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Questions and Answers
What is accounting?
A service activity that provides quantitative financial information about economic entities for decision-making.
Which of the following is NOT a fundamental function of accounting?
Accounting is only used for tax purposes.
False
What does BIR stand for?
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What is a business model?
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The _ of a business model includes five activities.
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What is the first activity in the business model structure?
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What generates an asset called a receivable in a business?
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What does accounting help students understand?
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Accounting has not evolved in the case of medicine and law.
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What is the primary role of the Bureau of Internal Revenue (BIR)?
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What does accounting provide about economic entities?
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Accounting is an information system that measures, processes and communicates __________ information.
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What is the process of identifying, measuring, and communicating economic information aimed at?
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What does a business model describe?
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What are the five activities that a business model is built on?
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What can cash in a business be used for?
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What is generated through the sale of a product or service?
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Study Notes
Introduction to Accounting
- Course designed to impart basic accounting concepts and principles.
- Aims to develop skills in recognizing, valuing, measuring, and recording common business transactions.
- Involves preparation of accounting statements critical for business operations.
Accounting Environment
- Accounting has evolved alongside sectors like medicine and law to meet growing financial information needs.
- Essential for businesses to monitor earnings and expenditures.
Role of Bureau of Internal Revenue (BIR)
- Responsible for tax collection, accounting for more than half of government revenue.
- Businesses must report financial data to the BIR for compliance with tax regulations.
Definitions of Accounting
- Described as a service activity providing quantitative financial information for economic decision-making.
- Functions as an information system to measure, process, and communicate financial data about economic entities.
- Involves identifying, measuring, and conveying essential economic information for informed judgments.
- Defines accounting as the art of recording, classifying, and summarizing financial transactions significantly.
Fundamental Business Model
- Describes how an organization creates, delivers, and captures value in diverse contexts (economic, social, cultural).
- Acts as a business roadmap detailing product offerings, production costs, and sales strategies.
Business Model Process
- Requires initial investment for infrastructure, equipment, and personnel.
- Structured into five key activities:
- Investment: Investors provide initial capital stored in a bank account.
- Cash Utilization: Cash can be converted into assets or spent on operational costs.
- Business Resources: Combination of resources forms the basis for product/service production.
- Sales Generation: Selling products/services generates receivables, creating future cash inflows.
- Debt Management: Cash inflows may service existing debts, with excess reinvested or spent on operations.
Basic Financial Accounting & Reporting
- Financial statements serve as the foundation for an organization's accounting and reporting processes.
Introduction to Accounting
- Course designed to impart basic accounting concepts and principles.
- Aims to develop skills in recognizing, valuing, measuring, and recording common business transactions.
- Involves preparation of accounting statements critical for business operations.
Accounting Environment
- Accounting has evolved alongside sectors like medicine and law to meet growing financial information needs.
- Essential for businesses to monitor earnings and expenditures.
Role of Bureau of Internal Revenue (BIR)
- Responsible for tax collection, accounting for more than half of government revenue.
- Businesses must report financial data to the BIR for compliance with tax regulations.
Definitions of Accounting
- Described as a service activity providing quantitative financial information for economic decision-making.
- Functions as an information system to measure, process, and communicate financial data about economic entities.
- Involves identifying, measuring, and conveying essential economic information for informed judgments.
- Defines accounting as the art of recording, classifying, and summarizing financial transactions significantly.
Fundamental Business Model
- Describes how an organization creates, delivers, and captures value in diverse contexts (economic, social, cultural).
- Acts as a business roadmap detailing product offerings, production costs, and sales strategies.
Business Model Process
- Requires initial investment for infrastructure, equipment, and personnel.
- Structured into five key activities:
- Investment: Investors provide initial capital stored in a bank account.
- Cash Utilization: Cash can be converted into assets or spent on operational costs.
- Business Resources: Combination of resources forms the basis for product/service production.
- Sales Generation: Selling products/services generates receivables, creating future cash inflows.
- Debt Management: Cash inflows may service existing debts, with excess reinvested or spent on operations.
Basic Financial Accounting & Reporting
- Financial statements serve as the foundation for an organization's accounting and reporting processes.
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Description
This quiz covers Chapter 1 of ACC 1000, focusing on the introduction to accounting and its environment. It aims to help students grasp fundamental accounting concepts and principles, including transaction recognition and preparation of accounting statements. Mastering these basics is essential for succeeding in further accounting studies.
