 101004 - THIS IS THE PROCESS OF RECORDING THE JOURNALIZING TRANSACTIONS IN THE APPROPRIATE JOURNALS. 101005 - IS A CHRONOLOGICAL RECORD OF TRANSACTIONS JOURNAL ALSO KNOWN AS THE BOOK OF ORIGINAL ENTRY. 101006 - IS A JOURNAL WHERE ALL TRANSACTIONS COULD GENERAL JOURNAL BE RECORDED. 101007 - ARE JOURNALS USED IN RECORDING LARGE SPECIAL JOURNALS NUMBERS OF LIKE TRANSACTIONS. 1. SALES JOURNAL 2. CASH RECEIPTS JOURNAL 101008 - USUAL EXAMPLES OF SPECIAL JOURNALS (4 ITEMS) 3. PURCHASES JOURNAL 4. CASH DISBURSEMENTS JOURNAL 101009 - IS A SPECIAL JOURNAL WHERE ONLY SALES OF SALES JOURNAL MERCHANDISE ON ACCOUNT ARE RECORDED. 101010 - IS A SPECIAL JOURNAL WHERE ALL TYPES OF CASH CASH RECEIPTS JOURNAL RECEIPTS ARE RECORDED. 101011 - IS A SPECIAL JOURNAL USED TO RECORD ALL PURCHASES ON ACCOUNT OF MERCHANDISE, EQUIPMENT, PURCHASES JOURNAL SUPPLIES, ETC. 101012 - IS A SPECIAL JOURNAL WHERE ALL PAYMENTS OF CASH DISBURSEMENTS JOURNAL CASH FOR ANY PURPOSE ARE RECORDED. 101013 - TYPES OF JOURNAL ENTRIES ACCORDING TO FORM 1. SIMPLE JOURNAL ENTRY (2 ITEMS) 2. COMPOUND JOURNAL ENTRY 101014 - IS A TYPE OF JOURNAL ENTRY WHICH CONTAINS A SIMPLE JOURNAL ENTRY SINGLE DEBIT AND A SINGLE CREDIT ELEMENT. 101015 - IS A TYPE OF JOURNAL ENTRY WHICH HAS TWO OR MORE ELEMENTS IN EITHER OR BOTH DEBIT AND CREDIT COMPOUND JOURNAL ENTRY SIDES AND OFTEN REPRESENTS TWO OR MORE TRANSACTIONS. 101016 - ARE THE STORAGE UNITS OF ACCOUNTING INFORMATION AND USED TO SUMMARIZE CHANGES IN ACCOUNTS ASSETS, LIABILITIES AND EQUITY INCLUDING INCOME AND EXPENSES. 101017 - ARE THE STATEMENT OF FINANCIAL POSITION OR SO CALLED PERMANENT ACCOUNTS. THESE ACCOUNTS ARE REAL ACCOUNTS NOT CLOSED AND CARRYOVER TO THE NEXT ACCOUNTING PERIOD. (EX. CASH, AR AND PPE) 101018 - ARE THE INCOME STATEMENT OR TEMPORARY CAPITAL ACCOUNTS. THESE ACCOUNTS ARE CLOSED AT NOMINAL ACCOUNTS THE END OF THE ACCOUNTING PERIOD. (EX. SALES AND EXPENSES) 101019 - WHILE STILL UNADJUSTED, REPRESENTS A COMBINATION OF REAL AND NOMINAL ACCOUNTS. (EX. MIXED ACCOUNT PREPAID EXPENSES) 101020 - IS THE GENERAL LEDGER ACCOUNT THAT SUMMARIZES THE DETAILED INFORMATION IN A SUBSIDIARY CONTROL ACCOUNT LEDGER. 101021 - IS AN ACCOUNT THAT HOLDS TEMPORARILY SUSPENSE ACCOUNT CERTAIN INFORMATION PENDING FOR DISPOSITION. 101022 - HAS A COUNTERPART IN ANOTHER BOOK WITH IN RECIPROCAL ACCOUNT THE ENTITY OR IN ANOTHER LEDGER OR ANOTHER ENTITY. 101023 - IS THE PROCESS OF TRANSFERRING DATA FROM THE JOURNAL TO THE APPROPRIATE ACCOUNTS IN THE GENERAL LEDGER AND SUBSIDIARY LEDGER. THIS POSTING PROCESS CLASSIFIES ALL ACCOUNTS THAT WERE RECORDED IN THE JOURNALS. 101024 - INCLUDES ALL THE ACCOUNTS APPEARING ON THE GENERAL LEDGER FINANCIAL STATEMENTS. 101025 - AFFORDS ADDITIONAL DETAIL IN SUPPORT OF SUBSIDIARY LEDGER CERTAIN GENERAL LEDGER ACCOUNTS. 101026 - A LIST OF GENERAL LEDGER ACCOUNTS WITH TRIAL BALANCE THEIR RESPECTIVE DEBIT OR CREDIT BALANCE. 101027 - ARE JOURNAL ENTRIES MADE AT THE END OF AN ACCOUNTING CYCLE TO UPDATE CERTAIN REVENUE AND ADJUSTING ENTRIES EXPENSE ACCOUNTS AND TO MAKE SURE YOU COMPLY WITH THE MATCHING PRINCIPLE. 1. USUALLY REFER TO TRANSACTIONS THAT HAVE EFFECTS ON MORE THAN ONE ACCOUNTING PERIOD; 101028 - CHARACTERISTICS OF ADJUSTING ENTRIES (3 2. INCLUDE AT LEAST 1 NOMINAL ACCOUNT AND 1 REAL ITEMS) ACCOUNT; AND 3. ARE GENERALLY NOT BASED ON SOURCE DOCUMENTS. 1. PREPAYMENTS 2. DEFERRALS 101029 - TYPICAL ADJUSTING ENTRY CLASSIFICATIONS (5 3. ACCRUED EXPENSES ITEMS) 4. ACCRUED INCOME 5. ESTIMATES 6. ENDING INVENTORY 101030 - ARE EXPENSE ITEMS ALREADY PAID FOR BUT NOT PREPAYMENTS YET INCURRED. 101031 - METHODS OF INITIALLY RECORDING PREPAYMENTS 1. ASSET METHOD (DR. PREPAID EXPENSE; CR. CASH) (2 ITEMS) 2. EXPENSE METHOD (DR. EXPENSE; CR. CASH) 101032 - PRO-FORMA ADJUSTING ENTRIES FOR PREPAYMENTS WHEN THE ASSET METHOD WAS USED IN DR. EXPENSE - "EXPIRED PORTION"; CR. PREPAID EXPENSE INTIALLY RECORDING THE TRANSACTION 101033 - PRO-FORMA ADJUSTING ENTRIES FOR DR. PREPAID EXPENSE - "REMAINING PORTION"; CR. PREPAYMENTS WHEN THE EXPENSE METHOD WAS USED IN EXPENSE INTIALLY RECORDING THE TRANSACTION 101034 - ARE INCOME ITEMS ALREADY COLLECTED IN CASH DEFERRALS (DEFERRED INCOME) BUT NOT YET EARNED. 101035 - METHODS OF INITIALLY RECORDING DEFERRALS (2 1. LIABILITY METHOD (DR. CASH; CR. UNEARNED INCOME) ITEMS) 2. INCOME METHOD (DR. CASH; CR. INCOME) 101036 - PRO-FORMA ADJUSTING ENTRY FOR DEFERRALS WHEN LIABILITY METHOD WAS USED IN INITIALLY DR. UNEARNED INCOME; CR. INCOME - "EXPIRED PORTION" RECORDING THE TRANSACTION 101037 - PRO-FORMA ADJUSTING ENTRY FOR DEFERRALS DR. INCOME; CR. UNEARNED INCOME - "REMAINING WHEN THE INCOME METHOD WAS USED IN INITIALLY PORTION" RECORDING THE TRANSACTION 101038 - OCCUR IN TRANSACTIONS WHERE EXPENSE HAS ACCRUED EXPENSE ALREADY BEEN INCURRED BUT NOT YET PAID FOR IN CASH. 101039 - PRO-FORMA ADJUSTING ENTRY FOR ACCRUED DR. EXPENSE; CR. PAYABLE EXPENSES 101040 - OCCUR IN TRANSACTIONS WHERE INCOME HAS ACCRUED INCOME BEEN ALREADY EARNED BUT NOT YET COLLECTED IN CASH. 101041 - PRO-FORMA ADJUSTING ENTRY FOR ACCRUED DR. RECEIVABLE; CR. INCOME INCOME 101042 - ARE ADJUSTING ENTRIES THAT DO NOT INVOLVE ESTIMATES CASH FLOWS. 101043 - COMMON EXAMPLES OF ESTIMATES THAT REQUIRE 1. PROVISION FOR DOUBTFUL ACCOUNTS ADJUSTING ENTRIES (2 ITEMS) 2. DEPRECIATION 101044 - IS THE ESTIMATED AMOUNT OF BAD DEBT THAT WILL ARISE FROM ACCOUNTS RECEIVABLE THAT HAVE BEEN PROVISION FOR DOUBTFUL ACCOUNTS ISSUED BUT NOT YET COLLECTED. 101045 - IS THE SYSTEMATIC ALLOCATION OF THE COST OF DEPRECIATION A FIXED ASSET OVER ITS USEFUL LIFE. 101046 - IS AN ADJUSTMENT USED TO SET UP THE YEAR-END COUNT OF THE INVENTORY. THIS ONLY APPLIES IF THE ENDING INVENTORY PERIODIC INVENTORY SYSTEM IS USED. 101047 - IS THE MOST IMPORTANT PART OF THE SUMMARIZING PHASE. THIS IS WHERE THE PROCESSED PREPARING THE FINANCIAL STATEMENTS. INFORMATION IS COMMUNICATED TO USERS. 1. STATEMENT OF FINANCIAL POSITION 2. INCOME STATEMENT OR STATEMENT OF COMPREHENSIVE INCOME 101048 - BASIC FINANCIAL STATEMENTS (5 ITEMS) 3. STATEMENT OF CHANGES IN EQUITY 4. STATEMENT OF CASH FLOWS 5. NOTES AND DISCLOSURES 101049 - ARE RECORDED AND POSTED FOR THE PURPOSE OF CLOSING ALL NOMINAL OR TEMPORARY ACCOUNTS TO THE INCOME SUMMARY ACCOUNT AND THE RESULTING NET CLOSING ENTRIES INCOME OR LOSS IS AFTERWARDS CLOSED TO THE CAPITAL OR RETAINED EARNINGS ACCOUNT. 101050 - ARE MADE AT THE BEGINNING OF THE NEW ACCOUNTING PERIOD TO REVERSE CERTAIN ADJUSTING REVERSING ENTRIES ENTRIES FROM THE PRECEDING ACCOUNTING PERIOD. 1. PREPAYMENTS WHEN EXPENSE METHOD IS USED 101051 - ADJUSTING ENTRIES THAT MAY BE REVERSED (4 2. DEFERRALS WHEN INCOME METHOD IS USED ITEMS) 3. ACCRUED EXPENSE 4. ACCRUED INCOME 101052 - OPTIONAL STEPS IN THE ACCOUNTING CYCLE (2 1. ALL TRIAL BALANCES ITEMS) 2. REVERSING ENTRIES FAR - CONCEPTUAL FRAMEWORK (102001 - 101068) 102001 - THE PURPOSE OF _________ IS TO ASSIST THE IASB IN DEVELOPING AND REVISING IFRSS THAT ARE BASED ON CONSISTENT CONCEPTS, TO HELP PREPARERS TO DEVELOP CONSISTENT ACCOUNTING POLICIES FOR AREAS THAT ARE CONCEPTUAL FRAMEWORK NOT COVERED BY A STANDARD OR WHERE THERE IS CHOICE OF ACCOUNTING POLICY, AND TO ASSIST ALL PARTIES TO UNDERSTAND AND INTERPRET IFRS. KAPAG ANG STANDARDS (IFRS AND IAS) AY NAGLALAMAN NG RULES NA KONTRA SA SINASABI NG CONCEPTUAL 102002 - EXPLAIN: “THE FRAMEWORK IS NOT A STANDARD OF FRAMEWORK, MAS DAPAT SUNDIN ANG STANDARDS. ITSELF.” GAGAMITIN LANG ANG CONCEPTUAL FRAMEWORK KAPAG WALANG SPECIFIC NA RULES NA IBINIGAY ANG STANDARDS NA APPLICABLE SA TRANSACTION. 102003 - THE MAIN OBJECTIVE OF __________ IS TO PROVIDE THE FINANCIAL INFORMATION ABOUT THE REPORTING ENTITY THAT IS USEFUL TO EXISTING AND POTENTIAL: GENERAL PURPOSE FINANCIAL REPORTS INVESTORS, LENDERS, AND OTHER CREDITORS TO HELP THEM MAKE VARIOUS DECISIONS. 102004 - MEANS THAT THE EVENTS SHOULD BE REFLECTED IN THE REPORTS IN THE PERIODS WHEN THE EFFECTS OF ACCRUAL ACCOUNTING TRANSACTIONS OCCUR, REGARDLESS THE RELATED CASH FLOWS. 1. CONTRIBUTE TO TRANSPARENCY 102005 - MISSION OF THE IASB IN DEVELOPING ACCOUNTING 2. STRENGTHEN ACCOUNTABILITY STANDARDS (3 ITEMS) 3. CONTRIBUTE TO ECONOMIC EFFICIENCY 102006 - TYPES OF QUALITATIVE CHARACTERISTICS OF 1. FUNDAMENTAL QUALITATIVE CHARACTERISTICS FINANCIAL INFORMATION UNDER THE CONCEPTUAL 2. ENHANCING QUALITATIVE CHARACTICS FRAMEWORK (2 ITEMS) 102007 - ARE QUALITATIVE CHARACTERISTICS OF FINANCIAL INFORMATION THAT ARE FOCUSED ON THE CONTENT OR FUNDAMENTAL QUALITATIVE CHARACTERISTICS SUBSTANCE OF FINANCIAL INFORMATION. 102008 - ARE QUALITATIVE CHARACTERISTICS OF FINANCIAL INFORMATION THAT ARE FOCUSED ON THE PRESENTATION ENHANCING QUALITATIVE CHARACTERISTICS OR FORM OF REPORT OF FINANCIAL INFORMATION. 102009 - FUNDAMENTAL QUALITATIVE CHARACTERISTICS OF 1. RELEVANCE FINANCIAL INFORMATION (2 ITEMS) 2. FAITHFUL REPRESENTATION 102010 - IS THE CAPABILITY OF FINANCIAL INFORMATION TO RELEVANCE MAKE A DIFFERENCE IN THE USERS' DECISIONS. 1. PREDICTIVE VALUE 102011 - ELEMENTS OF RELEVANCE (2 ITEMS) 2. CONFIRMATORY VALUE 102012 - HELPS USERS IN PREDICTING OR ANTICIPATING PREDICTIVE VALUE FUTURE OUTCOMES. 102013 - ENABLES USERS TO CHECK AND CONFIRM EARLIER CONFIRMATORY VALUE PREDICTIONS OR EVALUATIONS. 102014 - IS AN ASPECT OF RELEVANCE DEFINED AS THE THRESHOLD ABOVE WHICH MISSING OR INCORRECT MATERIALITY INFORMATION IN FINANCIAL STATEMENTS IS CONSIDERED TO HAVE AN IMPACT ON THE DECISION MAKING OF USERS. 102015 - REQUIRES THAT TRANSACTIONS AND EVENTS SHOULD BE ACCOUNTED FOR IN A MANNER THAT FAITHFUL REPRESENTATION REPRESENT THEIR TRUE ECONOMIC SUBSTANCE RATHER THAN THE MERE LEGAL FORM. 1. COMPLETENESS 102016 - COMPONENTS OF FAITHFUL REPRESENTATION (3 2. NEUTRALITY ITEMS) 3. FREE FROM ERROR 102017 - DEALS WITH WHETHER ALL TRANSACTIONS AND ACCOUNTS THAT SHOULD BE IN THE FINANCIAL COMPLETENESS STATEMENTS ARE INCLUDED. 102018 - MEANS THAT INFORMATION CONTAINED IN THE NEUTRALITY FINANCIAL STATEMENTS MUST BE FREE FROM BIAS. 102019 - MEANS THERE ARE NO ERRORS AND INACCURACIES IN THE DESCRIPTION OF THE PHENOMENON FREE FROM ERROR AND NO ERRORS MADE IN THE PROCESS BY WHICH THE FINANCIAL INFORMATION WAS PRODUCED. 1. COMPARABILITY 102020 - ENHANCING QUALITATIVE CHARACTERISTICS OF 2. VERIFIABILITY FINANCIAL INFORMATION (4 ITEMS) 3. TIMELINESS 4. UNDERSTANDABILITY 102021 - MEANS THAT INFORMATION SHOULD BE COMPARABLE BETWEEN DIFFERENT ENTITIES OR TIME COMPARABILITY PERIODS. 1. HORIZONTAL COMPARABILITY 102022 - TYPES OF COMPARABILITY (2 ITEMS) 2. DIMENSIONAL COMPARABILITY 102023 - IS A TYPE OF COMPARABILITY WHICH REFERS TO THE COMPARISON WITHIN AN ENTITY FROM ONE PERIOD TO HORIZONTAL COMPARABILITY THE NEXT. 102024 - IS A TYPE OF COMPARABILITY WHICH REFERS TO THE COMPARISON BETWEEN TWO OR MORE ENTITIES IN DIMENSIONAL COMPARABILITY THE SAME INDUSTRY. 102025 - MEANS THAT INDEPENDENT AND KNOWLEDGEABLE OBSERVERS SHOULD BE ABLE TO VERIFY THE VERIFIABILITY INFORMATION. 1. DIRECT VERIFICATION - E.G., COUNTING CASH ITEMS 102026 - TYPES OF VERIFICATION (2 ITEMS) 2. INDIRECT VERIFICATION - E.G., COMPUTING INVENTORY USING FIFO 102027 - MEANS THAT INFORMATION SHOULD BE AVAILABLE TIMELINESS IN TIME TO INFLUENCE THE DECISIONS OF USERS. 102028 - MEANS THAT INFORMATION SHALL BE CLASSIFIED, UNDERSTANDABILITY PRESENTED CLEARLY AND CONSISELY. 102029 - IS A CONSTRAINT INCLUDED IN THE CONCEPTUAL FRAMEWORK WHICH ASSERTS THAT THE BENEFIT OF THE COST-BENEFIT CONSTRAINT INFORMATION MUST BE GREATER THAN THE COST OF PROVIDING IT. 102030 - IS THE SPAN OF TIME COVERED BY A SET OF REPORTING PERIOD FINANCIAL STATEMENTS. 102031 - (ALSO KNOWN AS PERIODICITY ASSUMPTION) IS AN ACCOUNTING PRINCIPLE WHICH STATES THAT THE LIFE OF A TIME PERIOD ASSUMPTION BUSINESS CAN BE DIVIDED INTO EQUAL TIME PERIODS. 102032 - IS AN ACCOUNTING PRINCIPLE THAT ASSUMES THAT BUSINESS TRANSACTIONS OR EVENTS CAN BE MEASURED AND EXPRESSED IN TERMS OF MONETARY MONETARY UNIT ASSUMPTION UNITS AND THAT THE MONETARY UNITS ARE STABLE AND DEPENDABLE. 102033 - IS AN ASSUMPTION THAT AN ENTITY WILL CONTINUE TO OPERATE FOR THE FORESEEABLE FUTURE (USUALLY 12 GOING CONCERN MONTHS AFTER THE REPORTING DATE). 102034 - IS AN ACCOUNTING PRINCIPLE THAT STATES THAT ALL TRANSACTIONAL DATA ASSOCIATED WITH A SPECIFIC ENTITY IS ASSUMED TO BE CLEARLY ATTRIBUTED TO THE ECONOMIC ENTITY ASSUMPTION ENTITY, AND DOES NOT INCLUDE OTHER TRANSACTIONAL DATA ASSOCIATED WITH THE ENTITY'S OWNERS OR BUSINESS PARTNERS. 102035 - IS AN ENTITY WHO MUST OR CHOOSES TO PREPARE REPORTING ENTITY FINANCIAL STATEMENTS. 1. SINGLE ENTITY 2. PORTION OF AN ENTITY (E.G., DIVISION) 102036 - TYPES OF REPORTING ENTITIES (3 ITEMS) 3. MORE THAN ONE ENTITIES (E.G., PARENT AND SUBSIDIARY (IES)) 1. CONSOLIDATED 102037 - TYPES OF FINANCIAL STATEMENTS ACCORDING TO 2. UNCONSOLIDATED THE TYPE OF REPORTING ENTITY (3 ITEMS) 3. COMBINED 102038 - IS A TYPE OF FINANCIAL STATEMENT CREATED WHEN A PARENT AND SUBSIDIARIES REPORT AS A SINGLE CONSOLIDATED FINANCIAL STATEMENT ENTITY. 102039 - IS A TYPE OF FINANCIAL STATEMENT CREATED UNCONSOLIDATED FINANCIAL STATEMENT WHEN A PARENT ALONE PROVIDES THE REPORT. 102040 - IS A TYPE OF FINANCIAL STATEMENT CREATED WHEN THE REPORTING ENTITY COMPRISES TWO OR MORE COMBINED FINANCIAL STATEMENT ENTITIES NOT LINKED BY PARENT-SUBSIDIARY RELATIONSHIP. 1. ASSET 2. LIABILITY 102041 - BASIC ELEMENTS OF FINANCIAL STATEMENTS (5 3. EQUITY ITEMS) 4. INCOME 5. EXPENSES 102042 - IS A PRESENT ECONOMIC RESOURCE CONTROLLED ASSET BY THE ENTITY AS A RESULT OF PAST EVENTS. 102043 - IS A PRESENT OBLIGATION OF THE ENTITY TO TRANSFER AN ECONOMIC RESOURCE AS A RESULT OF PAST LIABILITY EVENTS. 102044 - IS THE RESIDUAL INTEREST IN THE ASSETS OF THE EQUITY ENTITY AFTER DEDUCTING ALL ITS LIABILITIES. 102045 - IS COMPOSED OF INCREASES IN ASSETS OR DECREASES IN LIABILITIES RESULTING IN INCREASES IN INCOME EQUITY OTHER THAN CONTRIBUTIONS FROM EQUITY HOLDERS. 102046 - IS COMPOSED OF DECREASES IN ASSETS OR INCREASES IN LIABILITIES RESULTING IN DECREASES IN EXPENSES EQUITY OTHER THAN DISTRIBUTIONS TO EQUITY HOLDERS. 102047 - IS THE PROCESS OF INCORPORATING IN THE BALANCE SHEET AN ITEM THAT MEETS THE DEFINITION OF RECOGNITION AN ELEMENT AND SATISFIES THE REQUIRED CRITERIA. 1. IT IS PROBABLE THAT ANY FUTURE ECONOMIC BENEFIT ASSOCIATED WITH THE ITEM WILL FLOW TO OR FROM THE 102048 - CRITERIA FOR RECOGNITION (2 ITEMS) ENTITY; AND 2. THE ITEM'S COST OR VALUE CAN BE MEASURED WITH RELIABILITY. 102049 - MEANS REMOVAL OF AN ASSET OR LIABILITY FROM THE STATEMENT OF FINANCIAL POSITION AND NORMALLY IT DERECOGNITION HAPPENS WHEN THE ITEM NO LONGER MEETS THE DEFINITION OF AN ASSET OR A LIABILITY. 102050 - INVOLVES THE ASSIGNMENT OF MONETARY AMOUNTS AT WHICH THE ELEMENTS OF FINANCIAL MEASUREMENT STATEMENTS ARE TO BE RECOGNIZED OR REPORTED. 102051 - BASIC MEASUREMENT BASES IN THE CONCEPTUAL 1. HISTORICAL COST FRAMEWORK (2 ITEMS) 2. CURRENT VALUE 102052 - IS A MEASUREMENT BASED ON THE TRANSACTION PRICE AT THE TIME OF RECOGNITION OF THE ELEMENT (AN HISTORICAL COST ENTRY PRICE). 102053 - IS A MEASUREMENT BASIS THAT IS UPDATED TO CURRENT VALUE REFLECT THE CONDITIONS AT THE MEASUREMENT DATE. 1. FAIR VALUE 102054 - TYPES OF CURRENT VALUE MEASUREMENT BASES 2. VALUE IN USE (4 ITEMS) 3. CURRENT COST 4. FULFILLMENT VALUE 102055 - IS THE PRICE THAT WOULD BE RECEIVED TO SELL AN ASSET OR PAID TO TRANSFER A LIABILITY IN AN FAIR VALUE ORDERLY TRANSACTION BETWEEN MARKET PARTICIPANTS (AN EXIT PRICE). 102056 - IS THE PRESENT VALUE OF THE CASH FLOWS EXPECTED TO BE DERIVED FROM THE USE AND ULTIMATE VALUE IN USE DISPOSAL OF AN ASSET (AN EXIT PRICE). 102057 - IS THE COST OF REPLACING AN ASSET AT THIS TIME CURRENT COST (AN ENTRY PRICE) 102058 - IS THE PRESENT VALUE OF THE CASH EXPECTED FULFILLMENT VALUE TO BE TRANSFERRED FOR THE PAYMENT OF A LIABILITY. 102059 - IS THE PROCESS OF IDENTIFYING TRANSACTIONS REVENUE RECOGNITION TO BE RECORDED AS REVENUE IN AN ACCOUNTING PERIOD. 1. AT THE POINT OF SALE 102060 - METHODS OF RECOGNIZING REVENUE (3 ITEMS) 2. DURING PRODUCTION 3. AT THE END OF PRODUCTION 102061 - REQUIRES THAT REVENUES AND ANY RELATED EXPENSES BE RECOGNIZED TOGETHER IN THE SAME MATCHING PRINCIPLE REPORTING PERIOD. 1. SYSTEMATIC AND RATIONAL ALLOCATION (DEPRECIATION) 102062 - ACCEPTABLE BASES FOR THE RECOGNITION OF 2. CAUSE AND EFFECT ASSOCIATION (COST OF SALE) EXPENSE (3 ITEMS) 3. IMMEDIATE RECOGNITION (R&D EXPENSE) 1. GROUP SIMILAR ITEMS AND SEPARATE DISSIMILAR ITEMS. 2. AGGREGATE INFORMATION, BUT DO NOT PROVIDE 102063 - REQUIREMENTS FOR EFFECTIVE COMMUNICATION UNNECESSARY DETAIL. OF INFORMATION IN THE FINANCIAL STATEMENTS (3 ITEMS) 3. AVOID EXCESSIVE AGGREGATION TO OBSCURE THE INFORMATION. 102064 - CONCEPTS OF CAPITAL IN THE CONCEPTUAL 1. FINANCIAL CAPITAL FRAMEWORK (2 ITEMS) 2. PHYSICAL CAPITAL 102065 - IS A CONCEPT OF CAPITAL SYNONYMOUS WITH THE FINANCIAL CAPITAL NET ASSETS OR EQUITY OF THE ENTITY. 102066 - IS A CONCEPT OF CAPITAL THAT REFERS TO THE PRODUCTIVE CAPACITY OF THE ENTITY BASED ON, FOR PHYSICAL CAPITAL EXAMPLE, UNITS OF OUTPUT PER DAY. 102067 - UNDER THE _________ THE PROFIT IS EARNED ONLY WHEN THE AMOUNT OF THE NET ASSETS AT THE END OF THE PERIOD IS GREATER THAN THE AMOUNT OF NET FINANCIAL CAPITAL MAINTENANCE ASSETS IN THE BEGINNING AFTER EXCLUDING CONTRIBUTIONS FROM AND DISTRIBUTIONS TO EQUITY HOLDERS (MANDATED BY STANDARDS). 102068 - UNDER THE _________ THE PROFIT IS EARNED IF PHYSICAL PRODUCTIVE CAPACITY INCREASES DURING THE PHYSICAL CAPITAL MAINTENANCE PERIOD AFTER EXCLUDING THE MOVEMENTS WITH EQUITY HOLDERS. FAR - CASH & CASH EQUIVALENTS (103001 - STILL UNFINISHED) 103001 - IS THE STANDARD MEDIUM OF EXCHANGE IN BUSINESS TRANSACTIONS. IT REFERS TO THE CURRENCY MONEY AND COINS WHICH ARE IN CIRCULATION AND LEGAL TENDER. 103002 - (IN THE CONTEXT OF ACCOUNTING) INCLUDES MONEY AND ANY OTHER NEGOTIABLE INSTRUMENT THAT IS CASH PAYABLE IN MONEY AND ACCEPTABLE BY THE BANK FOR DEPOSIT AND IMMEDIATE CREDIT. 103003 - IS A DOCUMENT THAT ORDERS A BANK TO PAY A SPECIFIC AMOUNT OF MONEY FROM THE PERSON'S CHECK (IF PAYABLE TO THE REPORTING ENTITY, ACCOUNT TO THE PERSON IN WHOSE NAME THE SAME HAS GENERALLY INCLUDED IN THE BOOKS AS CASH) BEEN ISSUED. 103004 - IS A CHECK DRAWN BY A BANK ON ITS OWN FUNDS BANK DRAFT (IF PAYABLE TO THE REPORTING ENTITY, IN ANOTHER BANK. INCLUDED IN THE BOOKS AS CASH) 103005 - IS A PAPER DOCUMENT, SIMILAR TO A CHECK, USED FOR MAKING PAYMENTS. IT IS PREPAID, SO IT IS ONLY MONEY ORDER (IF PAYABLE TO THE REPORTING ENTITY, ISSUED AFTER A BUYER PAYS FOR THE SAME WITH CASH INCLUDED IN THE BOOKS AS CASH) OR ANOTHER FORM OF GUARANTEED FUNDS. 103006 - IS A CHECK WRITTEN BY THE DRAWER (PAYOR) FOR POSTDATED CHECK (IF PAYABLE TO THE REPORTING A DATE IN THE FUTURE. IT MAY ONLY BE CASHED OR ENTITY, NOT INCLUDED IN THE BOOKS AS CASH) DEPOSITED ON OR AFTER THE DATE WRITTEN ON IT. 1. CASH ON HAND 103007 - CASH ITEMS INCLUDED IN THE ACCOUNTING BOOKS 2. CASH IN BANK (3 ITEMS) 3. CASH FUND SET ASIDE FOR CURRENT PURPOSES 103008 - INCLUDES UNDEPOSITED CASH COLLECTIONS AND CASH ON HAND OTHER CASH ITEMS AWAITING DEPOSIT. 