accounting, accounting equation, and double entry system

Question 1

Does not operate in isolation; it handles financial operation of the business. Provides the information to make a reasoned choices for the business.

Answer 1

ACCOUNTING

Question 2

Economic activities of the business and recording these events in the very function of accounting.

Answer 2

BUSINESS TRANSACTION

Question 3

Achieved through the preparation of financial statements. Evaluate the liquidity and solvency of the business.

Answer 3

SUMMARIZATION OF DATA

Question 4

Most basic entity. Stands apart from the other organization and individuals as SEPARATE ECONOMIC UNIT. Each entity is evaluated separately.

Answer 4

ENTITY CONCEPT

Question 5

Entity’s life is subdivided into equal time periods for reporting purposes. For the purpose of recording to outsiders.

Answer 5

PERIODICITY CONCEPT

Question 6

Allows accountant to add and subtract peso amounts as through each peso has the same purchasing power.

Answer 6

STABLE MONETARY UNIT CONCEPT

Question 7

Based on the most reliable data available; based on objective evidence.

Answer 7

OBJECTIVITY PRINCIPLE

Question 8

Actual cost and not at what the management thinks they are worth as to reporting dates.

Answer 8

HISTORICAL COST

Question 9

Recognized in the accounting period when the goods are delivered or service are rendered or performed.

Answer 9

REVENUE RECOGNITION PRINCIPLE

Question 10

Requires all relevant information, everything must be disclosed in the financial statements.

Answer 10

ADEQUATE DISCLOSURE

Question 11

Recognized in the accounting period which goods and services are used to produce revenue and not when entity pays for those goods and services.

Answer 11

EXPENSE RECOGNITION PRINCIPLE

Question 11

The firm should use the same accounting method for easy comparability.

Answer 11

CONSISTENCY PRINCIPLE

Question 12

Nature and the size of the item are evaluated.

Answer 12

MATERIALITY

Question 13

Accountancy’s most significant service to the public.

Answer 13

AUDITING

Question 14

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

Answer 14

EXTERNAL AUDIT

Question 15

Appointed outside the organization. Protect the interest of the users of the financial statement.

Answer 15

EXTERNAL AUDITORS

Question 16

Employee of the company, they work independently of the accounting and other departments.

Answer 16

INTERNAL AUDITORS

Question 17

Collection of basic financial data, a process that usually takes once a month. Procedure ends when the basic data have been entered in the book operation.

Answer 17

BOOKKEEPING

Question 18

A routine operation

Answer 18

BOOKKEEPING

Question 19

Examine a problem using both financial and non-financial data.

Answer 19

ACCOUNTING

Question 20

Make use of those data in providing information for managerial planning and controls. Collection, allocation, and control of the cost producing.

Answer 20

COST ACCOUNTING

Question 20

Process that involves the recording of cost data in books of accounts. Data are recorded in a much greater detail.

Answer 20

COST BOOKKEEPING

Question 21

Recording of business transactions and the periodic preparation of reports. Preparation of subsequent publication of highly summarized financial information. Produce financial statement.

Answer 21

FINANCIAL ACCOUNTING

Question 22

New branch of accounting.

Answer 22

FINANCIAL MANAGEMENT

Question 23

Responsible for setting financial objective. Much more heavily involved in the management of the entity.

Answer 23

FINANCIAL MANAGERS

Question 24

Incorporates all the type of financial and non-financial information from a wide range of sources.

Answer 24

MANAGEMENT ACCOUNTING

Question 25

The preparation of tax returns and the consideration of the tax consequences of proposed transaction.

Question 26

A legitimate exercise where accountants attempt to reduce their client’s tax liabilities in accordance with law.

Question 27

The non-declaration of sources of income on which tax might be due.

Question 28

Uses of resources consistent with the provisions of the city, municipal, provincial, and national laws.

Question 29

Valuable resources owned by the entity. Result of past events and from which future economic benefits are expected to flow to the enterprise.

Question 30

Ability to obtain the economic benefits and to restrict the access of others.

Question 31

The event must be past before an asset can arise.

Question 32

There are evidenced by the prospective receipt of cash.

Question 33

Cash, Investment, Notes Receivable and Inventories

Question 34

Obligation of the entity to the outside parties who have furnished resources. Something the entity OWED.

Question 35

Present obligation of the enterprise arising from the past events, the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits.