1st Quarterly Examination in FABM2

Accounting is a process because:

• It provides assistance to decision makers by providing them financial reports that will guide them in coming up with sound decisions.

• It has method of performing any specific job step by step according to the objectives or targets.

• the art of recording, classifying, summarizing and finalizing financial data.

Accounting is a service activity because:

• It has method of performing any specific job step by step according to the objectives or targets.

• It provides assistance to decision makers by providing them financial reports that will guide them in coming up with sound decisions.

• It has the art of recording, classifying, summarizing and finalizing financial data.

Accounting is both an art and a discipline because:

• It has method of performing any specific job step by step according to the objectives or targets.

• It provides assistance to decision makers by providing them financial reports that will guide them in coming up with sound decisions.

• It has the art of recording, classifying, summarizing and finalizing financial data.

Investors are:

• Individuals or institutions - an external user of accounting that has invested capital in the company by purchasing stocks or other securities.

• Entities that provide goods or services to the company and may analyze financial statements to assess the company's ability to fulfill its payment obligations.

• Regulatory bodies that may require financial information for taxation, compliance, and regulatory purposes and are external users interested in ensuring legal adherence.

• Banks and other lending institutions that provide loans or credit to the company and use financial information to assess the company's creditworthiness and ability to repay debts.

Government agencies are:

• Individuals or institutions - an external user of accounting that has invested capital in the company by purchasing stocks or other securities.

• Entities that provide goods or services to the company and may analyze financial statements to assess the company's ability to fulfill its payment obligations.

• Regulatory bodies that may require financial information for taxation, compliance, and regulatory purposes and are external users interested in ensuring legal adherence.

• Banks and other lending institutions that provide loans or credit to the company and use financial information to assess the company's creditworthiness and ability to repay debts.

Creditors are:

• Individuals or institutions - an external user of accounting that has invested capital in the company by purchasing stocks or other securities.

• Entities that provide goods or services to the company and may analyze financial statements to assess the company's ability to fulfill its payment obligations.

• Regulatory bodies that may require financial information for taxation, compliance, and regulatory purposes and are external users interested in ensuring legal adherence.

• Banks and other lending institutions that provide loans or credit to the company and use financial information to assess the company's creditworthiness and ability to repay debts.

Suppliers are:

• Individuals or institutions - an external user of accounting that has invested capital in the company by purchasing stocks or other securities.

• Entities that provide goods or services to the company and may analyze financial statements to assess the company's ability to fulfill its payment obligations.

• Regulatory bodies that may require financial information for taxation, compliance, and regulatory purposes and are external users interested in ensuring legal adherence.

• Banks and other lending institutions that provide loans or credit to the company and use financial information to assess the company's creditworthiness and ability to repay debts.

Also known as the balance sheet. This statement includes the amounts of the company's total assets, liabilities, and owner's equity which in totality provides the condition of the company on a specific date.

• Statement of Income

• Trial Balance

• Statement of Financial Position

It is considered a corporation if it is:

• An entity created by law owned by shareholders.

• Owned by only one person.

• A duly registered association of persons with a common bond of interest, voluntarily joining together to achieve their social, economic and cultural needs.

Manufacturing business is a type of business which:

• Buys at wholesale and later sells the products at retail.

• Buys raw materials and uses them in making a new product.

• Offers professional skills, advice and consultations.