103009 - INCLUDES DEMAND DEPOSIT OR CHECKING ACCOUNT AND SAVING DEPOSIT WHICH ARE UNRESTRICTED CASH IN BANK AS TO WITHDRAWAL. 103010 - CASH OR NONCASH: PETTY CASH FUND CASH 103011 - CASH OR NONCASH: DIVIDEND FUND CASH NONCASH (NONCURRENT ASSET - WHEN BONDS BECOME 103012 - CASH OR NONCASH: BOND SINKING FUND DUE WITHIN 12 MONTHS AFTER THE END OF THE REPORTING PERIOD FUND BECOMES CURRENT ALSO) 103013 - CASH OR NONCASH: PAYROLL FUND CASH 103014 - CASH OR NONCASH: REVOLVING FUND CASH 103015 - CASH OR NONCASH: TAX FUND CASH 103016 - CASH OR NONCASH: FUND HELD FOR FUTURE NONCASH (NONCURRENT ASSET - ALWAYS) PLANT EXPANSION 103017 - CASH OR NONCASH: INTEREST FUND CASH 103018 - CASH OR NONCASH: PREFERENCE SHARE NONCASH (NONCURRENT ASSET - ALWAYS) REDEMPTION FUND 103019 - ARE SHORT-TERM AND HIGHLY LIQUID INVESTMENTS THAT ARE READILY CONVERTIBLE INTO CASH AND SO NEAR THEIR MATURITY THAT THEY PRESENT CASH EQUIVALENTS INSIGNIFICANT RISK OF CHANGES IN VALUE BECAUSE OF CHANGES IN INTEREST RATES. ONLY HIGHLY LIQUID INVESTMENTS THAT ARE ACQUIRED 103020 - CRITERIA FOR AN ITEM TO QUALIFY AS CASH THREE MONTHS BEFORE MATURITY CAN QUALIFY AS CASH EQUIVALENT EQUIVALENTS. 103021 - __________ CANNOT QUALIFY AS CASH EQUIVALENTS BECAUSE _________ DO NOT HAVE A EQUITY SECURITIES; SHARES MATURITY DATE. 103022 - _________ WITH SPECIFIED REDEMPTION DATE AND ACQUIRED THREE MONTHS BEFORE REDEMPTION DATE CAN PREFERENCE SHARES QUALIFY AS CASH EQUIVALENTS. 1. CASH AND CASH EQUIVALENTS (CURRENT) 103023 - CLASSIFICATIONS OF INVESTMENT OF EXCESS 2. SHORT-TERM FINANCIAL ASSETS OR TEMPORARY CASH (3 ITEMS) INVESTMENTS (CURRENT) 3. LONG-TERM INVESTMENTS (NONCURRENT) 103024 - IF THE TERM IS MORE THAN THREE MONTHS BUT SHORT-TERM FINANCIAL ASSETS OR TEMPORARY WITHIN ONE YEAR, SUCH INVESTMENTS ARE CLASSIFIED AS INVESTMENTS; CURRENT ASSETS __________ AND PRESENTED SEPARATELY AS _________. 103025 - IF THE TERM IS MORE THAN ONE YEAR, SUCH NONCURRENT OR LONG-TERM INVESTMENTS INVESTMENTS ARE CLASSIFIED AS __________. 103026 - IF LONG-TERM INVESTMENTS BECOME DUE WITHIN ONE YEAR FROM THE END OF THE REPORTING PERIOD, CURRENT OR TEMPORARY INVESTMENTS. THEY ARE RECLASSIFIED AS _________. 103027 - MEASUREMENT OF CASH (IN GENERAL) FACE VALUE 103028 - MEASUREMENT OF CASH IN FOREIGN CURRENCY CURRENT EXCHANGE RATE 103029 - MEASUREMENT OF CASH HELD BY A BANK OR FINANCIAL INSTITUTION UNDER BANKRUPTCY OR FINANCIAL ESTIMATED REALIZABLE VALUE DIFFICULTY 103030 - DEPOSITS IN FOREIGN BANK WHICH ARE SUBJECT TO FOREIGN EXCHANGE RESTRICTION, IF MATERIAL, NONCURRENT ASSETS SHOULD BE CLASSIFIED SEPARATELY AMONG __________ AND THE RESTRICTION CLEARLY INDICATED. 103031 - CLASSIFICATION OF CASH FUND RELATED TO A CLASSIFICATION SHOULD BE PARALLEL WITH SUCH LIABILITY RELATED LIABILITY. 103032 - CLASSIFICATION OF CASH FUND SET ASIDE FOR SUCH FUND SHOULD BE CLASSIFIED AS NONCURRENT THE ACQUISITION OF A NONCURRENT ASSET REGARDLESS OF THE YEAR OF DISBURSEMENT. 103033 - OCCURS WHEN THE CASH IN A BANK ACCOUNT HAS A CREDIT BALANCE RESULTING FROM THE ISSUANCE OF OVERDRAFT CHECKS IN EXCESS OF DEPOSITS. GR: CURRENT LIABILITY AND SHOULD NOT BE OFFSET AGAINST OTHER BANK ACCOUNTS WITH DEBIT BALANCES; XPN1: IF THERE ARE OTHER ACCOUNTS IN THE SAME BANK 103034 - CLASSIFICATION OF BANK OVERDRAFT AS THE ACCOUNT WITH THE CREDIT BALANCE, OFFSETTING WITH SUCH OTHER ACCOUNTS IS ALLOWED. XPN2: IF THE AMOUNT IS IMMATERIAL, OFFSETTING IS ALLOWED. 103035 - GENERALLY TAKES THE FORM OF MINIMUM CHECKING OR DEMAND DEPOSIT ACCOUNT BALANCE THAT COMPENSATING BALANCE MUST BE MAINTAINED IN CONNECTION WITH A BORROWING ARRANGEMENT WITH A BANK. 1. IF NOT LEGALLY RESTRICTED (INFORMAL) - PART OF CASH 2. IF LEGALLY RESTRICTED (FORMAL) - CURRENT OR 103036 - CLASSIFICATION OF COMPENSATING BALANCE (2 NONCURRENT DEPENDING ON THE TERM OF THE RELATED ITEMS) LOAN. RULE IF THE PROBLEM IS SILENT: UNRESTRICTED 103037 - IS A CHECK THAT IS MERELY DRAWN AND RECORDED BUT NOT GIVEN TO THE PAYEE BEFORE THE END OF REPORTING PERIOD. DR. CASH IN BANK; CR. EXPENSE OR LIABILITY (THE ENTRY 103038 - ADJUSTMENT REQUIRED FOR UNDELIVERED OR MADE UPON ISSUANCE OF SAID CHECK SHOULD BE UNRELEASED CHECKS REVERSED BECAUSE IN ESSENCE, NO PAYMENT HAS REALLY BEEN MADE.) 103039 - IS A CHECK DRAWN, RECORDED AND ALREADY GIVEN TO THE PAYEE BUT IT BEARS A DATE SUBSEQUENT POSTDATED CHECK DELIVERED TO THE END OF REPORTING PERIOD. DR. CASH IN BANK; CR. EXPENSE OR LIABILITY (THE ENTRY 103040 - ADJUSTMENT REQUIRED FOR POSTDATED CHECKS MADE UPON ISSUANCE OF SAID CHECK SHOULD BE DELIVERED REVERSED BECAUSE IN ESSENCE, NO PAYMENT HAS REALLY BEEN MADE.) 103041 - IS A CHECK NOT ENCASHED BY THE PAYEE WITHIN STALE CHECK OR CHECK LONG OUTSTANDING A RELATIVELY LONG PERIOD OF TIME. 103042 - IN BANKING PRACTICE, A CHECK BECOMES STALE IF NOT ENCASHED WITHIN __________ FROM THE TIME OF 6 MONTHS ISSUANCE. 1. IF THE AMOUNT IS MATERIAL - DR. CASH IN BANK; CR. 103043 - ADJUSTMENT REQUIRED FOR ISSUED CHECKS THAT ACCOUNTS PAYABLE OR APPROPRIATE ACCOUNT BECAME STALE 2. IF THE AMOUNT IS IMMATERIAL - DR. CASH IN BANK; CR. MISCELLANEOUS INCOME 1. INITIAL ENTRY (DR. CASH SHORT OR OVER; CR. CASH) 2. IF THE CASHIER OR CASH CUSTODIAN IS HELD RESPONSIBLE FOR THE CASH SHORTAGE (DR. DUE FROM 103044 - PRO FORMA JOURNAL ENTRIES FOR CASH CASHIER; CR. CASH SHORT OR OVER) SHORTAGE (3 ITEMS) 3. IF REASONABLE EFFORTS FAIL TO DISCLOSE THE CAUSE OF THE SHORTAGE (DR. LOSS FROM CASH SHORTAGE; CR. CASH SHORT OR OVER) 1. INITIAL ENTRY (DR. CASH; CR. CASH SHORT OR OVER) 2. IF THERE IS NO CLAIM ON THE OVERAGE (DR. CASH 103045 - PRO FORMA JOURNAL ENTRIES FOR CASH SHORT OR OVER; CR. MISCELLANEOUS INCOME) OVERAGE (3 ITEMS) 3. IF THE CASH OVERAGE IS PROPERLY FOUND TO BE THE MONEY OF THE CASHIER (DR. CASH SHORT OR OVER; CR. PAYABLE TO CASHIER) 103046 - IS A SYSTEM OF CONTROL OF CASH WHICH REQUIRES THAT ALL CASH RECEIPTS SHOULD BE IMPREST SYSTEM DEPOSITED INTACT AND ALL CASH DISBURSEMENTS SHOULD BE MADE BY MEANS OF CHECK. 103047 - METHODS OF HANDLING THE PETTY CASH FUND (2 1. IMPREST FUND SYSTEM ITEMS) 2. FLUCTUATING FUND SYSTEM 1. ESTABLISHMENT OF THE FUND (DR. PETTY CASH FUND; CR. CASH IN BANK) 2. PAYMENT OF EXPENSES OUT OF THE FUND (MEMORANDUM ENTRY IN THE PETTY CASH JOURNAL) 3. REPLENISHMENT OF PETTY CASH PAYMENTS (DR. 103048 - PRO FORMA JOURNAL ENTRIES FOR HANDLING THE EXPENSES; CR. CASH IN BANK) PETTY CASH UNDER IMPREST FUND SYSTEM (6 ITEMS) 4. ADJUSTING ENTRY IF NO REPLENISHMENT IS MADE AT YRAR-END (DR. EXPENSES; CR. CASH IN BANK) 5. INCREASE IN FUND (DR. PETTY CASH FUND; CR. CASH IN BANK) 6. DECREASE IN FUND (DR. CASH IN BANK; CR. PETTY CASH FUND) 1. ESTABLISHMENT OF THE FUND (DR. PETTY CASH FUND; CR. CASH IN BANK) 2. PAYMENT OF EXPENSES OUT OF THE PETTY CASH FUND (DR. EXPENSES; CR. PETTY CASH FUND) 103049 - PRO FORMA JOURNAL ENTRIES FOR HANDLING THE 3. REPLENISHMENT OR INCREASE OF THE FUND (DR. PETTY PETTY CASH FUND UNDER THE FLUCTUATING FUND SYSTEM CASH FUND; CR. CASH IN BANK) (5 ITEMS) 4. ADJUSTING ENTRY IF NO REPLENISHMENT IS MADE AT YEAR-END (NO ENTRY REQUIRED) 5. DECREASE OF THE FUND (DR. CASH IN BANK; CR. PETTY CASH FUND) 103050 - IS THE CURRENT ACCOUNT OR CHECKING ACCOUNT OR COMMERCIAL DEPOSIT WHERE DEPOSITS ARE COVERED BY DEPOSIT SLIPS AND WHERE FUNDS ARE DEMAND DEPOSIT WITHDRAWABLE ON DEMAND BY DRAWING CHECKS AGAINST THE BANK. 103051 - IN A ________, THE DEPOSITOR IS GIVEN A PASSBOOK UPON INITIAL DEPOSIT. THE PASSBOOK IS SAVINGS DEPOSIT REQUIRED WHEN MAKING DEPOSITS AND WITHDRAWALS. THIS TYPE OF BANK DEPOSIT IS INTEREST BEARING. 103052 - IS A BANK DEPOSIT EVIDENCED BY A FORMAL AGREEMENT CALLED CERTIFICATE OF DEPOSIT. IT IS INTEREST BEARING AND MAY BE PRETERMINATED OR TIME DEPOSIT WITHDRAWN ON DEMAND OR AFTER A CERTAIN PERIOD OF TIME AGREED UPON. 103053 - JOURNAL ENTRY USED TO RECORD COLLECTION OF DR. CASH OR CASH IN BANK; CR. ACCOUNTS RECEIVABLE CASH IN THE BOOKS OF THE REPORTING ENTITY OR ANY OTHER APPROPRIATE ACCOUNT 103054 - JOURNAL ENTRY USED BY THE BANK TO RECORD COLLECTION OF CASH BY THE REPORTING ENTITY AND DR. CASH; CR. BANK ACCOUNT OF REPORTING ENTITY SUBSEQUENT DEPOSIT TO THE BANK 103055 - JOURNAL ENTRY USED TO RECORD DR. EXPENSES OR ANY OTHER APPROPRIATE ACCOUNT; CR. DISBURSEMENTS OF CASH IN THE BOOKS OF THE CASH OR CASH IN BANK REPORTING ENTITY 103056 - JOURNAL ENTRY USED BY THE BANK TO RECORD DR. BANK ACCOUNT OF REPORTING ENTITY; CR. CASH IN WITHDRAWALS OF CASH BY THE REPORTING ENTITY BANK 103057 - IS A STATEMENT WHICH BRINGS INTO AGREEMENT THE CASH BALANCE PER BOOK AND CASH BALANCE PER BANK RECONCILIATION BANK. 103058 - IS A MONTHLY REPORT OF THE BANK TO THE DEPOSITOR SHOWING DATA ABOUT THE TRANSACTIONS OF THE REPORTING ENTITY WITH THE BANK DURING THE BANK STATEMENT PERIOD AND THE BEGINNING AND ENDING BALANCES OF ITS BANK ACCOUNT. 103059 - ARE THE CHECKS (ATTACHED TO THE BANK STATEMENT UPON RECEIPT) ISSUED BY THE DEPOSITOR CANCELLED CHECKS AND PAID BY THE BANK DURING THE MONTH. 1. CREDIT MEMOS 103060 - BOOK RECONCILING ITEMS (3 ITEMS) 2. DEBIT MEMOS 3. ERRORS 1. DEPOSITS IN TRANSIT 103061 - BANK RECONCILING ITEMS (3 ITEMS) 2. OUTSTANDING CHECKS 3. ERRORS 103062 - REFER TO ITEMS NOT REPRESENTING DEPOSITS CREDITED BY THE BANK TO THE ACCOUNT OF THE CREDIT MEMOS DEPOSITOR BUT NOT YET RECORDED BY THE DEPOSITOR AS CASH RECEIPTS. 1. NOTES RECEIVABLE COLLECTED BY BANK IN FAVOR OF THE DEPOSITOR 103063 - EXAMPLES OF CREDIT MEMOS (3 ITEMS) 2. PROCEEDS OF BANK LOAN 3. MATURED TIME DEPOSITS TRANSFERRED BY THE BANK TO THE CURRENT ACCOUNT OF THE DEPOSITOR 103064 - REFER TO ITEMS NOT REPRESENTING CHECKS PAID BY BANK WHICH ARE CHARGED OR DEBITED BY THE BANK DEBIT MEMOS TO THE ACCOUNT OF THE DEPOSITOR BUT NOT YET RECORDED BY THE DEPOSITOR AS CASH DISBURSEMENTS. 1. NSF CHECKS OR DAIF CHECKS 2. TECHNICALLY DEFECTIVE CHECKS 103065 - EXAMPLES OF DEBIT MEMOS (3 ITEMS) 3. BANK SERVICE CHARGES 4. REDUCTION OF LOAN 103066 - ARE CHECKS DEPOSITED BUT NOT RETURNED BY NSF (NO SUFFICIENT FUND) OR DAIF (DRAWN AGAINST THE BANK BECAUSE OF INSUFFICIENCY OF FUND. INSUFFICIENT FUND) CHECKS 103067 - ARE COLLECTIONS ALREADY RECORDED BY THE DEPOSITOR AS CASH RECEIPTS BUT NOT YET REFLECTED DEPOSITS IN TRANSIT ON THE BANK STATEMENT. 103068 - ARE CHECKS ALREADY RECORDED BY THE DEPOSITOR AS CASH DISBURSEMENTS BUT NOT YET OUTSTANDING CHECKS REFLECTED ON THE BANK STATEMENT. 103069 - IS A CHECK WHERE THE BANK HAS STAMPED ON ITS FACE THE WORD "ACCEPTED" OR "CERTIFIED" INDICATING CERTIFIED CHECKS SUFFICIENCY OF FUND. CERTIFIED CHECKS SHOULD BE DEDUCTED FROM THE TOTAL OUTSTANDING CHECKS (IF INCLUDED THEREIN) 103070 - ACCOUNTING TREATMENT FOR CERTIFIED CHECKS BECAUSE THEY ARE NO LONGER OUTSTANDING FOR BANK RECONCILIATION PURPOSES. 1. ADJUSTED BALANCE METHOD 103071 - FORMS OF BANK RECONCILIATION (3 ITEMS) 2. BANK TO BOOK METHOD 3. BOOK TO BANK METHOD 103072 - IS A FORM OF BANK RECONCILIATION WHERE THE BOOK BALANCE AND THE BANK BALANCE ARE BROUGHT TO ADJUSTED BALANCE METHOD A CURRENT CASH BALANCE THAT MUST APPEAR ON THE BALANCE SHEET. 103073 - IS A FORM OF BANK RECONCILIATION WHERE THE BOOK BALANCE IS RECONCILED WITH THE BANK BALANCE BOOK TO BANK METHOD OR THE BOOK BALANCE IS ADJUSTED TO EQUAL THE BANK BALANCE. 103074 - IS A FORM OF BANK RECONCILIATION WHERE THE BANK BALANCE IS RECONCILED WITH THE BOOK BALANCE BANK TO BOOK METHOD OR THE BANK BALANCE IS ADJUSTED TO EQUAL THE BOOK BALANCE. 103075 - FORMULA TO COMPUTE FOR THE ADJUSTED BOOK BOOK BALANCE + CREDIT MEMOS - DEBIT MEMOS ± EFFECT BALANCE UNDER THE ADJUSTED BALANCE METHOD OF OF ERRORS = ADJUSTED BOOK BALANCE BANK RECONCILIATION 103076 - FORMULA TO COMPUTE FOR THE ADJUSTED BANK BANK BALANCE + DEPOSITS IN TRANSIT - OUTSTANDING BALANCE UNDER THE ADJUSTED BALANCE METHOD OF CHECKS ± EFFECT OF ERRORS = ADJUSTED BANK BALANCE BANK RECONCILIATION BOOK BALANCE + CREDIT MEMOS + OUTSTANDING CHECKS - 103077 - FORMULA USED UNDER THE BOOK TO BANK DEBIT MEMOS - DEPOSITS IN TRANSIT ± EFFECT OF ERRORS METHOD OF BANK RECONCILIATION = BANK BALANCE BANK BALANCE + DEPOSITS IN TRANSIT + DEBIT MEMOS - 103078 - FORMULA USED UNDER THE BANK TO BOOK OUTSTANDING CHECKS - CREDIT MEMOS ± EFFECT OF METHOD OF BANK RECONCILIATION ERRORS = BOOK BALANCE TO CONTINUE CASH AND CASH EQUIVALENTS AFAR - PARTNERSHIP FORMATION (202001 - 202017) IN ORDER OF PRIORITY: 202001 - METHOD OF DIVISION OF PARTNERSHIP PROFITS 1. METHOD AS STIPULATED BY THE PARTNERS AND LOSSES 2. IN PROPORTION TO THE ORIGINAL CAPITAL CONTRIBUTION OF THE PARTNERS 202002 - IS THE RATIO IN WHICH PARTNERSHIP PROFITS AND PROFIT AND LOSS RATIO (OR P/L RATIO) LOSSES ARE DIVIDED 1. EQUALLY 2. UNEQUAL OR ARBITRARY RATIO 3. RATIO OF PARTNERS' CAPITAL ACCOUNT BALANCES ON A PARTICULAR DATE 202003 - POSSIBLE METHODS OF DIVIDING NET INCOME OR 4. RATIO OF THE PARTNERS' AVERAGE CAPITAL ACCOUNT LOSS AMONG PARTNERS (6 ITEMS) BALANCES DURING THE YEAR 5. INTEREST 6. SALARIES 7. BONUS 202004 - FORMULA FOR SIMPLE AVERAGE CAPITAL BALANCE SIMPLE AVERAGE CAPITAL BALANCE = (BEGINNING CAPITAL OF A PARTNER BALANCE + ENDING CAPITAL BALANCE) / 2 WEIGHTED AVERAGE CAPITAL BALANCE = SUMMATION OF 202005 - FORMULA FOR WEIGHTED AVERAGE CAPITAL (CAPITAL BALANCE AT EACH DATE OF PARTNER BALANCE INVESTMENT OR WITHDRAWAL * FRACTION OF THE YEAR UNCHANGED) 202006 - IS A SCHEDULE USED TO COMPUTE THE PROFIT DISTRIBUTION SCHEDULE OR PROFIT DISTRIBUTION DISTRIBUTION OF NET INCOME OR LOSS TO THE PARTNERS TABLE ACCORDING TO THEIR AGREEMENT. 202007 - IS AN INSTRUMENT OF DISTRIBUTING PROFITS TO INTEREST PARTNERS USED TO ENCOURAGE CAPITAL INVESTMENTS. 202008 - IS AN INSTRUMENT OF DISTRIBUTING PROFITS TO PARTNERS FOR THE SERVICES THEY RENDER FOR THE SALARY PARTNERSHIP. 202009 - IS AN INSTRUMENT OF DISTRIBUTING PROFITS TO MANAGING PARTNERS EQUAL TO A SPECIFIED PERCENTAGE BONUS OF INCOME. 1. BONUS AS PERCENTAGE OF NET INCOME 2. BONUS AS PERCENTAGE OF NET INCOME AFTER SALARIES 202010 - FORMS OF BONUS THAT MAY BE ALLOWED TO 3. BONUS AS PERCENTAGE OF NET INCOME AFTER MANAGING PARTNERS (4 ITEMS) INTEREST 4. BONUS AS PERCENTAGE OF NET INCOME AFTER BONUS 5. COMBINATION OF ANY OF ITEMS 2-4 202011 - FORMULA FOR BONUS AS A PERCENTAGE OF NET BONUS = BONUS RATE * (NET INCOME) INCOME 202012 - FORMULA FOR BONUS AS A PERCENTAGE OF NET BONUS = BONUS RATE * (NET INCOME - SALARIES) INCOME AFTER SALARIES 202013 - FORMULA FOR BONUS AS A PERCENTAGE OF NET BONUS = BONUS RATE * (NET INCOME - INTEREST) INCOME AFTER INTEREST 202014 - FORMULA FOR BONUS AS A PERCENTAGE OF NET BONUS = BONUS RATE * (NET INCOME - BONUS) INCOME AFTER BONUS 202015 - IS A PHRASE THAT MEANS NO FURTHER DISTRIBUTION OF PROFITS USING INTEREST, SALARY OR UP TO THE EXTENT OF RANKING ONLY BONUS SHALL BE MADE IF THE VALUE OF REMAINING NET INCOME GOES BELOW ZERO. 1. ADJUST ALL ASSETS AND LIABILITIES TO REFLECT THEIR FAIR VALUES. 2. RECORD ANY UNRECORDED ASSETS OR LIABILITIES, IF 202016 - PROCEDURE TO BE MADE IF THERE IS A CHANGE IN ANY. THE PROFIT AND LOSS RATIO OF THE PARTNERS 3. THESE SHOULD BE MADE TO THE PARTNERS' CAPITAL ACCOUNT IN ACCORDANCE WITH THEIR OLD PROFIT AND LOSS RATIO. 1. DETERMINE THE CORRECT NET INCOME OR LOSS OF THE PRIOR PERIOD. 2. COMPUTE THE PROPER SHARE OF EACH PARTNER USING THE PROFIT AND LOSS RATIO IN THE YEAR IN WHICH THE 202017 - PROCEDURE TO BE MADE TO CORRECT ERROR OCCURRED. PARTNERSHIP NET INCOME OR LOSS OF PRIOR PERIOD 3. COMPUTE THE DIFFERENCE BETWEEN THE SHARE IN THE PROFIT THAT EACH PARTNER ACTUALLY RECEIVED AND THE SHARE EACH WOULD HAVE RECEIVED FROM NO. 2. 4. ADJUST THE PARTNERS' CAPITAL ACCOUNTS BY THE AMOUNT IN NO. 3. AFAR - PARTNERSHIP FORMATION (201001 - 201020) 201001 - BY THE CONTRACT OF __________, TWO OR MORE PERSONS BIND THEMSELVES TO CONTRIBUTE MONEY, PARTNERSHIP PROPERTY OR INDUSTRY TO A COMMON FUND WITH THE INTENTION OF DIVIDING THE PROFITS AMONG THEMSELVES. 1. SEPARATE LEGAL PERSONALITY 2. EASE OF FORMATION 3. CO-OWNERSHIP OF PARTNERSHIP PROPERTY AND 201002 - CHARACTERISTICS OF A PARTNERSHIP AS A FORM PROFITS OF BUSINESS ORGANIZATION (6 ITEMS) 4. LIMITED LIFE 5. MUTUAL AGENCY 6. UNLIMITED LIABILITY 201003 - IS A CHARACTERISTIC OF PARTNERSHIPS WHICH REFERS TO THE FACT THAT A PARTNERSHIP MAY ACQUIRE SEPARATE LEGAL PERSONALITY PROPERTY IN ITS OWN NAME AND MAY ENTER INTO CONTRACTS. 201004 - IS A CHARACTERISTIC OF PARTNERSHIPS WHICH REFERS TO THE FACT THAT THE FORMATION OF A EASE OF FORMATION PARTNERSHIP DOES NOT REQUIRE AS MANY FORMALITUES AS A CORPORATION. 201005 - IS A CHARACTERISTIC OF PARTNERSHIPS WHICH REFERS TO THE FACT THAT EACH PARTNER HAS A CO-OWNERSHIP OF PARTNERSHIP PROPERTY AND PROFITS PROPRIETARY INTEREST IN THE ASSETS AND PROFITS OF THE PARTNERSHIP. 201006 - IS A CHARACTERISTIC OF PARTNERSHIP WHICH REFERS TO THE FACT THAT ANY CHANGE IN THE AGREEMENT OF THE PARTNERS TERMINATES THE LIMITED LIFE PARTNERSHIP. A PARTNERSHIP MAY ALSO EXPIRE DUE TO CHANGES IN THE RELATIONSHIP OF THE PARTNERS (DEATH, WITHDRAWAL, ETC.). 201007 - IS CHARACTERISTIC OF PARTNERSHIPS WHICH REFERS TO THE FACT THAT EACH PARTNER HAS AN EQUAL RIGHT TO ACT FOR THE PARTNERSHIP AND TO ENTER INTO MUTUAL AGENCY CONTRACTS BINDING UPON IT, AS LONG AS HE ACTS WITHIN THE NORMAL SCOPE OF BUSINESS OPERATIONS. 201008 - IS A CHARACTERISTIC OF PARTNERSHIPS WHICH REFERS TO THE FACT THAT EACH PARTNER MAY BE HELD UNLIMITED LIABILITY PERSONALLY LIABLE FOR ALL THE DEBTS OF THE PARTNERSHIP. 1. CAPITAL ACCOUNTS 201009 - PARTNER'S LEDGER ACCOUNTS (3 ITEMS) 2. DRAWING OR PERSONAL ACCOUNTS 3. ACCOUNTS FOR LOANS TO OR FROM PARTNERS 1. ORIGINAL INVESTMENT 201010 - TRANSACTIONS WHERE A PARTNER'S CAPITAL 2. ADDITIONAL INVESTMENT ACCOUNT IS CREDITED FOR (3 ITEMS) 3. PARTNER'S SHARE OF THE PROFITS (AFTER BEING CLOSED TO THE DRAWING ACCOUNT) 1. PERMANENT WITHDRAWAL OF CAPITAL 2. DEBIT BALANCE OF THE DRAWING ACCOUNT AT THE END 201011 - TRANSACTIONS WHERE A PARTNER'S CAPITAL OF THE PERIOD ACCOUNT IS DEBITED FOR (3 ITEMS) 3. PARTNER'S SHARE IN THE LOSSES (AFTER BEING CLOSED TO THE DRAWING ACCOUNT) 1. PARTNERSHIP OBLIGATIONS ASSUMED OR PAID BY A PARTNER 201012 - TRANSACTIONS WHERE A PARTNER'S DRAWING 2. PERSONAL FUNDS OR CLAIMS OF PARTNER COLLECTED ACCOUNT IS CREDITED FOR (3 ITEMS) AND RETAINED BY THE PARTNERSHIP 3. PERIODIC PARTNER'S SALARIES DEPENDING ON AGREEMENT BY THE PARTNERS 1. WITHDRAWAL OF ASSETS BY THE PARTNERS IN ANTICIPATION OF NET INCOME (TEMPORARY WITHDRAWALS) 201013 - TRANSACTIONS WHERE A PARTNER'S DRAWING 2. PARTNER'S PERSONAL INDEBTEDNESS PAID OR ASSUMED ACCOUNT IS DEBITED FOR (3 ITEMS) BY THE PARTNERSHIP 3. FUNDS OR CLAIMS OF PARTNERSHIP COLLECTED AND RETAINED BY THE PARTNER IN ORDER OF PRIORITY: 201014 - RULE ON THE VALUATION OF ASSETS CONTRIBUTED 1. AGREED VALUE BY PARTNERS 2. FAIR MARKET VALUE/APPRAISAL VALUE NOTE: ASSESSED VALUE IS NEVER USED IF THE PROBLEM IS SILENT, THE PARTNERSHIP WILL NOT 201015 - RULE ON THE ASSUMPTION OF S PARTNER'S ASSUME SUCH LIABILITY. ASSUMPTION MUST BE EXPRESSLY PERSONAL LIABILITY BY THE PARTNERSHIP STATED IN THE PROBLEM BEFORE SUCH LIABILITY IS RECORDED IN THE PARTNERSHIP BOOKS. CONTRIBUTED ASSETS - LIABILITIES ASSUMED BY THE 201016 - FORMULA FOR CONTRIBUTED CAPITAL PARTNERSHIP = CONTRIBUTED CAPITAL 201017 - IS THE AMOUNT OF CAPITAL OF EACH PARTNER INITIAL CAPITAL CREDIT AFTER FORMATION. IN ORDER OF PRIORITY: 201018 - RULE ON THE AMOUNT OF INITIAL CAPITAL CREDIT 1. AGREED CAPITAL (USING THE RATIO AGREED UPON) TO BE RECEIVED BY A PARTNER 2. CONTRIBUTED CAPITAL 201019 - IS A METHOD USED WHEN PARTNERS AGREE ON CAPITAL INTERESTS THAT ARE NOT EQUAL TO THEIR NET ASSETS. THIS METHOD DOES NOT RECOGNIZE ANY BONUS METHOD ADDITIONAL GOODWILL NOR REVALUE ANY OF THE CONTRIBUTED ASSETS BUT REFERS TO THE MERE TRANSFER OF CAPITAL BETWEEN PARTNERS. 