FABM 2 lesson 1.pptx
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Accounting involves identifying, measuring, recording, and communicating economic information. It communicates useful information to interested users like businessmen and companies. The financial statements that accounting prepares are the balance sheet, statement of cash flows, and statement of changes in equity. These financial statements report key elements like assets, liabilities, equity, revenues, expenses, and cash flows. Useful financial information has fundamental qualitative characteristics like faithful representation and enhancing qualitative characteristics like comparability.
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- 1. FUNDAMENTALS IN ACCOUNTANCY, BUSINESS, AND MANAGEMENT 2 ANGELO S. REYES GOOD TREE INTERNATIONAL SCHOOL
- 3. 1. Accounting has been conventionally defined as: a. the process of identifying, measuring, recording, and communicating economic information b. a specialized language that deals with business and economics c. a science composed of inputs, processes, and output d. a transaction in business involving cash, assets, and financial statements
- 4. 2. What does accounting communicate to interested users such as businessmen and companies? a. mathematical equations and answers b. accounting theories and practices c. accounting principles d. useful information
- 5. 3. Which of the following documents are not part of a financial statement? a. Balance Sheet b. Index of equations and formulas c. Statement of Cash Flow d. Statement of Changes in Equity
- 6. 4. What are the contents of the Statement of Financial Position? a. revenues and expenses b. other information c. assets, liabilities, and equity d. transactions involving cash
- 7. 5. What are the two fundamental characteristics of useful financial information? a. fundamental qualitative characteristics and enhancing qualitative characteristics b. comparability and relevance characteristics c. faithful representation and relevance characteristics d. verifiability and timeliness characteristics
- 8. Answers 1. A 2. D 3. B 4. C 5. A
- 10. WHAT ARE THE USES OF ACCOUNTING?
- 11. 1. What is accounting? 2. What are the functions of accounting? 3. What are the characteristics of useful financial information? 4. What is a financial statement? 5. What are the parts of a financial statement?