Module 1 - What is Accounting? Flashcards
What’s the definition of accounting according to the American Accounting Association?
The process of identifying, measuring, and communicating economic information to permit informed judgments and decisions by the users of the information.
Accounting is the _______ of business.
Language
Professional entities in the Philippines are regulated by the Philippines’ highest regulatory government organization. What is the name of this organization?
Professional Regulatory Board
The Accounting Standards Council is established by organization?
Philippine Institute of Certified Public Accountants (PICPA)
What’s the function of the Accounting Standards Council?
Establish generally accepted accounting principles in the Philippines.
The Accounting Standards Council was replaced by what organization?
Financial Reporting Standards Council on 2006
On August 2009, the FRSC created the Philippine Interpretations Committee for what purpose?
Assist the FRSC in establishing and improving the financial reporting standards in the Philippines.
Give at least three countries that formed the International Accounting Standards Committee.
Any of the following: Australia, Canada, France, Japan, Mexico, Germany, United Kingdom, Ireland, USA, and Netherlands
The International Accounting Standards Committee’s main goal is what?
Achieve a uniform accounting principles around the world.
The Republic Act No. 9298 repealed the Presidential Decree No. 692 on May 13, 2004. This law is also known as what?
Philippine Accountancy Act of 2004
The Philippine Financial Reporting Standards (PFRSs) corresponds to what international format?
International Financial Reporting Standard (IFRSs)
This phase of accounting is also called journalization.
Recording
This phase of accounting involves sorting and grouping similar items under the designated name, category or account.
Classifying
Graphs and other visual elements are often used to complement the text data in this accounting phase.
Summarizing
In this phase, data is used to prepare future plans and frame policies to execute financial plans.
Interpreting
What’s the definition of accounting according to AICPA?
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 financial character, and interpreting the results thereof.
Accounting 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 decisions, in making reasoned choices among alternative courses of action. This definition is from what organization?
Accounting Standards Council
The following are what kind of accounting information users: Owners, Creditors and Suppliers, Potential workers, Management, Taxing Authorities, Employees, and Customers?
Direct Users
Give at least 3 indirect users of accounting information.
Any of the following: Regulatory Authorities, Financial Analyst and Advisors, Stock Exchanges, Lawyers, Financial press and reporting agencies, Trade Associations and labor unions.
The main function of accounting is what?
Provide quantitative financial information about a business that is useful to statement users particularly owners and creditors, in making economic
decisions.
What direct user retain, increase or decrease proportionate ownership and evaluate the use and stewardship of resources by management?
Owner/s
These direct users commit resources to the enterprise.
Potential Owners
They assess nature and extent of financing needs and evaluate results of past economic decision.
Management
They extend and determine terms of credit.
Creditors
