Chapter 1: Accounting in Action

Activities of accounting:

• Identifying

• Recording

• Communicating economic

• All

Bookkeeping encompasses all steps in the accounting process.

• True

• False

Answer explanation

Bookkeeping (sổ kế tóan) usually involves only the recording of economic events.

Accountants prepare, but do not interpret, financial reports.

• True

• False

Answer explanation

Accountants (Kiểm toán viên) analyze and interpret (trình bày) in reports as part of the communication step.

The two most common types of external users are investors and company officers.

• True

• False

Answer explanation

Company officers is false

Managerial accounting activities focus on reports for internal users.

• True

• False

Historical cost principle

• dictates that companies record assets at their cost

• states that assets and liabilities should be reported at fair value (the price received to sell an asset or settle a liability)

• All is not true

Answer explanation

Historical cost principle (nguyên giá) là ghi giá của tài sản đúng với giá khi nó được mua

Fair value principle

• requires that companies include in the accounting records only transaction data that can be expressed in terms of money

• states that assets and liabilities should be reported at fair value (the price received to sell an asset or settle a liability)

Answer explanation

Giá trị ngang bằng là sử dụng giá của tài sản hiện đang có trên thị trường

_____ and ________ are two primary qualities that make accounting information useful for decision - making

MONETARY UNIT ASSUMPTION

• requires that activities of the entity be kept separate and distinct from the activities of its owner and all other economic entities

• requires that companies include in the accounting records only transaction data that can be expressed in terms of money

• All

Answer explanation

Chỉ những data tồn tại, có thật trong kì kế toán

ECONOMIC ENTITY ASSUMPTION

• All

• include:

  proprietorship

  partnership

  corporation

• requires that activities of the entity be kept separate and distinct from the activities of its owner and all other economic entities

Answer explanation

Phải phân chia tiền riêng với tiền góp chung để thành lập công ty