Luca Pauloi is considered the father of modern accounting

C.P.A. stands for Certified Private Accountant.

Accounting is a set of rules and methods by which economic information of a business is collected and made into reports that are useful to end-users. A drawing account is increased by debits and decreased by credits.

Inventory is recorded at the lower of cost or net realizable value rather than the expected selling price. This ensures profit on the sale of inventory is only realized when the actual sale takes place.

Financial statements are prepared with the expectation that a business will remain in operation indefinitely.

GAAP stands for:

The Corona Limited Co. has three plants nationwide that cost a total of P200 million. The current fair value of the plants is P600 million. The plants will be recorded and reported as assets at:

It includes the money and any medium of exchange acceptable by the bank for deposits such as bills, coins, funds for current purposes, checks, cash in the bank, etc.

These are economic obligations, debts, or payables of the business.

These are the costs of promoting the business such as those incurred in newspaper publications, television and radio broadcasts, billboards, flyers, etc.

It refers to the cost paid or to be paid to a lessor for the right to use a commercial property such as an office space, a storeroom, a building, etc.

Which of these is a liability?

Which of these is an asset?