FABM Chapter 2 - 3 reviewer for quiz Flashcards
Is a branch of accounting that focuses on periodic reporting of financial statements to users of financial statements outside the business organization.
Financial Accounting
It is focused on the production of financial statements for general purposes
Financial accounting
These standards of preparation of general purpose financial statements are called __________
Generally accepted accounting principles or simply GAAP.
Focuses on internal reporting and analysis of financial information such as allocation of cost (cost accounting), design and evaluation of internal business processes, budgeting, and implementation and monitoring of internal controls
Management accounting
Is the “process of accounting for costs from the point at which its expenditure is incurred or committed to the establishment of the ultimate relationship with cost units.
Cost accounting
is the branch of accounting that 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.
Government accounting
The main focus of _________ is the custody and administration of public funds.
Government Accounting
refers to the practice of record-keeping and reporting for organizations that are motivated not by the desire to profit but by the desire to provide services needed by humanity for free.
Non profit accounting
is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between these assertions and established criteria, and communicate the results to interested users.
Auditing
In other words, ________ involves an examination of the financial statements and whether it is presented fairly in material respects.
Auditing
Internal auditing, External or independent auditing, Government Auditing what are these?
Kinds of auditing
Audit of internal processes
Internal auditing
Also known as management audits and performance audits examination of all or part of an organization for the purpose of determining the effectiveness and/or efficiency of its operations.
Operational audit
Also known as management audits and performance audits examination of all or part of an organization for the purpose of determining the effectiveness and/or efficiency of its operations.
Operational audit
Is performed to determine whether the auditee is following specific procedures or rules set down by some higher authority. This may be performed for a private business or a governmental unit.
Compliance audit
Examination of the financial statements to enable the auditor to express an opinion on whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework
External or independent auditing
Involves the determination of whether government funds are being handled properly and in compliance with existing laws and whether programs are being conducted efficiently and economically. In the Philippines, government audit is usually performed by the Commission on Audit (COA).
Government Auditing
It involves the preparation of tax reports (tax returns) based on tax laws and regulations, to be submitted to the government.
Tax Accounting
Has also expanded to tax auditing.
Tax accounting
Is the audit or check of an organization’s compliance with established tax laws, rules, and regulations to ascertain their exposure to penalties for violations.
Tax Auditing
Funds are usually distinguished into types:
General and Special Fund
Used by non-stock non-profit organization including government. This is an art of recording classifying, controlling and ensuring that funds are used in accordance with the specifications set by the donors.
Fund Accounting
fund that is used for day to day operations of the entity
General Fund
Fund that is segregated for a certain purpose such as funds for victims of typhoons or other calamities.
Special Fund
