MODULE 1-2 Flashcards
It is the regular conduct of legal activities primarily intended to accumulate profit.
BUSINESS
It is the obligation of the business to the society
CORPORATE SOCIAL RESPONSIBILITY
Responsibilities of the business to the environment
- Provide welfare for employees
- Providing clean and safe workplace
- Sustaining a healthy environment
- Contribute taxes to the local and global government
What is accounting?
It is a service activity, the language of business and it is an art of recording, classifying, summarizing and interpreting financial reports.
It time that the origin of record-keeping was established
PRIMITIVE ACCOUNTING
Cones, spheres, disks and pellets are called?
CLAY TOKENS
It is the first bill of lading.
BULLAE
It is where the use of credit was establish and the rise of double-entry bookkeeping took place.
MIDDLE AGE
He is the inventor of double-entry bookkeeping
AMATINO MANUCCI
He is the Father of Accounting and the one who introduced the double-entry bookkeeping.
LUCA PACIOLI
He is the first person to group similar transactions in a separate record
NICOLAS PETRI
He wrote the book “The American Accountant”
BENJAMIN WORKMAN
Tremendous advance in information technology happened in this accounting period.
INFORMATION AGE
They wrote VisiCalc for Apple ll
DAN BRINKLIN & BOB FRANKSTON
ASEAN stands for?
ASSOCIATION OF SOUTHEAST ASIAN NATIONS
ASEAN was established on _____ with five founding members.
AUGUST 8, 1967
MALAYSIA, INDONESIA, PHILIPPINES, SINGAPORE, THAILAND
What are the four pillars of AEAN Economic Community?
- SINGLE MARKET AND PRODUCTION BASE
- COMPETITIVE ECONOMIC REGION
- EQUITTABLE ECONOMIC DEVELOPMENT
- INTEGRATION INTO THE GLOBAL ECONOMY
What are the basic [phases of accounting?
RECORDING, CLASSIFYING, SUMMARIZING & INTERPRETING
What are the Fundamental Concepts?
- ENTITY CONCEPT
- PERIODICITY CONCEPT
- STABLE MONETARY UNIT CONCEPT
- GOING CONCERN
It is the fundamental concept that states the business transactions and the owner’s are treated separately.
ENTITY CONCEPT
Also known as time period assumption. Transactions are reported at a regular time intervals.
PERIODICITY CONCEPT
Transactions or reports are expressed in Philippine peso.
STABLE MONITORY UNIT CONCEPT
A reporting entity will continue in operation even beyond the next accounting period
GOING CONCERN
The three criteria for general acceptance of an accounting principles are?
RELEVANCE- meaningful and useful
OBJECTIVITY- not influenced by the personal bias
FEASIBILITY- can be implemented without undue complexity of cost
Basic Principles of Accounting
- OBJECTIVITY PRINCIPLE
- HISTORICAL COST
- REVENUE RECOGNITION PRINCIPLE
- EXPENSE RECOGNITION PRINCIPLE
- ADEQUATE DISCLOSURE
- MATERIALITY PRINCIPLE
- CONSISTENCY
Accounting records should be based on the most reliable data.
OBJECTIVITY PRINCIPLE
Acquired assets should be recorded at their actual cost.
HISTORICAL COST
Revenue must be recognized in the period it was realized or earned
REVENUE RECOGNITION PRINCIPLE
Expense should be recognized at the time it was incurred or used
EXPENSE RECOGNITION PRINCIPLE
All essential information that would affects user’s clear understanding must be disclosed in the financial statements
ADEQUATE DISCLOSURE
Financial reporting is concerned with information that is significant to affect decisions of an entity
MATERIALITY PRINCIPLE
A firm should use same accounting method
CONSISTENCY
On March 17, 1928, accounting was formally recognized by the approval act of?
Act. no. 3105
Became the first Filipino CPA in the US
Dr. Vicente Fabella
Founder and first President of FEU
Dr. Nicanor Reyes
First Filipina CPA
Belen Enrile-Gutierrez
