The document discusses accounting concepts such as the definition of accounting, the four functions of accounting which are recording, classifying, summarizing, and interpreting, and how identifying, analyzing and measuring relate to the recording function. It also explains why accounting is considered the "language of business" and discusses the relationship between bookkeeping and accounting. The document contains questions and answers on these accounting topics.
The document discusses accounting concepts such as the definition of accounting, the four functions of accounting which are recording, classifying, summarizing, and interpreting, and how identifying, analyzing and measuring relate to the recording function. It also explains why accounting is considered the "language of business" and discusses the relationship between bookkeeping and accounting. The document contains questions and answers on these accounting topics.
The document discusses accounting concepts such as the definition of accounting, the four functions of accounting which are recording, classifying, summarizing, and interpreting, and how identifying, analyzing and measuring relate to the recording function. It also explains why accounting is considered the "language of business" and discusses the relationship between bookkeeping and accounting. The document contains questions and answers on these accounting topics.
The document discusses accounting concepts such as the definition of accounting, the four functions of accounting which are recording, classifying, summarizing, and interpreting, and how identifying, analyzing and measuring relate to the recording function. It also explains why accounting is considered the "language of business" and discusses the relationship between bookkeeping and accounting. The document contains questions and answers on these accounting topics.
Is an Art of recording, classifying, summarizing in a significant manner and in terms of money,
transaction, and events which are, in part of least, of a financial character, and interpreting the results thereof.
2. What are the four (4) functions of accounting? Define each.
1st function is Recording which involves the routine and the mechanical process of writing down the business transactions and events in the books of accounts in a chronological manner called journalizing. 2nd, Classifying which involves sorting or grouping of similar transaction and events into their respective kind and classes. 3rd, Summarizing which involves the completion of a financial statements and the accounting requirement. 4th, interpreting which involves the analytical and interpretative works.
3. How are identifying, analyzing and measuring relate to the recording function of accounting?
They are related to the recording function of accounting because before you record a business transaction you have to systematically identify, analyze and measure to carefully know what business you are going to record.
4. Why is accounting considered the “Language of Business”?
This is because accounting skills helps you understand and interpret a financial information or a financial statement.
Quizzers: 1. T 2. T 3. T 4. F
Multiple Choice: 1. a 2. c 3. d 4. a 5. A Questions for review:
1. Discuss the relationship between bookkeeping and accounting.
bookkeeping is responsible for the recording of financial transactions whereas accounting is
responsible for interpreting, classifying, analyzing, reporting, and summarizing the financial data. Bookkeeping and accounting may appear to be the same profession to an untrained eye.
2. Explain the statement, “Accounting begins where bookkeeping ends”.
Accounting depends on bookkeeping. Without the bookkeeping, accounting cannot be done.
4. What are bookkeepers?
Bookkeepers are the business technician. They are the one who record and prepare the financial statement to present in business transaction.
5. What are the four (4) major areas that CPAs can work with?
CPAs in Government Service, Commerce and Industry, Public Practice and in Education.
6. What is internal auditor? An external auditor?
Internal auditors will examine issues related to company business practices and risks, while external auditors examine the financial records and issue an opinion regarding the financial statements of the company
Quizzers:
1.T 2.T 3.F 4.F 5.T
Multiple choice:
1.b 2.a Questions for review:
1. What are the generally accepted accounting principles?
Cost principle, Matching principle and Adequate disclosure principle.
2. What is cost principle? Matching principles? Adequate disclosure?
Cost principle requires that assets are recorded base on original cost. Matching principle is the combined concept of Revenue recognition and Expenses recognition principles.
3. What are accounting concepts and assumptions?
These are the very foundation if Generally Accepted Accounting Principles. Without them, these could be no uniformity in the practice of accounting.
4. What is separate entity assumption in accounting?
Business is business so different entities should be separately accounted.
5. What is the relationship between the owner and the business as far as the “legal point of view” is concerned? The owner or proprietor and the business is one.
6. Why is the business treated separate and distinct from the owner? Because the money or capital that he puts in the business only belongs to the business while the owner personal affairs must accounted separately to know if he/she profit or not.
7. What are the Philippine Accounting Standard?
The new set of Generally Accepted Accounting Principles (GAAP) issued by the Accounting Standards Council (ASC) to govern the preparation of financial statements.
