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FAR > FAR1C1 THE ACCOUNTANCY PROFESSION > Flashcards

FAR1C1 THE ACCOUNTANCY PROFESSION Flashcards

1
Q

State all content information
What is the definition of accounting according to Accounting Standards Council?
8
5
7

Part 1

A

1) What is the definition of accounting according to Accounting Standards Council?
2) What ASC stands for?
3) What organization defines accounting as a service activity, its function is to provide quantitative information, primarily financial in nature, about economic entities, that is intended to be useful in making economic decision?
What is the definition of accounting according to American Institute of Certified Public Accountants?
4) What AICPA stands for?
5) What organization defines accounting as an 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 financial character and interpreting the result thereof?
6) What is the definition of accounting according to American Accounting Association?
7) What AAA stands for?

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2
Q

State all content information
What is the definition of accounting according to Accounting Standards Council?
8
5
7

Part 2

A

1) What organization defines accounting as the process of identifying, measuring and communicating economic information to permit informed judgment and decision by users of the information?
2) What are the three (3) important points in the definition of accounting according to Accounting Standards Council?
3) What organization’s definition of accounting has stood the test of time?
4) What are the three (3) components in American Accounting Association definition of accounting?
5) Explain identifying.

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3
Q

State all content information
What is the definition of accounting according to Accounting Standards Council?
8
5
7

Part 3

A

1) When is an event accountable or quantifiable?
2) What are the two (2) types of economic activities?
3) What are external transactions?
4) What are the five (5) examples of external transactions?
5) What are internal transactions?
6) What is production?
7) What is casualty?

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4
Q

What is the definition of accounting according to Accounting Standards Council?

A

It is a service activity. Its function is to provide quantitative information, primarily financial in nature, about economic entities, that is intended to be useful in making economic decision.

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5
Q

What is the definition of accounting according to Accounting Standards Council?

It is a ** activity. Its function is to provide ** information, primarily ** in nature, about economic **, that is ** to be useful in making ** ***.

A

It is a service activity. Its function is to provide quantitative information, primarily financial in nature, about economic entities, that is intended to be useful in making economic decision.

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6
Q

What ASC stands for?

A

Accounting standards council

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7
Q

What organization defines accounting as a service activity, its function is to provide quantitative information, primarily financial in nature, about economic entities, that is intended to be useful in making economic decision?

A

Accounting standards council or ASC

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8
Q

What is the definition of accounting according to American Institute of Certified Public Accountants?

A

It is an art or recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are in part at least of financial character and interpreting the result thereof.

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9
Q

What is the definition of accounting according to American Institute of Certified Public Accountants?

It is an art or **, ** and ** in a ** manner and in terms of **, ** and ** which are in part at least of ** ** and interpreting the ** thereof.

A

It is an art or recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are in part at least of financial character and interpreting the result thereof.

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10
Q

What AICPA stands for?

A

American Institute of Certified Public Accountants

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11
Q

What organization defines accounting as an 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 financial character and interpreting the result thereof?

A

American Institute of Certified Public Accountants or AICPA

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12
Q

What is the definition of accounting according to American Accounting Association?

A

It is the process of identifying, measuring and communicating economic information to permit informed judgment and decision by users of the information.

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13
Q

What is the definition of accounting according to American Accounting Association?

It is the process of **, ** and ** economic ** to ** informed ** and *** by users of the information.

A

It is the process of identifying, measuring and communicating economic information to permit informed judgment and decision by users of the information.

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14
Q

What AAA stands for?

A

American Accounting Association

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15
Q

What organization defines accounting as the process of identifying, measuring and communicating economic information to permit informed judgment and decision by users of the information?

A

American Accounting Association or AAA

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16
Q

What are the three (3) important points in the definition of accounting according to Accounting Standards Council?

A

1) Accounting is about quantitative information.
2) The information is likely to be financial in nature.
3) The information should be useful in decision making.

