Basics of Accountancy

Question 1

is a system meant for measuring business activities, processing o/ information into reports and making the findings available to decision-maker

Answer 1

accounting

Question 2

accounting is often called what?

Answer 2

Language of Business and Language of Financial Decisions

Question 3

natures of accounting

Answer 3

1. Accounting is a service activity
2. Accounting is an art
3. Accounting is a process
4. Accounting provides primarily quantitative information to users.
5. Accounting is an information system.

Question 4

Involves assessing whether transactions or events merits recognition or not

Answer 4

identifying

Question 5

Events that merit recognition are known as

Answer 5

accountable event

Question 6

Writing down of business transaction in chronologically in the books of account as they transpire.

Answer 6

recording

Question 7

Sorting similar and related business transactions into the three categories of Assets, Liabilities, and owner’s equity.

Answer 7

classifying

Question 8

Preparing the financial statements from the transactions recorded in the
books of account designed to meet the information needs of its users.,

Answer 8

summarizing

Question 9

reporting the results to users of financial information

Occurs through the preparation and distribution of Financial and other accounting reports.

Answer 9

communicating

Question 10

is an organization in which basic resources, such as materials and labor are assembled and processed to provide goods or services to customers.

Answer 10

business

Question 11

provide services rather than products to customers

Answer 11

service

Question 12

sell products they purchase from other business to

customer.

Answer 12

merchandising

Question 13

change basic inputs into products that are sold to

customer.

Answer 13

manufacturing

Question 14

what are the business operations?

Answer 14

service, merchandising, manufacturing

Question 15

is a business owned and managed by only one person.

Answer 15

sole proprietorship

Question 16

is a business organization owned and managed by two or more people, who agree to contribute money, property or industry to a common fund for the
purpose of earning profit.

Answer 16

partnership

Question 17

is a form of business organization managed by an elected board of directors.

Answer 17

corporation

Question 18

investors are called?

Answer 18

stockholders

Question 19

what is the unit of ownership in corporation?

Answer 19

share of stock

Question 20

what are the business organizations

Answer 20

sole proprietorship, partnership, corporation

Question 21

according to the, accounting is a service activity. it provides quantitative information primarily financial in nature about economic entities that is intended to be useful in making economic decisions

Answer 21

Philippine Institute of Certified Public Accountant

Question 22

according to this person. accounting is the process of Identifying, Recording and Communicating economic events of organization to interested users

Answer 22

weygandt. j. et. al

Question 23

the aspects of accounting

Answer 23

identifying
recording
classifying
summarizing
communicating

Question 24

is utilized by users to make judgement or wise decision regarding the business operations

Answer 24

financial information

Question 25

two users of financial information

Answer 25

internal and eternal users

Question 26

users who are outside the company

Answer 26

external

Question 27

users within the business organization

Answer 27

internal

Question 28

type of external users

Answer 28

investors
creditors
supplier
government
public
costumers

Question 29

type of internal users

Answer 29

owners
mangers
employees

Question 30

classification of users in conceptual framework

Answer 30

primary users’

users other than primary users

Question 31

they are the main users to who the general purpose financial reports are directed

Answer 31

primary users

Question 32

examples of primary users

Answer 32

existing and potential investors

leaders and creditors

Question 33

others not included as primary users of the financial statement

Answer 33

users other than primary users

Question 34

examples of the people not included in the primary users

Answer 34

management

employees