FABM1_A1_SY20252026

What is accounting commonly known as?

• The language of business

• The science of money

• The art of management

• The study of investments

Which of the following best describes the main purpose of accounting information?

• To entertain business owners

• To expose a company’s financial performance and help in decision-making

• To increase company profits directly

• To reduce the number of employees

Who are considered external users of accounting information?

• Only the business owner

• Only the company’s employees

• Investors, stakeholders, and creditors

• Only the government

How does accounting help stakeholders make informed decisions?

• By providing transparency and data-backed information

• By hiding company losses

• By increasing the number of transactions

• By reducing the need for financial statements

Why is accounting considered an art?

• Because it requires the use of skills and creative judgment

• Because it is based on strict scientific laws

• Because it only involves mathematical calculations

• Because it is a form of entertainment

Which type of information is NOT recorded in accounting?

• Hiring an additional employee with no financial character

• Payment of salaries

• Acquisition of an office building

• Sale of goods

Why must business transactions be expressed in terms of money in accounting?

• To assign amounts that can be processed in an accounting system

• To make the reports more colorful

• To avoid recording any transactions

• To ensure only qualitative information is included

What is the importance of interpreting results in accounting?

• It makes the information in financial reports useful to users

• It allows for the creation of new business laws

• It eliminates the need for recording transactions

• It focuses only on classifying items

Why did merchants during the Industrial Revolution need to keep detailed accounting records?

• To avoid paying taxes

• To avoid bankruptcy and track their finances

• To impress the government

• To compete with foreign merchants

What significant event in Philippine accountancy happened on March 17, 1923?

• The establishment of the Board of Accountancy through Act 3105

• The first CPA Licensure exam was administered

• Vicente Fabella opened his accounting firm

• The University of the Philippines started offering accounting courses