201020 - IS AN INTANGIBLE ASSET RECORDED ONLY AS A RESULT OF AN ACQUISITION MADE BY A REPORTING ENTITY GOODWILL (BUSINESS COMBINATION). MAS - OVERVIEW OF MANAGEMENT ACCOUNTING (301001 - 301057) 301001 - INVOLVES THE APPLICATION OF APPROPRIATE TECHNIQUES AND CONCEPTS TO ECONOMIC DATA SO AS TO ASSIST MANAGEMENT IN ESTABLISHING PLANS FOR MANAGEMENT ACCOUNTING REASONABLE ECONOMIC OBJECTIVES AND IN THE MAKING OF RATIONAL DECISIONS WITH A VIEW TOWARD ACHIEVING THESE OBJECTIVES. 1. SCOREKEEPING 301002 - MANAGEMENT ACCOUNTING TASKS, IN GENERAL (3 2. INTERPRETING AND REPORTING INFORMATION ITEMS) 3. PROBLEM-SOLVING 301003 - ENABLES BOTH INTERNAL AND EXTERNAL PARTIES TO EVALUATE ORGANIZATIONAL PERFORMANCE AND SCOREKEEPING POSITION. 301004 - HELP MANAGERS FOCUS ON OPERATING INTERPRETING AND REPORTING INFORMATION PROBLEMS, OPPORTUNITIES AS WELL AS INEFFICIENCIES. 301005 - REFERS TO THE QUANTIFICATION OF THE RELATIVE MERITS OF POSSIBLE COURSES OF ACTION AS WELL AS PROBLEM-SOLVING RECOMMENDATIONS AS TO THE BES PROCEDURE. 1. PLANNING 301006 - ADMINISTRATIVE FUNCTIONS WHERE MANAGEMENT 2. CONTROLLING ACCOUNTING INFORMATION ARE USUALLY USED (3 ITEMS) 3. DECISION MAKING 301007 - INVOLVES SETTING OF GOALS FOR THE FIRM, EVALUATING VARIOUS WAYS TO MEET THE GOALS AND PLANNING PICKING OUT WHAT APPEARS TO BE THE BEST WAY TO MEET THE GOALS. 301008 - INVOLVES THE EVALUATION OF WHETHER ACTUAL CONTROLLING PERFORMANCE CONFORMS WITH PLANNED GOALS. 301009 - INVOLVES DETERMINATION OF PREDICTIVE INFORMATION (E.G., RELEVANT COSTS) FOR MAKING DECISION MAKING IMPORTANT BUSINESS DECISIONS. 301010 - IS A FORMAL STATEMENT OF ESTIMATED INCOME BUDGET AND EXPENSES BASED ON FUTURE PLANS AND OBJECTIVES. 301011 - REFER TO THE REPORTS USED TO EVALUATE THE PERFORMANCE OF MANAGERS AND THE OPERATIONS THEY PERFORMANCE REPORTS CONTROL. 301012 - FA OR MA: ITS OBJECTIVE IS TO PROVIDE DATA FOR BOTH INTERNAL (MANAGEMENT) AND EXTERNAL USERS (E. FINANCIAL ACCOUNTING G., CREDITORS, OWNERS, GOVERNMENT, ETC.). 301013 - FA OR MA: ITS OBJECTIVE IS TO PROVIDE DATA FOR MANAGEMENT ACCOUNTING INTERNAL USERS WITHIN THE BUSINESS ORGANIZATION. 301014 - FA OR MA: FINANCIAL DATA SHOULD BE RECORDED FINANCIAL ACCOUNTING AND PRESENTED IN ACCORDANCE WITH IFRS. 301015 - FA OR MA: REPORTS NEED NOT BE PRESENTED IN CONFORMITY WITH IFRS TO BE ABLE TO PRESENT MORE MANAGEMENT ACCOUNTING USEFUL DATA TO MANAGEMENT. 301016 - FA OR MA: THIS PRIMARILY INVOLVES SUMMARIES FINANCIAL ACCOUNTING OF PAST FINANCIAL TRANSACTIONS. 301017 - FA OR MA: THIS HAS A STONG FUTURE MANAGEMENT ACCOUNTING ORIENTATION. 301018 - FA OR MA: ALL-PURPOSE REPORTS WITH HISTORICAL DATA ARE PREPARED FOR USE OF DIFFERENT FINANCIAL ACCOUNTING PARTIES. 301019 - FA OR MA: SPECIAL REPORTS CONTAINING BOTH HISTORICAL AND PROJECTED DATA ARE PREPARED TO MANAGEMENT ACCOUNTING MEET THE NEEDS OF SPECIFIC USERS. 301020 - FA OR MA: REPORTS ARE STILL USEFUL EVEN IF SUBMITTED LATE AND SHOW SUMMARIES OF FINANCIAL FINANCIAL ACCOUNTING CONSEQUENCES OF ACTUAL AND PAST ACTIVITIES WHERE PRECISION IS REQUIRED. 301021 - FA OR MA: TIMELINESS IS OFTEN MORE IMPORTANT MANAGEMENT ACCOUNTING THAN PRECISION TO MANAGERS. 301022 - FA OR MA: THIS IS PRIMARILY CONCERNED WITH FINANCIAL ACCOUNTING REPORTING FOR THE COMPANY AS A WHOLE. 301023 - FA OR MA: THIS FOCUSES REPORTING ON THE PARTS OR SEGMENTS (I.E., PRODUCT LINES, DIVISIONS, MANAGEMENT ACCOUNTING TERRITORIES, DEPARTMENTS) OF THE COMPANY. 301024 - FA OR MA: THIS IS REQUIRED BY LAW AS EXEMPLIFIED BY THE REPORT REQUIREMENTS OF THE BIR, FINANCIAL ACCOUNTING SEC AND OTHER GOVERNMENTAL ENTITIES. 301025 - FA OR MA: THIS IS NOT MANDATORY (I.E, NOT MANAGEMENT ACCOUNTING REQUIRED BY LAW). 301026 - IS A SYSTEMATIC SET OF PROCEDURES FOR RECORDING AND REPORTING MEASUREMENTS OF THE COST ACCOUNTING COST OF MANUFACTURING GOODS AND PERFORMING SERVICES IN THE AGGREGATE AND IN DETAIL. 301027 - IS THE AUTHORITY TO COMMAND ACTION OR GIVE ORDERS TO SUBORDINATES. MANAGERS WITH THIS AUTHORITY (E.G., SALES, PRODUCTION) ARE DIRECTLY LINE AUTHORITY RESPONSIBLE FOR ATTAINING THE OBJECTIVES OF THE BUSINESS FIR, AS EFFICIENTLY AS POSSIBLE. 301028 - IS THE AUTHORITY TO COMMAND ACTION OR GIVE ORDERS TO SUBORDINATES. MANAGERS WITH THIS AUTHORITY (E.G., SALES, PRODUCTION) ARE DIRECTLY STAFF AUTHORITY RESPONSIBLE FOR ATTAINING THE OBJECTIVES OF THE BUSINESS FIR, AS EFFICIENTLY AS POSSIBLE. 301029 - IS THE EXECUTIVE RESPONSIBLE FOR OVERSEEING CHIEF FINANCIAL OFFICER (CFO) OR FINANCE DIRECTOR THE FINANCIAL OPERATIONS OF AN ORGANIZATION. 301030 - IS AN AREA OF RESPONSIBILITY OF THE CFO WHICH INCLUDES PROVIDING FINANCIAL INFORMATION FOR REPORTS TO MANAGERS AND REPORTS TO SHAREHOLDERS CONTROLLERSHIP AND OVERSEEING OVERALL OPERATIONS OF THE ACCOUNTING SYSTEM. 301031 - IS AN AREA OF RESPONSIBILITY OF THE CFO WHICH INCLUDES BANKING AND SHORT- AND LONG-TERM TREASURY FINANCING, INVESTMENTS AND MANAGEMENT OF CASH. 301032 - IS AN AREA OF RESPONSIBILITY OF THE CFO WHICH INCLUDES MANAGING THE FINANCIAL RISK OF INTEREST- RISK MANAGEMENT RATE AND EXCHANGE-RATE AND DERIVATIVES MANAGEMENT. 301033 - IS AN AREA OF RESPONSIBILITY OF THE CFO WHICH INCLUDES INCOME TAXES, SALES TAXES AND TAXATION INTERNATIONAL TAX PLANNING. 301034 - IS AN AREA OF RESPONSIBILITY OF THE CFO WHICH INCLUDES REVIEWING AND ANALYZING FINANCIAL AND OTHER RECORDS TO ATTEST TO THE INTEGRITY OF THE INTERNAL AUDIT ORGANIZATION'S FINANCIAL REPORTS AND TO ADHERENCE TO ITS POLICIES AND PROCEDURES. 301035 - IS THE FINANCIAL EXECUTIVE PRIMARILY RESPONSIBLE FOR MANAGEMENT ACCOUNTING AND CONTROLLER OR CHIEF ACCOUNTING OFFICERS FINANCIAL ACCOUNTING. 301036 - IS CONCERNED WITH THE ACQUISITION, FINANCING AND MANAGEMENT OF ASSETS OF A BUSINESS CONCERN TREASURERSHIP TO MAXIMIZE THE WEALTH OF THE FIRMS FOR ITS OWNERS. 1. COMPETENCE 301037 - ETHICAL VALUES MANAGEMENT ACCOUNTANTS 2. CONFIDENTIALITY MUST POSSESS (4 ITEMS) 3. INTEGRITY 4. OBJECTIVITY 301038 - IS THE PHILOSOPHY THAT ACTIVITIES ARE JUST-IN-TIME (JIT) OR PULL-IT-THROUGH APPROACH UNDERTAKEN ONLY AS NEEDED OR DEMANDED. 301039 - IS A TECHNIQUE IN WHICH MANAGEMENT DEVELOPS POLICIES AND PRACTICES TO ENSURE THAT THE TOTAL QUALITY MANAGEMENT (TQM) FIRM'S PRODUCTS AND SERVICES EXCEED CUSTOMERS' EXPECTATIONS. 301040 - IS A PROCESS FOR CREATING COMPETITIVE ADVANTAGE IN WHICH A FIRM REORGANIZES ITS OPERATING AND MANAGEMENT FUNCTIONS, OFTEN WITH REENGINEERING THE RESULT THAT JOBS ARE MODIFIED, COMBINED OR ELIMINATED. 301041 - IS AN APPROACH WHERE A BUSINESS PROCESS IS DIAGRAMMED IN DETAIL, QUESTIONED AND THEN REDESIGNED IN ORDER TO ELIMINATE UNECESSARY STEPS, PROCESS REENGINEERING TO REDUCE OPPORTUNITIES FOR ERRORS AND TO REDUCE COST. 301042 - IS ANY SERIES OF STEPS THAT ARE FOLLOWED IN BUSINESS PROCESS ORDER TO CARRY OUT SOME TASK IN A BUSINESS. 301043 - IS A PROCESS BY WHICH A FIRM DETERMINES ITS CRITICAL SUCCESS FACTORS, STUDIES THE BEST PRACTICES OF OTHER FIRMS (OR OTHER UNITS WITHIN A FIRM) FOR ACHIEVING THESE CRITICAL SUCCESS FACTORS, BENCHMARKING AND THEN IMPLEMENTS IMPROVEMENTS IN THE FIRM'S PROCESSES TO MATCH OR BEAT THE PERFORMANCE OF THOSE COMPETITORS. 301044 - IS A MANAGEMENT TECHNIQUE IN WHICH MARKETING AND PRODUCTION PROCESSES ARE DESIGNED TO HANDLE THE INCREASED VARIETY THAT RESULTS FROM MASS CUSTOMIZATION DELIVERING CUSTOMIZED PRODUCTS AND SERVICES TO CUSTOMERS. 301045 - IS AN ACCOUNTING REPORT THAT INCLUDES THE FIRM'S CRITICAL SUCCESS IN FOUR AREAS NAMELY, FINANCIAL PERFORMANCE, CUSTOMER SATISFACTION, BALANCED SCORECARD INTERNAL BUSINESS PROCESS AND INNOVATION AND LEARNING. 301046 - IS USED TO DEVELOP A DETAILED DESCRIPTION OF THE SPECIFIC ACTIVITIES PERFORMED IN THE OPERATION ACTIVITY ANALYSIS OF THE FIRM. 301047 - IS USED TO IMPROVE THE ACCURACY OF COST ANALYSIS BY IMPROVING THE TRACING OF COSTS TO ACTIVITY-BASED COSTING (ABC) PRODUCTS OR TO INDIVIDUAL CUSTOMERS. 301048 - EMPHASIZES THE IMPORTANCE OF MANAGING THE ORGANIZATION'S CONSTRAINTS OR BARRIERS THAT HINDER THEORY OF CONSTRAINTS OR IMPEDE PROGRESS TOWARD AN OBJECTIVE. 301049 - IS A MANAGEMENT TECHNIQUE TO IDENTIFY AND MONITOR THE COSTS OF A PRODUCT THROUGHOUT ITS LIFE-CYCLE COSTING LIFECYCLE. 301050 - INVOLVES THE DETERMINATION OF THE DESIRED COST FOR A PRODUCT OR THE BASIS OF A GIVEN TARGET COSTING COMPETITIVE PRICE SO THAT THE PRODUCT WILL EARNE A DESIRED PROFIT. TARGET COST = MARKET DETERMINED PRICE - DESIRED 301051 - FORMULA FOR TARGET COST PROFIT 301052 - IS THE USE OF COMPUTERS IN PRODUCT DEVELOPMENT, ANALYSIS AND DESIGN MODIFICATION TO COMPUTER-AIDED DESIGN (CAD) IMPROVE THE QUALITY AND PERFORMANCE OF THE PRODUCT. 301053 - IS THE USE OF COMPUTERS TO PLAN, IMPLEMENT COMPUTER-AIDED MANUFACTURING (CAM) AND CONTROL PRODUCTION. 301054 - IS THE TECHNOLOGY BY WHICH A PROCESS OR PROCEDURE IS PERFORMED WITH MINIMAL HUMAN AUTOMATION ASSISTANCE. 301055 - IS THE ACTIVITY OF BUYING OR SELLING PRODUCTS E-COMMERCE ON ONLINE SERVICES OR OVER THE INTERNET. 301056 - REFERS TO THE SEQUENCE OF BUSINESS FUNCTIONS IN WHICH USEFULNESS IS ADDED TO THE VALUE CHAIN PRODUCTS OR SERVICES OF A COMPANY. 1. RESEARCH AND DEVELOPMENT 2. PRODUCT DESIGN 301057 - BUSINESS FUNCTIONS MAKING UP THE VALUE 3. MANUFACTURING CHAIN (6 ITEMS) 4. MARKETING 5. DISTRIBUTION 6. CUSTOMER SERVICE MAS - OVERVIEW OF MANAGEMENT ACCOUNTING (302001 - STILL UNFINISHED) 302001 - INVOLVES CAREFUL SELECTION OF DATA FROM FINANCIAL STATEMENTS FOR THE PRIMARY PURPOSE OF FINANCIAL STATEMENTS ANALYSIS FORECASTING THE FINANCIAL HEALTH OF THE COMPANY. 302001 - ARE USERS OF FINANCIAL STATEMENTS CONCERNED ABOUT THEIR INVESTMENT INCOME AS WELL AS ABOUT THE COMPANY'S OVERALL PROFITABILITY, CURRENT SHAREHOLDERS OR OWNERS STABILITY AND SOUND CAPITAL STRUCTURE NECESSARY FOR CONTINUED SUCCESSFUL OPERATIONS. 302001 - ARE USERS OF FINANCIAL STATEMENTS WHO ARE INTERESTED IN "SOLD" COMPANIES, ONES WHOSE FINANCIAL STATEMENTS INDICATE STABLE EARNINGS AND POTENTIAL INVESTORS DIVIDENDS WITH LIMITED OR MODERATE GROWTH (OTHERS OREFER COMPANIES SHOWING RAPID GROWTH AND DIVERSIFICATION INTO DIFFERENT LINES OF BUSINESS). 302001 - ARE USERS OF FINANCIAL STATEMENTS WHO ARE INTERESTED IN A FIRM'S SHORT-RUN LIQUIDITY, ITS ABILITY SHORT-TERM CREDITORS TO PAY CURRENT OBLIGATIONS AS THEY MATURE. 302001 - ARE USERS OF FINANCIAL STATEMENTS WHO ARE CONCERNED ABOUT THE LONG-TERM SECURITY OF THEIR INTEREST INCOME AND THE COMPANY'S ABILITY TO LONG-TERM CREDITORS MAINTAIN SUCCESSFUL EARNINGS AND CASH FLOWS TO MEET CONTINUING FINANCIAL COMMITMENTS. 302001 - IS A METHOD OF FINANCIAL STATEMENTS ANALYSIS WHERE FINANCIAL STATEMENT AMOUNTS FOR TWO OR HORIZONTAL ANALYSIS OF COMPARATIVE STATEMENTS MORE YEARS ARE PLACED SIDE BY SIDE IN ADJACENT (INCREASE-DECREASE METHOD) COLUMNS. 302001 - FAVORABLE OR UNFAVORABLE: PERCENTAGE UNFAVORABLE (DETERIORATION IN SHORT-TERM SOLVENCY INCREASE IN TOTAL CURRENT ASSETS IS LOWER THAN POSITION) PERCENTAGE INCREASE IN TOTAL CURRENT LIABILITIES. 302001 - FAVORABLE OR UNFAVORABLE: PERCENTAGE UNFAVORABLE (SLOWER CONVERSION OF INVENTORY AND INCREASE IN ACCOUNTS RECEIVABLE AND INVENTORY IS RECEIVABLES TO CASH; SHORT-TERM SOLVENCY ANALYSIS) HIGHER THAN PERCENTAGE INCREASE IN SALES REVENUE. FAVORABLE (SHIFT OF COMPANY'S CAPITAL STRUCTURE 302001 - FAVORABLE OR UNFAVORABLE: PERCENTAGE FROM BORROWING TOWARD CAPITAL PROVIDED BY INCREASE IN TOTAL LIABILITIES IS LESS THAN PERCENTAGE PROFITABLE OPERATION; LONG-TERM FINANCIAL POSITION INCREASE IN SHAREHOLDERS' EQUITY. ANALYSIS) UNFAVORABLE (THE COMPANY IS UNABLE TO ADJUST THE SELLING PRICE OF THE GOODS COMMENSURATE TO THE 302001 - FAVORABLE OR UNFAVORABLE: PERCENTAGE INCREASE IN COST OF GOODS PURCHASED OR INCREASE IN SALES REVENUES IS LESS THAN PERCENTAGE MANUFACTURED OR IT WAS UNABLE TO CONTROL THE INCREASE IN COST OF GOODS SOLD. PRICE FACTOR OF ITS COST OF SALES; OPERATING EFFICIENCY AND PROFITABILITY ANALYSIS) 302001 - FAVORABLE OR UNFAVORABLE: PERCENTAGE FAVORABLE (MANAGEMENT'S EFFICIENCY IN KEEPING INCREASE IN SALES IS HIGHER THAN PERCENTAGE EXPENSES WITHIN CONTROL; OPERATING EFFICIENCY AND INCREASE IN SELLING AND ADMINISTRATIVE EXPENSES. PROFITABILITY ANALYSIS) 302001 - ARE INDEX NUMBERS SHOWING RELATIVE CHANGES IN FINANCIAL DATA RESULTING WITH THE TREND PERCENTAGES PASSAGE OF TIME. 302001 - FAVORABLE OR UNFAVORABLE: INCREASE IN CURRENT ASSETS ACCOMPANIED BY DECREASE IN FAVORABLE CURRENT LIABILITIES. 302001 - FAVORABLE OR UNFAVORABLE: SALES REVENUE FAVORABLE (INDICATES MORE EFFECTIVE CREDIT, INCREASES AT A FASTER RATE THAN ACCOUNTS COLLECTION AND MERCHANDISING POLICIES) RECEIVABLE AND INVENTORY. FAVORABLE (REFLECTS MORE RAPID TURNOVER OF 302001 - FAVORABLE OR UNFAVORABLE: RELATIVELY CUSTOMER ACCOUNTS AND POSSIBLY A LARGE INCREASE SMALLER AMOUNT OF TRADE RECEIVABLES. IN CASH SALES.) 302001 - IS A TOOL USEDE IN FINANCIAL STATEMENTS ANALYSIS THAT TRANSLATES PESO AMOUNTS TO COMMON-SIZE FINANCIAL STATEMENTS PERCENTAGES WHICH INDICATE THE RELATIVE SIZE OF AN ITEM IN PROPORTION TO THE WHOLE. 302001 - IS A COMPARISON IN FRACTION, PROPORTION, DECIMAL OR PERCENTAGE FORM OF TWO SIGNIFICANT FINANCIAL RATIO FIGURES TAKEN FROM FINANCIAL STATEMENTS. 302001 - FINANCIAL RATIO (SIGNIFICANCE): PRIMARY TEST OF SOLVENCY TO MEET CURRENT OBLIGATIONS FROM CURRENT RATIO CURRENT ASSETS AS A GOING CONCERN; MEASURE OF ADEQUACY OF WORKING CAPITAL CURRENT RATIO = TOTAL CURRENT ASSETS / TOTAL 302001 - FINANCIAL RATIO (FORMULA): CURRENT RATIO CURRENT LIABILITIES 302001 - FINANCIAL RATIO (SIGNIFICANCE): A MORE SEVERE TEST OF IMMEDIATE INSOLVENCY; TEST OF ABILITY TO MEET ACID-TEST RATIO OR QUICK RATIO DEMANDS FROM CURRENT ASSETS. 302001 - FINANCIAL RATIO (FORMULA): ACID-TEST RATIO OR ACID-TEST RATIO OR QUICK RATIO = TOTAL QUICK ASSETS / QUICK RATIO TOTAL CURRENT LIABILITIES 302001 - COMPONENTS OF QUICK ASSETS (3 ITEMS) CASH + MARKETABLE SECURITIES + ACCOUNTS RECEIVABLE 302001 - FINANCIAL RATIO (SIGNIFICANCE): INDICATES RELATIVE LIQUIDITY OF TOTAL ASSETS AND DISTRIBUTION WORKING CAPITAL TO TOTAL ASSETS OF RESOURCES EMPLOYED. 302001 - FORMULA USED TO COMPUTE FOR WORKING WORKING CAPITAL = CURRENT ASSETS - CURRENT CAPITAL LIABILITIES 302001 - FINANCIAL RATIO (SIGNIFICANCE): MEASURES SHORT-TERM LIQUIDITY BY CONSIDENRING CASH CASH FLOW LIQUIDITY RATIO RESOURCES AS NUMERATOR. CASH FLOW LIQUIDITY RATIO = (CASH + MARKETABLE 302001 - FINANCIAL RATIO (FORMULA): CASH FLOW LIQUIDITY SECURITIES + CASH FLOW FROM OPERATING ACTIVITIES) / RATIO CURRENT LIABILITIES 302001 - FINANCIAL RATIO (SIGNIFICANCE): MEASURES THE LENGTH OF TIME IN DAYS THE FIRM CAN OPERATE ON ITS DEFENSIVE INTERVAL RATIO PRESENT LIQUID RESOURCES. 302001 - FINANCIAL RATIO (FORMULA): DEFENSIVE INTERVAL DEFENSIVE INTERVAL RATIO = QUICK ASSETS / PROJECTED RATIO DAILY OPERATIONAL EXPENSES 302001 - FINANCIAL RATIO (SIGNIFICANCE): VELOCITY OF COLLECTION OF TRADE ACCOUNTS AND NOTES; TEST OF TRADE RECEIVABLE TURNOVER EFFICIENCY OF COLLECTION. TRADE RECEIVABLE TURNOVER = (NET CREDIT SALES OR 302001 - FINANCIAL RATIO (FORMULA): TRADE RECEIVABLE NET SALES IF NET CREDIT SALES FIGURE IS NOT AVAILABLE) TURNOVER / AVERAGE NET TRADE RECEIVABLE 302001 - FINANCIAL RATIO (SIGNIFICANCE): EVALUATES THE AVERAGE COLLECTION PERIOD OR NUMBER OF DAYS' LIQUIDITY OF ACCOUNTS RECEIVABLE AND THE FIRM'S SALES UNCOLLECTED CREDIT POLICIES. 302001 - FINANCIAL RATIO (SIGNIFICANCE): MEASURES THE EFFICIENCY OF THE FIRM IN MANAGING AND SELLING INVENTORY TURNOVER INVENTORIES. MERCHANDISE OR FINISHED GOODS INVENTORY TURNOVER 302001 - FINANCIAL RATIO (FORMULA): MERCHANDISE OR = COST OF GOODS SOLD / AVERAGE MERCHANDISE OR FINISHED GOODS INVENTORY TURNOVER FINISHED GOODS INVENTORY AVERAGE INVENTORY = (BEGINNING INVENTORY + ENDING 302001 - FORMULA FOR AVERAGE INVENTORY INVENTORY) / 2 GOODS IN PROCESS TURNOVER = COST OF GOODS 302001 - FINANCIAL RATIO (FORMULA): GOODS IN PROCESS MANUFACTURED / AVERAGE GOODS IN PROCESS TURNOVER INVENTORY 302001 - FINANCIAL RATIO (SIGNIFICANCE): NUMBER OF TIMES RAW MATERIALS INVENTORY WAS USED AND RAW MATERIALS INVENTORY TURNOVER REPLENISHED DURING THE PERIOD. 302001 - FINANCIAL RATIO (FORMULA): RAW MATERIAL RAW MATERIALS INVENTORY TURNOVER = RAW MATERIALS INVENTORY TURNOVER USED / AVERAGE RAW MATERIALS INVENTORY 302001 - FINANCIAL RATIO (SIGNIFICANCE): MEASURES AVERAGE NUMBER OF DAYS TO SELL OR CONSUME THE DAYS' SUPPLY IN INVENTORY AVERAGE INVENTORY 302001 - FINANCIAL RATIO (FORMULA): DAYS' SUPPLY IN DAYS' SUPPLY IN INVENTORY = 360 DAYS / INVENTORY INVENTORY TURNOVER 302001 - FINANCIAL RATIO (SIGNIFICANCE): INDICATES WORKING CAPITAL TURNOVER ADEQUACY AND ACTIVITY OF WORKING CAPITAL. 302001 - FINANCIAL RATIO (FORMULA): WORKING CAPITAL WORKING CAPITAL TURNOVER = NET SALES / AVERAGE TURNOVER WORKING CAPITAL 302001 - FINANCIAL RATIO (SIGNIFICANCE): INDICATES PERCENT OF EACH CURRENT ASSET TO TOTAL CURRENT RELATIVE INVESTMENT IN EACH CURRENT ASSET. ASSET 302001 - FINANCIAL RATIO (SIGNIFICANCE): MEASURES MOVEMENT AND UTILIZATION OF CURRENT ASSETS TO CURRENT ASSETS TURNOVER MEET OPERATING REQUIREMENTS. CURRENT ASSETS TURNOVER = (COST OF SALES + 302001 - FINANCIAL RATIO (FORMULA): CURRENT ASSETS OPERATING EXPENSES + INCOME TAXES + OTHER TURNOVER EXPENSES EXCLUDING DEPRECIATION AND AMORTIZATION) / AVERAGE CURRENT ASSETS 302001 - FINANCIAL RATIO (SIGNIFICANCE): MEASURES PAYABLE TURNOVER EFFICIENCY OF THE COMPANY IN MEETING TRADE PAYABLE. PAYABLE TURNOVER = NET PURCHASES / AVERAGE 302001 - FINANCIAL RATIO (FORMULA): PAYABLE TURNOVER ACCOUNTS PAYABLE 302001 - FINANCIAL RATIO (SIGNIFICANCE): MEASURES THE LENGTH OF TIME REQUIRED TO CONVERT CASH TO OPERATING CYCLE FINISHED GOODS; THEN TO RECEIVABLE AND THEN BACK TO CASH. OPERATING CYCLE = AVERAGE CONVERSION PERIOD OF 302001 - FINANCIAL RATIO (FORMULA): OPERATING CYCLE INVENTORIES + AVERAGE COLLECTION PERIOD OF RECEIVABLE + DAYS CASH TAX - GENERAL PRINCIPLES OF TAXATION (401001 - STILL UNFINISHED) 401001 - IS THE POWER BY WHICH THE SOVEREIGN, THROUGH ITS LAW-MAKING BODY, RAISES REVENUE TO TAXATION DEFRAY THE NECESSARY EXPENSES OF GOVERNMENT. 