FAR1 (prelims) Flashcards
The basic summary device of accounting
The account
True or false? The normal balance of an account is the increasing side?
True
Reporting entity financial performance?
Expenses & Revenue
Sets/Issues Statement of Financial Accounting Standards
Financial Accounting Standards Board (FASB)
Coverage of CPALE
Financial Accounting and Reporting
Advanced Financial Accounting and Reporting
Management Advisory services
Auditing
Taxation
Regulatory Framework for Business Transactions
What is the integrated national professional organization of CPAs in the Philippines?
Philippine Institute of Certified Public Accountant or PICPA
Who issues the Philippine Financial Reporting Standards?
Financial Reporting Standards Council
Accounting changes are often made and the monetary impact is reflected in the financial statements of an entity even though, in theory this may violation of the accounting concept of
Consistency
Stating assets and liabilities and changes in them in terms of a common financial denominator is a prerequisite in measuring in financial position and periodic net income.
Unit of measure
What are the basic element of financial statements?
Assets, Liabilities, Equity, Revenues, Expenses
formulates the International Financial Reporting Standards
International Accounting Standards Board (IASB)
formulates/adopts the Philippine Financial Reporting Standards
Financial Reporting Standards Council (FRSC)
Guidance of elements of financial statements
Conceptual Framework for Financial Reporting
gain of the company, what the company owns or plans to own, company resources
Asset
present economic obligation of the entity to transfer an economic resource as a result of past events.
Liabilities
Reflects residual claims/net assets
Equity
profit of the company.
increases in assets, decreases in liabilities, increases in equity/inflow of benefits
Income
decrease in assets, increases in liabilities, decreases in equity/outflow of benefits
Expenses
assets, liabilities, and equity are related to an entity’s
Financial position /Balance sheet
income and expenses are related to an entity’s
Financial performance/ Income statement
what is the book of original entry?
Journal
Claims against debtors evidenced by a written promise to pay a certain sum of money at a definite time to the order of a specified person or to bearer?
Notes receivable
an event where a bookkeeper accidentally reverses two adjacent digits, when recording transactional data.
Transposition
an error that results from moving the decimal point of a figure to the left or right of its correct position
Sliding
Business organization is characterized by limited liability
corporation
First accounting standard setting body in the Philippines
Accounting standards council
