Lesson 1

Question 1

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

Answer 1

Accounting

Question 2

the accountant analyzes each business transaction and identifies whether the transaction is an “accountable event” or “non-accountable event.”

Essential elements of the definition of accounting

Answer 2

Identifying

Question 3

The accountant** recognizes (i.e., records) the “accountable events”he has identified. This process is called

Essential elements of the definition of accounting

Answer 3

Recording and journalizing

Question 4

After journalizing, the accountant then classifies the effects of the event on the “accounts.” This process is called

Essential elements of the definition of accounting

Answer 4

posting

Question 5

After journalizing, the accountant then classifies the effects of the event on the “accounts.” This process is called

Essential elements of the definition of accounting

Answer 5

Posting

Question 6

at the end of each accounting period, the accountant summarizes the information processed in the accounting system in order to produce meaningful reports.

Essential elements of the definition of accounting

Answer 6

Communicating

Question 7

Accounting information is communicated to interested users through accounting reports, the most common form of which is the

Essential elements of the definition of accounting

Answer 7

financial statements.

Question 8

Types of information provided by accounting:

Answer 8

• Quantitative information
• Qualitative information
• Financial information

Question 9

Nature of accounting

Answer 9

providing information about economic activities intended to be useful in making economic decisions.

Question 10

to provide ——- information that is useful in making investment and credit decisions;

Functions of Accounting in Business:

Answer 10

external users

Question 11

To provide ——- with information that is useful in managing the business.

Functions of Accounting in Business:

Answer 11

internal users

Question 12

Double entry records first came out during?

Brief history of accounting

Answer 12

340 A.D. in Genoa.

Question 13

Archaeologists have found clay tokens as old as?

Answer 13

8500 B.C.

Question 14

In 1494,the first systematic record keeping dealing with the?

Answer 14

“double entry recording system”

Question 15

who formulated the “ “double entry recording system”?

Answer 15

Fra Luca Pacioli

Question 16

Fra Luca Pacioli is a?

Answer 16

Franciscan monk and mathematician

Question 17

Fra Luca Pacioli is considered as the?

Answer 17

father of modern accounting.

Question 18

Branch of accounting:

Answer 18

1. Financial Accounting
2. Management accounting
3. Goverment accounting
4. Auditing
5. Tax accounting
6. Cost accounting
7. Accoungting Education
8. Accounting Research

Question 19

Preparation of general purpose Financual statments (FS) what branch of accounting comes from?

Type of accounting service provided

Answer 19

Financial Accounting

Question 20

Preparation of specifically tailored management reports,what branch of accounting comes from?

Type of accounting service provided

Answer 20

Mangement accounting

Question 21

General record-keeping and preparation of financial reports for the goverment and it’s agencies ,what branch of accounting comes from?

Type of accounting service provided

Answer 21

Goverment accounting

Question 22

Expression of an opinion on the correspondence between management assertions and established? what branch of accounting comes from?

Type of accounting service provided

Answer 22

Auditing

Question 23

preparation of tax returns and providing tax advice, What branch of accounting comes from?

Type of accounting service provided

Answer 23

Tax accounting

Question 24

Analysis of cost of product or services, What branch of accounting comes from?

Type of accounting service provided

Answer 24

Cost accouting

Question 25

Teaching of accounting and related subjects, what branch of accounting comes from?

Type of accounting service provided

Answer 25

Accounting Education

Question 26

Accounting research papers, articles and similiar publications, what Type of accounting service provided

Answer 26

Accounting Research

Question 27

those who are directly involved in managing the business. like Business owners who are directly involved in managing the business,
Board of directors,
Managerial personnel

Users of Accounting Information

Answer 27

Internal users

Question 28

those who are not directly involved in managing the business.

Users of Accounting Information

Answer 28

External users

Question 29

Forms of business organization

Forms of Business Organizations

Answer 29

1. Sole proprietor
2. Partnership
3. Corporation
4. Cooperative

Question 30

how many ownership for Sole proprietor?

Answer 30

one individual

Question 31

how many ownership for Partnership?

Answer 31

more than one

Question 32

how many ownership for Corporation?

Answer 32

more than one
(stock holders)

Question 33

how many ownership for Cooperative

Answer 33

More than one
(members)

Question 34

Types of businesss according to activities

Answer 34

Service business
Merchandising (trading)
Manufacturing