introduction to accounting

Question 1

it is the process of identifying, recording, and communicating economic events of an organization to interested users.

Answer 1

accounting

Question 2

accounting is also often described as the _______

Answer 2

language of business

Question 3

it is an organization that uses resources to achieve its goals and objectives

Answer 3

economic entity

Question 4

enumerate the two types of economic/business entity

Answer 4

for-profit entity

nonprofit entity

Question 5

this mainly operates to generate income

Answer 5

for-profit entity

Question 6

this carries out charitable operations that do not necessarily generate income

Answer 6

nonprofit entity

Question 7

accounting is also considered an _______

Answer 7

information system

Question 8

shows the results of the company’s performance as a result of operations over a specific time period. it is also called profit and loss statement or income statement

Answer 8

statement of comprehensive income

Question 9

provides information about the entity’s financial and investing activities.

Answer 9

statement of changes in equity

Question 10

provides detailed information about a company’s assets, liabilities and shareholders’ equity (or the financial condition). it is also called the balance sheet.

Answer 10

statement of financial information

Question 11

provides information about the entity’s cash inflows and outflows resulting from its operations, investments, and financing. it shows the balance of cash flow from the beginning until the end of a given period.

Answer 11

statement of cash flows

Question 12

according to _________, accounting is a system that measures business activities, processes give information to reports, and communicates findings to decision makers

Answer 12

philippine institute of certified public accountants (PICPA)

Question 13

according to _________, accounting is the 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 13

american instiute of certified public accountants (AICPA)

Question 14

what books did Luca Pacioli publish

Answer 14

Summa de Arithmetica, Geometria, Proportioni et Proportionalita (Everything about Arithmetic, Geometry, and Proportion)
De Computis et Scripturis (Of Reckonings and Writings)

Question 15

who issued a royal charter to the institute of accountants in glasgow in scotland in 1854, which created the profession of chartered accountant, the very first recognitionof accounting as aprofession

Answer 15

Queen Victoria of England

Question 16

in _______, the american association of public accountants was established

Answer 16

1887

Question 17

the first standardized test for accountants was given granting liscence the the first american cpa in _____

Answer 17

1896

Question 18

this provision is entitled “an act regulating the public accounting: creating the board of accountancy; providing for examination, for the granting of certificates, and the registration of certified public accountants; for the suspension or revocation of certificates; and other purposes.” and in what year was it approved?

Answer 18

Act No. 3105

1923