Fundamentals of Accountancy, Business and Management 2

Which is not a branch of Accounting?

• • Financial Accounting

• Academe

• • Government Accounting

• Inventory Accounting

It is a branch of accounting that is an accounting education that includes accountants who pursue as instructors, researchers, authors and reviewers.

• Auditing

• Academe

• Cost Accounting

It is the process of examining an entity’s accounting records, as well as physical inspection of its assets. It is performed by a Certified Public Accounts whom can express an opinion on the fairness of the entity’s financial statements.

• Auditing

• Accounting

• Management Accounting

What does GAAP means?

• Generalizing Accepted Accounting Principles

• Generally Audited Accounting Principles

• Generally Accepted Accounting Principles

it means that the income is recognized when they are earned regardless of when they are received; and the expense is recognized when they are incurred regardless of when they are paid. I

• STABLE MONETARY UNIT

• ACCRUAL BASIS OF ACCOUNTING

• ENTITY PRINCIPLE

____ is a type of business which is owned by only one person. Usually a sole proprietor (owner of the business) is also the manager of boss of his own business.

A corporation is composed of ______ people. It is organized by operation of the law and considered the most complex form of a business organization.

It is a type of business according to activities that buys inventory that it will resell in retail or wholesale, generally for a higher price than they were purchased. It ranges from fruit-stand store to an online retailer like Lazada or a bookstore.

This basic accounting principle that requires that those costs and expenses incurred in earning revenue should be recorded and reported in the same period. This means that revenues and expenses that result directly from the same transactions and events should be recognized within one accounting period.

• MATCHING PRINCIPLE

• STABLE MONETARY UNIT

• ENTITY PRINCIPLE

A _____ is a twelve-month period which is from Jan 1 to Dec 31 while _______ is any twelve-month period starting from any month other than Jan 1.