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Financial Accounting and Reporting
Prelims Exam Questions and Answers
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financial information (Financial Statements) - ✔✔Accounting has evolved,
as in the case of medicine and law, in response to the social and economic
needs of society. As business and society become more complex,
accounting develops new concepts and techniques to meet the ever
increasing needs for...?
financial information (Financial Statements) - ✔✔Without such
INFORMATION, many complex economic developments and social
programs may never have been undertaken.
financial information (Financial Statements) - ✔✔In a market economy,
INFORMATION helps decision-makers make informed choices regarding
the allocation of scarce resources under their control. When decision-
makers are able to make well-informed decisions, resources are allocated
in a way that better meets the needs and goals of those within the market.
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What information was it referring to?
Accounting - ✔✔It is relevant in all walks of life, and it is absolutely
essential in the world of business. It is the system that measures business
activities, processes that information into reports and communicates the
results to decision-makers.
Accounting - ✔✔quantifies business communication. For this reason,
accounting is called the LANGUAGE of business. The task of learning
accounting is very similar to the task of learning a new language; thus, the
need for this book which teaches the Basics of Accounting in a very
conceptual manner.
Accounting - ✔✔No business could operate very long without knowing how
much it was earning and how much it was spending. With this system, it
provides the business with these information and more.
scorekeepers - ✔✔So, accountants can be called the?_________ of
business.
Accounting - ✔✔Without this system, a business couldn't function optimally;
it wouldn't know where it stands financially, whether it's making a profit or
not ,and it wouldn't know its financial situation. Also, a sound understanding
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of this language will bring about a better management of the financial
aspects of living. Personal financial planning, education expenses, car
amortization, business' loans, income taxes and investments are based on
the information system that we call?
Accounting (Statement of Financial Accounting Standards No. 1, "Basic
Concepts and Accounting Principles Underlying Financial Statements of
Business Enterprises" (Manila: Accounting Standards Council, 1983), par.
1) - ✔✔is a service activity. Its function is to provide quantitative
information, primarily financial in nature, about economic entities that is
intended to be useful in making economic decisions.
Accounting (Statement of Financial Accounting Concepts No. 1,
"Objectives of Financial Reporting by Business Enterprises". (Norwalk,
Conn.: Financial Accounting Standards Board, 1978), par. 9) - ✔✔is an
information system that measures, processes and communicates financial
information about an economic entity
Accounting (American Accounting Association, "A Statement of Basic
Accounting Theory" (Evanston, Ill.:American Accounting Association,
1966), par. 1; Accounting Principles Board, Statement No. 4, "Basic
Concepts and Accounting Principles Underlying Financial Statements of
Business Enterprises" (New York: AICPA, 1970), par. 40) - ✔✔is the
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process of identifying, measuring and communicating economic
information. to permit informed judgments and decisions by users of the
information
Accounting (American Institute of Certified Public Accountants, "Review
and Resume", Accounting Terminology Bulletin No. 1 (New York: AICPA,
1953), par. 9) - ✔✔is the art of recording, classifying and summarizing in a
significant manner and in terms of money, transactions and events which
are, in part at least, of a financial character, and interpreting the results
thereof.
Accounting history - ✔✔is important to accounting pedagogy, policy and
practice. It makes it possible to better understand our present and to
forecast our future.
Accounting history - ✔✔is the "study of the evolution in accounting thought,
practices and institutions in response to changes in the environment and
societal needs. It also considers the effect that this evolution has worked on
the environment.
Primitive Accounting - ✔✔An evolution of accounting period where people
have counted and kept records throughout history. The origin of keeping
accounts has been traced as far back as 8500 B.C., the date
