問題一覧
1
is a service activity
accounting
2
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
3
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
4
Is an information system that measures, processes and communicates financial information about an economic entity. (STATEMENT OF FINANCIAL ACCOUNTING CONCEPTS NO.1)
accounting
5
Is an information system that measures, processes and communicates financial information about an economic entity. (_____)
accounting STATEMENT OF FINANCIAL ACCOUNTING CONCEPTS NO.1
6
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
7
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
8
The ______ is built on FIVE activities
FUNDAMENTAL BUSINESS MODEL
9
The FUNDAMENTAL BUSINESS MODEL is built on _____ activities
FIVE
10
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
11
This can be spent on operating costs such as salaries, rentals and utilities
cash
12
They provide the required capital for the business
investors
13
Types of business
services trader manufacturer raw materials infrastructure financial insurance
14
Forms of business organization
sole proprietorship partnership corporation
15
This business organization has a single owner called the PROPRIETOR who generally is also the MANAGER.
sole proprietorship
16
SOLE PROPRIETORSHIP has a single owner called the ____ who generally is also the _______.
PROPRIETOR MANAGER
17
Tends to be small service type (e.g. physicians, lawyers, and accountants) businesses and retail establishments
sole proprietorship
18
The owner receives all the profits, absorbs all losses and this solely responsible for all debt of the business
sole proprietorship
19
Is distinct from its proprietor
sole proprietorship
20
The accounting records of _____ does not include the proprietor's financial records
sole proprietorship
21
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
22
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
23
Each partner is personally liable for any debt incurred by the partnership
partnership
24
Accounting considers the partnership as a _____, DISTINCT from the personal affairs of each partner
separate organization
25
Business owned by its stockholders
corporation
26
corporation is owned by
stockholders
27
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
28
Are not personally liable for the corporation debts
stockholders
29
Is a separate legal entity
corporation
30
Corporation is a
separate legal entity
31
Activities in business organization
financing activities investing activities operating activities
32
Are the methods an organization uses to obtain financial resources from financial markets and how it manages these resources
financing activities
33
Primary sources of financing
owners and creditors
34
Examples of creditors
banks and suppliers
35
Prepaying the creditors and paying a return to the owner are also
financing activities
36
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
37
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
38
Involve the use of resources to design, produce, distribute, and market goods and services
operating activities
39
Include research and development, design and engineering, purchasing, human resources, production, distribution, marketing, and selling and servicing
operating activities
40
Are the economic activities of a business
business transactions
41
Recording these historical events as a significant function of accounting
business transactions
42
A significant function of accounting
recording historical events or business transactions
43
Are produced to aid management and planning, control and decision making and to comply with regulations
accounts
44
Before the effects of transactions can be recorded, they must be
measured
45
In order that accounting information will be useful, it must be expressed in terms of
common financial denominator —money
46
A common financial denominator
money
47
Serves as both a medium of exchange and measure of value
money
48
Money serves as both a
medium of exchange measure of value
49
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
50
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
51
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
52
To be useful in making decisions, the recorded data must be
classified and summarized
53
Reduces the effects of numerous transactions into useful groups or categories
classification
54
______ of financial data is achieved through the preparation of financial statements
summarization
55
These summarize the effects of all business transactions that occur during some period
financial statements
56
Summarization of financial data is achieved through the preparation of _______
financial statements
57
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
58
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
59
What are the four fundamental concepts
entity concept periodicity concept stable monetary unit concept going concern
60
Is an organization a section of an organization that stands apart from other organizations and individuals as a separate economic unit
accounting entity
61
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
62
An entity's life can be meaningfully subdivided into equal time periods for reporting purposes
periodicity concept
63
It will be aimless to wait for the actual last day of operations to perfectly measure the entities profit
periodicity concept
64
The concept allows the users to obtain timely information to serve as a basis on making decisions about future activities
periodicity concept
65
For the purpose of reporting to others, ______ is the usual accounting period
one year
66
Is a reasonable unit of measure and that its purchasing power is relatively stable
stable monetary unit concept
67
Is a reasonable unit of measure on that its purchasing power is relatively stable
philippine peso stable monetary unit concept
68
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
69
This is the basis for ignoring the effects of inflation in the accounting records
stable monetary unit concept
70
what are the seven basic principles
objectivity principle historical cost revenue recognition principle expense recognition principle adequate disclosure materiality consistency principle
71
Accounting records and statements are based on the most reliable data available and so that they will be as accurate as possible
objectivity principle
72
______ are verifiable when they can be confirmed by independent observation
Reliable data objectivity principle
73
Ideally, accounting records are based on information that flows from activities documented by objective evidence
objectivity principle
74
Without this principle, accounting records would be based on whims and opinions and therefore subject to disputes
objectivity principle
75
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
76
Revenue is to be recognized in the accounting period when goods are delivered or services are rendered or performed
revenue recognition principle
77
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
78
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
79
Is only concerned with information that the significant enough to affect evaluations in decisions
financial reporting
80
Financial reporting is only concerned with information that is significant enough to affect evaluations and decisions
materiality
81
Depends on the size and nature of the item judged in the particular circumstances of its omission
materiality
82
In deciding whether an item or an aggregate of items is material, the nature and size of the item are evaluated together
materiality
83
The firm should use the same accounting method from period to period to achieve comparability over time
consistency principle
84
What are the eight branches of accounting
auditing bookkeeping cost bookkeeping, costing and cost accounting financial accounting financial management management accounting taxation government accounting
85
Is the accountancy professions most significant service to the public
auditing
86
Is the independent examination that ensures the fairness and reliability of the reports that management submits to users outside the business entity
auditing
87
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
88
Is a mechanical task involving the collection of basic financial data
bookkeeping
89
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
90
Is the process that involves the recording of cost data in books of accounts.
cost bookkeeping
91
It is, therefore, similar to bookkeeping except that data are recorded in very much greater detail.
Cost Bookkeeping, Costing, and Cost Accounting
92
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
93
deals with the collection, allocation, and control of the cost of producing specific goods and services.
Cost Bookkeeping, Costing, and Cost Accounting
94
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
95
is focused on the recording of business transactions and the periodic preparation of reports on financial position and results of operations.
Financial Accounting
96
is the more specific term applied to the preparation and subsequent publication of highly summarized financial information.
Financial Accounting
97
______ 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
98
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
99
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