ACCTG001-2021-ACT1

It is the language of business.

• Accounting

• Management

• Finance

• English

Accounting is useless if it cannot be communicated or reported to the intended users.

• TRUE

• FALSE

It is the art of recording, summarizing, and reporting financial transactions and events, and analyzing the results thereof.

• Accounting

• Financial statements

• Balance sheet

• Income statement

It is the report or end product of accounting that is used for analysis.

• Financial statement

• Income statement

• Statement of returns

• Financial analysis

The two most basic financial statements are

• financial reports

• balance sheet and statement of financial position

• statement of financial position and income statement

• statement of economic performance and income statement

They are resources of the business that may be used by the business for current or future economic benefit.

• Assets

• Balance

• Liabilities

• Equity

The following are examples of assets. Which is not among them?

• Cash

• Land

• Building

• Payable

The following are examples of liabilities. Which is not among them?

• Accounts payable

• Notes payable

• Bonds payable

• Cash

It is the financial statement containing information as regards the assets, liabilities and owner's equity at a particular point in time.

• Balance sheet or statement of financial position

• Income statement or statement of economic performance

• Income statement or statement of profit or loss

• Statement of cash flows

The statement of financial position shows the movement of the balance of assets in a given period of time instead of just the balance at a particular point in time.

• TRUE

• FALSE