Part 2: Accounting Flashcards
language of business
Accounting
To provide _, with information that is useful in making investment and credit decisions
External users
To provide _ with information that is useful in managing the business
Internal Users
Those who are directly involved in managing the business
Internal users
Those who are not directly involved in managing the business
External users
Information designed to meet the common needs of most statement users
General-purpose accounting information
Information designed to meet the specific needs of particular statement users
Special purpose accounting information
As early as _, accounting already exist
8500 B.C
Archaeologists found clay tokens in _
Mesopotamia (Present-day Iraq)
Other ancient civilizations keeping account records are
Babylonia (4500 B.C), Egypt (2250 B.C), China, and Greece
In _, the first systemic record-keeping dealing with the “double-entry system”
1494
It was formulated by him, a Franciscan monk and mathematician and considered as the father of modern accounting
Fra Luca Pacioli
It is the branch of accounting that focuses on general-purpose financial statements
Financial Accounting
It caters to the common needs of a wide range of external users
General-purpose financial statement
Financial Accounting is governed by
Philippine Financial Reporting Standards
Involves the accumulation and communication of information for use by internal users
Management Accounting
Refers to the accounting of the government and its instrumentalities, focusing attention on the custody of public funds.
Government Accounting
Involves the inspection of an entity’s financial statements
Auditing
Preparation of tax returns and rendering tax advice
Tax accounting
Combination of Accounting and Law
Taxation
