Basics of Accountancy Flashcards
is a system meant for measuring business activities, processing o/ information into reports and making the findings available to decision-maker
accounting
accounting is often called what?
Language of Business and Language of Financial Decisions
natures of accounting
- Accounting is a service activity
- Accounting is an art
- Accounting is a process
- Accounting provides primarily quantitative information to users.
- Accounting is an information system.
Involves assessing whether transactions or events merits recognition or not
identifying
Events that merit recognition are known as
accountable event
Writing down of business transaction in chronologically in the books of account as they transpire.
recording
Sorting similar and related business transactions into the three categories of Assets, Liabilities, and owner’s equity.
classifying
Preparing the financial statements from the transactions recorded in the
books of account designed to meet the information needs of its users.,
summarizing
reporting the results to users of financial information
Occurs through the preparation and distribution of Financial and other accounting reports.
communicating
is an organization in which basic resources, such as materials and labor are assembled and processed to provide goods or services to customers.
business
provide services rather than products to customers
service
sell products they purchase from other business to
customer.
merchandising
change basic inputs into products that are sold to
customer.
manufacturing
what are the business operations?
service, merchandising, manufacturing
is a business owned and managed by only one person.
sole proprietorship
is a business organization owned and managed by two or more people, who agree to contribute money, property or industry to a common fund for the
purpose of earning profit.
partnership
is a form of business organization managed by an elected board of directors.
corporation
investors are called?
stockholders
what is the unit of ownership in corporation?
share of stock
what are the business organizations
sole proprietorship, partnership, corporation
according to the, accounting is a service activity. it provides quantitative information primarily financial in nature about economic entities that is intended to be useful in making economic decisions
Philippine Institute of Certified Public Accountant
according to this person. accounting is the process of Identifying, Recording and Communicating economic events of organization to interested users
weygandt. j. et. al
the aspects of accounting
identifying recording classifying summarizing communicating
is utilized by users to make judgement or wise decision regarding the business operations
financial information
