Basic Accounting - Theories

Accounting is a system that allows businesses to trace its financial activities and _______ results.

• classify

• evaluate

• summarize

• identify

According to American Accounting

Association (AAA), accounting is a A service activity. Its function is to provide quantitative information, primarily financial in nature, about economic entities, that us intended to be useful in making economic decision.

• True

• False

He became a prominent person in accounting history due to writing a book that introduced and disseminated the double-entry bookkeeping.

Accounting is as old as civilization and has evolved in response to economic and social needs of men.

• True

• False

What does the acronym - C P A mean?

In this branch of public accounting, the accountant is expected to be knowledgeable about revenue regulations. He or she also represents the client in any tax-related case filed by the Bureau of Internal Revenue (BIR).

• Financial Accounting

• Cost Accounting

• Management and Advisory Services

• Tax Preparation and Planning Service

External auditing is performed by someone ________ the business.

• inside

• outside

Accounting research helps regulatory bodies develop

accounting records to address issues in accounting practices.

• True

• False

What branch of accounting is this:

For instance, a

manufacturing company that wants to

replace the type of material used in their

products could benefit from cost

accounting to determine how much they

could lower the production cost.

• Government

  Accounting

• Management

  Accounting

• Cost

  Accounting

• Financial

  Accounting

_________ need to check their customer’s repayment ability in

order to decide the credit limit and payment terms to be

given to their customers.

• Suppliers

• Owners

• Creditors

• Management