Accounring And Its Environment

Question 1

Father of double entry accounting

Answer 1

Luca Pacioli

Question 2

Type of Business

Selling people’s time;
E. G software development, legal

Answer 2

Services

Question 3

(7)Type of Business

Answer 3

Services
Trader/merchandising
Manufacture
Raw materials
Infrastructure
Financial
Insurance

Question 4

Type of Business

Taking raw materials and using equipment and staff to convert them into finished goods

Answer 4

Manufacture

Question 5

Trader/Merchandising

Answer 5

Buying and selling products

Question 6

Type of business

Farming, Mining and Oil

Answer 6

Raw Materials

Question 7

Type of business

Buying and operating assets; selling occupancy often in combination with services

Answer 7

Infrastructure

Question 8

Type of business

Pooling premiums of many to meet claims of few

Answer 8

Insurance

Question 9

Type of business

Accepting cash from depositors and paying them interest; using the money to provide loans to borrowers, charging them fees and a higher rate of interest than the depositors receive

Answer 9

Financial

Question 10

Forms of Business organizations

Answer 10

Sole proprietorship
Partnership
Corporation

Question 11

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.

(Form of Business organization)

Answer 11

Partnership

Question 12

a business owned by its 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.

(Form of Business organization)

Answer 12

Corporation

Question 13

P3 Million pesos or less

Type of enterprise

Answer 13

Micro

Question 14

Small enterprises

Answer 14

Above P3 Million

10-99 workers

Question 15

Above P15-P100 Million
100-199 workers

(Type of enterprise)

Answer 15

Medium

Question 16

3 activities of an organization?

Answer 16

Operating
Investing
Financing

Question 17

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

(activities)

Answer 17

Operating

Question 18

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

Answer 18

Investing Activities

Question 19

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

(activities)

Answer 19

Financing

Question 20

4 Fundamental concepts

Answer 20

Entity concept
Periodicity concept
Stable monetary unit concept
Going concern

Question 21

4 Fundamental concepts

Answer 21

Entity concept
Periodicity concept
Stable monetary unit concept
Going concern

Question 22

7 basic principles

Answer 22

Objectivity principle
Historical cost
Revenue recognition principle 
Expense recognition principle 
Adequate disclosure 
Materiality 
Consistency principle

Question 23

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

(Fundamental concepts)

Answer 23

Entity concept

Question 24

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

(Fundamental concept)

Answer 24

Periodicity concept

Question 25

allows accountants to add and subtract peso amounts as though each peso has the same purchasing power as any other peso at any time.

Answer 25

Stable monetary unit concept

Question 26

Going concerns

Answer 26

Financial statements are normally prepared on the assumption that the reporting entity is a going concern and will continue in operation for the foreseeable future.

Question 27

Basic principle Accounting records and statements are based on the most reliable date available so that they will be as accurate and as useful as possible.

Answer 27

Objectivity principle

Question 28

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

Answer 28

Revenue recognition principle

Question 29

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

Answer 29

Historical cost

Question 30

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.

Answer 30

Expense Recognition principle

Question 31

Requires that all relevant information that would affect the user’s understanding and assessment of the accounting entity be disclosed in the financial statements.

Answer 31

Adequate disclosure principle

Question 32

Depends on the size and nature of the item judged in the particular circumstances of its omission. (Basic principle)

Answer 32

Materiality

Question 33

The firms should use the same accounting method from period to period to achieve comparability over time within a single enterprise. (Basic principle)

Answer 33

Consistency principle

Question 34

The body that regulates the practice of accountancy in the Philippines.

Answer 34

Board of Accountancy

Question 35

The ASC was succeeded by ____

Answer 35

Financial Reporting Standards Council (FRSC),

Question 36

The FRSC carries on the decision made by the ASC to converge Philippine accounting standards with the International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board. True or false?

Answer 36

True

Question 37

Philippine Interpretations Committee

Answer 37

implementation guidance on the Philippine Financial Reporting Standards.

Question 38

7 Branches of accounting

Answer 38

``` Auditing Bookkeeping Financial accounting Financial management Management accounting Tax accounting Government accounting ```

Question 39

Auditing

Answer 39

refers to an independent examination of the financial statements conducted by a certified public accountant for the purpose of rendering an opinion as to the fairness of the presentation of the financial statements.

Question 40

refers only to one phase of accounting, the recording phase. Other phases of accounting include classifying, summarizing and communicating information and interpreting the results thereof.

Answer 40

Bookkeeping

Question 41

is the broadest branch of accounting, focusing on the needs of external users. It is concerned with the recognition, measurement and communication of economic resources, economic obligations and changes in economic resources and economic obligations.

Answer 41

Financial accounting

Question 42

Financial management

Answer 42

Financial managers 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.

Question 43

serves the information needs of the internal users. The managers and active owners use accounting information in making and implementing short-term and long-range plans for the enterprise. It incorporates cost accounting data and adapts them for specific decisions which management may be called upon to make.

Answer 43

Management Accounting

Question 44

concerned with the computation of taxes and preparation of tax returns submitted to a taxing authority

Answer 44

Tax accounting

Question 45

encompasses the process of analyzing, classifying, summarizing and communicating all transactions involving the receipt and disposition of government funds and property and interpreting the results thereof.

Answer 45

Government accounting

Question 46

Language of business

Answer 46

Accounting

Question 47

Process of identifying, measuring and communicating economic information to permit informed judgements and decisions by users of information.

Answer 47

Accounting

Question 48

Study if evolution ina accounting thought, practices and institutions in response to changes in the environment and societal needs. Also considers the effect that this evolution has worked on the environment

Answer 48

Accounting history

Question 49

Benjamin workman

Answer 49

Published the American accountant, earliest known American accounting textbook

Question 50

Providing examination, for granting of certificates, and the registration of certified public accountants;for the suspension or revocation of certificates ;for other purposes

Answer 50

Board of Accountancy

Question 51

Accounting standard setting body

Answer 51

Financial Reporting standard council

Question 52

An individual who holds a valid certificate issued by the board of Accountancy

Answer 52

Professional accountant

Question 53

Basic summary device

Answer 53

Account

Question 54

Book where are transactions are recorded in the currency in which they are conducted at the time they were conducted

Answer 54

Memorandum

Question 55

Merchant's private book. Me currency in chronological order and in narrative form

Answer 55

Journal

Question 56

Alphabetical listing if all the business accounts along with the running balance of the particular account

Answer 56

Ledger