CHAPTER 1 Flashcards

1
Q

it is a process of identifying, recording and communicating economic information that is useful in making economic decisions

A

accounting

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2
Q

accountant analyzes each business transaction and identifies the transactions

A

identifying

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3
Q

it is recorded in the book of accounts

A

“accountable event”

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3
Q

not recorded in the book of accounts

A

” non accountable events”

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3
Q

outside the scope of accounting

A

Sociological and psychological matters

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3
Q

it affects the assets, liabilities, equity, income or expense of a business

A

Accountable events

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3
Q

accountant recognizes the identified “accountable events”

A

Recording (journalizing)

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3
Q

after journalizing accountant classified the effects of the event on the “ accounts”

A

posting

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3
Q

basic storage of information in accounting (cash, land, sales)

A

account

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3
Q

a process with the basic purpose of providing information about economic activities intended in making economic decisions

A

accounting

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3
Q

information expressed in numbers, quantities or units

A

Quantitative Information

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3
Q

information expressed in words or descriptive form. It is found in the notes to financial statements as well as on the face of the other component of financial statement

A

Qualitative information

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3
Q

information expressed in money. It is also quantitative information because monetary amounts are normally expressed in numbers

A

financial information

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3
Q

accounting is a body of knowledge which has been systematically gathered, classified and organized

A

social science

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3
Q

accounting requires the use of creative skills and judgement

A

practical art

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4
Q

input:
processes:
output:

A

input: identified accountable events
processes: recording, classifying and summarizing
output: accounting report that is communicated to the users

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5
Q

refers to the process of recording the accounts or transactions of an entity

A

bookkeeping

6
Q

normally ends with the preparation of trial balance and does not require the interpretation pf the significance of the information processed

A

bookkeeping

7
Q

covers the whole process of identifying, recording and communicating information to interested users

A

Acccounting

8
Q

Accounting is often referred to as the “ “ because it is fundamental to the communication of financial information

A

language of business

9
Q
  1. to provide non - owners of a business (external users) with information that is useful in making, among others, investment and credit decisions
    2.to provide business owners (internal users) with the information that is useful in managing the business
A

accounting two broad functions in a business

10
Q

key to a business success

A

good management

11
Q

one important management tool

A

accounting

11
Q

a process of establishing common objectives, coordinating efforts towards those objectives and efficiently and effectively utilizing available resources so as to achieve certain goals

A

Management

12
what are the major facets of business
1. finance 2. production 3. marketing 4. accounting
13
refers to how business generates and manages its funds
finance
14
responsible in providing adequate resources needed for the other facets to function properly
finance
14
how goods are produced or services are rendered
production
15
responsible for the quality of goods and services and the efficiency by which they are produced or rendered
production
16
refers how goods or services are communicated to customers
marketing
17
responsible in creating value for customers and building strong customer relationship
marketing
18
provides a measure of how well the other facets of business are performing
accounting
19
responsible in providing useful information that aids in making business decisions
accounting
20
involves the process of mapping out or arranging in detail how a business goal is to be achieved
planning
21
a manager need to organize his/her personnel and other resources according to plan
organizing
22
it involves assigning responsibilities and granting authority to personnel
organizing
23
process of selecting, training and developing employees
staffing
24
referred to as human resource management
staffing
25
a manager needs to lead his personnel to ensure that each is performing his or her responsibilities towards the organizations common goal
directing
26
involves motivating, communicating, guiding and encouraging personnel
directing
27