Chapter 1 Accountancy

Question 1

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

Answer 1

Accounting

Question 2

Is a service activity, its function is to provide quantitative information, primarily financial in nature.

Answer 2

Accounting

Question 3

Is process of identifying, measuring and, communicating economic decisions by users of information.

Answer 3

Accounting

Question 4

Art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character and. interpreting the results thereof.

Answer 4

Accounting

Question 5

Information system that measures, processes and communicates financial information about an identifiable economic entity.

Answer 5

Accounting

Question 6

is a process with the basic purpose of providing information about economic activities that is intended to be useful in making economic decisions.

Answer 6

Nature of Accounting

Question 7

Father of Modern Accounting

Answer 7

Fra Luca Pacioli 1494

Question 8

Who published “Summa Arithmetica Geometria Proportioni and Proportionista” on Nov 14 1494 and who introduced double entry system?

Answer 8

Fra Luca Pacioli

Question 9

Does FINANCIAL STATEMENTS for the external users for its General Purpose (Branches of Accounting)

Answer 9

Financial Accounting

Question 10

Uses FINANCIAL REPORT for internal users for its specific purpose (Branches of Accounting)

Answer 10

Management Accounting

Question 11

The Government organizations (Branches of Accounting)

Answer 11

Government Accounting

Question 12

Inspection of entity’s financial statements if it corresponds to its business criteria (Branches of Accounting)

Answer 12

Auditing

Question 13

Gives tax advice and files income tax returns (Branches of Accounting)

Answer 13

Tax Accounting

Question 14

Failure to file tax returns (Branches of Accounting)

Answer 14

Tax Accounting

Question 15

Violation is imprisonment for not less than 6 & not more than 10 years (Branches of Accounting)

Answer 15

Tax Accounting

Question 16

Systematic Recording & Analyzing of cost of material, labor, etc. that is related to manufacturing and service type of business
(Branches of Accounting)

Answer 16

Cost Accounting

Question 17

The Academy (Branches of Accounting)

Answer 17

Accounting Education

Question 18

Looks into economic events and analyzes it to make better economic decisions (Branches of Accounting)

Answer 18

Accounting Research

Question 19

Branches of Accounting (8)

Answer 19

Financial Accounting
Management Accounting
Government Accounting
Auditing
Tax Accounting
Cost Accounting
Accounting Education
Accounting Research

Question 20

Types of Business Activities (3)

Answer 20

Service
Merchandising
Manufacturing

Question 21

• Registered under DTI (DEPARTMENT OF TRADE AND INDUSTRIES)
  (Types of Business Organization)

Answer 21

Sole Proprietorship

Question 22

• Registered under SEC (SECURITIES EXCHANGE COMMISION)
• Formed by contracts
  (Types of Business Organization)

Answer 22

Partnership

Question 23

• Formed by operation of law.
  (Types of Business Organization)

Answer 23

Corporation

Question 24

• Registered under CDA (COOPERATIVE DEVELOPMENT AUTHORITY)
  (Types of Business Organization)

Answer 24

Cooperative

Question 25

• Directly involved in managing the business

Answer 25

Internal Users

Question 26

• NOT directly involved in managing the business

Answer 26

External Users

Question 27

Types of Information provided by Accounting

Answer 27

Qualitative Information
Quantitative Information
Financial Information

Question 28

to provide information about an entity’s economic resources

Answer 28

Primary Objective

Question 29

to provide information useful in ASSESSING the entity’s management stewardship

Answer 29

Secondary Objective