accbp 100

100問 • 1年前

問題一覧

is a service activity

accounting

Its function is to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions. (STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO.1)

accounting

Its function is to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions. (_______)

accounting STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO.1

Is an information system that measures, processes and communicates financial information about an economic entity. (STATEMENT OF FINANCIAL ACCOUNTING CONCEPTS NO.1)

accounting

Is an information system that measures, processes and communicates financial information about an economic entity. (_____)

accounting STATEMENT OF FINANCIAL ACCOUNTING CONCEPTS NO.1

Is the process of identifying, measuring, and communicating economic information to permit inform judgements and decisions by users of the information. (_______)

accounting AMERICAN ACCOUNTING ASSOCIATION

Is the process of identifying, measuring, and communicating economic information to permit inform judgements and decisions by users of the information. (AMERICAN ACCOUNTING ASSOCIATION)

accounting

The ______ is built on FIVE activities

FUNDAMENTAL BUSINESS MODEL

The FUNDAMENTAL BUSINESS MODEL is built on _____ activities

FIVE

It can be converted into another type of asset that will be used in the business (e.g equipment) or sold (e.g. inventory)

cash

This can be spent on operating costs such as salaries, rentals and utilities

cash

They provide the required capital for the business

investors

Types of business

services trader manufacturer raw materials infrastructure financial insurance

Forms of business organization

sole proprietorship partnership corporation

This business organization has a single owner called the PROPRIETOR who generally is also the MANAGER.

sole proprietorship

SOLE PROPRIETORSHIP has a single owner called the ____ who generally is also the _______.

PROPRIETOR MANAGER

Tends to be small service type (e.g. physicians, lawyers, and accountants) businesses and retail establishments

sole proprietorship

The owner receives all the profits, absorbs all losses and this solely responsible for all debt of the business

sole proprietorship

Is distinct from its proprietor

sole proprietorship

The accounting records of _____ does not include the proprietor's financial records

sole proprietorship

A business owned and operated by TWO OR MORE PERSONS who bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profits among themselves

partnership

A PARTNERSHIP is owned and operated by _______ who bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profits among themselves

TWO OR MORE PERSONS

Each partner is personally liable for any debt incurred by the partnership

partnership

Accounting considers the partnership as a _____, DISTINCT from the personal affairs of each partner

separate organization

Business owned by its stockholders

corporation

corporation is owned by

stockholders

It is an ARTIFICIAL BEING created by operation of law, having the rights of succession and the powers, attributes, and properties expressly authorized by law or incident to its existence

corporation

Are not personally liable for the corporation debts

stockholders

Is a separate legal entity

corporation

Corporation is a

separate legal entity

Activities in business organization

financing activities investing activities operating activities

Are the methods an organization uses to obtain financial resources from financial markets and how it manages these resources

financing activities

Primary sources of financing

owners and creditors

Examples of creditors

banks and suppliers

Prepaying the creditors and paying a return to the owner are also

financing activities

Involve the selection and management including disposal and replacement of long term resources that will be used to develop, produce, and sell goods and services

investing activities

Include buying land, equipments, buildings and other resources that are needed in the operation of the business and selling these resources when they are no longer needed

investing activities

Involve the use of resources to design, produce, distribute, and market goods and services

operating activities

Include research and development, design and engineering, purchasing, human resources, production, distribution, marketing, and selling and servicing

operating activities

Are the economic activities of a business

business transactions

Recording these historical events as a significant function of accounting

business transactions

A significant function of accounting

recording historical events or business transactions

Are produced to aid management and planning, control and decision making and to comply with regulations

accounts

Before the effects of transactions can be recorded, they must be

measured

In order that accounting information will be useful, it must be expressed in terms of

common financial denominator —money

A common financial denominator

money

Serves as both a medium of exchange and measure of value

money

Money serves as both a

medium of exchange measure of value

To measure a business transaction the accountant must decide when the transaction occurred (_____) what value to place on the transaction (VALUATION ISSUE) and how the components of the transaction should be classified (CLASSIFICATION ISSUE)

RECOGNITION ISSUE

To measure a business transaction the accountant must decide when the transaction occurred (RECOGNITION ISSUE) what value to place on the transaction (______) and how the components of the transaction should be classified (CLASSIFICATION ISSUE)

VALUATION ISSUE

To measure a business transaction the accountant must decide when the transaction occurred (RECOGNITION ISSUE) what value to place on the transaction (VALUATION ISSUE) and how the components of the transaction should be classified (_______)

CLASSIFICATION ISSUE

To be useful in making decisions, the recorded data must be

classified and summarized

Reduces the effects of numerous transactions into useful groups or categories

classification

______ of financial data is achieved through the preparation of financial statements

summarization

These summarize the effects of all business transactions that occur during some period

financial statements

Summarization of financial data is achieved through the preparation of _______

financial statements

After going through the preceding faces it is imperative but the result of the summarization phase be _____ to evaluate the liquidity profitability and solvency of the business organization

INTERPRETED or ANALYZED

Provides the decision makers with information to make reason choices among alternative uses of scarce resources in the conduct of business and economic activities

accounting

What are the four fundamental concepts

entity concept periodicity concept stable monetary unit concept going concern

Is an organization a section of an organization that stands apart from other organizations and individuals as a separate economic unit

accounting entity

An accounting entity is an organization or a section of an organization that stands apart from other organizations and individuals as a separate economic unit

entity concept

An entity's life can be meaningfully subdivided into equal time periods for reporting purposes

periodicity concept

It will be aimless to wait for the actual last day of operations to perfectly measure the entities profit

periodicity concept

The concept allows the users to obtain timely information to serve as a basis on making decisions about future activities

periodicity concept

For the purpose of reporting to others, ______ is the usual accounting period

one year

Is a reasonable unit of measure and that its purchasing power is relatively stable

stable monetary unit concept

Is a reasonable unit of measure on that its purchasing power is relatively stable

philippine peso stable monetary unit concept

It allows accountants to add and subtract peso amounts as though each peso has the same purchasing power as any other peso anytime

stable monetary unit concept

This is the basis for ignoring the effects of inflation in the accounting records

stable monetary unit concept

what are the seven basic principles

objectivity principle historical cost revenue recognition principle expense recognition principle adequate disclosure materiality consistency principle

Accounting records and statements are based on the most reliable data available and so that they will be as accurate as possible

objectivity principle

______ are verifiable when they can be confirmed by independent observation

Reliable data objectivity principle

Ideally, accounting records are based on information that flows from activities documented by objective evidence

objectivity principle

Without this principle, accounting records would be based on whims and opinions and therefore subject to disputes

objectivity principle

States that acquired assets should be recorded as their actual cost and not at what management thinks they are worth as at reporting date

historical cost

Revenue is to be recognized in the accounting period when goods are delivered or services are rendered or performed

revenue recognition principle

Expenses should be recognized in the accounting period in which goods and services are used up to produce revenue and not when the entity pays for those goods and services

expense recognition principle

Requires that all relevant information that would affect the users understanding and assessment of the accounting entity be disclosed in the financial statements

adequate disclosure

Is only concerned with information that the significant enough to affect evaluations in decisions

financial reporting

Financial reporting is only concerned with information that is significant enough to affect evaluations and decisions

materiality

Depends on the size and nature of the item judged in the particular circumstances of its omission

materiality

In deciding whether an item or an aggregate of items is material, the nature and size of the item are evaluated together

materiality

The firm should use the same accounting method from period to period to achieve comparability over time

consistency principle

What are the eight branches of accounting

auditing bookkeeping cost bookkeeping, costing and cost accounting financial accounting financial management management accounting taxation government accounting

Is the accountancy professions most significant service to the public

auditing

Is the independent examination that ensures the fairness and reliability of the reports that management submits to users outside the business entity

auditing

Once the required financial statements have been prepared by management they have to be evaluated in order to ensure that they do not present at the started picture

auditing

Is a mechanical task involving the collection of basic financial data

bookkeeping

The data are first entered in the accounting records or the books of accounts, and then extracted, classified and summarized in the form of income statement, balance sheet and cash flows statement.

bookkeeping

Is the process that involves the recording of cost data in books of accounts.

cost bookkeeping

It is, therefore, similar to bookkeeping except that data are recorded in very much greater detail.

Cost Bookkeeping, Costing, and Cost Accounting

makes use of those data once they have been extracted from the cost books in providing information for managerial planning and control.

Cost Bookkeeping, Costing, and Cost Accounting

deals with the collection, allocation, and control of the cost of producing specific goods and services.

Cost Bookkeeping, Costing, and Cost Accounting

This accumulation and explanation of actual and prospective cost data is important to control Current operations and to plan for the future.

Cost Bookkeeping, Costing, and Cost Accounting

is focused on the recording of business transactions and the periodic preparation of reports on financial position and results of operations.

Financial Accounting

is the more specific term applied to the preparation and subsequent publication of highly summarized financial information.

Financial Accounting

______ are responsible for setting financial objectives, making plans based on those objectives, obtaining the finance needed to achieve the plans, and generally safeguarding all the financial resources of the entity.

Financial managers Financial Management

It should also be noted that the _____ draws on a much wider range of disciplines (such as economics and mathematics) and relies more extensively on non-financial data than does the more traditional accountant.

financial manager Financial Management

incorporates all types of financial and non-financial information from a wide range of sources.

Management Accounting

100

incorporates cost accounting data and adapts them for specific decisions which management may be called upon to make.

Management Accounting

Business Finance

Sab Sescon · 46問 · 2年前

Business Finance