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WorksheetsFABM MIDTERMS 11
Total questions: 71
Worksheet time: 42mins
service activity of identifying, recording, and communicating economic information
accounting
recording
analyzing
accounting theory
according to this theory,
Accounting is a systematic recording of financial transactions
accounting theory
framework conceptual
summa aritmetica, geometria, proportioni, et proportinalita
chartered accountants theory
what type of nature provides assistance to decision makers
accounting is a service activity
accounting is a process
accounting is both an art and a discipline
accounting deals with financial information and transactions
Refers to the method of performing any specific job step-by-step according to objectives
accounting is a process
accounting is a service activity
both an art and a discipline
information system
an art of recording, classifying, summarizing, and finalizing financial data
both an art and a discpline
deals with financial information
information system
is a service activity
Does not deal or cannot measure that isnt numbers/non-monetary
deals with financial information and transactions
information system
process
service activity
storehouse of information
accounting is an information system
is a process
deals with financial infos and transactions
service activity
oldest evidence in the accounting history
clay tablets
double-entry bookkeeping
accounting equation
payable lists
record-keeping was already common from mesopotamia, india, china, south and central america
the cradle of civilization
14th century
french revolution
20th century
these are the accounts that you will receive in the future
accounts payable
accounts receivable
shares
records
what century is the MOST IMPORTANT EVENT IN ACCOUNTING HISTORY
14th century
17th century
20th century
1800s
the father of accounting
luca pacioli
the italians
leonardo da vinci
socrates
fathers of modern accounting
italians of 14th-16th century
leonardo da vinci and luca pacioli
the spaniards of the 14th-16th century
the chartered accountants of glasglow
what book did luca pacioli published
summa artimetica, geometria, proportioni, et proportinalita
the dissemination of the double entry bookkeeping
summa aritmetica, geometria, proportioni, proportinalita
Dissemination of the Double-Entry Bookkeeping by Luca Pacioli
SOCIAL UPHEAVALS affecting government, finances, laws, customs had greatly influenced the development of accounting
french revolution
industrial revolution
20th century
the present
what comes after the french revolution that happened in the 1760-1830?
industrial revolution
still french revolution
the beginnings of the modern accounting
the present
mass production and the great importance of fixed assets were given attention
industrial revolution
french revolution
the present
19th century
in this century, accounting is officially announced as a profession
19th century
1700s
14th century
the present
when one company takes over all the operations of another business entity resulting in the dissolution of another business
merger
impact business
corporation
sole proprietorship
what government sets the rules/regulations for accounting
SEC
BIR
BSP
CDA
the ones who introduced bookkeeping in the philippines
spaniards
the italians
queen victoria
britains of scotland
Broadest branch and is focused on the needs of external user
financial accounting
management accounting
auditing
external auditing
Processing historical data (infos recorded that are the previous actions)
(a)
Emphasizes the preparation and analysis of accounting information within the organization
management accounting
government accounting
financial accounting
internal accounting
Its objective is to provide timely and relevant information
(a)
Process of recording, analyzing, classifying, summarizing, communicating, and interpreting financial information about the government
(a)
Examination of financial statements by an independent CPA
external auditing
internal auditing
management accounting
financial accounting
Evaluating the adequacy of a company’s internal control structure by testing segregation of duties
internal auditing
external auditing
management accounting
cost accounting
Involves determination of income tax and other taxes
tax accounting
cost accounting
government accounting
external auditing
Subset of management accounting
cost accounting
tax accounting
management accounting
internal auditing
Useful in manufacturing business since they have the most complicated costing process
cost accounting
tax accounting
accounting education
management accounting
Recording presentation, and analysis of manufacturing costs.
Help owner set the selling price of his product
(a)
Individuals inside a company who plan, organize, and run the business.
(a)
They require accounting information for analyzing the performance and actual position of the business
management
employees
owners
r
so that they are aware of overall profitability of the company which has a direct impact on their remuneration and job security.
(a)
more/most concerned about the returns they get out of their investment
owners
investors
employees
management
Individuals and organizations outside a company who want financial information about the company
(a)
Terms of credit are set by creditors according to the assessment of their customers’ financial health
creditors
banks and non banks financial companies
tax authorities
customers
Credibility of the tax returns
tax authorities
investors
regulatory authorities
banks and non-banks financial companies
Protect the interest of stakeholders
tax authorities
investors
bank and non-banks financial companies
public
Analyzing the feasibility of investing in a company.
(RETURN OF INVESMENT)
investors
customers
supplier
creditors
Ensures continuous flow of stock
customers
investors
suppliers
creditors
Helps them in determining the creditworthiness of the organization
banks and non-banks financial companies
suppleirs
investors
public
Would want to assess the repaying capacity of the organization before providing any form of credit
suppliers
investors
customers
creditors
simplest form of business organization
sole proprietorship
partnership
cooperative
corporation
owner is taxed, not the business
sole proprietorship
partnership
corporation
cooperative
"common fund" and owned by 2 or more person who bind themselves
(a)
partners divide their profits according to:
article of partnership
proof of ownership
article of proprietorship
article of agreement
separate legal entity
corporation
cooperative
sole proprietorship
partnership
units of ownerships
(a)
Voting rights of shareholders is based on the percentage of ownership.
corporation
cooperative
sole proprietorship
partnership
the evidence that they contributed to the corporation
(a)
Duly registered association of persons with a COMMON BOND OF INTEREST
(a)
Under this concept, the business is viewed as a separate person, distinct from its owners
separate entity concept
historical cost concept
matching
accrual basis of accounting
MANY BUSINESSES failed because they didnt applied this concept.
separate entity concept
accrual basis of accounting
materiality concept
going concern assumption
Assets are initially recorded at its ACQUISITION COST
historical cost concept
going concern assumption
liquidating concern
matching
The business is assumed to continue to exist from an indefinite period of time
(a)
If the business intends to end its operations or if it has no other choice but to do so.
liquidating concern
going conern
matching
prudence
Some costs are initially recognized as assets and charged as expenses only when the related revenue is recognized
matching
accrual basis of accounting
cost-benefit
prudence
Economic events are recorded in the period in which they occur rather than at the point in time when they affect cash
accrual basis of accounting
prudence
historical-cost principle
materiality
Accountant observes some degree of caution when exercising judgements
prudence
time period
accrual basis of accounting
matching
Accountant must choose the unfavorable outcome
(a)
The life of business is divided into series of reporting periods
time period
prudence
consistency concept
cost-beneefit
Starts on January 1 and ends on Dec 31
calendar year
fiscal year
interim period
semiannual peiord
Assets, liabilities, equities, income, and expenses are stated in terms of a common unit of measure
stable monetary unit
materiality concept
cost-benefit
consistency concept
An item is considered material if its omission or misstatement
materiality concept
cost-benefit
stable monetary
prudence
Serves as a general frame of reference in developing or applying the standards.
conceptual framework
financial reporting standards council
philippine financial reporting standards
security and exchange commision
Economic resources you control that have resulted from past events and can provide you with economic benefits
assets
control
liabilities
equity
Are your present obligations that have resulted from past events
liabilities
assets
controls
equity
Exclusive right to enjoy those benefits
control
assets
liabilities
assets
Investment made by owner
equity
liabilities
assets
control