401002 - IS THE PRIMARY PURPOSE OF TAXATION WHICH ASSERTS THAT THE PURPOSE OF TAXATION IS TO RAISE REVENUE PURPOSE FUNDS OR PROPERTY TO ENABLE THE STATE TO PROMOTE THE GENERAL WELFARE AND PROTECTION OF THE PEOPLE. 1. PROMOTION OF GENERAL WELFARE 2. REGULATION OF ACTIVITIES/INDUSTRIES 401003 - SECONDARY OR NON-REVENUE PURPOSES OF 3. REDUCTION OF SOCIAL INEQUALITY TAXATION (5 ITEMS) 4. ENCOURAGE ECONOMIC GROWTH 5. PROTECTIONISM 401004 - IS A PURPOSE OF TAXATION THAT ASSERTS THAT TAXATION MAY BE USED AS AN IMPLEMENT OF POLICE PROMOTION OF GENERAL WELFARE POWER TO PROMOTE GENERAL WELFARE OF THE PEOPLE. 401005 - IS A PURPOSE OF TAXATION THAT ASSERTS THAT TAXES MAY BE IMPOSED FOR A REGULATORY PURPOSE AS, FOR INSTANCE, IN THE REHABILITATION AND STABILIZATION REGULATION OF ACTIVITIES/INDUSTRIES OF A THREATHENED INDUSTRY WHICH IS AFFECTED WITH PUBLIC INTEREST. 401006 - IS A PURPOSE OF TAXATION WHICH ASSERTS THAT A PROGRESSIVE SYSTEM OF TAXATION PREVENTS THE REDUCTION OF SOCIAL INEQUALITY UNDUE CONCENTRATION OF WHEALTH IN THE HANDS OF FEW INDIVIDUALS. 401007 - IS A PURPOSE OF TAXATION WHICH ASSERTS THAT THE GRANT OF INCENTIVES OR EXEMPTIONS ENCOURAGE ENCOURAGE ECONOMIC GROWTH INVESTMENT THEREBY STIMULATING ECONOMIC ACTIVITY. 401008 - IS A PURPOSE OF TAXATION WHICH ASSERTS THAT PROTECTIVE TARIFFS AND CUSTOMS DUTIES ARE IMPOSED AS TAXES IN ORDER TO PROTECT IMPORTANT SECTORS OF PROTECTIONISM THE ECONOMY OR LOCAL INDUSTRIES, AS IN THE CASE OF FOREIGN IMPORTATIONS. 1. INHERENT ATTRIBUTE OF SEVEREIGNTY 401009 - TWO-FOLD NATURE OF THE STATE'S POWER TO TAX 2. LEGISLATIVE IN CHARACTER 401010 - __________ DO NOT GIVE RISE TO THE POWER TO TAX BUT MERELY IMPOSE LIMITATIONS ON WHAT WOULD CONSTITUTIONAL PROVISIONS OTHERWISE BE AN INVINCIBLE POWER. 401011 - A NATURE OF TAXATION WHICH ASSERTS THAT THE POWER OF TAXATION CAN ONLY BE EXERCISED THROUGH LEGISLATIVE IN CHARACTER THE ENACTMENT OF LAW. 1. AMOUNT OR RATE OF TAX 2. SUBJECTS OF TAXATION 3. KIND OF TAX TO BE COLLECTED 401012 - ELEMENTS TO BE DETERMINED IN THE EXERCISE 4. METHOD OF COLLECTION OF THE LEGISLATIVE POWER IN TAXATION (7 ITEMS) 5. APPORTIONMENT OF THE TAX 6. PURPOSES FOR WHICH THE TAXES SHALL BE LEVIED (MUST BE FOR PUBLIC PURPOSE) 7. SITUS OF TAXATION 1. COMPREHENSIVE 2. UNLIMITED 401013 - CHARACTERISTICS OF TAXATION (4 ITEMS) 3. PLENARY 4. SUPREME 401014 - IS THE INHERENT RIGHT OF THE STATE TO CONDEMN OR TO TAKE PRIVATE PROPERTY FOR PUBLIC POWER OF EMINENT DOMAIN USE UPON PAYMENT OF JUST COMPENSATION. 401015 - IS THE POWER OF THE STATE TO PROMOTE PUBLIC WELFARE BY RESTRAINING AND REGULATING THE USE OF POLICE POWER LIBERTY AND PROPERTY WITHOUT COMPENSATION. 401016 - INHERENT POWERS: EXERCISED BY THE TAXATION AND POLICE POWER GOVERNMENT OR ITS POLITICAL SUBDIVISION 401017 - INHERENT POWERS: EXERCISED BY GOVERNMENT EMINENT DOMAIN OR PUBLIC SERVICE COMPANIES AND PUBLIC UTILITIES 401018 - INHERENT POWERS: THE PURPOSE IS TO RAISE REVENUE IN SUPPORT OF THE GOVERNMENT. REGULATION TAXATION IS MERELY INCIDENTAL 401019 - INHERENT POWERS: THE PURPOSE IS PROMOTION POLICE POWER OF GENERAL WELFARE THROUGH REGULATIONS 401020 - INHERENT POWERS: THE PURPOSE IS TO FACILITATE THE TAKING OF PRIVATE PROPERTY FOR PUBLIC EMINENT DOMAIN PURPOSE 401021 - INHERENT POWERS: PRODUCES EFFECTS UPON TAXATION AND POLICE POWER THE COMMUNITY OR CLASS OF INDIVIDUALS 401022 - INHERENT POWERS: PRODUCES EFFECTS ON AN EMINENT DOMAIN INDIVIDUAL AS THE OWNER OF A PARTICULAR PROPERTY 401023 - INHERENT POWERS: THE AMOUNT OF MONETARY IMPOSITION HAS NO CEILING EXCEPT INHERENT TAXATION LIMITATIONS 401024 - INHERENT POWERS: THE AMOUNT OF MONETARY IMPOSITION IS LIMITED TO THE COST OF REGULATION, POLICE POWER ISSUANCE OF LICENSE OR SURVEILLANCE 401025 - INHERENT POWERS: NO MONETARY IMPOSITION, THE OWNER IS PAID THE FAIR MARKET VALUE OF HIS EMINENT DOMAIN PROPERTY 401026 - INHERENT POWERS: THE BENEFIT RECEIVED IS THE PROTECTION OF A SECURED AND ORGANIZED SOCIETY (NO TAXATION AND POLICE POWER DIRECT BENEFIT) 401027 - INHERENT POWERS: THE PERSON RECEIVES THE FAIR MARKET VALUE OF THE TAKEN FROM HIM (DIRECT EMINENT DOMAIN BENEFIT). 401028 - INHERENT POWERS: THE PERSON RECEIVES THE FAIR MARKET VALUE OF THE TAKEN FROM HIM (DIRECT TAXATION BENEFIT). 401029 - INHERENT POWERS: CONTRACTS MAY BE IMPAIRED POLICE POWER AND EMINENT DOMAIN 401030 - INHERENT POWERS: TO BE VALID, THE EXERCISE MUST NOT BE CONTRARY TO INHERENT AND TAXATION CONSTITUTIONAL LIMITATIONS 401031 - INHERENT POWERS: TO BE VALID, THE EXERCISE MUST COMPLY WITH THE TESTS ON "LAWFUL SUBJECTS" POLICE POWER AND "LAWFUL MEANS" 401032 - INHERENT POWERS: TO BE VALID, THE EXERCISE MUST BE FOR PUBLIC PURPOSE AND WITH PAYMENT OF EMINENT DOMAIN JUST COMPENSATION 1. LIFEBLOOD THEORY 401033 - THEORIES UNDERLYING THE POWER OF TAXATION 2. NECESSITY THEORY (4 ITEMS) 3. BENEFITS PROTECTION THEORY 4. JURISDICTION OVER SUBJECTS AND OBJECTS 401034 - IS A THEORY WHICH ASSERTS THAT TAXATION IS A GOVERNMENTAL NECESSITY, FOR INDEED, WITHOUT LIFEBLOOD THEORY TAXATION, A GOVERNMENT CAN NEITHER EXIST NOR ENDURE. 401035 - IS A THEORY WHICH ASSERTS THAT WITHOUT TAXES, THE GOVERNMENT CANNOT FULFILL ITS MANDATE NECESSITY THEORY OF PROMOTING THE GENERAL WELFARE AND WELL-BEING OF THE PEOPLE. 401036 - IS A THEORY WHICH ASSERTS THAT TAXATION INVOLVES THE POWER OF THE STATE TO DEMAND AND RECEIVE TAXES BASED ON THE RECIPROCAL DUTIES OF BENEFITS-PROTECTION THEORY SUPPORT AND PROTECTION BETWEEN THE STATE AND ITS CITIZEN. 401037 - IS A THEORY WHICH ASSERTS THAT IT IS THE COUNTRY, STATE OR SOVEREIGN THAT GIVES PROTECTION (OVER ITS TERRITORY) AND HAS THE RIGHT TO DEMAND JURISDICTION OVER SUBJECTS AND OBJECTS PAYMENT OF TAXES (WITHIN ITS TERRITORY) WITH WHICH TO FINANCE ACTIVITIES SO IT COULD CONTINUE TO GIVE PROTECTION. 1. FISCAL ADEQUACY 401038 - BASIC PRINCIPLES OF A SOUND TAX SYSTEM OR 2. ADMINISTRATIVE FEASIBILITY CANONS OF SOUND TAXATION (3 ITEMS) 3. THEORETICAL JUSTICE 401039 - IS A PRINCIPLE OF A SOUND TAX SYSTEM WHICH ASSERTS THAT REVENUE RAISED MUST BE SUFFICIENT TO FISCAL ADEQUACY MEET GOVERNMENT/PUBLIC EXPENDITURES. 401040 - IS A PRINCIPLE OF A SOUND TAX SYSTEM WHICH ASSERTS THAT THE TAX SYSTEM SHOULD BE CAPABLE OF ADMINISTRATIVE FEASIBILITY BEING EFFECTIVELY ADMINISTERED AND ENFORCED WITH THE LEAST INCONVENIENCE TO THE TAXPAYER. 401041 - IS A PRINCIPLE OF A SOUND TAX SYSTEM WHICH ASSERTS THAT, IN THE EXERCISE OF THE POWER OF THEORETICAL JUSTICE TAXATION, ONE MUST TAKE INTO CONSIDERATION THE TAXPAYER'S ABILITY TO PAY. 401042 - A TAX LAW WILL RETAIN ITS VALIDITY EVEN IF IT IS NOT IN CONSONANCE WITH THE PRINCIPLES OF __________ FISCAL ADEQUACY AND ADMINISTRATIVE FEASIBILITY AND __________ BECAUSE THE CONSTITUTION DOES NOT EXPRESSLY REQUIRE SO. 1. PUBLIC PURPOSE 2. INHERENTLY LEGISLATIVE 401043 - INHERENT LIMITATIONS ON THE EXERCISE OF THE 3. TERRITORIAL POWER OF TAXATION (5 ITEMS) 4. INTERNATIONAL COMITY 5. EXEMPTION OF GOVERNMENT ENTITIES, AGENCIES AND INSTRUMENTALITIES 401044 - A TAX LAW IS CONSIDERED __________ IF IT IS FOR THE WELFARE OF THE NATION AND/OR FOR THE GREATER FOR PUBLIC PURPOSE PORTION OF THE POPULATION AND IT AFFECTS THE AREA AS A COMMUNITY RATHER THAN AS INDIVIDUALS. 401045 - TESTS IN DETERMINING IF A TAX LAW IS FOR PUBLIC 1. DUTY TEST PURPOSE (2 ITEMS) 2. PROMOTION OF GENERAL WELFARE TEST 401046 - IS A TEST WHICH ASSERTS THAT A TAX LAW IS FOR PUBLIC PURPOSE IF THE THING TO BE FURTHERED BY THE APPROPRIATION OF PUBLIC REVENUE IS SOMETHING WHICH DUTY TEST IS THE DUTY OF THE STATE AS A GOVERNMENT TO PROVIDE. 401047 - IS A TEST WHICH ASSERTS THAT A TAX LAW IS FOR PUBLIC PURPOSE IF THE PROCEEDS OF THE TAX WILL PROMOTION OF GENERAL WELFARE TEST DIRECTLY PROMOTE THE WELFARE OF THE COMMUNITY IN EQUAL MEASURE. 401048 - IS AN INHERENT LIMITATION ON THE EXERCISE OF THE POWER OF TAXATION WHICH ASSERTS THAT THE INHERENTLY LEGISLATIVE POWER TO TAX IS EXCLUSIVELY VESTED IN THE LEGISLATIVE BODY AND MAY NOT BE DELEGATED. 1. SELECTION OF THE SUBJECT TO BE TAXED 2. DETERMINATION OF THE PURPOSES OF TAX 401049 - ASPECTS OF THE POWER TO TAX THAT ARE NON- 3. FIXING OF THE RATE/AMOUNT OF TAX DELEGABLE (5 ITEMS) 4. SITUS OF TAX 5. KIND OF TAX 1. THOSE DELEGATED TO LOCAL GOVERNEMENT (CERTAIN TAXES, FEES AND CHARGES) 401050 - ASPECTS OF THE POWER TO TAX THAT MAY BE 2. THOSE DELEGATED TO THE PRESIDENT (FIXING OF TARIFF DELEGATED (3 ITEMS) RATES, TONNAGE AND WHARFAGE DUES, AND OTHER DUTIES) 3. ADMINISTRATIVE IMPLEMENTATION (BIR) 401051 - IS AN INHERENT LIMITATION ON THE EXERCISE OF THE POWER OF TAXATION WHICH ASSERTS THAT THE TAXING POWER OF A COUNTRY IS LIMITED TO PERSONS AND TERRITORIAL PROPERTY WITHIN AND SUBJECT TO ITS JURISDICTION (IN GENERAL) 1. RESIDENT CITIZENS - WHERE TAX LAWS OPERATE OUTSIDE TERRITORIAL JURISDICTION 401052 - EXCEPTIONS TO THE TERRITORIAL INHERENT 2. EXCEMPTIONS BY TREATY OBLIGATIONS OR LIMITATION OF TAXATION INTERNATIONAL COMITY - WHERE TAX LAWS DO NOT OPERATE WITHIN THE TERRITORIAL JURISDICTION OF THE STATE 401053 - IS AN INHERENT LIMITATION ON THE EXERCISE OF THE POWER OF TAXATION WHICH REFERS TO THE RESPECT ACCORDED BY NATIONS TO EACH OTHER BECAUSE THEY INTERNATIONAL COMITY ARE SOVEREIGN EQUALS. THUS, THE PROPERTY OR INCOME OF A FOREIGN STATE MAY NOT BE THE SUBJECT OF TAXATION BY ANOTHER STATE. TAX - INCOME TAX OF INDIVIDUALS, ESTATES & TRUSTS (402001 - 402045) 1. RESIDENT CITIZENS 2. NON-RESIDENT CITIZENS 3. RESIDENT ALIENS 402001 - CLASSIFICATION OF INDIVIDUALS (5 ITEMS) 4. NON-RESIDENT ALIENS ENGAGED IN TRADE OR BUSINESS IN THE PHILS. 5. NON-RESIDENT ALIENS NOT ENGAGED IN TRADE OR BUSINESS IN THE PHILS. CITIZENS ARE: 1. THOSE WHO ARE CITIZENS OF THE PHILIPPINES AT THE TIME OF THE ADOPTION OF THE CONSTITUTION (FEB. 2, 1987) 2. THOSE WHOSE FATHERS OR MOTHERS ARE CITIZENS OF 402002 - QUALIFICATIONS FOR AN INDIVIDUAL TO BE THE PHILIPPINES; CONSIDERED A CITIZEN OF THE PHILIPPINES (4 ITEMS) 3. THOSE BORN BEFORE JAN. 17, 1973 OF FILIPINO MOTHERS WHO ELECT PHILIPPINE CITIZENSHIP UPON REACHING THE AGE OF MAJORITY; 4. THOSE WHO ARE NATURALIZED IN ACCORDANCE WITH LAW. 402003 - IS A CITIZEN OF THE PHILLIPINES RESIDING RESIDENT CITIZEN THEREIN. 1. A CITIZEN OF THE PHILIPPINES WHO ESTABLISHES TO THE SATISFACTION OF THE COMMISSIONER THE FACT OF HIS PHYSICAL PRESENCE ABROAD WITH A DEFINITE INTENTION TO RESIDE THEREIN; 2/ A CITIZEN OF THE PHILIPPINES WHO LEAVES THE PHILIPPINES DURING THE TAXABLE YEAR TO RESIDE ABROAD, EITHER AS AN IMMIGRANT OR FOR EMPLOYMENT ON A PERMANENT BASIS; 3. A CITIZEN OF THE PHILIPPINES WHO WORKS AND DERIVES INCOME FROM ABROAD AND WHOSE EMPLOYMENT THEREAT REQUIRES HIM TO BE PHYSICALLY PRESENT ABROAD MOST OF THE TIME DURING THE TAXABLE YEAR; 402004 - QUALIFICATIONS FOR AN INDIVIDUAL TO BE 4. A CITIZEN WHO HAS BEEN PREVIOUSLY CONSIDERED AS CONSIDERED A NON-RESIDENT CITIZEN (5 ITEMS) NON-RESIDENT CITIZEN AND WHO ARRIVES AT ANY TIME DURING THE TAXABLE YEAR TO RESIDE PERMANENTLY IN THE PHILIPPINES SHALL LIKEWISE BE TREATED AS A NON- RESIDENT CITIZEN FOR THE TAXABLE YEAR IN WHICH HE ARRIVES IN THE PHILIPPINES WITH RESPECT TO HIS INCOME DERIVED FROM SOURCES ABROAD UNTIL THE DATE OF HIS ARRIVAL IN THE PHILIPPINES; 5. THE TAXPAYER SHALL SUBMIT PROOF TO THE COMMISSIONER TO SHOW HIS INTENTION OF LEAVING THE PHILIPPINES TO RESIDE PERMANENTLY ABROAD OR TO RETURN TO AN RESIDE IN THE PHILIPPINES AS THE CASE MAY BE. 402005 - MEANING OF THE PHRASE "MOST OF THE TIME" WITH REGARD TO THE PHYSICAL PRESENCE ABROAD OF 183 DAYS IN AGGREGATE DURING THE TAXABLE YEAR NON-RESIDENT CITIZENS 402006 - ARE INDIVIDUALS WHO ARE NOT FILIPINOS. ALIENS 402007 - IS AN INDIVIDUAL WHOSE RESIDENCE IS WITHIN THE RESIDENT ALIEN PHILIPPINES AND WHO IS NOT A CITIZEN THEREOF. 402008 - IS AN INDIVIDUAL WHO COMES TO THE PHILIPPINES FOR A DEFINITE PURPOSE WHICH IN ITS NATURE WOULD REQUIRE AN EXTENDED STAY AND TO THAT END MAKES HIS RESIDENT ALIEN HOME TEMPORARILY IN THE PHILIPPINES, ALTHOUGH IT MAY BE HIS INTENTION AT ALL TIME TO RETURN TO HIS DOMICILE ABROAD. 402009 - IS AN INDIVIDUAL WHOSE RESIDENCE IS NOT WITHIN THE PHILIPPINES AND WHO IS NOT A CITIZEN NON-RESIDENT ALIEN THEREON. 402010 - IS AN INDIVIDUAL WHO COMES TO THE PHILIPPINES FOR A DEFINITE PURPOSE WHICH IN ITS NATURE MAY BE NON-RESIDENT ALIEN PROMPTLY ACCOMPLISHED. 402011 - IS A NON-RESIDENT ALIEN INDIVIDUAL WHO COMES TO THE PHILIPPINES AND STAYS THEREIN FOR AN NON-RESIDENT ALIEN ENGAGED IN TRADE OR BUSINESS IN AGGREGATE PERIOD OF MORE THAN 180 DAYS DURING ANY THE PHILIPPINES CALENDAR YEAR. 402012 - MEANS THE PERTINENT ITEMS OF GROSS INCOME SPECIFIED IN THE TAX CODE, LESS DEDUCTIONS IF ANY, TAXABLE INCOME AUTHORIZED FOR SUCH TYPES OF INCOME BY THE TAX CODE OR OTHER SPECIAL LAWS. TAXABLE INCOME WITHIN AND WITHOUT (OUTSIDE) THE 402013 - INCOME TAX BASE OF RESIDENT CITIZENS PHILIPPINES 402014 - INCOME TAX BASE OF NON-RESIDENT CITIZENS TAXABLE INCOME WITHIN THE PHILIPPINES 402015 - INCOME TAX BASE OF RESIDENT ALIENS TAXABLE INCOME WITHIN THE PHILIPPINES 402016 - INCOME TAX BASE OF NON-RESIDENT ALIENS TAXABLE INCOME WITHIN THE PHILIPPINES ENGAGED IN TRADE OR BUSINESS WITHIN THE PHILIPPINES 402017 - INCOME TAX BASE OF NON-RESIDENT ALIENS NOT TAXABLE INCOME WITHIN THE PHILIPPINES ENGAGED IN TRADE OR BUSINESS IN THE PHILIPPINES HUSBAND OR WIFE TAXABLE INCOME DIRECTLY 402018 - COMPUTATION OF THE TAXABLE INCOME OF ATTRIBUTABLE TO HIM OR HER + (INCOME OF MARRIED MARRIED INDIVIDUALS INDIVIDUALS NOT DEFINITELY ATTRIBUTABLE TO ANY OF THE SPOUSES / 2) = HUSBAND OR WIFE TAXABLE INCOME 402019 - REFERS TO A WORKER IN THE PRIVATE SECTOR PAID THE STATUTORY MINIMUM WAGE OR TO AN EMPLOYEE IN THE PUBLIC SECTOR WITH COMPENSATION INCOME OF MINIMUM WAGE EARNER (MWE) NOT MORE THAN THE STATUTORY MINIMUM WAGE IN THE NON-AGRICULTURAL SECTOR WHERE HE/OR SHE IS ASSIGNED. 402020 - PART OF TAXABLE INCOME OR EXEMPT: INCOME OF EXEMPT MINIMUM WAGE EARNERS 402021 - PART OF TAXABLE INCOME OR EXEMPT: HOLIDAY PAY, OVERTIME PAY, NIGHT SHIFT DIFFERENTIAL PAY AND EXEMPT HAZARD PAY RECEIVED BY MINIMUM WAGE EARNERS 402022 - TAX RATE APPLICABLE TO INDIVIDUALS EARNING GRADUATED INCOME TAX RATES PURELY COMPENSATION INCOME (EXCLUDING NRA-NETB) AT THE OPTION OF THE TAXPAYER IF HE MEETS SPECIFIC CRITERION STATED BELOW: 1. GRADUATED INCOME TAX RATES (DEFAULT IF TAXPAYER DID NOT ELECT HIS CHOICE) 402023 - TAX RATE APPLICABLE TO SELF-EMPLOYED 2. IF TOTAL GROSS SALES/RECEIPTS AND OTHER NON- INDIVIDUALS AND/OR PROFESSIONALS (EXCLUDING NRA- OPERATING INCOME DO NOT EXCEED THE VAT THRESHOLD, NETB) (2 ITEMS) 8% TAX ON GROSS SALES OR GROSS RECEIPTS AND OTHER NON-OPERATING INCOME IN EXCESS OF P250,000 IN LIEU OF GRADUATED INCOME TAX RATES AND OTHER PERCENTAGE TAXES 402024 - TAX RATE APPLICABLE TO MIXED INCOME EARNERS WITH RESPECT TO ALL INCOME FROM COMPENSATION GRADUATED INCOME TAX RATES (EXCLUDING NRA-NETB) AT THE OPTION OF THE TAXPAYER IF HE MEETS SPECIFIC CRITERION STATED BELOW: 1. GRADUATED INCOME TAX RATES (DEFAULT IF TAXPAYER DID NOT ELECT HIS CHOICE) 2. IF TOTAL GROSS SALES/RECEIPTS AND OTHER NON- OPERATING INCOME DO NOT EXCEED THE VAT THRESHOLD, 402025 - TAX RATE APPLICABLE TO MIXED INCOME EARNERS 8% TAX ON GROSS SALES OR GROSS RECEIPTS AND OTHER WITH RESPECT TO ALL INCOME FROM BUSINESS OR NON-OPERATING INCOME IN LIEU OF GRADUATED INCOME PRACTICE OF PROFESSION (EXCLUDING NRA-NETB) TAX RATES AND OTHER PERCENTAGE TAXES (PLEASE BE NOTED THAT THE 250,000 EXEMPTED PORTION HAS ALREADY BEEN CONSIDERED TO THE COMPENSATION INCOME OF THE TAXPAYER WHEN THE GRADUATED INCOME TAX RATES WERE USED. THEREFORE, THE 250,000 EXEMPTED PORTION IS NO LONGER APPLICABLE FOR THE INCOME FROM BUSINESS OR PRACTICE OF PROFESSION.) 1. VAT-REGISTERED TAXPAYERS REGARDLESS OF GROSS SALES/RECEIPTS; 2. TAXPAYERS WHO ARE SUBJECT TO OTHER PERCENTAGE TAXES UNDER TITLE V OF THE TAX CODE, AS AMENDED, 402026 - INDIVIDUALS WHO MAY NOT AVAIL OF THE 8% EXCEPT THOSE SUBJECT UNDER SECTION 116 OF THE SAME INCOME TAX RATE OPTION (3 ITEMS) TITLE; 3. PARTNERS OF A GENERAL PROFESSIONAL PARTNERSHIP (GPP) BY VIRTUE OF THEIR DISTRIBUTIVE SHARE FROM GPP WHICH IS ALREADY NET OF COST AND EXPENSES. 402027 - COMPUTATION OF INCOME TAX DUE OF NON- GROSS INCOME DERIVED FROM ALL SOURCES WITHIN THE RESIDENT ALIENS NOT ENGAGED IN TRADE OR BUSINESS IN PHILIPPINES * 25% = INCOME TAX DUE OF NRA-NETB THE PHILIPPINES 1. ITEMIZED DEDUCTIONS (DEFAULT UNLESS THE TAXPAYER 402028 - ALLOWABLE DEDUCTION SCHEMES FOR INCOME SIGNIFIES HIS INTENTION TO ELECT OSD) TAX PURPOSES (2 ITEMS) 2. OPTIONAL STANDARD DEDUCTION (OSD) 402029 - IN __________, ALL EXPENSES ARE TRACKED TO GET THE NET EXPENSE WHICH WILL THEN BE DEDUCTED TO ITEMIZED DEDUCTIONS A TAXPAYER'S GROSS INCOME TO GET HIS/HER TAXABLE INCOME. 402030 - IN LIEU OF ITEMIZED DEDUCTIONS, ALL INDIVIDUALS, SUBJECT TO TAX UNDER SECTION 24, OTHER THAN NRA, MAY ELECT THE __________, IN AN AMOUNT NOT OPTIONAL STANDARD DEDUCTION (OSD) EXCEEDING 40% OF HIS/HER GROSS SALES/RECEIPTS, AS THE CASE MAY BE. 402031 - AN INDIVIDUAL WHO IS ENTITLED TO AND CLAIMED FOR THE OSD SHALL NOT BE REQUIRED TO SUBMIT WITH HIS TAX RETURN SUCH __________ OTHERWISE REQUIRED FINANCIAL STATEMENTS; GROSS SALES/RECEIPTS UNDER THE TAX CODE. THE SAID INDIVIDUAL SHALL ONLY KEEP SUCH RECORDS PERTAINING TO HIS __________. 402032 - REFERS TO THE MASS OF ALL PROPERTY, RIGHTS AND OBLIGATIONS OF A PERSON WHICH ARE NOT ESTATE EXTINGUISHED BY HIS DEATH. 402033 - IS A RIGHT ON PROPERTY, REAL OR PERSONAL, TRUST HELD BY ONE PARTY FOR THE BENEFIT OF ANOTHER. 1. IF UNDER THE TERMS OF THE TRUST, THE TITLE TO ANY PART OF THE CORPUS/PRINCIPAL OF THE TRUST MAY BE REVESTED TO THE GRANTOR (REVOCABLE), THE INCOME OF THE PART OF THE CORPUS/PRINCIPAL SHALL BE TAXABLE 402034 - CASES WHEN THE INCOME OF THE TRUST IS TO THE GRANTOR. TAXABLE TO THE GRANTOR (2 ITEMS) 2. IF UNDER THE TERMS OF THE TRUST, THE INCOME OF THE TRUS SHALL BE APPLIED FOR THE BENEFIT OF THE GRANTOR, THE INCOME THAT SHALL BE APPLIED FOR THE BENEFIT OF THE GRANTOR SHALL BE TAXABLE TO THE GRANTOR. 