According to them, Accounting is a process of identifying, measuring and communicating economic information to permit informed judgements and decisions by users of the information.

The following are the accounting processes, EXCEPT:

It is the process of identifying, measuring and communicating economic information to permit informed judgements and decions by users of the information.

It is the system of collecting and processing transaction data and disseminating financial information to interested parties.

Accounting information system is a ________ of Management Information System (MIS)

It is a set of data gathering, analyzing ad reporting functions it needs to carry out its functions.

What are the major components of an MIS?

These are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements.

Set of interrelated activities involving the originating, processing and reporting of financial ad related information.

It used in the system to expedite work, to provide controls, and pevent fraud and errors.

These are necessary to gather, process, store and transmit financial and other information.

What are the components of accounting information?

It represent the steps or procedures used in recording transactions and preparing financial statement. It implements the accounting process.

The accountant gathers information from source documents and determines the effect of the transactions on the accounts.

The identified accountable events are recorded in the journals

Information from the journal are transferred to the ledger.

The balances of the general ledger accounts are proved as to the equality of debits and credits. It serves as basis for adjusting entries.

The accounts are updated as of the reporting date in an accrual basis by recording accruals, expiration of deferrals, estimations and other events often not signaled by new source documents.

The equality of debits and credits are rechecked after adjusments are made. It serves as basis for the preparation of the financial statements.

These are the means by which the information processed is communicated to users.

This involves journalizing and posting closing entries and ruling the ledger. Temporary accounts (or nominal accounts) are closed and the resulting profit or loss is transferred to an equity account.

The equality of debits and credits are again rechecked after the closing process.

It is usually made at the beginning of the next accounting period to simplify the recording of certain transactions in the next accounting period.

Preparing the unadjusted trial balance, adjusted trial balance, post-closing trial balance and recording reversing entries are optional.

These are the original source materials evidencing a transaction. Ex. sales invoice, offical receipts, vouchers, statements of account, etc.

Under this system, each transaction is recorded in two parts- debit and credit.

This concept views each transactiom as having a two-fold effect on values- a value received and a value parted with and each transaction is recorded using at least two accounts.

This concept requires each transaction to be recorded in terms of equal debits and credits.

Under this, the difference between income and expenses is computed.

Under this system, each transaction is recorded through simple narrative. Transactions are not analyzed in terms of debits and credits. Profit or loss for the period is determined through the "capital maintenance approach" or by comparing the beginning and ending balances of equity.

Under this, income and expensesnare recognized when earned or inccured, regardless of when cash is received or paid.

Income and expenses are recognized when received or paid, regardless of when earned or incurred.

It is the process of recording transactions in the journak by means of journal entries.

It is also called the book of original entry, it is a formal record where transactions are initially recorded chronological through journal entries.

A book of original entry used to record transactions other than those that are recorded in the special journals. If special journals are not utilized, all transactions are recorded in this type of journal.

A book of original entry used to record transactions of a similar nature.

Used to record purchases of inventory on account.

Used to record all transactions involving receipts of cash.

Used to record sales on account

Used to record all transactions involving payments of cash

One which contains a single debit and a single credit element.

One which containw two or more debits or creditsm

Entries made prior to the preparation of financial statements to update certin accounts so that they reflect correct balances as at the designated time.

Entries made at the end of the accounting period after all adjustments have been made to zero-out the balances of all nominal accounts and to update the retained earnings account

Entries usually made on the first day of the accounting period to reverse certain adjusting entries in the immediately preceing period.

Entries made to correct accounting errors

Entries made to transfer an amount from one account to another account that better describes the nature of the transaction being recorded.

It is the process of transferring data from the journal to the appropriate accounts in the ledger. The purpose of it is to classify the effects of transactions on specific asset, liability, equity, income and expense accounts in order to provide more meaningful information.

It is also called the book of secondary entries or book of final entries. It is a systematic compilation of a group of accounts.

Contains all the accounts appearing in the trial balance.

Provides a breakdown of the balances of controlling accounts.

It is one which consist of a group of accounts with similar nature.

It is the basis storage of information in accounting.

List of all the accounts used by the entity.

Accounts that are not closed at the end of the accounting period. These accounts are shown in the statement of financial position.

These are accounts that are closed at the end of the accounting period.

These are accounts that have both real and nominal account components.

These are accounts that are deducted from a related account, e.g., accumulated depreciation

These are accounts that are added to a related account., e.g, premium on bonds payable.

It is a list of general ledger accounts and their balances. It is prepared to check the equality of total debits and total credits in the ledger.

This is prepared before adjusting entries. It contains real, nominal and mixed accounts.

This is prepared after adjustin entries. It contains real and nominal accounts.

It is prepared after the closing process. It contains real accounts only.

It is committed when the number of digits in an amount is incorrectly increased or decreased.

It commited when the digits in an mount are interchanged.

These are entries made prior to the preparation of financial statements to update certain accounts so that they reflect correct balances as of the designated time.

Under this method, advanced collections of income are initially credited to a liability account. At the end of the period, the earned portion is recognized as income while the unearned portion remains as liability

Under this method, advanced collections of income are initially credited to a income account. At the end of the period, the earned portion is recognized as income while the unearned portion remains as income

Under this method, prepayments of expenses are initially debited to an asset account. At the end of the period, the incurred portion is recognized as expense while the unused portion remains as asset.

Under this method, prepyments of expenses are initially debited to an expense account. At the end of the period, the unused portion is recognized as asset while thr incured portion remains as expense.

It is an analytical device used to facilitate the gathering of data for adjustments and the preparation of financial statemenrs and closing entries.

These are the means by which the information accumulated and processed in financial accounting is periodically communicated to the users. It is the end products of the accounting process.