It is the process of IDENTIFYING, RECORDING, and COMMUNICATING economic events of an organization to interested users

Tax Authorities are external users of financial information with direct interest in the business entity

Creditors make use of financial reports to know how the business used the money lent to the entity.

The financial statements provide all the needed information by decision makers.

The shareholders or owners, management, and the company employees are external users.

Internal users of accounting information include all the following except

Which of these is not an external user of accounting information?

Which of the following statements about users of accounting information is correct?

.The principle that requires that every business to be accounted separately and distinctly from its owner is known as

The rule that requires the financial statements to reflect the assumption that the business will continue operating instead of being closed or sold is the principle of:

The accounting guidelines that requires financial statement information be supported by independent, unbiased evidence other than someone belief or opinion is called the principle of:

Which of the accounting principles requires that all goods and services purchased should be recorded at cost

The principle refers to a situation in which the cost should be matched with the revenue generated.

The owner-manager bought a computer for personal use. The invoice was recorded to the company’s accounts. Which principle was vioated?

The statement of financial position of a company included equipment purchased from Japanese for 350,000 yen. It was reported at that amount in the statement of financial position while all the other assets were reported in Philippine pesos. Which principle was violated?

Purchased a hammer at a cost of ₱500.00. This was recorded as an asset and expense to decrease its value by ₱50.00 per year for 10 years. Which principle was violated?

Equity is the residual interest on the assets of an entity after deducting its liabilities

Assets are the resources that the entity owns

Purchasing of equipment on account will result to an increase in asset and decrease in liability.

Purchasing of equipment on account will result to an increase in asset and decrease in liability.

In the accounting equation, liabilities are equal to assets less capital.

Profit occurs when expenses are greater than income

Income increases equity

ASSETS are the resources you control that have resulted from past events and can provide you with future economic benefits

Accounts receivable or the amount to be received when a customer orders on account is an example of what account

If Company A borrows money from company B, the transaction results to

Assets ₱100,000 Liabilities 45,000 Equity is ______

Liabilities 60,000 , Owner’s Equity ₱ 20,000, Asset is _______