1. IT IS A SPECIAL ITEM OF DEDUCTION FOR THE 402035 - TREATMENT OF INCOME DISTRIBUTION OF THE ESTATE/TRUST; YEAR'S INCOME TO HEIR (IN ESTATES) OR BENEFICIARY (IN 2. IT IS ALSO A SPECIAL ITEM OF INCOME TO THE TRUSTS) HEIR/BENEFICIARY. GROSS INCOME - DEDUCTIONS "BUSINESS EXPENSES & 402036 - COMPUTATION OF THE TAXABLE INCOME OF THE DISTRIBUTION OF THE YEAR'S INCOME TO THE HEIR OR ESTATE OR TRUST BENEFICIARY" = TAXABLE INCOME 402037 - IS THE FORM IN WHICH A TAXPAYER FILES INFORMATION ABOUT HIS/HER INCOME AND TAX THEREON INCOME TAX RETURN (ITR) TO THE BUREAU OF INTERNAL REVENUE (BIR). A SEPARATE RETURN WILL HAVE TO BE FILED FOR EACH 402038 - ITR FILING REQUIREMENT FOR SEVERAL TRUSTS TRUST BY THE RESPECTIVE TRUSTEE OR FIDUCIARY WHICH WITH A COMMON GRANTOR AND COMMON BENEFICIARY WILL THEN BE CONSOLIDATED IN THE BIR. 402039 - COMPUTATION OF THE APPORTIONMENT OF APPORTIONED INCOME TAX TO THE TRUST = (TAXABLE CONSOLIDATED INCOME TAX TO DIFFERENT TRUSTS WHEN INCOME OF THE TRUST / TAXABLE INCOME OF ALL TRUSTS) / THERE ARE SEVERAL TRUSTS WITH A COMMON GRANTOR CONSOLIDATED INCOME TAX AND A COMMON BENEFICIARY 402040 - COMPUTATION OF THE INCOME TAX STILL DUE OF A INCOME TAX APPORTIONED TO THE TRUST - INCOME TAX TRUST WHEN THERE ARE SEVERAL TRUSTS WITH A ALREADY PAID BY THE FIDUCIARY OF THE TRUST = INCOME COMMON GRANTOR AND A COMMON BENEFICIARY TAX STILL DUE 402041 - INDIVIDUALS REQUIRED TO FILE ITR ALL INDIVIDUALS EXCEP NRA-NETB HE/SHE IS RECEIVING PURELY COMPENSATION INCOME, REGARDLESS OF AMOUNT, FROM ONLY ONE EMPLOYER IN 402042 - INDIVIDUAL TAXPAYERS SHALL NOT BE REQUIRED THE PHILIPPINES FOR THE CALENDAR YEAR, THE INCOME TO FILE AN ANNUAL ITR IF TAX OF WHICH HAS BEEN WITHHELD CORRECTLY BY THE SAID EMPLOYER (TAX DUE EQUALS TAX WITHHELD). EXCEPT IN CASES WHERE THE COMMISSIONER OTHERWISE PERMITS, THE RETURN SHALL BE FILED WITH: 1. AN AUTHORIZED AGENT BANK, 2. REVENUE DISTRICT OFFICER, 3. COLLECTION AGENT OR DULY AUTHORIZED TREASURER 402043 - OFFICES WHERE ITR IS FILED (4 ITEMS) OF THE CITY OR MUNICIPALITY IN WHICH SUCH PERSON HAS A LEGAL RESIDENCE OR PRINCIPAL PLACE OF BUSINESS IN THE PHILIPPINES, OR 4. IF THERE BE NO LEGAL RESIDENCE OR PLACE OF BUSINESS IN THE PHILIPPINES, WITH THE OFFICE OF THE COMMISSIONER. 1. FIRST QUARTER - MAY 15 OF THE CURRENT YEAR 2. SECOND QUARTER - AUGUST 15 OF THE CURRENT YEAR 402044 - DATE OF FILING OF ITR (4 ITEMS) 3. THIRD QUARTER - NOVEMBER 15 OF THE CURRENT YEAR 4. FINAL ADJUSTED RETURN - APRIL 15 OF THE SUCCEEDING YEAR 402045 - TIME WHEN INCOME TAX IS PAID THE INCOME TAX IS PAID AS THE RETURN IS FILED RFBT - OBLIGATIONS (501001 - STILL UNFINISHED) 501001 - IS A JURIDICAL NECESSITY TO GIVE, TO DO OR NOT OBLIGATION TO DO. 501002 - MEANS THAT THE COURT MAY BE ASKED TO ORDER THE PERFORMANCE OF AN OBLIGATION IF THE DEBTOR JURIDICAL NECESSITY REFUSES TO PERFORM IT. 1. CREDITOR / OBLIGEE / ACTIVE SUBJECT 2. DEBTOR / OBLIGOR / PASSIVE SUBJECT 501003 - REQUISITES OF AN OBLIGATION (4 ITEMS) 3. PRESTATION / OBJECT 4. EFFICIENT CAUSE / VINCULUM JURIS / LEGAL OR JURIDICAL TIE 501004 - IS THE PARTY WHO HAS THE RIGHT TO DEMAND CREDITOR, OBLIGEE OR ACTIVE SUBJECT PERFORMANCE OF THE OBLIGATION. 501005 - IS THE PARTY WHO IS OBLIGED TO PERFORM THE DEBTOR, OBLIGOR OR PASSIVE SUBJECT OBLIGATION. 501006 - IS THE SUBJECT MATTER OF THE OBLIGATION. PRESTATION OR OBJECT PRESTATION TO GIVE (REAL OBLIGATION), TO DO 501007 - POSSIBLE PRESTATIONS OF AN OBLIGATION (3 (PERSONAL OBLIGATION) OR NOT TO DO (PERSONAL ITEMS) OBLIGATION) 501008 - IS THE LEGAL FACTOR WHICH BIND THE PARTIES TO EFFICIENT CAUSE / VINCULUM JURIS / LEGAL OR JURIDICAL AN OBLIGATION. IT ALSO REFERS TO ANY OF THE FIVE TIE SOURCES OF OBLIGATION. 501009 - IS BASED ON POSITIVE LAW; HENCE IT IS CIVIL OBLIGATION ENFORCEABLE BY COURT ACTION. 501010 - IS BASED ON NATURAL LAW; HENCE IT IS NOT NATURAL OBLIGATION ENFORCEABLE BY COURT ACTION. 501011 - RULE IF THE DEBTOR VOLUNTARILY PERFORMS A THE DEBTOR CAN NO LONGER RECOVER WHAT HE HAS NATURAL OBLIGATION GIVEN. 1. LAW 2. CONTRACTS 501012 - SOURCES OF OBLIGATION (5 ITEMS) 3. QUASI-CONTRACTS 4. DELICTS 5. QUASI DELICTS 501013 - A RULE OF CONDUCT, JUST AND OBLIGATORY, LAID DOWN BY LEGITIMATE AUTHORITY FOR COMMON LAW OBSERVANCE AND BENEFIT. PARA MASABING MAY OBLIGATION GALING SA LAW, DAPAT 501014 - EXPLAIN: OBLIGATIONS ARISING FROM LAW ARE NAKASAAD ITO SA ISANG SPECIFIC PROVISION NG BATAS. NOT PRESUMED HINDI PWEDENG MAG-PE-PRESUME KA LANG NA MAY GANON SA BATAS. 501015 - IS A MEETING OF MINDS BETWEEN TWO PERSONS WHEREBY ONE BINDS HIMSELF, WITH RESPECT TO THE CONTRACTS OTHER, TO GIVE SOMETHING OR TO RENDER SOME SERVICE. DAPAT SUNDIN NG PARTIES KUNG ANO MAN ANG NAKASAAD SA CONTRACT (PARANG BATAS), PERO HINDI IBIG SABIHIN 501016 - EXPLAIN: OBLIGATIONS ARISING FROM CONTRACTS NA ABOVE THE LAW ANG CONTRACTS. KUNG MAY CONFLICT HAVE THE FORCE OF LAW BETWEEN THE CONTRACTING BETWEEN THE CONTRACT AND LAW, THE LAW SHALL PARTIES AND SHOULD BE COMPLIED WITH IN GOOD FAITH. PREVAIL. KAILANGAN DIN NG PARTIES MAG EXERCISE NG INTEGRITY SA PAG-COMPLY SA OBLIGATION (GOOD FAITH). 501017 - REFER TO CERTAIN LAWFUL, VOLUNTARY AND UNILATERAL ACTS GIVING RISE TO A JURIDICAL RELATION QUASI-CONTRACTS TO THE END THAT NO ONE SHALL BE UNJUSTLY ENRICHED AT THE EXPENSE OF ANOTHER. 1. NEGOTIORUM GESTIO 601018 - KINDS OF QUASI CONTRACTS (3 ITEMS) 2. SOLUTIO INDEBITI 3. OTHER QUASI-CONTRACTS 601019 - REFERS TO THE VOLUNTARY ADMINISTRATION OF THE PROPERTY, BUSINESS OR AFFAIRS OF ANOTHER NEGOTIORUM GESTIO WITHOUT HIS CONSENT OR AUTHORITY. 601020 - IS THE OFFICIOUS MANAGER OF ANOTHER'S GESTOR AFFAIRS IN NEGOTIORUM GESTIO GENERALLY IT SHALL BE SOLIDARY UNLESS THE 601021 - THE NATURE OF RESPONSIBILITY OF TWO OR MORE MANAGEMENT WAS ASSUMED TO SAVE THE THING OR OFFICIOUS MANAGERS IN NEGOTIORUM GESTIO BUSINESS FROM IMMINENT DANGER WHICH WILL MAKE THEIR LIABILITY JOINT ONLY. 1. IF HE UNDERTAKES RISKY OPERATIONS WHICH THE OWNER WAS NOT ACCUSTOMED TO EMBARK UPON; 601022 - INSTANCES WHERE THE OFFICIOUS MANAGER 2. IF HE PREFERRED HIS OWN INTEREST TO THAT OF THE SHALL BE HELD LIABLE FOR ANY FOURTUITOUS EVENT (4 OWNER; ITEMS) 3. IF HE FAILS TO RETURN THE PROPERTY OR BUSINESS AFTER DEMAND BY THE OWNER; AND 4. IF HE ASSUMED THE MANAGEMENT IN BAD FAITH 1. WHEN THE PROPERTY OR BUSINESS IS NOT NEGLECTED 601023 - INSTANCES WHERE NEGOTIORUM GESTIO WILL NOT OR ABANDONED; AND ARISE (2 ITEMS) 2. IF IN FACT THE MANAGER HAS BEEN TACITLY AUTHORIZED BY THE OWNER. 601024 - REFERS TO PAYMENT BY MISTAKE OF AN SOLUTIO INDEBITI OBLIGATION WHICH WAS NOT DUE WHEN PAID. 601025 - NATURE OF RESPONSIBILITY OR LIABILITY OF TWO OR MORE PAYEES WHEN THER HAS BEEN PAYMENT OF SOLIDARY WHAT IS NOT DUE 601026 - A PERSON WHO ACCEPTS AN UNDUE PAYMENT OF HE RECEIVES THE UNDUE PAYMENT IN BAD FAITH A SUM OF MONEY WILL BE LIABLE FOR INTEREST WHEN... 601027 - A PERSON IN GOOD FAITH ACCEPTING AN UNDUE PAYMENT OF A THING CERTAIN OR DETERMINATE WILL BE IN SO FAR AS HE HAS THEREBY BEEN BENEFITED. RESPONSIBLE FOR THE LOSS OF THE SAME OR ITS ACCESSORIES AND ACCESSIONS… 601028 - IS A SOURCE OF OBLIGATION THAT REFERS TO ANY DELICT, CRIME OR FELONY ACT OR OMISSION PUNISHABLE BY LAW. 1. RESTITUTION 601029 - AS A GENERAL RULE: SCOPE OF CIVIL LIABILITY OF 2. REPARATION AN OFFENDER UPON COMMISSION OF A CRIME (3 ITEMS) 3. INDEMNIFICATION 1. AN IMBECILE OR INSANE PERSON 2. A PERSON UNDER 18 OF AGE 601030 - PERSONS WHO WILL NOT BE IMPRISONED BUT WILL 3. ANY PERSON WHO ACTS UNDER THE COMPULSION OF AN BE LIABLE FOR CIVIL DAMAGES FOR THEIR ACTS (4 ITEMS) IRRESISTIBLE FORCE 4. ANY PERSON WHO ACTS UNDER THE IMPULSE OF AN UNCONTROLLABLE FEAR OF AN EQUAL OR GREATER INJURY ANY PERSON WHO ACTS UNDER SELF-DEFENSE OR IN THE 601031 - PERSON WHO WILL NOT BE LIABLE EITHER PERFORMANCE OF HIS OFFICIAL DUTY SUFFERING FROM CRIMINALLY OR CIVILLY FOR HIS ACTS BATTERED WOMAN SYNDROME WHO KILLED OR INJURED HIS BATTERER. 601032 - DEGREE OF EVIDENCE THAT MUST BE PROVED BY THE PROSECUTION FOR THE ACCUSED TO BE CRIMINALLY PROOF BEYOND REASONABLE DOUBT LIABLE 601033 - DEGREE OF EVIDENCE THAT MUST BE PROVED BY THE PLAINTIFF IN ORDER TO RECOVER CIVIL DAMAGES PREPONDERANCE OF EVIDENCE BASED ON CONTRACT OR QUASI-DELICT 601034 - ARE ACTS OR OMISSIONS THAT CAUSE DAMAGE TO ANOTHER, THERE BEING FAULT OR NEGLIGENCE BUT QUASI-DELICTS, TORTS OR CULPA AQUILIANA WITHOUT ANY PRE-EXISTING CONTRACTUAL RELATION BETWEEN THE PARTIES. 601035 - THE RIGHT VIOLATED BY A __________ IS A PUBLIC RIGHT, WHILE THE RIGHT VIOLATED BY A __________ IS A CRIME; QUASI-DELICT PRIVATE RIGHT 601036 - EVERY ___________ GIVE RISE TO LIABILITY FOR DAMAGES TO THE INJURED PARTY BUT THERE ARE QUASI-DELICT; CRIMES __________ FROM WHICH NO CIVIL LIABILITY ARISES. 601037 - LIABILITY FROM __________ CAN NEVER BE COMPROMISED EXCEPT IN __________ BUT LIABILITY FROM CRIMES; CRIMINAL NEGLIGENCE; QUASI-DELICT __________ CAN BE COMPROMISED. 601038 - IN ORDER TO PROVE CRIME, __________ IS PROOF BEYOND REASONABLE DOUBT; ONLY REQUIRED BUT IN ORDER TO PROVE NEGLIGENCE IN QUASI- PREPONDERANCE OF EVIDENCE DELICT, __________ IS NEEDED. 601039 - IN CASE OF TORT, THE PLAINTIFF OR INJURED WHEN THE PLAINTIFF'S OWN NEGLIGENCE WAS THE PARTY WILL BE BARRED OR PRECLUDED FROM IMMEDIATE AND PROXIMATE CAUSE OF HIS INJURY. RECOVERING DAMAGES… 601040 - THE __________ AND, IN CASE OF HIS DEATH OR INCAPACITY, THE MOTHER, ARE RESPONSIBLE FOR THE FATHER DAMAGES CAUSED BY MINOR CHILDREN WHO LIVE IN THEIR COMPANY. 601041 - __________ ARE LIABLE FOR DAMAGES CAUSED BY THE MINORS OR INCAPACITATED PERSONS WHO ARE GUARDIANS UNDER THEIR AUTHORITY AND LIVE IN THEIR COMPANY. 601042 - THE __________ OF AN ESTABLISHMENT OR ENTERPRISE ARE LIKEWISE RESPONSIBLE FOR DAMAGES CAUSED BY THEIR EMPLOYEES IN THE SERVICE OF THE OWNERS AND MANAGERS BRANCHES IN WHICH THE LATTER ARE EMPLOYED OR ON THE OCCASION OF THEIR FUNCTIONS. 601043 - __________ SHALL BE LIABLE FOR THE DAMAGES CAUSED BY THEIR EMPLOYEES AND HOUSEHOLD HELPERS ACTING WITHIN THE SCOPE OF THEIR ASSIGNED TASKS, EMPLOYERS EVEN THOUGH THE FORMER ARE NOT ENGAGED IN ANY BUSINESS OR INDUSTRY. 601044 - __________ OR HEADS OF ESTABLISHMENTS OF ARTS AND TRADES SHALL BE LIABLE FOR DAMAGES CAUSED TEACHERS BY THEIR PUPILS AND STUDENTS OR APPRENTICES WHO ARE WITHIN THEIR CUSTODY. 601045 - NATURE OF LIABILITY OF TWO OR MORE PERSONS SOLIDARY WHO ARE LIABLE FOR QUASI-DELICT OR TORT 601046 - A THING IS __________ WHEN IT IS PARTICULARLY DESIGNATED OR PHYSICALLY SEGREGATED FROM ALL DETERMINATE OTHERS OF THE SAME CLASS. 601047 - A THING IS __________ WHEN IT ONLY INDICATED BY ITS KIND, WITHOUT BEING DESIGNATED OR DISTINGUISHED FROM OTHERS OF THE SAME KIND. 1. TO EXERCISE THE PROPER DEGREE OF DILIGENCE 2. TO DELIVER THE THING 601048 - OBLIGATIONS OF ONE OBLIGED TO GIVE A 3. TO DELIVER THE FRUITS OF THE THING DETERMINATE THING (4 ITEMS) 4. TO DELIVER THE ACCESSIONS AND ACCESSORIES OF THE THING IN ORDER OF PRIORITY 601049 - RULE ON THE DEGREE OF DILIGENCE TO BE 1. WHAT IS MANDATED BY LAW APPLIED IN THE PERFORMANCE OF AN OBLIGATION 2. WHAT IS STIPULATED BY THE PARTIES 3. DILIGENCE OF A GOOD FATHER OF A FAMILY 1. NATURAL FRUITS 601050 - KINDS OF FRUITS (3 ITEMS) 2. INDUSTRIAL FRUITS 3. CIVIL FRUITS 601051 - ARE THE SPONTANEOUS PRODUCTS OF THE SOIL NATURAL FRUITS AND THE YOUNG AND OTHER PRODUCTS OF ANIMALS. 601052 - REFER TO THOSE PRODUCED BY LAND OF ANY KIND INDUSTRIAL FRUITS THROUGH CULTIVATION OR LABOR. 601053 - REFER TO FRUITS WHICH ARE THE RESULT OF A JURIDICAL RELATION SUCH AS THE RENT OF A BUILDING, CIVIL FRUITS PRICE OF LEASE OF LAND AND OTHER PROPERTY AND THE AMOUNT OF PERPETUAL OR LIFE ANNUITIES. AT THE TIME THE OBLIGATION TO DELIVER THE PRINCIPAL 601054 - THE POINT AT WHICH THE CREDITOR GAINS THE THING ARISES (PERSONAL RIGHT UNTIL DELIVERY OF THE RIGHT TO THE FRUITS OF A DETERMINATE THING SAME WHICH GIVES RISE TO REAL RIGHT) 1. PURE OBLIGATION - PERFECTION 601055 - WHEN OBLIGATION TO DELIVER THE THING ARISES 2. UPON THE FULFILLMENT OF SUSPENSIVE PERIOD OR CONDITION IF ANY 601056 - IS THE POWER BELONGING TO A PERSON OVER A SPECIFIC THING, WITHOUT A PASSIVE SUBJECT REAL RIGHT INDIVIDUALLY DETERMINED, AGAINST WHOM SUCH RIGHT MAY BE PERSONALLY EXERCISED. 601057 - IS THE POWER BELONGING TO ONE PERSON TO DEMAND OF ANOTHER, AS A DEFINITE PASSIVE SUBJECT, PERSONAL RIGHT THE FULFILLMENT OF A PRESTATION TO GIVE, TO DO OR NOT TO DO. 601058 - INCLUDE EVERYTHING THAT IS PRODUCED BY A THING OR IS INCORPORATED OR ATTACHED THERETO, ACCESSIONS EITHER NATURALLY OR PHYSICALLY. 601059 - ARE THOSE JOINED TO OR INCLUDED WITH THE PRINCIPAL THING FOR THE LATTER'S BETTER USE, ACCESSORIES PERFECTION OR ENJOYMENT. 601060 - RULE ON THE INCLUSION OF ACCESSIONS AND THEY ARE INCLUDED UNLESS THE PARTIES STIPULATED ACCESSORIES IN THE OBLIGATION OTHERWISE. 601061 - REMEDIES OF THE CREDITOR IF THE DEBTOR FAILS 1. SPECIFIC PERFORMANCE TO PERFORM HIS OBLIGATION TO DELIVER A DETERMINATE 2. DAMAGES THING (2 ITEMS) 601062 - REMEDIES OF THE CREDITOR IF THE DEBTOR FAILS 1. TO ASK THAT THE OBLIGATION BE COMPLIED WITH AT THE TO PERFORM HIS OBLIGATION TO DELIVER A GENERIC EXPENSE OF THE DEBTOR; AND THING (2 ITEMS) 2. DAMAGES 601063 - REMEDIES OF THE CREDITOR IF THE DEBTOR FAILS 1. TO HAVE THE OBLIGATION EXECUTED AT THE EXPENSE TO PERFORM HIS OBLIGATION IN OBLIGATIONS TO DO OR OF THE DEBTOR; AND PERFORMS IT BUT CONTRAVENES TO THE TENOR THEREOF 2. DAMAGES (2 ITEMS) 1. TO HAVE THE PERFORMANCE BE UNDONE AT THE 601064 - REMEDIES OF THE CREDITOR IF THE DEBTOR DEBTOR'S EXPENSE; AND PERFORMS THE OBLIGATION BUT DOES IT POORLY (2 ITEMS) 2. DAMAGES 601065 - REFERS TO BEING FORCED THROUGH COERCION INVOLUNTARY SERVITUDE TO WORK FOR ANOTHER. 601066 - REMEDY OF THE OFFENDED PARTY IN CASE A PUBLIC OFFICIAL WHO HAS MINISTERIAL DUTY TO PERFORM SPECIAL CIVIL ACTION FOR MANDAMUS A PARTICULAR OBLIGATION OR PUBLIC DUTY UNDER THE LAW FAILS TO DO SUCH OBLIGATION. 1. TO DEMAND THAT WHAT HAS BEEN DONE BE UNDONE; 601067 - REMEDIES OF THE CREDITOR IF THE DEBTOR DOES AND WHAT HAS BEEN FORBIDDEN HIM (2 ITEMS) 2. DAMAGES 1. FRAUD 601068 - GROUNDS FOR LIABILITY TO PAY DAMAGES (4 2. NEGLIGENCE ITEMS) 3. DELAY 4. CONTRAVENTION OF THE TENOR O THE OBLIGATION 601069 - REFER TO HARM DONE AND THE SUM OF MONEY THAT MAY BE RECOVERED IN REPARATION FOR THE HARM DAMAGES DONE. 1. MORAL 2. EXEMPLARY 3. NOMINAL 601070 - KINDS OF DAMAGES (6 ITEMS) 4. TEMPERATE 5. ACTUAL 6. LIQUIDATED 601071 - REFER TO THE PECUNIARY LOSS (SUCH AS LOSS IN ACTUAL DAMAGES OR COMPENSATORY DAMAGES BUSINESS OR PROFESSION) THAT MAY BE RECOVERED. 601072 - INCLUDE PHYSICAL SUFFERING, MENTAL ANGUISH, FRIGHT, SERIOUS ANXIETY, BESMIRCHED REPUTATION, MORAL DAMAGES WOUNDED FEELINGS, MORAL SHOCK, SOCIAL HUMILIATION AND SIMILAR INJURY. 601073 - REFER TO DAMAGES TO EXERCISE A RIGHT. NOMINAL DAMAGES 601074 - MAY BE RECOVERED IF THE COURT FINDS THAT SOME PECUNIARY LOSS HAS BEEN SUFFERED BUT ITS TEMPERATE OR MODERATE DAMAGES AMOUNT CANNOT, FROM THE NATURE OF THE CASE, BE PROVED WITH CERTAINTY. 601075 - ARE THOSE AGREED UPON BY THE PARTIES TO A LIQUIDATED DAMAGES CONTRACT, TO BE PAID IN CASE OF BREACH. 601076 - ARE IMPOSED BY WAY OF EXAMPLE OR CORRECTION FOR PUBLIC GOOD, IN ADDITION TO OTHER EXEMPLARY OR CORRECTIVE DAMAGES KINDS OF DAMAGES. 601077 - IS THE DELIBERATE OR INTENTIONAL EVASION BY THE DEBTOR OF THE NORMAL COMPLIANCE OF HIS FRAUD OR DOLO OBLIGATION. 1. CAUSAL FRAUD OR DOLO CAUSANTE 601078 - KINDS OF FRAUD ACCORDING TO MEANING (3 2. INCIDENTAL FRAUD OR DOLO INCIDENTE ITEMS) 3. FRAUD IN THE PERFORMANCE OF THE OBLIGATION 601079 - REFERS TO FRAUD WITHOUT WHICH CONSENT CAUSAL FRAUD OR DOLO CAUSANTE WOULD NOT HAVE BEEN GIVEN. 601080 - REFERS TO FRAUD WITHOUT WHICH CONSENT WOULD HAVE STILL BEEN GIVEN BUT THE PERSON GIVING IT INCIDENTAL FRAUD WOULD HAVE AGREED ON DIFFERENT TERMS. 601081 - EFFECT OF CAUSAL FRAUD TO THE CONTRACT CAUSAL FRAUD RENDERS THE CONTRACT VOIDABLE. GIVING RISE TO AN OBLIGATION 601082 - EFFECT OF INCIDENTAL FRAUD TO THE CONTRACT THE CONTRACT IS VALID BUT THE PARTY EMPLOYING IT GIVING RISE TO AN OBLIGATION SHALL BE LIABLE FOR DAMAGES. 601083 - KINDS OF FRAUD ACCORDING TO TIME OF 1. FUTURE FRAUD COMMISSION (2 ITEMS) 2. PAST FRAUD 601084 - A WAIVER OF AN ACTION FOR THIS KIND OF FRAUD CANNOT BE MADE. ANY AGREEMENT FOR ITS WAIVER IS FUTURE FRAUD VOID. 601085 - A WAIVER OF AN ACTION FOR THIS KIND OF FRAUD PAST FRAUD (PAGPAPATAWAD ON THE PART OF THE MAY BE MADE, SINCE THE COMMISSION OF FRAUD CAN NO CREDITOR) LONGER BE ENCOURAGED. 601086 - IS THE OMISSION OF THAT DILIGENCE WHICH IS REQUIRED BY THE NATURE OF THE OBLIGATION AND NEGLIGENCE OR CULPA CORRESPONDS WITH THE ENCUMBRANCES OF THE PERSON, OF THE TIME AND OF THE PLACE. 1. CULPA CONTRACTUAL OR CONTRACTUAL NEGLIGENCE 2. CULPA AQUILIANA OR CIVIL NEGLIGENCE (ALSO TORT OR 601087 - KINDS OF NEGLIGENCE (3 ITEMS) QUASI-DELICT) 3. CULPA CRIMINAL OR CRIMINAL NEGLIGENCE 601088 - IS NEGLIGENCE IN THE PERFORMANCE OF A CULPA CONTRACTUAL (DRIVER OF BUS & PASSENGER) CONTRACT. 601089 - IS NEGLIGENCE THAT RESULTS IN THE COMMISSION CULPA CRIMINAL (RECKLESS IMPRUDENCE RESULTING IN OF A CRIME. PHYSICAL INJURIES) 601090 - IS THE NON-FULFILLMENT OF AN OBLIGATION WITH DELAY, DEFAULT OR MORA RESPECT TO TIME. 1. MORA SOLVENDI 601091 - KINDS OF DELAY (3 ITEMS) 2. MORA ACCIPIENDI 3. COMPENSATIO MORAE 601092 - IS THE DELAY ON THE PART OF THE DEBTOR. MORA SOLVENDI 601093 - IS THE DELAY ON THE PART OF THE DEBTOR IN MORA SOLVENDI EX RE REAL OBLIGATIONS. 601094 - IS THE DELAY ON THE PART OF THE DEBTOR IN MORA SOLVENDI EX PERSONA PERSONAL OBLIGATIONS 601095 - IS THE DELAY ON THE PART OF THE CREDITOR MORA ACCIPIENDI 601096 - IS THE DELAY IN RECIPROCAL OBLIGATIONS WHERE COMPENSATIO MORAE BOTH PARTIES ARE IN DEFAULT. LEGAL DELAY BEGINS AT THE TIME THE CREDITOR 601097 - GENERAL RULE ON THE TIME AT WHICH THE JUDICIALLY OR EXTRA-JUDICIALLY DEMANDS FULFILLMENT DEBTOR INCURS IN DELAY OF THE OBLIGATION BUT THE DEBTOR FAILS TO COMPLY WITH SUCH DEMAND. 1. WHEN THE LAW SO PROVIDES 2. WHEN THE OBLIGATION EXPRESSLY SO DECLARES 601098 - EXCEPTIONS WHERE DELAY WOULD EXIST EVEN 3. WHEN TIME IS OF THE ESSENCE OF THE CONTRACT WITHOUT DEMAND (5 ITEMS) 4. WHEN DEMAND WOULD BE USELESS 5. IN RECIPROCAL OBLIGATIONS 1. THE OBLIGATIONS ARISE OUT OF THE SAME CAUSE AND 601099 - REQUISITES FOR DELAY TO EXIST IN RECIPROCAL MUST BE FULFILLED AT THE SAME TIME OBLIGATIONS EVEN WITHOUT DEMAND (2 ITEMS) 2. ONE OF THE PARTIES FULFILLS HIS OBLIGATION 1. THE DEBTOR SHALL BE LIABLE FOR DAMAGES. 601100 - EFFECTS OF DELAY ON THE PART OF THE DEBTOR 2. THE DEBTOR SHALL BE LIABLE FOR ANY FORTUITOUS (2 ITEMS) EVENT (OBLIGATIONS TO DELIVER A DETERMINATE THING). 1. THE CREDITOR SHALL BEAR THE RISK OF LOSS AND 601101 - EFFECTS OF DELAY ON THE PART OF THE EXPENSES FOR THE PRESERVATION OF THE THING. CREDITOR (2 ITEMS) 2. THE DEBTOR MAY RESORT TO THE CONSIGNATION OF THE THING DUE. 601102 - ARE THOSE EVENTS THAT COULD NOT BE FORESEEN, OR WHICH THOUGH FORESEEN, ARE FORTUITOUS EVENTS INEVITABLE. 1. WHEN THE LAW EXPRESSLY PROVIDES FOR LIABILITY EVEN IN CASE OF FORTUITOUS EVENTS. 601103 - EXCEPTIONS WHERE A PERSON WILL BE LIABLE 2. WHEN THE PARTIES HAVE DECLARED LIABILITY EVEN IN EVEN FOR FORTUITOUS EVENTS (3 ITEMS) CASE OF FORTUITOUS EVENT. 