Financial Accounting and Reporting Every response are completely accurate, ensuring a perfect score.
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Course
FAC1601 Financial Accounting & Reporting
Institution
FAC1601 Financial Accounting & Reporting
Accounting - Answer A process of identifying, recording and communicating
Identifying - Answer The accountant analyzes each business transaction and identifies whether the
transaction is an "accountable event" or "non-accountable event."
Accountable events - Answer those that affect the assets, ...
Accounting - Answer A process of identifying, recording and communicating
Identifying - Answer The accountant analyzes each business transaction and identifies whether the
transaction is an "accountable event" or "non-accountable event."
Accountable events - Answer those that affect the assets, liabilities, equity, income or expenses of a
business
Recording - Answer The accountant recognizes the identified accountable events. This process is
called journalizing.
Account - Answer The basic storage of information in accounting. Examples are cash, land and
sales.
Communicating - Answer At the end of each accounting period, the accountant summarizes all the
information processed in the accounting system in order to process meaningful reports.
Nature of accounting - Answer Accounting is a process with the basic purpose of providing
information about economic activities intended to be useful in making economic decisions.
Quantitative information - Answer Information expressed in numbers, quantities, or units
Qualitative information - Answer Information that is expressed in words or descriptive form. It is
found in the notes of the financial statements as well as on the face of the other components of financial
statements.
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, Financial information - Answer Information expressed in money. It is also quantitative information
because monetary amounts are usually expressed in numbers.
Accounting as a social science - Answer Accounting is a body of knowledge which has been
systematically gathered, classified and organized.
Accounting as a practical art - Answer Accounting requires the use of creative skills and
judgement.
Accounting as an information system - Answer In an accounting system, the inputs are the
identified accountable events, the processes are recording, classifying and summarizing, and the output is
the accounting report that is communicated to other users.
Bookkeeping - Answer Refers to the process of recording the accounts or transactions of an entity.
It normally ends with the preparation of the trial balance. Unlike accounting, it does not require the
interpretation of the significance of the information processed.
Language of business - Answer Another term for accounting because it is fundamental to the
communication of financial information.
Internal users - Answer Those who are directly involved in managing the business.
External users - Answer Those who are not directly involved in managing the business.
General purpose accounting information - Answer Information designed to meet the common
needs of most statement users. It is provided by financial accounting and is prepared primarily for
external users.
Special purpose accounting information - Answer Information designed to meet the specific needs
of particular statement users. It is provided by management accounting or other branches of accounting
and is prepared primarily for internal users.
Fra Luca Pacioli - Answer Father of Modern Accounting
1340 - Answer The year when double entry records first came out in Genoa.
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