lesson 1 introduction

Question 1

accounting is considered as the ?

Answer 1

language of business

Question 2

it is a service activity which function is to provide quantitative information primarily financial in nature, about economic entities that is intended to be useful in making economic decisions

Answer 2

accounting

Question 3

branches of accounting

Answer 3

financial
managerial
cost
taxation

Question 4

financial accounting is governed by ?

Answer 4

Philippine Financial Reporting Standards Council (PFRS)

Question 5

it is the preparation of general-purpose financial statements

Answer 5

financial accounting

Question 6

financial acctg provides acctg info to?

Answer 6

external users

Question 7

individuals or enterprises that have financial interest in the business but they are not involved in the day to day activities

Answer 7

external users

Question 8

examples of external users

Answer 8

business contacts
lenders
customers
investors
analysts/advisers
government and their agencies
independent auditors
public

Question 9

branch of accounting that is not governed by the PAS

Answer 9

managerial accounting

Question 10

managerial accounting needs acctg information for

Answer 10

planning, organizing, directing, and controlling business operations

Question 11

it provides acctg information to internal users

Answer 11

managerial accounting

Question 12

are those who make decisions directly affecting the internal operations of the business

Answer 12

internal users

Question 13

samples of internal users

Answer 13

managers
employees
officers
internal auditors

Question 14

branch of acctg that helps in making decision as to reduction or increase of selling prices

Answer 14

cost accounting

Question 15

focused on gathering cost information that is useful in determining prices

Answer 15

cost accounting

Question 16

key players in cost accounting

Answer 16

selling price
cost
profit

Question 17

branch of accounting that prepares the tax returns and provide tax advice

Answer 17

taxation / tax accounting

Question 18

branch of accounting that revolves around cost computation, cost control, and cost reduction

Answer 18

cost accounting

Question 19

branch of accounting that helps management make effective decisions about business

Answer 19

management accounting

Question 20

it prevents business from incurring cost beyond budget

Answer 20

cost accounting

Question 21

it offers a big picture of how management should strategize

Answer 21

management accounting

Question 22

branch of acctg that has a narrow scope

Answer 22

cost acc

Question 23

cost acc as to measuring grid

Answer 23

quantitative onl

Question 24

management acc as to measuring grid

Answer 24

both quanti and quali

Question 25

cost acc as to subset

Answer 25

cost acc is one of the many subsets of management acc

Question 26

management acc as to subset

Answer 26

management acc is pretty vast

Question 27

cost acc as to basis of decision-making

Answer 27

historic information is the basis of decision-making

Question 28

management acc as to basis of decision-making

Answer 28

historic and predictic information are the basis

Question 29

cost acc as to statutory requirement

Answer 29

statutory audit of cost acc is a requirement in big business houses

Question 30

management acc as to statutory req

Answer 30

audit of management acc has NO statutory req

Question 31

cost acc as to dependence

Answer 31

cost acc is NOT dependent on management acc to be successfully implemented

Question 32

management acc as to dependence

Answer 32

it is DEPENDENT on both cost and financial acc for successful implementation

Question 33

cost acc as to its use

Answer 33

management, shareholder, and vendors

Question 34

management acc as to its use

Answer 34

only for management

Question 35

types of inventory

Answer 35

raw materials inventory work in process inventory finished goods inventory

Question 36

formula for gross purchase

Answer 36

purchased raw materials/purchases + freight in

Question 37

formula for net purchase

Answer 37

gross purchase - purchase discount & purchase returns and allowances

Question 38

formula for direct materials used

Answer 38

direct materials, beginning + net purchases - direct materials, ending

Question 39

formula for product cost/inventoriable cost/total manufacturing cost

Answer 39

direct materials + direct labor + manufacturing overhead (indirect materials)

Question 40

formula for total goods put into process

Answer 40

work in process, beginning + total manufacturing cost

Question 41

formula for cost of goods manufactured

Answer 41

tgpip - work in process, ending

Question 42

formula for cost of goods available for sale

Answer 42

cgm + finished goods inventory, beginning

Question 43

formula for cost of goods sold/cost of sales

Answer 43

cogafs - finished goods inventory, ending

Question 44

legal way of reducing or eliminating tax dues (tax minimization)

Answer 44

tax avoidance

Question 45

illegal way of reducing or eliminating tax dues (tax dodging)

Answer 45

tax evasion