3. WHEN THE NATURE OF THE OBLIGATION REQUIRES THE ASSUMPTION OF RISK. 1. CONCLUSIVE PRESUMPTION 601104 - KINDS OF PRESUMPTIONS (2 ITEMS) 2. REBUTTABLE (DISPUTABLE) PRESUMPTION 601105 - PRESUMPTION ON THE RECEIPT OF PRINCIPAL THIS SHALL GIVE RISE TO THE (REBUTTABLE) PRESUMPTION WITHOUT RESERVATION AS TO INTEREST THAT THE INTEREST HAS BEEN PAID. 601106 - PRESUMPTION ON THE RECEIPT OF LATER THIS SHALL GIVE RISE TO THE (REBUTTABLE) PRESUMPTION INSTALLMENT WITHOUT RESERVATION AS TO PRIOR THAT THE PRIOR INSTALLMENTS HAVE BEEN PAID. INSTALLMENTS 1. PURSUE THE PROPERTY IN THE POSSESSION OF THE 601107 - REMEDIES OF THE CREDITOR TO ENFORCE DEBTOR (EXCEPT THOSE EXEMPT BY LAW) PAYMENT OF HIS CLAIMS AGAINST DEBTOR (3 ITEMS) 2. ACCION SUBROGATORIA 3. ACCION PAULIANA 601108 - IS THE EXERCISE OF ALL THE RIGHTS ANG BRINGING OF ALL THE ACTIONS OF THE DEBTOR EXCEPT ACCION SUBROGATORIA THOSE PERSONAL TO HIM. 601109 - MEANS TO IMPUGN THE ACTS WHICH THE DEBTOR ACCIO PAULIANA MAY HAVE DONE TO DEFRAUD HIS CREDITORS. 601110 - EXCEPTIONS TO THE RULE THAT ALL RIGHTS 1. IF THE LAW PROHIBITS THE TRANSMISSION OF THE RIGHT ACQUIRED IN VIRTUE OF AN OBLIGATION ARE 2. IF THE PARTIES AGREED AGAINST TRANSMISSION TRANSMISSIBLE (3 ITEMS) 3. IF THE RIGHT IS BY ITS NATURE NOT TRANSMISSIBLE 601111 - IS AN OBLIGATION WITHOUT A TERM OR CONDITION PURE OBLIGATION AND IS DEMANDABLE AT ONCE. 601112 - IS AN OBLIGATION WHOSE DEMANDABILITY OR EXTINGUISHMENT DEPENDS UPON THE HAPPENING OF A CONDITIONAL OBLIGATION CONDITION. 601113 - IS AN UNCERTAIN EVENT WHICH WIELDS AN CONDITION INFLUENCE ON A LEGAL RELATIONSHIP. 601114 - KINDS OF CONDITIONS ACCORDING TO EFFECT ON 1. SUSPENSIVE CONDITION THE DEMANDABILITY OF OBLIGATION (2 ITEMS) 2. RESOLUTORY CONDITION 601115 - IS A CONDITION THE HAPPENING OF WHICH WILL SUSPENSIVE CONDITION GIVE RISE TO THE DEMANDABILITY OF THE OBLIGATION. 601116 - IS A CONDITION THE HAPPENING OF WHICH RESOLUTORY CONDITION EXTINGUISHES THE OBLIGATION 601117 - KINDS OF CONDITIONS ACCORDING TO THE 1. POTESTATIVE CONDITION PERSON OR EVENT TO WHICH SUCH CONDITION DEPENDS (3 2. CASUAL CONDITION ITEMS) 3. MIXED CONDITION 601118 - IS A CONDITION THAT DEPENDS UPON THE WILL OF POTESTATIVE ONE OF THE CONTRACTING PARTIES. 601119 - EFFECT OF A SUSPENSIVE CONDITION IF IT IS THE OBLIGATION IS VOID. POTESTATIVE ON THE PART OF THE DEBTOR 601120 - EFFECT OF RESOLUTORY CONDITION IF IT IS THE OBLIGATION IS VALID. POTESTATIVE ON THE PART OF THE CREDITOR 601121 - EFFECT OF CONDITION IF IT IS POTESTATIVE ON THE OBLIGATION IS VALID WHETHER THE CONDITION IS THE PART OF THE CREDITOR. SUSPENSIVE OR RESOLUTORY. 601122 - IS A CONDITION THAT DEPENDS UPON CHANCE OR CASUAL CONDITION UPON THE WILL OF A THIRD PERSON. 601123 - IS A CONDITION THAT DEPENDS PARTLY UPON THE WILL OF ONE OF THE PARTIES AND PARTLY UPON CHANCE MIXED CONDITION OR THE WILL OF A THIRD PERSON. 601124 - KINDS OF CONDITION ACCORDING TO POSSIBILITY 1. POSSIBLE CONDITION OF OCCURRENCE (2 ITEMS) 2. IMPOSSIBLE CONDITION 601125 - IS A CONDITION THAT IS CAPABLE OF FULFILLMENT POSSIBLE CONDITION IN ITS NATURE AND BY LAW. 601126 - IS A CONDITION THAT IS NOT CAPABLE OF FULFILLMENT IN ITS NATURE OR DUE TO OPERATION OF IMPOSSIBLE CONDITION. LAW. 601127 - KINDS OF CONDITIONS ACCORDING TO 1. POSITIVE CONDITION REQUIREMENT FOR AN EVENT TO HAPPEN OR NOT (2 ITEMS) 2. NEGATIVE CONDITION 601128 - IS A CONDITION THAT SOME EVENT SHOULD POSITIVE CONDITION HAPPEN AT A DETERMINATE TIME. AS SOON AS THE TIME EXPIRES WITHOUT THE EVENT 601129 - EXTINGUISHMENT OF AN OBLIGATION SUBJECT TO HAPPENING OR IT HAS BECOME INDUBITABLE THAT THE A POSITIVE CONDITION EVENT WILL NOT HAPPEN. 601130 - IS A CONDITION THAT SOME EVENT SHOULD NOT NEGATIVE CONDITION HAPPEN AT A DETERMINATE TIME. 601131 - EFFECTIVENESS OF AN OBLIGATION SUBJECT TO A AS SOON AS THE TIME INDICATED HAS ELAPSED OR IT HAS NEGATIVE CONDITION CONDITION BECOME EVIDENT THAT THE EVENT WILL NOT OCCUR. 1. DIVISIBLE CONDITION 601132 - KINDS OF CONDITIONS AS TO DIVISIBILITY (2 ITEMS) 2. INDIVISIBLE CONDITION 601133 - IS A CONDITION THAT IS CAPABLE OF PARTIAL DIVISIBLE CONDITION PERFORMANCE. 601134 - IS A CONDITION THAT IS NOT CAPABLE OF PARTIAL PERFORMANCE BY ITS NATURE OR BY LAW OR AGREEMENT INDIVISIBLE CONDITION OF THE PARTIES. 601135 - EXCEPTIONS TO THE RULE THAT THE EFFECT OF 1. RECIPROCAL OBLIGATIONS (FRUITS AND INTERESTS THE FULFILLMENT OF A SUSPENSIVE CONDITION SHALL BE DEEMED TO HAVE BEEN MUTUALLY RETROACTS (WITH RESPECT TO THE FRUITS AND COMPENSATED) INTERESTS) TO THE DAY OF THE CONSTITUTION OF THE 2. UNILATERAL OBLIGATIONS (THE DEBTOR KEEPS THE OBLIGATION (2 ITEMS) FRUITS AND INTERESTS RECEIVED) 601136 - EFFECT WHEN THE DEBTOR VOLUNTARILY THE CONDITION IS DEEMED FULFILLED. PREVENTS THE FULFILLMENT OF THE CONDITION 601137 - RULE IN CASE LOSS OF THE DETERMINATE THING WHICH IS THE OBJECT OF THE OBLIGATION - WITHOUT OBLIGATION IS EXTINGUISHED DEBTOR'S FAULT 601138 - RULE IN CASE LOSS OF THE DETERMINATE THING WHICH IS THE OBJECT OF THE OBLIGATION - WITH DEBTOR'S DEBTOR IS OBLIGED TO PAY DAMAGES. FAULT 601139 - A THING IS CONSIDERED __________ WHEN IT PERISHES, OR GOES OUT OF COMMERCE OR DISAPPEARS IN LOST SUCH A WAY THAT ITS EXISTENCE IS UNKNOWN OR IT CANNOT BE RECOVERED. 601140 - RULE IN CASE OF DETERIATION OF THE DETERMINATE THING WHICH IS THE OBJECT OF AN THE IMPAIRMENT SHALL BE BORNE BY THE CREDITOR. OBLIGATION - WITHOUT DEBTOR'S FAULT 601141 - RULE IN CASE OF DETERIATION OF THE THE CREDITOR MAY CHOOSE BETWEEN: DETERMINATE THING WHICH IS THE OBJECT OF AN 1. RESCISSION, PLUS DAMAGES; AND OBLIGATION - WITH DEBTOR'S FAULT 2. FULFILLMENT, PLUS DAMAGE 601142 - RULE IN CASE OF IMPROVEMENT OF THE THE IMPROVEMENT SHALL INURE TO THE BENEFIT OF THE DETERMINATE THING WHICH IS THE OBJECT OF AN CREDITOR. OBLIGATION - BY NATURE OR BY TIME 601143 - RULE IN CASE OF IMPROVEMENT OF THE THE DEBTOR WILL HAVE THE RIGHTS GRANTED TO A DETERMINATE THING WHICH IS THE OBJECT OF AN USUFRUCTUARY. OBLIGATION - AT THE EXPENSE OF THE DEBTOR 601144 - IS THE RIGHT TO ENJOY THE USE AND ADVANTAGES OF ANOTHER PERSON'S PROPERTY SHORT OF USUFRUCT DESTRUCTION OR WASTE OF ITS SUBSTANCE. 601145 - ARE OBLIGATIONS WHICH ARISE FROM THE SAME CAUSE AND IN WHICH EACH PARTY IS A DEBTOR AND A CREDITOR OF EACH OTHER, SUCH THAT THE OBLIGATION RECIPROCAL OBLIGATIONS OF ONE IS DEPENDENT UPON THE OBLIGATION OF THE OTHER. 1. RESCISSION WITH DAMAGES; OR 2. FULFILLMENT OF THE OBLIGATION WITH DAMAGES 601146 - REMEDIES OF THE INJURED PARTY IN RECIPROCAL (ONLY ONE, NOT BOTH; EXCEPT WHEN FULFILLMENT WAS OBLIGATION (2 ITEMS) CHOSE BUT LATER, THE OBLIGATION BECOMES IMPOSSIBLE.) 601147 - IS AN OBLIGATION WHOSE DEMANDABILITY OR EXTINGUISHMENT DEPENDS UPON THE HAPPENING OF A OBLIGATION WITH A PERIOD PERIOD. 601148 - IS A SPACE OF TIME WHICH DETERMINES THE PERIOD EFFECTIVITY OR EXTINGUISHMENT OF AN OBLIGATION. 601149 - IS A POINT IN TIME THAT WHICH MUST NECESSARILY COME ALTHOUGH IT MAY NOT BE KNOWN DAY CERTAIN WHEN. 601150 - CONDITION OR PERIOD: IS AN EVENT THAT MAY OR CONDITION MAY NOT HAPPEN. 601151 - CONDITION OR PERIOD: IS AN EVENT THAT MUST NECESSARILY COME, AT A DATE KNOWN BEFOREHAND, OR PERIOD AT A TIME THAT CANNOT BE DETERMINED. 601152 - CONDITION OR PERIOD: MAY REFER TO THE CONDITION FUTURE OR TO A PAST EVENT UNKNOWN TO THE PARTIES. 601153 - CONDITION OR PERIOD: ALWAYS REFERS TO THE PERIOD FUTURE. 601154 - CONDITION OR PERIOD: CAUSES AN OBLIGATION TO CONDITION ARISE OR TO CEASE. 601155 - CONDITION OR PERIOD: MERELY FIXES THE TIME PERIOD FOR THE EFFICACIOUSNESS OF AN OBLIGATION 601156 - CONDITION OR PERIOD: ONE THAT DEPENDS UPON THE WILL OF THE DEBTOR AUTHORIZES THE COURT TO FIX PERIOD ITS DURATION. 601157 - CONDITION OR PERIOD: ONE THAT DEPENDS UPON THE WILL OF THE DEBTOR WHICH IS SUSPENSIVE SHALL CONDITION ANNUL THE OBLIGATION. 601158 - IS A PERIOD WITH A SUSPENSIVE EFFECT. EX DIE 601159 - IS A PERIOD WITH A RESOLUTORY EFFECT. IN DIEM 601160 - IS A PERIOD FIXED BY LAW. LEGAL PERIOD 601161 - IS A PERIOD FIXED BY THE PARTIES. VOLUNTARY PERIOD. 601162 - IS A PERIOD FIXED BY THE COURT. JUDICIAL PERIOD. 1. IF THE OBLIGATION DOES NOT FIX A PERIOD, BUT FROM ITS NATURE AND CIRCUMSTANCES IT CAN BE INFERRED 601163 - INSTANCES WHEN THE COURT MAY FIX THE PERIOD THAT A PERIOD WAS INTENDED. (2 ITEMS) 2. WHEN THE DURATION OF THE PERIOD DEPENDS UPON THE WILL OF THE DEBTOR. IT SHALL BE PRESUMED TO HAVE BEEN ESTABLISHED FOR 601164 - PRESUMPTION AS TO WHO HAS THE BENEFIT OF THE BENEFIT OF BOTH THE CREDITOR AND THE DEBTOR THE PERIOD UNLESS OTHERWISE INTENDED. KUNG MAY INTEREST ANG OBLIGATION, HINDI PWEDENG 601165 - EXPLAIN: THE PERIOD IS FOR THE BENEFIT OF BOTH MAGBAYAD NG MAAGA SI DEBTOR (BENEFIT OF CREDITOR). THE DEBTOR AND THE CREDITOR. HINDI RIN NAMAN PWEDENG MAAGANG SINGILIN NI CREDITOR SI DEBTOR (BENEFIT OF THE DEBTOR). 1. INSOLVENCY OF THE DEBTOR 2. FAILURE OF THE DEBTOR TO FURNISH PROMISED 601166 - INSTANCES WHEN THE DEBTOR LOSES HIS RIGHT GUARANTIES OR SECURITIES TO MAKE USE OF THE PERIOD IF IT IS FOR HIS BENEFIT (5 3. IMPAIRMENT OF THE SAID GUARANTIES OR SECURITIES ITEMS) 4. VIOLATION OF ANY UNDERTAKING IN CONSIDERATION THE CREDITOR AGREED TO THE PERIOD 5. WHEN THE DEBTOR ATTEMPTS TO ABSCOND 601167 - THE DEBTOR MAY STILL MAKE USE OF THE PERIOD, HE GIVES A GUARANTY OR SECURITY FOR THE DEBT. IN CASE HE BECOMES INSOLVENT IF 601168 - THE DEBTOR MAY STILL MAKE USE OF THE PERIOD IN CASE THE GUARANTIES OR SECURITIES HAVE BEEN THE DEBTOR GIVES NEW ONES EQUALLY SATISFACTORY. IMPAIRED (THROUGH DEBTOR'S FAULT OR FORTUITOUS EVENT) IF 601169 - KINDS OF OBLIGATIONS ACCORDING TO THE 1. SIMPLE OBLIGATION NUMBER OF PRESTATIONS (2 ITEMS) 2. COMPOUND OBLIGATION 601170 - IS AN OBLIGATION WHERE THERE IS ONLY ONE SIMPLE OBLIGATION PRESTATION. 601171 - IS AN OBLIGATION WHERE THERE ARE SEVERAL COMPOUND OBLIGATION PRESTATIONS 1. CONJUNCTIVE OBLIGATION 601172 - KINDS OF COMPOUND OBLIGATIONS (2 ITEMS) 2. DISJUNCTIVE OR DISTRIBUTIVE OBLIGATION 601173 - IS A COMPOUND OBLIGATION WHERE SEVERAL CONJUNCTIVE OBLIGATION PRESTATIONS ARE DUE AND ALL MUST BE PERFORMED. 601174 - IS A COMPOUND OBLIGATION WHICH MAY BE DISJUNCTIVE OR DISTRIBUTIVE OBLIGATION ALTERNATIVE OR FACULTATIVE. 601175 - IS AN OBLIGATION WHERE SEVERAL PRESTATIONS ARE DUE BUT THE COMPLETE PERFORMANCE OF ONE OF ALTERNATIVE OBLIGATION THEM IS SUFFICIENT TO EXTINGUISH THE OBLIGATION. 601176 - IN ALTERNATIVE OBLIGATIONS, THE RIGHT OF CHOICE BELONGS TO THE __________, UNLESS IT HAS BEEN DEBTOR; CREDITOR EXPRESSLY GIVEN TO THE _________. 1. THE DEBTOR CANNOT COMPEL THE CREDITOR TO RECEIVE PART OF ONE AND PART OF ANOTHER 601177 - LIMITATIONS ON DEBTOR'S RIGHT TO CHOOSE IN UNDERTAKING. ALTERNATIVE OBLIGATIONS (2 ITEMS) 2. THE DEBTOR CANNOT CHOOSE THE PRESTATIONS WHICH ARE IMPOSSIBLE, UNLAWFUL OR WHICH COULD NOT HAVE BEEN THE OBJECT OF THE OBLIGATION. 1. WHEN THE DEBTOR (OR CREDITOR IF RIGHT TO CHOOSE 601178 - INSTANCES WHEN OBLIGATION CEASES TO BE HAS BEEN GIVEN TO HIM) HAS COMMUNICATED HIS CHOICE ALTERNATIVE AND BECOMES A SIMPLE OBLIGATION (2 TO THE CREDITOR (DEBTOR). ITEMS) 2. WHEN AMONG THE PRESTATIONS WHEREBY THE DEBTOR IS ALTERNATIVELY BOUND, ONLY ONE IS PRACTICABLE. 601179 - IN ALTERNATIVE OBLIGATIONS WHERE THE RIGHT OF CHOICE IS WITH THE DEBTOR, RULE IF ONLY ONE OR THE DEBTOR MAY DELIVER ANY OF THE REMAINDER, OR SOME ARE LOST THROUGH A FORTUITOUS EVENT OR THAT WHICH REMAINS IF ONLY ONE SUBSISTS. THROUGH THE DEBTOR'S FAULT 601180 - IN ALTERNATIVE OBLIGATIONS WHERE THE RIGHT OF CHOICE IS WITH THE DEBTOR, RULE IF ALL PRESTATIONS THE OBLIGATION IS EXTINGUISHED. ARE LOST THROUGH A FORTUITOUS EVENT 601181 - IN ALTERNATIVE OBLIGATIONS WHERE THE RIGHT THE DEBTOR SHALL PAY THE VALUE OF THE LAST THING OF CHOICE IS WITH THE DEBTOR, RULE IF ALL PRESTATIONS THAT WAS LOST PLUS DAMAGES. ARE LOST THROUGH DEBTOR'S FAULT 601182 - IN ALTERNATIVE OBLIGATIONS WHERE THE RIGHT OF CHOICE IS WITH THE DEBTOR, RULE IF ALL PRESTATIONS EXCEPT ONE ARE LOST THROUGH DEBTOR'S FAULT AND THE DEBTOR'S OBLIGATION IS EXTINGUISHED. THE REMAINING ITEM IS SUBSEQUENTLY LOST THROUGH A FORTUITOUS EVENT 601183 - IN ALTERNATIVE OBLIGATIONS WHERE THE RIGHT OF CHOICE IS WITH THE DEBTOR, RULE IF ALL PRESTATIONS EXCEPT ONE ARE LOST THROUGH A FORTUITOUS EVENT, THE DEBTOR SHALL PAY DAMAGES. AND THE REMAINING ITEM IS SUBSEQUENTLY LOST THROUGH DEBTOR'S FAULT 601184 - IN ALTERNATIVE OBLIGATIONS WHERE THE RIGHT THE DEBTOR SHALL DELIVER THAT WHICH THE CREDITOR OF CHOICE IS EXPRESSLY GRANTED TO THE CREDITOR, SHOULD CHOOSE AMONG THE REMAINDER, OR THAT WHICH RULE IF ONLY ONE OR SOME OF THE PRESTATIONS ARE REMAINS IF ONLY ONE SUBSISTS. LOST THROUGH A FORTUITOUS EVENT 601185 - IN ALTERNATIVE OBLIGATIONS WHERE THE RIGHT OF CHOICE IS EXPRESSLY GRANTED TO THE CREDITOR, THE OBLIGATION SHALL BE EXTINGUISHED. RULE IF ALL PRESTATIONS ARE LOST THROUGH A FORTUITOUS EVENT 601186 - IN ALTERNATIVE OBLIGATIONS WHERE THE RIGHT THE CREDITOR MAY CLAIM ANY OF THOSE SUBSISTING, OR OF CHOICE IS EXPRESSLY GRANTED TO THE CREDITOR, THE PRICE OF ANY OF THOSE WHICH WERE LOST THROUGH RULE IF ONLY ONE OR SOME OF THE PRESTATIONS ARE THE DEBTOR'S FAULT PLUS DAMAGES. LOST THROUGH DEBTOR'S FAULT 601187 - IN ALTERNATIVE OBLIGATIONS WHERE THE RIGHT OF CHOICE IS EXPRESSLY GRANTED TO THE CREDITOR, THE CREDITOR MAY CLAIM THE PRICE OF ANY OF THE RULE IF ALL PRESTATIONS ARE LOST THROUGH DEBTOR'S PRESTATIONS PLUS DAMAGES. FAULT 601188 - IS AN OBLIGATION WHERE ONLY ONE PRESTATION IS DUE BUT THE DEBTOR MAY RENDER ANOTHER IN FACULTATIVE OBLIGATION SUBSTITUTION. 601189 - IN FACULTATIVE OBLIGATIONS, RULE IF THE PRINCIPAL THING IS LOST DUE TO A FORTUITOUS EVENT THE OBLIGATION IS EXTINGUISHED. BEFORE SUBSTITUTION 601190 - IN FACULTATIVE OBLIGATIONS, RULE IF THE PRINCIPAL THING IS LOST DUE TO THE DEBTOR'S FAULT THE DEBTOR SHALL PAY DAMAGES. BEFORE SUBSTITUTION 601191 - IN FACULTATIVE OBLIGATIONS, RULE IF THE THE DEBTOR STILL HAS THE OBLIGATION TO DELIVER THE SUBSTITUTE THING IS LOST DUE TO A FORTUITOUS EVENT PRINCIPAL THING. BEFORE SUBSTITUTION 601192 - IN FACULTATIVE OBLIGATIONS, RULE IF THE THE DEBTOR STILL HAS THE OBLIGATION TO DELIVER THE SUBSTITUTE THING IS LOST DUE TO THE DEBTOR'S FAULT PRINCIPAL THING. BEFORE SUBSTITUTION 601193 - IN FACULTATIVE OBLIGATIONS, RULE IF THE THE DEBTOR STILL HAS THE OBLIGATION TO DELIVER THE PRINCIPAL THING IS LOST THROUGH A FORTUITOUS EVENT SUBSTITUTE THING. AFTER SUBSTITUTION 601194 - IN FACULTATIVE OBLIGATIONS, RULE IF THE THE DEBTOR STILL HAS THE OBLIGATION TO DELIVER THE PRINCIPAL THING IS LOST THROUGH THE DEBTOR'S FAULT SUBSTITUTE THING. AFTER SUBSTITUTION 601195 - IN FACULTATIVE OBLIGATIONS, RULE IF THE SUBSTITUTE THING IS LOST DUE TO A FORTUITOUS EVENT THE OBLIGATION IS EXTINGUISHED. AFTER SUBSTITUTION 601196 - IN FACULTATIVE OBLIGATIONS, RULE IF THE SUBSTITUTE THING IS LOST DUE TO THE DEBTOR'S FAULT THE DEBTOR SHALL PAY DAMAGES. AFTER SUBSTITUTION 601197 - ALTERNATIVE OR FACULTATIVE: IF THERE ARE VOID PRESTATIONS, THE OTHERS MAY STILL BE VALID, HENCE ALTERNATIVE OBLIGATION THE OBLIGATION REMAINS. 601198 - ALTERNATIVE OR FACULTATIVE: IF THE PRINCIPAL OBLIGATION IS VOID, THE DEBTOR IS NOT REQUIRED TO FACULTATIVE OBLIGATION GIVE THE SUBSTITUTE. 601199 - ALTERNATIVE OR FACULTATIVE: THE RIGHT OF CHOICE IS WITH THE DEBTOR, UNLESS EXPRESSLY GIVEN ALTERNATIVE OBLIGATION TO THE CREDITOR. 601200 - ALTERNATIVE OR FACULTATIVE: THE RIGHT OF FACULTATIVE OBLIGATION CHOICE BELONGS TO THE DEBTOR ONLY. 601201 - IN A __________, EACH DEBTOR IS LIABLE ONLY FOR A PROPORTIONATE PART OF THE DEBT, AND/OR EACH JOINT OBLIGATION CREDITOR IS ENTITLED ONLY TO A PROPORTIONATE PART OF THE DEBT. 601202 - IN A _________, EACH DEBTOR IS LIABLE FOR THE WHOLE OBLIGATION, AND/OR EACH CREDITOR IS ENTITLED SOLIDARY OBLIGATION TO DEMAND PAYMENT OF THE WHOLE OBLIGATION. 1. PASSIVE SOLIDARITY 601203 - KINDS OF SOLIDARY OBLIGATION (3 ITEMS) 2. ACTIVE SOLIDARITY 3. MIXED SOLIDARITY 601204 - IS SOLIDARITY ON THE PART OF THE DEBTORS. PASSIVE SOLIDARITY 601205 - IS SOLIDARITY ON THE PART OF THE CREDITORS. ACTIVE SOLIDARITY 601206 - IS SOLIDARITY ON THE PART OF BOTH DEBTORS MIXED SOLIDARITY AND CREDITORS. 601207 - JOINT OR SOLIDARY: "JOINTLY AND SEVERALLY" SOLIDARY OBLIGATION 601208 - JOINT OR SOLIDARY: "PROPORTIONATELY" JOINT OBLIGATION 601209 - JOINT OR SOLIDARY: "INDIVIDUALLY AND SOLIDARY OBLIGATION COLLECTIVELY" 601210 - JOINT OR SOLIDARY: "PRO RATA" JOINT OBLIGATION 601211 - JOINT OR SOLIDARY: "IN SOLIDUM" SOLIDARY OBLIGATION 601212 - JOINT OR SOLIDARY: "MANCOMUNADA" JOINT OBLIGATION 601213 - JOINT OR SOLIDARY: "MANCOMUNADA SOLIDARIA" SOLIDARY OBLIGATION 601214 - JOINT OR SOLIDARY: "MANCOMUNADA SIMPLE" JOINT OBLIGATION 601215 - JOINT OR SOLIDARY: "JUNTOS O SEPARADAMENTE" SOLIDARY OBLIGATION 601216 - AS A GENERAL RULE, THE OBLIGATION IS PRESUMED TO BE _________ WHEN THERE IS A JOINT CONCURRENCE OF TWO OR MORE DEBTORS AND/OR TWO OR MORE CREDITORS IN ONE AND THE SAME OBLIGATION. 1. WHEN THE OBLIGATION EXPRESSLY STATES 601217 - INSTANCES WHERE SOLIDARY LIABILITY EXISTS (3 2. WHEN THE LAW REQUIRES SOLIDARITY ITEMS) 3. WHEN THE NATURE OF THE OBLIGATION REQUIRES SOLIDARITY THE OBLIGATION WILL BE EXTINGUISHED. THE CREDITOR 601218 - EFFECT OF RENUNCIATION OR REMISSION OF THE WHO MADE THE REMISSION SHALL BE LIABLE TO THE OTHER WHOLE OBLIGATION BY ONLY ONE OF THE SOLIDARY CREDITOR(S). IF APPLICABLE, THE SOLIDARY DEBTOR WHO CREDITORS OBTAINED THE REMISSION MAY NOT DEMAND REIMBURSEMENT FROM THE OTHER DEBTOR(S). IF THE ASSIGNMENT IS WITHOUT THE CONSENT OF THE CO- CREDITORS, THE ASSIGNMENT IS NOT VALID THEN. 601219 - EFFECT OF UNAUTHORIZED ASSIGNMENT OF ACCORDINGLY, THEY CAN RECOVER THEIR RESPECTIVE CREDITOR'S RIGHT SHARES FROM THE ASSIGNING CREDITOR IN CASE THE ASSIGNEE WHO COLLECTED THE DEBT FAILS TO GIVE THEM THEIR SHARES. 601220 - IS AN OBLIGATION WHERE THE DEBTORS OR CREDITORS ARE JOINTLY BOUND BUT THE PRESTATION OR JOINT INDIVISIBLE OBLIGATION OBJECT IS INDIVISIBLE. 601221 - THE __________ OF AN OBLIGATION REFERS TO THE SUBJECT MATTER OR OBJECT NOT BEING SUSCEPTIBLE OF PARTIAL PERFORMANCE. __________, ON THE OTHER HAND, INDIVISIBILITY; SOLIDARITY REFERS TO THE TIE BETWEEN THE PARTIES. ONE THEREFORE, DOES NOT IMPLY, OR GIVE RISE, TO THE OTHER. 601222 - IS AN OBLIGATION CAPABLE OF PARTIAL PERFORMANCE (SUCH AS THE OBLIGATION TO DELIVER (10 DIVISIBLE OBLIGATION SACKS OF RICE). 1. WHEN THE OBLIGATION HAS FOR TITS OBJECT THE EXECUTION OF A CERTAIN NUMBER OF DAYS OF WORK 2. WHEN THE OBLIGATION HAS FOR ITS OBJECT THE 601223 - OBLIGATIONS DEEMED TO BE DIVISIBLE (3 ITEMS) ACCOMPLISHMENT OF WORK BY METRICAL UNITS 3. ANALOGOUS THINGS WHICH BY THEIR NATURE ARE SUSCEPTIBLE OF PARTIAL PERFORMANCE 601224 - IS AN OBLIGATION NOT CAPABLE OF PARTIAL INDIVISIBLE OBLIGATION PERFORMANCE. 