Midterma

Question 1

process of identifying, measuring and communicating economic information to permit informed judgment and decisions by users of the information

Answer 1

Accounting

Question 2

process of analyzing events and transactions to determine whether or not they will be recognize

Answer 2

Identifying

Question 3

process of including the effects of an accountable event in the statement of financial position or the statement of comprehensive in country a journal entry

Answer 3

Recognition

Question 4

It affects the assets, liabilities, equity income, or expenses of an entity

Answer 4

Accountable event

Question 5

it is also known as economic activity, which is the subject matter of accountimg

Answer 5

Accountable event

Question 6

It is not recognized, but disclose only in the note if they have accountimg relevance

Answer 6

non accountable events

Question 7

A non accounting event that has an accounting relevance may be recorded through a what?

Answer 7

Memorandum entry

Question 8

events that involve an entity and another external party

Answer 8

External events

Question 9

an event were in the reciprocal, giving and receiving of economic resources

Answer 9

Exchange

Question 10

One way transaction in the party giving something does not receive anything in return

Answer 10

non reciprocal transfer

Question 11

An event that involves changes in the economic resources or obligations of an entity caused by an external party or external source, but does not involve transfers of resources or obligations

Answer 11

External event, other than transfer

Question 12

sale, purchase, payment of liabilities, receipt of notes, receivable, and exchange for accounts receivable and the like, are examples of of what

Answer 12

Exchange

Question 13

donationa, gifts or charitable contributions, payment of taxes, impositiom of fines, the provision of capital by owners, distributions to owners and the like, are example of what?

Answer 13

Non reciprocal transfer

Question 14

change just in fair values and price levels, obsolescence, technological changes, vandalism, and the like, are example of what?

Answer 14

External event, other than transfer

Question 15

events that do not involve an external party

Answer 15

Internal events

Question 16

A type of internal events: process by which resources are transformed into finish goods. Examples are conversion of raw materials to finish products, production of farm products, and the like.

Answer 16

production

Question 17

type of internal event: unanticipated loss from disasters or other similar events

Answer 17

Casualty

Question 18

It involves assigning numbers normally in monetary terms to the economic transactions and events

Answer 18

Measuring

Question 19

The most commonly used measurement base

Answer 19

Historical cost

Question 20

Accordingly, financial statements are set to be prepared using a mixture of costs and what?

Answer 20

Values

Question 21

costs include ____and ____

Answer 21

Historical cost, and current cost

Question 22

values include _____

Answer 22

Other measurement bases

Question 23

It is essential in providing relevant information. Thus, financial statements are set to be a mixture of fact and opinion.

Answer 23

Estimates

Question 24

process of transforming economic data into useful, the accounting information such as financial statements and other accounting reports for dissemination to users. it also involves interpreting the significance of the processed information.

Answer 24

Communicating

Question 25

communicating process of accounting involves three aspects. What are the three aspects?

Answer 25

Recording, classifying, summarizing

Question 26

refers to the process of systematically committing into writing the identified and measured accountanle events journal through journal entries

Answer 26

Recording

Question 27

Involves the grouping of similar and interrelated items into their respective classes through posting in the ledger

Answer 27

Classifying

Question 28

Putting together are expressing and condensed form recorded and classified transactions and events. this includes the preparation of financial statements and other accounting reports.

Answer 28

Summarizing

Question 29

when __ the process information, it involves the computation of financial statement ratios

Answer 29

Interpreting

Question 30

An economic entity that carries out some socially desirable needs of the community or its members, and whose activities are not directed towards making profit

Answer 30

not for profit entity

Question 31

An economic entity that operates primarily for profit

Answer 31

Business entity

Question 32

Process of converting economic resources into outputs of goods and services that are intended to have greater utility than the required inputs

Answer 32

Production

Question 33

The process of trading resources or obligations for other resources or obligations

Answer 33

Exchange

Question 34

process of using the final output of the production process

Answer 34

Consumption

Question 35

Process of allocating rights to the use of output among individuals and groups in society

Answer 35

Income distribution

Question 36

Process of setting aside, rights to present consumption in exchange for rights to future consumption

Answer 36

Savings

Question 37

Process of using current inputs to increase the stock of resources available for output as supposed to immediately consumable output

Answer 37

Investment

Question 38

Designed to meet the common needs of most statement users

Answer 38

General purpose

Question 39

They assigned to me the specific needs of particular statement users

Answer 39

Special purpose

Question 40

The fundamental concepts or principles and basic notions that provide the foundation of the accounting process

Answer 40

accounting assumptions or postulates

Question 41

logical reasoning in the form of a set of broad principles

Answer 41

Accounting theory

Question 42

cause of processing and communicating information should that exceed the benefits to be derived from it

Answer 42

Cost benefit

Question 43

All of the components of a complete set of financial statements are interrelated

Answer 43

Concept of articulation

Question 44

The accounting objective is geared towards the proper valuation of assets. Assets - Liabilities = Capital

Answer 44

proprietary theory

Question 45

this theory is applicable when there are two classes of shares issued. Assets - Liabilities - Prefereed

Answer 45

Residual equity theory