17
Q

What are the three (3) important points in the definition of accounting according to Accounting Standards Council?
1) Accounting is about ** information.
2) The information is likely to be ** in nature.
3) The information should be ** in ** making.

A

1) Accounting is about quantitative information.
2) The information is likely to be financial in nature.
3) The information should be useful in decision making.

18
Q

What organization’s definition of accounting has stood the test of time?

A

American Accounting Association or AAA

19
Q

What are the three (3) components in American Accounting Association definition of accounting?

A

1) Identifying as the analytical component.
2) Measuring as the technical component.
3) Communicating as the formal component.

20
Q

Explain identifying.

A
  • This accounting process is the recognition or nonrecognition of business activities as “accountable” events.

Not all business activities are accountable.

For example, the hiring of employees, the death of the entity president and the entering into a contract are all business activities such events are not accountable because they cannot be quantified or expressed in terms of a unit of measure.

21
Q

Explain identifying.

This accounting process is the ** or * of business activities as “” events.

Not all business activities are ***.

For example, the hiring of employees, the death of the entity president and the entering into a contract are all business activities such events are not ** because they cannot be ** or expressed in terms of a *** of measure.

A
  • This accounting process is the recognition or nonrecognition of business activities as “accountable” events.

Not all business activities are accountable.

For example, the hiring of employees, the death of the entity president and the entering into a contract are all business activities such events are not accountable because they cannot be quantified or expressed in terms of a unit of measure.

22
Q

When is an event accountable or quantifiable?

A

An event is accountable or quantifiable when it has an effect on assets, liabilities and equity.

In other words, the subject matter of accounting is economic activity or the measurement of economic resources and economic obligations.

Only economic activities are emphasized and recognized in accounting.

Sociological and psychological matters are beyond the province of accounting.

23
Q

When is an event accountable or quantifiable?

An event is accountable or quantifiable when it has an *** on assets, liabilities and equity.

In other words, the subject matter of accounting is ** ** or the ** of economic ** and economic ***.

Only economic ** are ** and *** in accounting.

** and ** matters are beyond the *** of accounting.

A

An event is accountable or quantifiable when it has an effect on assets, liabilities and equity.

In other words, the subject matter of accounting is economic activity or the measurement of economic resources and economic obligations.

Only economic activities are emphasized and recognized in accounting.

Sociological and psychological matters are beyond the province of accounting.

24
Q

What are the two (2) types of economic activities?

A

1) External transactions
2) Internal transactions

25
Q

What are the two (2) types of economic activities?

1) ** transactions
2) ** transactions

A

1) External transactions
2) Internal transactions

26
Q

What are external transactions?

A
  • They are also known as exchange transactions, are those economic events involving one entity and another entity.
27
Q

What are external transactions?

  • They are also known as ** transactions, are those ** events involving one ** and ** entity.
A
  • They are also known as exchange transactions, are those economic events involving one entity and another entity.
28
Q

What are the five (5) examples of external transactions?

A

1) Purchase of goods from a supplier
2) Borrowing money from a bank
3) Sale of goods to a customer
4) Payment of salaries to employees
5) Payment of taxes to the government

29
Q

What are the five (5) examples of external transactions?

1) ** of ** from a supplier
2) ** ** from a bank
3) ** to a **
4) ** of ** to employees
5) ** of ** to the government

A

1) Purchase of goods from a supplier
2) Borrowing money from a bank
3) Sale of goods to a customer
4) Payment of salaries to employees
5) Payment of taxes to the government

30
Q

What are internal transactions?

A
  • They are economic activities that take place entirely within the entity. Production and casualty loss are examples of internal transactions.
32
Q

What are internal transactions?

They are economic ** that take place entirely within the **. Production and casualty loss are examples of *** transactions.

A
  • They are economic activities that take place entirely within the entity. Production and casualty loss are examples of internal transactions.
33
Q

What is production?

A

It is the process by which resources are transformed into products.

34
Q

What is casualty?

A

It is any sudden and unanticipated loss from fire, flood, earthquake and other event

FAR (4 decks)

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