Accounting, Bookkeeping, and Its Business Environment

What is your name?

State your full name.

Accounting is the systematic process recording of business transactions to its respective journals and ledgers in a prescribed manner.

• True

• False

Accounting is defined by PICPA as service activity. PICPA stands for ________________________.

• Philippine Institute of Certification of Public Accountant

• Philippine Institute of Certified Private Accountant

• Philippine Institute of Certified Public Accountant

Which is not an example of internal users?

• employees

• government

• investors

• owner

Which is an example of external users?

• employees

• government

• investor

• owner

A business owned and managed by two or more persons who have an agreement of contribution.

• sole proprietorship

• partnership

• corporation

• cooperative

Assets = liabilities ___ owner's equity

Owner's equity = assets __ liabilities

Balance sheet consists of the following except:

• costs

• assets

• liabilities

• owner's equity

It summarizes the cash receipts and cash disbursements for the accounting period.

• Statement of Financial Position

• Income Statement

• Statement of Cash Flows

• Statement of Changes in Owner’s Equity