1. OBLIGATIONS TO GIVE DEFINITE THINGS 2. THOSE NOT SUSCEPTIBLE OF PARTIAL PERFORMANCE (SINGING ONE SONG IN A PROGRAM) 3. THOSE WHERE THE OBJECT OR SERVICE IS PHYSICALLY 601225 - OBLIGATIONS DEEMED TO BE INDIVISIBLE (4 ITEMS) DIVISIBLE BUT IT IS INDIVISIBLE BY PROVISION OF LAW 4. THOSE WHERE THE OBJECT OR SERVICE IS PHYSICALLY DIVISIBLE BUT IT IS INDIVISIBLE BY THE INTENTION OF THE PARTIES 601226 - IS AN OBLIGATION WHICH PROVIDES FOR A GREATER LIABILITY ON THE PART OF THE DEBTOR IN CASE OBLIGATION WITH A PENAL CLAUSE OF NON-COMPLIANCE. 601227 - IS GENERALLY UNDERTAKEN TO INSURE PERFORMANCE AND WORKS AS EITHER, OR BOTH, PENAL CLAUSE PUNISHMENT AND REPARATION. 601228 - KINDS OF PENAL CLAUSES ACCORDING TO THE 1. LEGAL BODY IMPOSING IT 2. CONVENTION 601229 - IS A KIND OF PENAL CLAUSE IMPOSED BY LAW. LEGAL PENAL CLAUSE 601230 - IS A KIND OF PENAL CLAUSE IMPOSED BY THE CONVENTIONAL PENAL CLAUSE AGREEMENT OF THE PARTIES. 601231 - KINDS OF PENAL CLAUSES ACCORDING TO 1. SUBSIDIARY ENFORCEMENT (2 ITEMS) 2. JOINT 601232 - IS A KIND OF PENAL CLAUSE WHERE ONLY THE SUBSIDIARY PENAL CLAUSE PENALTY MAY BE ENFORCED. 601233 - IS A KIND OF PENAL CLUASE WHERE BOTH THE JOINT PENAL CLAUSE OBLIGATION AND THE PENALTY MAY BE ENFORCED. 1. WHEN THERE IS A STIPULATION TO THAT EFFECT 601234 - AS A GENERAL RULE, THE PENALTY TAKES THE 2. WHEN THE DEBTOR REFUSES TO PAY THE PENALTY PLACE OF THE DAMAGES AND INTEREST IN CASE OF NON- 3. WHEN THE DEBTOR IS GUILTY OF FRAUD IN THE COMPLIANCE. EXCEPTIONS TO THE RULE (3 ITEMS) PERFORMANCE OF THE OBLIGATION 1. WHEN THE OBLIGATION HAS BEEN PARTLY COMPLIED WITH BY THE DEBTOR; 601235 - INSTANCES WHEN THE COURT MAY REDUCE THE 2. WHEN THE OBLIGATION HAS BEEN IRREGULARLY PENALTY (3 ITEMS) COMPLIED WITH BY THE DEBTOR; 3. WHEN THE PENALTY IS INIQUITOUS OR UNCONSCIONABLE EVEN IF THERE HAS BEEN NO PERFORMANCE 1. THE NULLITY OF THE PRINCIPAL OBLIGATION CARRIES 601236 - EFFECT OF NULLITY OF PRINCIPAL OBLIGATION OR WITH IT THE NULLITY OF THE PENAL CLAUSE. PENAL CLAUSE 2. THE NULLITY OF THE PENAL CLAUSE DOES NOT CARRY WITH IT THE NULLITY OF THE PRINCIPAL OBLIGATION. 1. PAYMENT OR PERFORMANCE 2. LOSS OF THE THING DUE 3. CONDONATION OR REMISSION OF THE DEBT 4. CONFUSION OR MERGER OF RIGHTS OF CREDITOR AND DEBTOR 601237 - CAUSES OF EXTINGUISHEMENT OF OBLIGATIONS 5. COMPENSATION (11 ITEMS) 6. NOVATION 7. ANNULMENT 8. RESCISSION 9. FULFILLMENT OF RESOLUTORY CONDITION 10. PRESCRIPTION 11. OTHER CAUSES 601238 - MEANS NOT ONLY THE DELIVERY OF MONEY BUT ALSO THE PERFORMANCE, IN ANY OTHER MANNER, OF AN PAYMENT OBLIGATION. 601239 - IS THE MONEY OR CURRENCY WHICH THE DEBTOR MAY COMPEL HIS CREDITOR TO ACCEPT IN PAYMENT OF HIS LEGAL TENDER DEBTS (WHETHER PUBLIC OR PRIVATE). 1. P1,000.00 FOR DENOMINATIONS OF 1-PISO, 5-PISO AND 10- PISO COINS; 601240 - ITEMS CONSIDERED LEGAL TENDER IN THE 2. P100.00 FOR DENOMINATIONS OF 1-SENTIMO, 5-SENTIMO, PHILIPPINES (3 ITEMS) 10-SENTIMO AND 25-SENTIMO COINS; 3. ALL BILLS ARE LEGAL TENDER UP TO ANY AMOUNT 601241 - IS THE INCREASE IN THE CURRENCY IN CIRCULATION, OR A MARKED EXPANSION OF CREDIT, INFLATION RESULTING IN A FALL IN CURRENCY VALUE, AND A SHARP RISE ON PRICES. 601242 - IS THE SHARP SUDDEN DECREASE OF MONEY OR CREDIT OR BOTH WITHOUT A CORRESPONDING DECREASE DEFLATION IN BUSINESS TRANSACTIONS. 601243 - IN CASE AN EXTRAORDINARY INFLATION OR DEFLATION OF THE CURRENCY SHOULD SUPERVENE, THE A = (B / C) * B VALUE OF THE CURRENCY AT THE TIME OF THE WHERE: ESTABLISHMENT OF THE OBLIGATION SHALL BE THE BASIS A = AMOUNT TO BE PAID AT MATURITY OF PAYMENT, UNLESS THERE IS AN AGREEMENT TO THE B = AMOUNT OF THE OBLIGATION CONTRARY. FORMULA FOR DETERMINING THE AMOUNT OF C = VALUE ON THE DATE OF MATURITY PAYMENT IN CASES OF EXTRAORDINARY INFLATION OR DEFLATION THE DELIVERY OF PROMISSORY NOTES PAYABLE TO ORDER, OR BILLS OF EXCHANGE OR OTHER MERCANTILE 601244 - EFFECT OF DELIVERY OF MERCANTILE DOCUMENTS DOCUMENTS SHALL PRODUCE THE EFFECT OF PAYMENT AS PAYMENT FOR OBLIGATIONS ONLY WHEN THEY HAVE BEEN CASHED OR WHEN THROUGH THE FAULT OF THE CREDITOR, THEY HAVE BEEN IMPAIRED. 601245 - MEANS THE PERFORMANCE OF THE MOST IMPORTANT ASPECTS OF AN OBLIGATION BUT NOT ALL OF SUBSTANTIAL PERFORMANCE OF AN OBLIGATION IT. IF THE OBLIGATION HAS BEEN SUBSTANTIALLY PERFORMED 601246 - EFFECT OF SUBSTANTIAL PERFORMANCE IN GOOD IN GOOD FAITH, THE OBLIGOR MAY RECOVER AS THOUGH FAITH OF AN OBLIGATION. THERE HAD BEEN STRICT AND COMPLETE FULFILLMENT, LESS DAMAGES SUFFERED BY THE OBLIGEE. 601247 - EFFECT WHEN THE OBLIGEE ACCEPTS THE PERFORMANCE KNOWING ITS INCOMPLETENESS OR THE OBLIGATION IS DEEMED FULLY COMPLIED WITH. IRREGULARITY, AND WITHOUT EXPRESSING ANY PROTEST OR OBJECTION 1. WHEN THERE IS AN AGREEMENT TO THAT EFFECT; AND 601248 - INSTANCES WHEN PARTIAL PAYMENTS MAY BE 2. WHEN THE DEBT IS PART LIQUIDATED AND IN PART MADE (2 ITEMS) UNLIQUIDATED (THE CREDITOR MAY DEMAND AND THE DEBTOR MAY EFFECT PAYMENT OF THE LATTER) 601249 - CHARACTERISTICS A DEBTOR MUST POSSESS IN 1. FREE DISPOSAL OF THE THING DUE ORFER TO MAKE THE PAYMENT OF AN OBLIGATION (2 ITEMS) 2. THE CAPACITY TO ALIENATE THE THING 601250 - MEANS THAT THE PROPERTY DELIVERED SHOULD NOT BE SUBJECT TO ANY CLAIM BY, OR ENCUMBRANCES IN FREE DISPOSAL OF THE THING DUE FAVOR OF, THIRD PERSONS. 601251 - MEANS THAT THE DEBTOR MUST NOT BE INCAPABLE OF GIVING CONSENT IN ORDER TO EFFECT CAPACITY TO ALIENATE THE THING PAYMENT. GR: THE PAYMENT SHALL NOT BE VALID . XPN: WHEN A MINOR BETWEEN EIGHTEEN AND TWENTY-ONE YEARS OF AGE, WHO HAS ENTERED INTO A CONTRACT 601252 - EFFECT OF PAYMENT IN OBLIGATIONS TO GIVE IF WITHOUT THE CONSENT OF THE PARENT OR GUARDIAN, DEBTOR DOES NOT HAVE FREE DISPOSAL OF THE THING VOLUNTARILY PAYS A SUM OF MONEY OR DELIVERS A DUE AND/OR CAPACITY TO ALIENATE THE SAME FUNGIBLE THING IN FULFILLMENT OF THE OBLIGATION, THERE SHALL BE NO RIGHT TO RECOVER THE SAME FROM THE OBLIGEE WHO HAS SPENT OR CONSUMED IT IN GOOD FAITH. 601253 - IS A SPECIES OF ATTACHMENT FOR REACHING CREDITS BELONGING TO THE JUDGMENT DEBTOR AND GARNISHMENT OWING TO HIM FROM A STRANGER TO THE LITIGATION. 601253 IS A SPECIES OF ATTACHMENT FOR REACHING CREDITS BELONGING TO THE JUDGMENT DEBTOR AND OWING TO HIM FROM A STRANGER TO THE LITIGATION. 601254 - EFFECT OF PAYMENT BY THE DEBTOR AFTER SUCH PAYMENT SHALL NOT BE VALID. COURT HAS ORDERED HIM TO RETAIN DEBT (GARNISHMENT) 601254 EFFECT OF PAYMENT BY THE DEBTOR AFTER COURT HAS ORDERED HIM TO RETAIN DEBT (GARNISHMENT) GR: THE CREDITOR IS NOT BOUND TO ACCEPT PAYMENT OR PERFORMANCE BY A THIRD PERSON. 601255 - RULES ON THE PAYMENT OF THE OBLIGATION BY A XPN 1: WHEN THERE IS A STIPULATION TO THAT EFFECT. THIRD PERSON (GR & 2 XPNS) XPN 2: WHEN THE THIRD PERSON HAS AN INTEREST IN THE FULFILLMENT OF THE OBLIGATION SUCH AS A GUARANTOR OR A CO-DEBTOR. 601255 RULES ON THE PAYMENT OF THE OBLIGATION BY A THIRD PERSON (GR & 2 XPNS) 1. HE CAN RECOVER WHAT HE HAS PAID. 601256 - RIGHTS OF A THIRD PERSON WHO MAKES THE 2. HE IS ENTITLED TO BE SUBROGATED IN THE RIGHTS OF PAYMENT WHEN THE PAYMENT IS WITH THE KNOWLEDGE THE CREDITOR SUCH AS THOSE ARISING FROM MORTGAGE, AND CONSENT OF THE DEBTOR (2 ITEMS) GUARANTY OR PENALTY. 601256 RIGHTS OF A THIRD PERSON WHO MAKES THE PAYMENT WHEN THE PAYMENT IS WITH THE KNOWLEDGE AND CONSENT OF THE DEBTOR (2 ITEMS) 601257 - RIGHT OF A THIRD PERSON WHO MAKES THE HE CAN RECOVER ONLY INSOFAR AS THE PAYMENT HAS PAYMENT WHEN THE PAYMENT IS WITHOUT THE BEEN BENEFICIAL TO THE DEBTOR, HE IS NOT ENTITLED TO KNOWLEDGE OR AGAINST THE WILL OF THE DEBTOR SUBROGATION. 601257 RIGHT OF A THIRD PERSON WHO MAKES THE PAYMENT WHEN THE PAYMENT IS WITHOUT THE KNOWLEDGE OR AGAINST THE WILL OF THE DEBTOR 1. THE PAYMENT SHALL BE DEEMED TO BE A DONATION WHICH REQUIRES THE DEBTOR'S CONSENT. 2. IF THE DEBTOR DOES NOT CONSENT, THE PAYMENT 601258 - EFFECT OF PAYMENT BY A THIRD PERSON WHO SHALL NEVERTHELESS BE VALID TO THE CREDITOR WHO DOES NOT WANT TO BE REIMBURSED (3 ITEMS) HAS ACCEPTED IT. 3. IN SUCH A CASE, THE THIRD PERSON CAN ONLY RECOVER INSOFAR AS THE PAYMENT HAS BEEN BENEFICIAL TO THE DEBTOR (NO SUBROGATION). 601258 EFFECT OF PAYMENT BY A THIRD PERSON WHO DOES NOT WANT TO BE REIMBURSED (3 ITEMS) 1. CREDITOR 601259 - PERSONS TO WHOM PAYMENT SHALL BE MADE (3 2. CREDITOR'S SUCCESSORS IN INTEREST (SUCH AS HIS ITEMS) HEIRS OR ASSIGNS) 3. ANY PERSON AUTHORIZED TO RECEIVE PAYMENT 601259 PERSONS TO WHOM PAYMENT SHALL BE MADE (3 ITEMS) GR: PAYMENT IS NOT VALID. XPN 1: IF THE INCAPACITATED CREDITOR HAS KEPT THE 601260 - EFFECT OF PAYMENT TO AN INCAPACITATED THING DELIVERED. CREDITOR (GR & 2 XPNS) XPN 2: INSOFAR AS THE PAYMENT HAS BEEN BENEFICIAL TO HIM. 601260 EFFECT OF PAYMENT TO AN INCAPACITATED CREDITOR (GR & 2 XPNS) GR: SUCH PAYMENT IS NOT VALID. XPN 1: IF THE PAYMENT HAS REDOUNDED TO THE BENEFIT 601261 - EFFECT OF PAYMENT TO AN UNATHORIZED THIRD OF THE CREDITOR. PERSON (GR & 2 XPNS) XPN 2: IF THE PAYMENT IS MADE IN GOOD FAITH TO A THIRD PERSON IN POSSESSION OF THE CREDIT. 601261 EFFECT OF PAYMENT TO AN UNATHORIZED THIRD PERSON (GR & 2 XPNS) 1. IF AFTER THE PAYMENT, THE THIRD PERSON ACQUIRES THE CREDITOR'S RIGHTS (SUCH AS WHEN THE THIRD PERSON BECOMES THE ASSIGNEE OF THE INSTRUMENT 601262 - INSTANCES WHEN PAYMENT IS MADE TO AN EVIDENCING THE CREDIT). UNATHORIZED THIRD PERSON AND THERE IS NO NEED TO 2. IF THE CREDITOR RATIFIES THE PAYMENT TO THE THIRD PROVE THAT PAYMENT HAS REDOUNDED TO THE BENEFIT PERSON. OF THE CREDITOR (3 ITEMS) 3. IF BY THE CREDITOR'S CONDUCT, THE DEBTOR HAS BEEN LED TO BELIEVE THAT THE THIRD PERSON HAD THE AUTHORITY TO RECEIVE PAYMENT. 601262 INSTANCES WHEN PAYMENT IS MADE TO AN UNATHORIZED THIRD PERSON AND THERE IS NO NEED TO PROVE THAT PAYMENT HAS REDOUNDED TO THE BENEFIT OF THE CREDITOR (3 ITEMS) GR: PLACE DESIGNATED BY STIPULATION XPN: IF THERE IS NO STIPULATION: 601263 - RULES ON THE PLACE WHERE PAYMENT MUST BE 1. DETERMINATE THING - WHEREEVER THE THING MIGHT BE MADE (GR & 2 XPNS) AT THE TIME THE OBLIGATION WAS CONSTITUTED. 2. GENERIC THING OR OBLIGATION TO DO - DOMICILE OF THE DEBTOR 601263 RULES ON THE PLACE WHERE PAYMENT MUST BE MADE (GR & 2 XPNS) 1. DATION IN PAYMENT 2. APPLICATION OF PAYMENT 601264 - SPECIAL FORMS OF PAYMENT (4 ITEMS) 3. PAYMENT BY CESSION 4. TENDER OF PAYMENT AND CONSIGNATION 601264 SPECIAL FORMS OF PAYMENT (4 ITEMS) 601265 - IS A SPECIAL FORM OF PAYMENT WHERE THE DATION IN PAYMENT, DACION EN PAGO, ADJUDICACION EN OWNERSHIP OF PROPERTY IS TRANSFERRED TO HIS PAGO OR DATIO IN SOLUTUM CREDITOR TO PAY A DEBT IN MONEY. 601265 IS A SPECIAL FORM OF PAYMENT WHERE THE OWNERSHIP OF PROPERTY IS TRANSFERRED TO HIS CREDITOR TO PAY A DEBT IN MONEY. 601266 - LAW GOVERNING DATION IN PAYMENT LAW ON SALES 601266 LAW GOVERNING DATION IN PAYMENT 601267 - LEGAL SUBSTANCE OF DATION IN PAYMENT OBJECTIVE NOVATION 601267 LEGAL SUBSTANCE OF DATION IN PAYMENT 601268 - IS A SPECIAL FORM OF PAYMENT WHICH REFERS TO THE DESIGNATION OF THE DEBT TO WHICH PAYMENT SHALL APPLICATION OF PAYMENT BE APPLIED WHEN THE DEBTOR OWES SEVERAL DEBTS (OF SIMILAR KIND) IN FAVOR OF THE SAME CREDITOR. 601268 IS A SPECIAL FORM OF PAYMENT WHICH REFERS TO THE DESIGNATION OF THE DEBT TO WHICH PAYMENT SHALL BE APPLIED WHEN THE DEBTOR OWES SEVERAL DEBTS (OF SIMILAR KIND) IN FAVOR OF THE SAME CREDITOR. 1. WHEN THE PARTIES HAVE STIPULATED THAT PAYMENT 601269 - INSTANCES WHEN APPLICATION OF PAYMENT MAY MAY BE APPLIED TO A DEBT NOT YET DUE; OR STILL BE MADE EVEN IF NOT ALL DEBTS ARE DUE (2 ITEMS( 2. WHEN THE APPLICATION IS MADE BY THE PARTY FOR WHOSE BENEFIT THE TERM HAS BEEN CONSTITUTED. 601269 INSTANCES WHEN APPLICATION OF PAYMENT MAY STILL BE MADE EVEN IF NOT ALL DEBTS ARE DUE (2 ITEMS( GR: THE DEBTOR IS GIVEN THE PREFERENTIAL RIGHT TO APPLY THE PAYMENT. XPN: IF THE DEBTOR DOES NOT MAKE THE DESIGNATION, 601270 - RULES ON THE APPLICATION OF PAYMENT (GR & THE CREDITOR MAKES IT BY INDICATING THE DEBT PAID IN XPN) HIS RECEIPT. IF THE DEBTOR ACCEPTS THE RECEIPT FROM THE CREDITOR, THE DEBTOR CANNOT COMPLAIN UNLESS THERE IS A JUST CAUSE OF INVALIDATING THE CONTRACT. 601270 RULES ON THE APPLICATION OF PAYMENT (GR & XPN) 1. PAYMENT SHALL BE APPLIED TO THE DEBT, AMONG 601271 - IN APPLICATION OF PAYMENT, RULE IF NEITHER THE THOSE DUE, WHICH IS THE MOST ONEROUS TO THE DEBTOR NOR CREDITOR MAKES THE DESIGNATION, OR DEBTOR. APPLICATION CANNOT BE INFERRED FROM THE 2. IF THE DEBTS ARE OF THE SAME NATURE AND BURDEN, CIRCUMSTANCES.(2 ITEMS) PAYMENT SHALL BE APPLIED TO ALL DUE DEBTS PROPORTIONATELY. 601271 IN APPLICATION OF PAYMENT, RULE IF NEITHER THE DEBTOR NOR CREDITOR MAKES THE DESIGNATION, OR APPLICATION CANNOT BE INFERRED FROM THE CIRCUMSTANCES.(2 ITEMS) 601272 - IS A SPECIAL FORM OF PAYMENT WHICH REFERS TO THE ABANDONMENT OR ASSIGNMENT BY THE DEBTOR OF ALL HIS PROPERTY IN FAVOR OF HIS CREDITORS SO THAT PAYMENT BY CESSION THE LATTER MAY SELL THEM AND RECOVER THEIR CLAIMS OUT OF THE PROCEEDS. 601272 IS A SPECIAL FORM OF PAYMENT WHICH REFERS TO THE ABANDONMENT OR ASSIGNMENT BY THE DEBTOR OF ALL HIS PROPERTY IN FAVOR OF HIS CREDITORS SO THAT THE LATTER MAY SELL THEM AND RECOVER THEIR CLAIMS OUT OF THE PROCEEDS. 601273 - 601273 601274 - 601274 601275 - 601275 601276 - 601276 601277 - 601277 601278 - 601278 - - - - - - RFBT - CONTRACTS (502001 - STILL UNFINISHED) 502001 - REFERS TO A MEETING OF MINDS BETWEEN TWO PERSONS WHEREBY ONE BINDS HIMSELF, WITH RESPECT CONTRACT TO THE OTHER, TO GIVE SOMETHING OR TO RENDER SOME SERVICE. 502002 - ARE ELEMENTS OF A CONTRACT WITHOUT WHICH ESSENTIAL ELEMENTS THERE WOULD BE NO CONTRACT. 1. CONSENT OF THE CONTRACTING PARTIES 2. OBJECT CERTAIN WHICH IS THE SUBJECT MATTER OF THE 502003 - ESSENTIAL ELEMENTS OF A CONTRACT (3 ITEMS) CONTRACT 3. CAUSE OF THE OBLIGATION 502004 - ARE ELEMENTS OF A CONTRACT WHICH ARE FOUND IN CERTAIN CONTRACTS UNLESS SET ASIDE OR NATURAL ELEMENTS SUPPRESSED BY THE PARTIES. 502005 - ARE ELEMENTS OF A CONTRACT WHICH REFER TO ACCIDENTAL ELEMENTS PARTICULAR STIPULATIONS OF THE PARTIES. 1. CONSENSUAL 502006 - CLASSIFICATION OF CONTRACTS ACCORDING TO 2. REAL PERFECTION OR FORMATION (3 ITEMS) 3. FORMAL OR SOLEMN 502007 - ARE CONTRACTS THAT ARE PERFECTED BY MERE CONSENSUAL CONTRACTS CONSENT. 502008 - ARE CONTRACTS THAT ARE PERFECTED BY THE REAL CONTRACTS DELIVERY OF THE OBJECT OF THE CONTRACT. 502009 - ARE CONTRACTS WHICH MUST BE IN THE FORM FORMAL OR SOLEMN CONTRACTS PROVIDED BY LAW FOR THEIR PERFECTION. 1. ONEROUS 502010 - CLASSIFICATION OF CONTRACTS ACCORDING TO 2. GRATUITOUS OR LUCRATIVE CAUSE (3 ITEMS) 3. REMUNERATORY 502011 - ARE CONTRACTS WHERE THERE IS AN EXCHANGE ONEROUS CONTRACTS OF VALUABLE CONSIDERATIONS. 502012 - ARE CONTRACTS WHERE ONE PARTY RECEIVES NO GRATUITOUS OR LUCRATIVE CONTRACTS EQUIVALENT CONSIDERATION. 502013 - ARE CONTRACTS WHERE THE CAUSE IS THE REMUNERATORY CONTRACTS SERVICE OR BENEFIT REMUNERATED. 502014 - CLASSIFICATION OF CONTRACTS ACCORDING TO 1. PRINCIPAL IMPORTANCE OR DEPENDENCE OF ONE UPON ANOTHER (3 2. ACCESSORY ITEMS) 3, PREPARATORY 502015 - IS A CONTRACT THAT CAN STAND BY ITSELF. PRINCIPAL CONTRACT 502016 - IS A CONTRACT WHOSE EXISTENCE DEPENDS UPON ACCESSORY CONTRACT ANOTHER CONTRACT. 502017 - IS A CONTRACT WHICH SERVES AS A MEANS BY PREPARATORY CONTRACT WHICH OTHER CONTRACTS MAY BE ENTERED INTO. 502018 - CLASSIFICATION OF CONTRACTS ACCORDING TO 1. NOMINATE NAME OR DESIGNATION (2 ITEMS) 2. INNOMINATE 502019 - ARE CONTRACTS WHICH HAVE A NAME UNDER THE NOMINATE CONTRACTS LAW. 502020 - ARE CONTRACTS WITHOUT ANY NAME UNDER THE INNOMINATE CONTRACTS LAW. 1. DO UT DES (I GIVE THAT YOU MAY GIVE) 2. DO UT FACIAS (I GIVE THAT YOU MAY DO) 502021 - EXAMPLES OF INNOMINATE CONTRACTS (4 ITEMS) 3. FACIO UT DES (I DO THAT YOU MAY GIVE) 4. FACIO UT FACIAS (I DO THAT YOU MAY DO) 1. THE STIPULATIONS OF THE PARTIES 2. THE PROVISIONS OF THE OBLIGATIONS AND CONTRACTS 502022 - RULES THAT GOVERN INNOMINATE CONTRACTS (4 3. THE RULES GOVERNING THE MOST ANALOGOUS ITEMS) NOMINATE CONTRACTS 4. THE CUSTOMS OF THE PLACE 502023 - CLASSIFICATION OF CONTRACTS ACCORDING TO 1. COMMUTATIVE RISK OR FULFILLMENT (2 ITEMS) 2. ALEATORY 502024 - ARE CONTRACTS WHERE THE PARTIES GIVE COMMUTATIVE CONTRACTS EQUIVALENT VALUES. 502025 - ARE CONTRACTS WHOSE FULFILLMENT DEPENDS ALEATORY CONTRACTS UPON CHANCE. 502026 - CLASSIFICATION OF CONTRACTS ACCORDING TO 1. UNILATERAL THE PARTIES OBLIGATED (2 ITEMS) 2. BILATERAL OR SYNALAGMATIC 502027 - ARE CONTRACTS WHERE ONLY ONE OF THE UNILATERAL CONTRACTS PARTIES IS OBLIGATED TO GIVE OR DO SOMETHING. 502028 - ARE CONTRACTS WHERE BOTH PARTIES ARE BILATERAL CONTRACTS REQUIRED TO GIVE OR DO SOMETHING. 1. CONTRACTS INVOLVING THINGS 502029 - CLASSIFICATION OF CONTRACTS ACCORDING TO 2. CONTRACTS INVOLVING RIGHTS OR CREDITS SUBJECT MATTER (3 ITEMS) 3. CONTRACTS INVOLVING SERVICES 502030 - CLASSIFICATION OF CONTRACTS ACCORDING TO 1. EXECUTED THE TIME OF FULFILLMENT (2 ITEMS) 2. EXECUTORY 502031 - IS A CONTRACT WHICH HAS BEEN PERFORMED. EXECUTED CONTRACT 502032 - IS A CONTRACT THAT HAS NOT YET BEEN EXECUTORY CONTRACT PERFORMED. 502033 - IS A CONTRACT WHERE ONLY ONE PERSON REPRESENTS THE TWO OPPOSITE PARTIES TO THE AUTO-CONTRACT CONTRACT. 502034 - IS A CONTRACT WHOSE TERMS ARE PREPARED BY ONLY ONE PARTY, WHILE THE OTHER PARTY MERELY CONTRACT OF ADHESION AFFIXES HIS SIGNATURE SIGNIFYING HIS ADHESION THERETO. 1. PREPARATION OR CONCEPTION 502035 - STAGES OF A CONTRACT (3 ITEMS) 2. PERFECTION OR BIRTH 3. CONSUMATION OR DEATH OR TERMINATION 502036 - IS A STAGE OF A CONTRACT WHICH INVOLVES PRELIMINARY NEGOTIATIONS AND BARGAINING, PREPARATION OR CONCEPTION DISCUSSION OF TERMS AND CONDITIONS, WITH NO ARRIVAL YET OF A DEFINITE AGREEMENT. 502037 - IS A STAGE OF A CONTRACT WHICH IS THE POINT WHEN THERE IS A MEETING OF MINDS BETWEEN THE PERFECTION OR BIRTH PARTIES ON A DEFINITE SUBJECT MATTER AND A VALID CAUSE. 502038 - IS A STAGE OF A CONTRACT WHICH OCCURS WHEN THE PARTIES FULFILL OR PERFORM THE TERMS AGREED CONSUMMATION OR DEATH OR TERMINATION UPON IN THE CONTRACT, CULMINATING IN THE EXTINGUISHMENT THEREOF. 1. LIBERTY OF CONTRACT OR FREEDOM TO STIPULATE 2. MUTUALITY OF CONTRACTS 502039 - BASIC PRINCIPLES OF CONTRACTS (5 ITEMS) 3. RELATIVITY OF CONTRACTS 4. CONSENSUALITY OF CONTRACTS 5. OBLIGATORY FORCE AND COMPLIANCE IN GOOD FAITH 502040 - IS A BASIC PRINCIPLE OF CONTRACTS WHICH ASSERTS THAT THE CONTRACTING PARTIES MAY ESTABLISH SUCH STIPULATIONS, CLAUSES, TERMS AND CONDITIONS AS LIBERTY OF CONTRACT OR FREEDOM TO STIPULATE THEY MAY DEEM CONVENIENT, PROVIDED THEY ARE NOT CONTRARY TO LAW, MORALS, GOOD CUSTOMS, PUBLIC ORDER OR PUBLIC POLICY. 502041 - IS A STIPULATION THAT THE CREDITOR AUTOMATICALLY BECOMES THE OWNER OF THE PROPERTY PACTUM COMMISSORIUM PLEDGED OR MORTGAGED IF THE DEBTOR DEFAULTS IN HIS PAYMENT (VOID BECAUSE CONTRARY TO LAW). 502042 - IS A PRICE SPECIFIED IN MORTGAGE CONTRACTS BELOW WHICH THE MORTGAGED PROPERTY IS NOT TIPO OR UPSET PRICE SUPPOSED TO BE SOLD AT THE FORECLOSURE SALE (VOID BECAUSE IT IS CONTRARY TO LAW). 