FABM1_Users, Types, and Forms of Business

What is the process of identifying, recording, and communicating financial information called?

• Auditing

• Accounting

• Marketing

• Economics

What are the end products of the accounting process that summarize financial activities?

• Tax Returns

• Balance Sheets

• Invoices

• Financial Statements

Which branch of accounting focuses on internal reports for managers?

• Management Accounting

• Financial Accounting

• Tax Accounting

• Government Accounting

Which Philippine government agency audits public funds?

• BIR

• SEC

• COA

• DTI

What type of business has no legal separation from its single owner?

• Corporation

• Partnership

• Sole Proprietorship

• Cooperative

Which accounting principle requires transactions to be based on verifiable evidence?

• Consistency Principle

• Objectivity Principle

• Matching Principle

• Materiality Principle

Which Philippine accounting standards align with GAAP?

• PFRS (Philippine Financial Reporting Standards)

• PASB (Philippine Accounting Service Basis)

• IFRS (International Financial Regulatory System)

• GAAS (Generally Accepted Accounting System)

Which branch of accounting advises management on cost efficiency?

• Financial Accounting

• Auditing

• Tax Accounting

• Cost Accounting

Who are the users of financial data that lend money to businesses (e.g., banks)?

• Investors

• Customers

• Creditors

• Regulators

Which business type transforms raw materials into finished goods?

• Merchandising Business

• Manufacturing Business

• Service Business

• Hybrid Business