Growth of Accounting (Prelim)

Question 1

It is the language of business has undergone through series of development and innovation

Answer 1

Accounting

Question 2

Origins of Accounting are often traced in what and starting when?

Answer 2

Traced to the times of Sumer, in Mesopotamia, starting in the 4th millennium BCE

Question 3

He is Archeologist of the German Institute of Archaeology that discovered 5300-year-old bone

Answer 3

Archeologist Dr. Gunter Dreyer

Question 4

He is a Franciscan monk that founded accounting as a discipline and published a book entitled “Summa de Arithmetica, Geometria, Proportioni et Proportionalita,”

Answer 4

Luca Pacioli

Question 5

It is the most commonly practiced and comprehensive discipline of accounting

Answer 5

Financial Accounting

Question 6

It deals with the information needs of those internal to the business

Answer 6

Managerial Accounting

Question 7

It is the measurement of recognition of the cost of services and products being manufactured by the firm

Answer 7

Cost of Accounting

Question 8

It is the process of analyzing, measuring, recording, and distributing reports of all transactions

Answer 8

Government Accounting

Question 9

This is an example of local governments and municipalities that must show a clear management of their funds using proper accounting

Answer 9

Government Accounting Manual (GAM)

Question 10

It is a cluster of accounting standards and common industry usage that have been developed over many years

Answer 10

Generally Accepted Accounting Principles (GAAP)

Question 11

It is an independent private sector body, with the objective of achieving uniformity in the accounting principles and was formed in 1973

Answer 11

International Accounting Standard Committee (IASC)

Question 12

This is the approved standards of the IASC

Answer 12

International Accounting Standards (IAS)

Question 13

It is an independent, private sector body that develops and approves IFRS and replaces the IASC

Answer 13

International Accounting Standards Board (IASB)

Question 14

It is a set of standards intended to bring about greater transparency and a higher degree of comparability in the financial reporting process

Answer 14

International Financial Reporting Standards (IFRS)

Question 15

It is the accounting standard-setting body created by the Professional Regulation Commission and to assist the Board in carrying out it’s power and functions provided

Answer 15

Financial Reporting Standards Council (FRSC)

Question 16

This is the main function of FRSC

Answer 16

to establish and improve the accounting standards

Question 17

This is the body authorized to establish and promulgate Generally Accepted Auditing Standards (GAAS)

Answer 17

Auditing and Assurance Standards Council (AASC)

Question 18

What is the main objective of the AASC in adopting IAASB?

Answer 18

It is to attain uniformity of the local GAAS with the IAASB pronouncement s

Question 19

It is a summary of terms and concepts that underlie the preparation and presentation of financial statements

Answer 19

Conceptual Framework

Question 20

These are qualitative characteristics which related to the content or substance of financial information

Answer 20

Fundamental Qualitative Characteristics

Question 21

This enables the financial information to make a difference in a decision made by users.

Answer 21

Relevance

Question 22

This shows the information to be complete, neutral, and free from error

Answer 22

Faithful representation

Question 23

These are qualitative characteristics which relate to the presentation or form of financial information

Answer 23

Enhancing Qualitative Characteristics

Question 24

It enables the users to identify and understand similarities in, and difference among items

Answer 24

Comparability

Question 25

It allows different knowledge and independent observes to reach consensus

Answer 25

Verifiability

Question 26

This means that information is available to decision-makers

Answer 26

Timeliness

Question 27

This requires financial information to be presented as clear, intelligible, and concise

Answer 27

Understandability