502043 - MEANS UNREASONABLY EXCESSIVE RATE OF UNCONSCIONABLE INTEREST RATE INTEREST (VOID BECAUSE IT IS CONTRARY TO MORALS). 502044 - REFERS TO A CONDITION OF ENFORCED AND COMPULSORY SERVICE INDUCED BY MEANS OF ANY SCHEME, PLAN OR PATTERN, INTENDED TO CAUSE A PERSON TO BELIEVE THAT IF HE OR SHE DID NOT ENTER INTO OR CONTINUE IN SUCH CONDITION, HE OR SHE OR ANOTHER PERSON WOULD SUFFER SERIOUS HARM OR OTHER FORMS OF ABUSE OR PHYSICAL RESTRAINT, OR INVOLUNTARY SERVITUDE THREAT OF ABUSE OR HARM, OR COERCION INCLUDING DEPRIVING ACCESS TO TRAVEL DOCUMENTS AND WITHHOLDING SALARIES, OR ABUSE OR THREATENED ABUSE OF THE LEGAL PROCESS (ANY STIPULATION MANIFESTING THIS IS VOID SINCE IT IS CONTRARY TO MORALS). 502045 - IS A BASIC PRINCIPLE OF CONTRACTS WHICH ASSERTS THAT THE CONTRACT MUST BIND BOTH MUTUALITY OF CONTRACTS CONTRACTING PARTIES AND ITS VALIDITY OR COMPLIANCE CANNOT BE LEFT TO THE WILL OF ONE OF THEM. 502046 - IS A BASIC PRINCIPLE OF CONTRACTS WHICH ASSERTS THAT CONTRACTS TAKE EFFECT ONLY BETWEEN THE PARTIES, THEIR ASSIGNS AND HEIRS, EXCEPT WHERE RELATIVITY OF CONTRACTS THE RIGHTS AND OBLIGATION ARE NOT TRANSMISSIBLE BY LAW, BY STIPULATION OR BY NATURE. 502047 - RULE ON THE LIABILITY OF HEIRS WITH RESPECT TO WITH RESPECT TO THE HEIR, HE SHALL NOT BE LIABLE THE OBLIGATIONS OF THEIR DECEDENT PASSED ONTO BEYOND THE VALUE OF THE PROPERTY HE RECEIVED FROM THEM THE DECEDENT. 502048 - IS A BASIC PRINCIPLE OF CONTRACTS WHICH ASSERTS THAT (IN GENERAL) CONTRACTS ARE PERFECTED CONSENSUALITY OF CONTRACTS BY MERE CONSENT. 502049 - ARE BASIC PRINCIPLES OF A CONTRACT WHICH ASSERTS THAT OBLIGATIONS ARISING FROM CONTRACTS OBLIGATORY FORCE OF CONTRACTS AND COMPLIANCE IN SHALL HAVE THE FORCE OF LAW BETWEEN THE GOOF FAITH CONTRACTING PARTIES AND SHOULD BE COMPLIED WITH IN GOOD FAITH. 502050 - IS THE MANIFESTATION OF THE MEETING OF THE OFFER AND THE ACCEPTANCE UPON THE THING AND THE CONSENT CAUSE WHICH ARE TO CONSTITUTE THE CONTRACT. 502051 - THE OFFER MUST BE __________ BECAUSE THERE COULD BE NO MEETING OF MINDS IF IT IS VAGUE OR NOT CERTAIN DEFINITE. 502052 - __________ OF THIS FOR SALE ARE NOT DEFINITE OFFERS, BUT MERE INVITATIONS TO MAKE AN OFFER BUSINESS ADVERTISEMENTS UNLESS IT APPEARS OTHERWISE. 502053 - AN OFFER BECOMES __________ UPON THE DEATH, CIVIL INTERDICTION, INSANITY OR INSOLVENCY OF EITHER INEFFECTIVE PARTY (OFFEROR OR OFFEREE) BEFORE ACCEPTANCE IS CONVEYED. THE OFFER MAY BE WITHDRAWN ANY TIME BEFORE 502054 - TIME WHEN THE OFFEROR MAY WITHDRAW HIS ACCEPTANCE BY COMMUNICATING SUCH WITHDRAWAL, OFFER IF HE HAS ALLOWED THE OFFEREE A CERTAIN EXCEPT WHEN THE OPTION IS FOUNDED UPON A PERIOD TO ACCEPT. CONSIDERATION AS SOMETHING PAID OR PROMISED. 502055 - IS A CONTRACT WHEREBY THE OFFEROR GIVES THE OFFEREE A CERTAIN PERIOD WITHIN WHICH TO BUY OR OPTION NOT TO BUY A CERTAIN OBJECT FOR A FIXED PRICE. THE OFFEROR MAY WITHDRAW THE OFFER AT ANYTIME 502056 - RIGHT OF THE OFFEROR TO WITHDRAW THE OFFER WITHIN THE OPTION PERIOD PROVIDED THERE HAS NOT YET IF THERE IS NO CONSIDERATION FOR THE OPTION BEEN ANY ACCEPTANCE. THE OFFEROR MAY NOT WITHDRAW THE OFFER BEFORE 502057 - RIGHT OF THE OFFEROR TO WITHDRAW THE OFFER THE LAPSE OF THE PERIOD AGREED UPON; OTHERWISE, HE IF THERE IS A CONSIDERATION FOR THE OPTION WILL BE LIABLE FOR DAMAGES TO THE OFFEREE FOR BREACH OF CONTRACT. 502058 - IS THE UNQUALIFIED AND TOTAL AGREEMENT IN ABSOLUTE ACCEPTANCE ACCEPTING A LIABILITY OR RESPONSIBILITY. 502059 - IF THE ACCEPTANCE IS QUALIFIED, IT CONSTITUTES A _________ AND HAS THE EFFECT OF REJECTING THE COUNTER-OFFER OFFER. 502060 - TIME WHEN ACCEPTANCE MADE BY LETTER OR IT BINDS THE OFFEROR AT THE TIME THE ACCEPTANCE BY TELEGRAM BINDS THE OFFEROR LETTER OR TELEGRAM COMES TO HIS KNOWLEDGE. THE PLACE WHERE A CONTRACT HAS BEEN ENTERED INTO 502061 - PRESUMPTION ON THE PLACE WHERE A CONTRACT IS PRESUMED TO BE THE SAME PLACE WHERE THE OFFER IS MADE WAS MADE. 502062 - A CONTRACT IS GOVERNED BY THE LAW OF THE WHERE IT WAS ENTERED INTO. PLACE __________. 502063 - IS AN ACCEPTANCE MADE ORALLY OR IN WRITING. EXPRESS ACCEPTANCE 502064 - IS AN ACCEPTANCE WHICH CAN BE INFERRED FROM IMPLIED ACCEPTANCE THE CONDUCT OF THE PARTIES. 502065 - AN OFFER MADE THROUGH AN AGENT IS ACCEPTED HIM (THE AGENT) FROM THE TIME IT IS COMMUNICATED TO _________. 502066 - IS A PERSON'S AUTHORITY UNDER LAW TO ENGAGE IN A PARTICULAR UNDERTAKING OR MAINTAIN A LEGAL CAPACITY PARTICULAR STATUS. 1. UNEMANCIPATED MINORS 502067 - PERSONS WHO CANNOT GIVE CONSENT TO A 2. INSANE OR DEMENTED PERSONS CONTRACT (3 ITEMS) 3. DEAF-MUTES WHO DO NOT KNOW HOW TO WRITE 502068 - TAKES PLACE BY THE ATTAINMENT OF THE AGE OF EMANCIPATION MAJORITY WHICH IS 18 YEARS. 502069 - CONTRACTS ENTERED INTO BY INSANE OR DEMENTED PERSONS DURING _________ ARE VALID. LUCID INTERVAL; LUCID INTERVAL __________ REFERS TO THE PERIOD OF TEMPORARY SANITY OF AN INSANE PERSON. 502070 - STATUS OF CONTRACTS ENTERED INTO WHEREIN VOIDABLE ONE PARTY IS INCAPACITATED TO GIVE CONSENT 502071 - STATUS OF CONTRACTS ENTERED INTO WHEREIN UNENFORCEABLE BOTH PARTIES ARE INCAPACITATED TO GIVE CONSENT 502072 - STATUS OF A CONTRACT WHEREIN AN INCAPACITATED PERSON PAYS A REASONABLE PRICE FOR VALID FOOD AND OTHER NECESSARIES SOLD TO HIM. 502073 - STATUS OF CONTRACTS AGREED TO IN A STATE OF VOIDABLE DRUNKENNESS OR DURING HYPNOTIC SPELL 502074 - STATUS OF CONTRACTS WHERE CONSENT IS GIVEN THROUGH MISTAKE, VIOLENCE, INTIMIDATION, UNDUE VOIDABLE INFLUENCE OR FRAUD 1. MISTAKE 2. INTIMIDATION 502075 - VICES OF CONSENT (5 ITEMS) 3. VIOLENCE 4. UNDUE INFLUENCE 5. FRAUD 502076 - IS AN ERROR IN UNDERSTANDING FACTS. MISTAKE 502077 - VALID OR INVALID CONSENT: MISTAKE REFERS TO THE SUBSTANCE OF THE THING WHICH IS THE OBJECT OF INVALID CONSENT THE CONTRACT. 502078 - VALID OR INVALID CONSENT: MISTAKE REFERS TO THOSE CONDITIONS WHICH HAVE PRINCIPALLY MOVED ONE INVALID CONSENT OR BOTH PARTIES TO ENTER INTO THE CONTRACT. 502079 - VALID OR INVALID CONSENT: MISTAKE REFERS TO THE IDENTITY OR QUALIFICATIONS OF ONE OF THE PARTIES INVALID CONSENT AND SUCH IDENTITY OR QUALIFICATIONS HAVE BEEN THE PRINCIPAL CAUSE OF THE CONTRACT. 502080 - VALID OR INVALID CONSENT: MISTAKE REFERS TO THE LEGAL EFFECT OF AN AGREEMENT WHEN THE REAL INVALID CONSENT PURPOSE OF THE PARTIES IS FRUSTRATED AND THE SAME IS MUTUAL. 502081 - VALID OR INVALID CONSENT: MISTAKE REFERS TO A VALID CONSENT (SUCH MISTAKE SHALL ONLY BE SIMPLE MISTAKE OF ACCOUNT. CORRECTED.) VALID CONSENT (E.G., A THING IS SOLD AT A VERY LOW 502082 - VALID OR INVALID CONSENT: THE PARTY ALLEGING PRICE. BUYER THEN ALLEGES THAT THE THING SOLD TO HIM MISTAKE KNEW THE DOUBT, CONTINGENCY OR RISK HAS BEEN STOLEN BY THE SELLER FROM ANOTHER AFFECTING THE OBJECT OF A CONTRACT. PERSON.) GR: HE WHO ALLEGES FRAUD OR MISTAKE MUST PROVE THE SAME. XPN: WHEN ONE PARTY IS UNABLE TO READ OR DOES NOT 502083 - RULE ON WHO HAS THE BURDEN OF PROOF WITH UNDERSTAND THE LANGUAGE OF THE CONTRACT, IF REGARD TO THE ALLEGATIONS OF MISTAKE OR FRAUD MISTAKE OR FRAUD IS ALLEGED, THE PERSON ENFORCING THE CONTRACT MUST SHOW THAT THE TERMS THEREOF HAVE BEEN FULLY EXPLAINED TO THE FORMER. 502084 - THERE IS ___________ WHEN IN ORDER TO WREST CONSENT, SERIOUS OR IRRESISTIBLE FORCE IS EMPLOYED (WHETHER BY ONE OF THE CONTRACTING PARTIES TO THE VIOLENCE OTHER OR A THIRD PERSON WHO DID NOT TAKE PART IN THE CONTRACT). 502085 - THERE IS ___________ WHEN ONE OF THE CONTRACTING PARTIES IS COMPELLED BY A REASONABLE AND WELL-GROUNDED FEAR OF AN IMMINENT AND GRAVE INTIMIDATION EVIL UPON HIS PERSON OR PROPERTY, OR UPON THE PERSON OR PROPERTY OF HIS SPOUSE, DESCENDANTS OR ASCENDANTS TO GIVE HIS CONSENT. 1. AGE 502086 - FACTORS TO BE CONSIDERED IN DETERMINING THE 2. SEX DEGREE OF INTIMIDATION (3 ITEMS) 3. CONDITION OF THE PERSON NO INTIMIDATION EXISTS IN CASE OF A THREAT TO 502087 - WHEN NO INTIMIDATION EXISTS ENFORCE ONE'S CLAIM THROUGH COMPETENT AUTHORITY, IF THE CLAIM IS JUST AND LEGAL. 502088 - THERE IS __________ WHEN A PERSON TAKES IMPROPER ADVANTAGE OF HIS POWER OVER THE WILL OF UNDUE INFLUENCE ANOTHER, DEPRIVING THE LATTER OF A REASONABLE FREEDOM OF CHOICE. 502089 - KIND OF FRAUD THAT VITIATES CONSENT DOLO CAUSANTE OR CAUSAL FRAUD 502090 - KIND OF FRAUD: WHEN THROUGH THE INSIDIOUS WORDS OR MCHINATIONS OF ONE OF THE CONTRACTING PARTIES, THE OTHER IS INDUCED TO ENTER INTO A ACTIVE FRAUD CONTRACT WHICH, WITHOUT THEM, HE WOULD NOT HAVE AGREED TO. 502091 - KIND OF FRAUD: WHEN THERE IS A FAILURE TO DISCLOSE FACTS, WHEN THERE IS A DUTY TO REVEAL PASSIVE FRAUD THEM, AS WHEN THE PARTIES ARE BOUND BY CONFIDENTIAL RELATIONS. 502092 - IF CAUSAL FRAUD VITIATES CONSENT, EFFECT OF INCIDENTAL FRAUD ONLY OBLIGES THE PERSON INCIDENTAL FRAUD TO A CONTRACT EMPLOYING IT TO PAY DAMAGES. THE BAD FAITH OF ONE WILL NEGATE THE BAD FAITH OF 502093 - EFFECT WHEN FRAUD HAS BEEN EMPLOYED BY THE OTHER. THE LAW WILL CONSIDER BOTH OF THEM IN BOTH CONTRACTING PARTIES GOOD FAITH; HENCE, THE CONTRACT WILL BE VALID. 502094 - EFFECT IN CASE OF THE USUAL EXAGERRATIONS IN TRADE IN ORDER TO OBTAIN CONSENT, WHEN THE OTHER NO FRAUD EXISTS. PARTY HAD AN OPPORTUNITY TO KNOW THE FACTS. 502095 - EFFECT IN CASE OF A MERE EXPRESSION OF AN OPINION IN ORDER TO OBTAIN CONSENT, UNLESS MADE BY NO FRAUD EXISTS. AN EXPERT AND THE OTHER PARY HAS RELIED ON THE FORMER'S SPECIAL KNOWLEDGE. 502096 - IS A CONTRACT THAT DOES NOT INTEND TO HAVE ANY LEGAL EFFECT ON OR CHANGE IN THE JURIDICAL SIMULATED CONTRACT SITUATION OF THE PARTIES. 1. ABSOLUTELY SIMULATED 502097 - KINDS OF SIMULATED CONTRACTS (2 ITEMS) 2. RELATIVELY SIMULATED 502098 - IS A SIMULATED CONTRACT WHERE THE PARTIES DO NOT INTEND TO BE BOUND AT ALL. BEING FICTITIOUS IT ABSOLUTELY SIMULATED CONTRACT IS VOID. 502099 - IS A SIMULATED CONTRACT WHERE THE PARTIES CONCEAL THEIR TRUE AGREEMENT. THE PARTIES HERE ARE BOUND BY THEIR REAL AGREEMENT PROVIDED IT DOES NOT RELATIVELY SIMULATED CONTRACT PREJUDICE A THIRD PERSON AND IS NOT INTENDED FOR ANY PURPOSE CONTRARY TO LAW, MORALS, GOOD CUSTOMS, PUBLIC ORDER AND PUBLIC POLICY. SUBJECT TO CERTAIN CRITERIA: 502100 - ITEMS THAT MAY BE OBJECTS OF CONTRACTS (3 1. THINGS ITEMS) 2. RIGHTS 3. SERVICES 1. MUST BE WITHIN THE COMMERCE OF MEN 2. MUST BE TRANSMISSIBLE 502101 - REQUISITES TO BE AN OBJECT OF A CONTRACT (5 3. MUST NOT BE CONTRARY TO LAW, MORALS, GOOD ITEMS) CUSTOMS, PUBLIC ORDER AND PUBLIC POLICY 4. MUST NOT BE IMPOSSIBLE 5. MUST BE DETERMINATE OR DETERMINABLE 502102 - FOR A THING TO BECOME A VALID OBJECT OF A CONTRACT, IT MUST BE __________ - MEANING THAT THE OBJECT MUST BE CAPABLE OF BEING OWNED, POSSESSED, WITHIN THE COMMERCE OF MEN ACQUIRED AND TRANSFERRED FROM ONE PERSON TO ANOTHER. 502103 - A THING THAT IS __________ IS CAPABLE OF BEING FIRMLY DECIDED OR DEFINITELY ASCERTAINED WITHOUT DETERMINABLE THE NEED OF A NEW CONTRACT OR AGREEMENT BETWEEN THE PARTIES. 502104 - IS THE ESSENTIAL REASON THY A PARTY ENTERS CAUSE INTO A CONTRACT. 1. IT MUST EXIST. 502105 - REQUISITES OF CAUSE (3 ITEMS) 2. IT MUST BE LAWFUL. 3. IT MUST BE TRUE. 502106 - CAUSE OR MOTIVE: IS THE ESSENTIAL REASON OF CAUSE THE CONTRACT. 502107 - CAUSE OR MOTIVE: IS THE PRIVATE OR SECRET MOTIVE REASON OR INTENTION OF A CONTRACTING PARTY. 502108 - CAUSE OR MOTIVE: THE CONTRACT IS VOID IF THE CAUSE __________ IS ILLEGAL. 502109 - CAUSE OR MOTIVE: THE VALIDITY OF THE CONTRACT IS NOT AFFECTED BY THE ILLEGALITY OF THE MOTIVE __________. 502110 - CAUSE OR MOTIVE: THE __________ OF A CONTRACT IS ALWAYS KNOWN TO THE CONTRACTING CAUSE PARTIES. 502111 - CAUSE OR MOTIVE: THE __________ OF ONE PARTY MOTIVE MAY NOT BE KNOWN TO THE OTHER. 502112 - IS THE INADEQUACY OF CAUSE. LESION 1. RESCISSIBLE CONTRACT 2. VOIDABLE CONTRACT 502113 - TYPES OF DEFECTIVE CONTRACTS (4 ITEMS) 3. UNENFORCEABLE CONTRACT 4. VOID CONTRACT 502114 - IS A DEFECTIVE CONTRACT WHICH HAS ALL THE ESSENTIAL REQUISITES OF A CONTRACT BUT WHICH MAY BE RESCISSIBLE CONTRACT SET ASIDE BY REASON OF EQUITY ON ACCOUNT OF DAMAGE TO ONE OF THE PARTIES OR UPON A THIRD PERSON. 1. CONTRACTS ENTERED INTO BY GUARDIANS WHENEVER THE WARD WHOM THEY REPRESENT SUFFER LESION OF MORE THAN ONE-FOURTH OF THE THINGS WHICH ARE THE OBJECT THEREOF. 2. THOSE AGREED TO IN REPRESENTATION OF ABSENTEES, IF THE LATTER SUFFER LESION BY MORE THAN ONE- FOURTH OF THE VALUE OF THE THING WHICH ARE THE OBJECT THEREOF. 502115 - EXAMPLES OF RESCISSIBLE CONTRACTS (5 ITEMS) 3. CONTRACTS UNDERTAKEN IN FRAUD OF CREDITORS WHEN THE LATTER CANNOT IN ANY MANNER COLLECT THE CLAIMS DUE THEM. 4. THOSE WHICH REFER TO THINGS UNDER LITIGATION IF THEY HAVE BEEN ENTERED INTO BY THE DEFENDANT WITHOUT THE KNOWLEDGE AND APPROVAL OF THE LITIGANTS OR OF COMPETENT JUDICIAL AUTHORITY. 5. ALL OTHER CONTRACTS SPECIALLY DECLARED BY LAW TO BE SUBJECT TO RESCISSION. 502116 - IS THE REMEDY ALLOWED BY LAW TO THE CONTRACTING PARTIES AND EVEN TO THIRD PERSONS, TO SECURE THE REPARATION OF DAMAGES CAUSED TO THEM BY A CONTRACT, EVEN IF IT SHOULD BE VALID, BY MEANS RESCISSION OF THE RESTORATION OF THINGS TO THEIR CONDITION AT THE MOMENT PRIOR TO THE CELEBRATION OF SAID CONTRACT. STILL UNFINISHED AUDIT - OVERVIEW OF AUDITNG (601001 - STILL UNFINISHED) 601001 - IS AN INDIVIDUAL WHO HOLDS A VALID CERTIFICATE ISSUED BY THE BOARD OF ACCOUNTANCY, WHETHER PROFESSIONAL ACCOUNTANT OR CERTIFIED PUBLIC HE/SHE BE IN PUBLIC PRACTICE, INDUSTRY, COMMERCE, ACCOUNTANT THE PUBLIC SECTOR OR EDUCATION. 1. PRACTICE OF PUBLIC ACCOUNTANCY 2. PRACTICE IN COMMERCE & INDUSTRY (COMMERCE - 601002 - SCOPE OF PRACTICE OF ACCOUNTANCY IN THE DISTRIBUTION OF GOODS AND SERVICES; INDUSTRY - PHILIPPINES (4 ITEMS) CONVERSION OF RAW MATERIALS TO FINISHED GOODS) 3. PRACTICE IN EDUCATION/ACADEME 4. PRACTICE IN THE GOVERNMENT 601003 - ACCOUNTANTS IN __________ ARE WORKING IN ACCOUNTING FIRMS OR INDIVIDUALLY TO PROVIDE AUDIT PUBLIC PRACTICE AND ATTESTATION, TAX PLANNING AND PREPARATION, AND ADVISORY SERVICES TO THEIR CLIENTS. 601004 - AN ACCOUNTANT PRACTICING IN __________ SERVES ONLY ONE COMPANY. HE PROVIDES A STAFF INDUSTRY & COMMERCE (ALSO PRIVATE ACCOUNTING) FUNCTION WHICH SUPPORTS THE COMPANY BY PERFORMING ACCOUNTING-RELATED TASKS. 601005 - AN ACCOUNTANT PRACTICING IN ___________ CAN PURSUE A CAREER AS A FACULTY MEMBER IN A SCHOOL, AN (ACCOUNTING) EDUCATION/ACADEME AUTHOR OF AN ACCOUNTING BOOK, A RESEARCHER, A TRAINER OR A REVIEWER. 601006 - AN ACCOUNTANT PRACTICING IN __________ PROVIDE ACCOUNTING INFORMATION THAT HELP GOVERNMENT GOVERNMENT AGENCIES PLAN, BUDGET, FORECAST AND ALLOCATE GOVERNMENT FUNDS. 601007 - IS A SYSTEMATIC PROCESS BY WHICH A COMPETENT, INDEPENDENT PERSON OBJECTIVELY OBTAINS AND EVALUATES EVIDENCE REGARDING ASSERTIONS ABOUT ECONOMIC ACTIONS AND EVENTS TO ASCERTAIN AUDITING THE DEGREE OF CORRESPONDENCE BETWEEN THOSE ASSERTIONS AND ESTABLISHED CRITERIA AND COMMUNICATING THE RESULTS TO INTERESTED USERS, 601008 - IS A KEY PHRASE IN THE DEFINITION OF AUDITING WHICH IMPLIES A STRUCTURED, LOGICAL AND ORGANIZED SYSTEMATIC PROCESS SERIES OF STEPS AND PROCEDURES. 601009 - INCLUDE INFORMATION CONTAINED IN FINANCIAL STATEMENTS, INTERNAL OPERATING REPORTS AND TAX ASSERTIONS RETURNS. 601010 - REFERS TO THE CLOSENESS WITH WHICH THE ASSERTIONS CAN BE IDENTIFIED WITH ESTABLISHED DEGREE OF CORRESPONDENCE CRITERIA. 601011 - ARE THE STANDARDS AGAINST WHICH THE ESTABLISHED CRITERIA ASSERTIONS OR REPRESENTATIONS ARE JUDGED. 601012 - IS THE REPORTING OF THE RESULTS ANALYZED ATTESTATION AND CONFIRMED IN THE AUDITING PROCESS. 601013 - ARE THE INDIVIDUALS WHO USE (RELY ON) THE INTERESTED USERS AUDITOR’S FINDINGS. 1. STOCKHOLDERS 2. MANAGEMENT 601014 - EXAMPLES OF INTERESTED USERS (5 ITEMS) 3. CREDITORS 4. GOVERNMENTAL AGENCIES 5. PUBLIC 1. SHAREHOLDERS ARE NUMEROUS. 601015 - REASONS WHY IT IS RARE THAT OWNERS 2. THEY OFTEN LACK SPECIFIC MANAGEMENT SKILLS (SHAREHOLDERS) OF THE BUSINESS ALSO RUN (CONTROL) REQUIRED TO SUCCESSFULLY MANAGE LARGE THE BUSINESS (2 ITEMS) ENTERPRISES. 601016 - THE SHAREHOLDERS VEST CONTROL OF THE BUSINESS IN __________ WHO EMPLOY SPECIALIST BOARD OF DIRECTORS; MANAGEMENT _________ TO RUN THE BUSINESS AND RETURN THE PROFITS OF THE BUSINESS BACK TO SHAREHOLDERS. 601017 - IS THE RISK THAT UNRELIABLE INFORMATION WILL INFORMATION RISK BE PROVIDED TO DECISION MAKERS. 1. REMOTENESS OF INFORMATION USERS FROM INFORMATION PROVIDERS 601018 - FACTORS THAT CONTRIBUTE TO INFORMATION RISK 2. POTENTIAL BIAS AND MOTIVES OF INFORMATION (4 ITEMS) PROVIDER 3. VOLUMINOUS DATA 4. COMPLEX BUSINESS TRANSACTIONS 1. ALLOW USERS TO VERIFY INFORMATION (GENERALLY IMPRACTICABLE) 601019 - WAYS ON HOW INFORMATION RISK MAY BE 2. USER SHARES INFORMATION RISK WITH MANAGEMENT (I. REDUCED (3 ITEMS) E., HAVING A WAY FOR OWNERS TO RECOVER PART OF OPERATING LOSSES FROM THE MANAGEMENT) 3. HAVE THE FINANCIAL STATEMENTS AUDITED 1. INDEPENDENT FINANCIAL STATEMENTS AUDIT 601020 - GENERAL TYPES OF AUDIT (3 ITEMS) 2. INTERNAL AUDIT 3. GOVERNMENT AUDIT 601021 - IS A TYPE OF AUDIT THAT CONSISTS OF METHODOLOGICAL REVIEW AND OBJECTIVE EXAMINATION OF FINANCIAL STATEMENTS PREPARED BY AN ENTERPRISE INDEPENDENT FINANCIAL STATEMENTS AUDIT (AUDITEE) TO DETERMINE IF SUCH STATEMENTS HAVE BEEN PREPARED IN CONFORMITY WITH FINANCIAL REPORTING PRACTICES THAT ARE APPROPRIATE FOR THE AUDITEE. 601022 - IS A TYPE OF AUDIT DESCRIBED AS AN INDEPENDENT, OBJECTIVE ASSURANCE AND CONSULTING INTERNAL AUDIT ACTIVITY DESIGNED TO ADD VALUE AND IMPROVE AN ORGANIZATION’S OPERATIONS. 601023 - IS A TYPE OF AUDIT WHICH INVOLVES THE DETERMINATION OF WHETHER GOVERNMENT FUNDS ARE BEING HANDLED PROPERLY AND IN COMPLIANCE WITH GOVERNMENT AUDIT EXISTING LAWS AND WETHER THE PROGRAMS ARE BEING CONDUCTED EFFICIENTLY AND ECONOMICALLY. 601024 - IS THE LEVEL OF ASSURANCE THAT THE FINANCIAL STATEMENTS ARE NOT MATERIALLY MISSTATED THAT AN REASONABLE (OR HIGH) ASSURANCE AUDITOR, EXERCISING PROFESSIONAL SKILL AND CARE, IS EXPECTED TO ATTAIN FROM AN AUDIT. 601025 - IS THE HIGHEST LEVEL OF ASSURANCE AN AUDITOR ABSOLUTE ASSURANCE CAN GIVE, IF HE CHECKS EACH AND EVERY TRANSACTION. 1. USE OF SAMPLING (SAMPLING RISK) 2. INHERENT LIMITATIONS OF ANY ACCOUNTING AND INTERNAL CONTROL SYSTEM (E.G., POSSIBILITY OF COLLUSION) 601026 - FACTORS THAT LIMIT THE AUDITOR FROM GIVING 3. MOST AUDIT EVIDENCE IS PERSUASIVE RATHER THAN ABSOLUTE ASSURANCE (3 ITEMS) CONCLUSIVE 4. HUMAN WEAKNESSES SUCH AS FATIGUE, MISINTERPRETATION OF EVIDENCE, MISAPPLICATION OF PROCEDURE (NON-SAMPLING RISKS) 601027 - IS EVIDENCE THAT HAS THE POWER TO INFLUENCE OR PERSUADE SOMEONE TO BELIEVE IN ITS TRUTH (E.G., PERSUASIVE EVIDENCE CONFIRMATION OF ACCOUNT RECEIVABLE FROM 75% OF CLIENTS). 601028 - IS A SOLID EVIDENCE AFTER WHICH NO FURTHER PROOF OR INQUIRY IS REQUIRED & EVIDENCE IN ITSELF IS COMPLETE (E.G., SENDING OF CONFIRMATION LETTER TO CONCLUSIVE EVIDENCE ALL CUSTOMERS AND PURSUING ALL OF THEM UNTIL THEY RESPOND).