Accounting Basics Quiz

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Questions and Answers

What is the primary purpose of accounting?

  • Recording, classifying, and summarizing economic events (correct)
  • Analyzing market trends
  • Providing financial advice to individuals and businesses
  • Creating budgets for organizations

What is the basic summary device of accounting?

  • A balance sheet
  • A ledger
  • A financial statement
  • An account (correct)

Which subject is NOT included in the scope of the Certified Public Accountant Examinations?

  • Business Law and Taxation
  • Practical Accounting Problems II
  • Economics (correct)
  • Auditing Problems

What is a requirement for applicants taking the Certified Public Accountant Examinations?

<p>Being a Filipino Citizen (A)</p> Signup and view all the answers

What is a qualification for applicants taking the Certified Public Accountant Examinations?

<p>Holder of the degree of Bachelor of Science in Accountancy (D)</p> Signup and view all the answers

Which business organization has unlimited liabilities and one-man control?

<p>Sole Proprietorship (B)</p> Signup and view all the answers

What type of business operation involves buying processed goods and selling them at a mark-up price?

<p>Merchandising (A)</p> Signup and view all the answers

In which business organization are the owners' liabilities limited?

<p>Corporation (D)</p> Signup and view all the answers

What type of business operation provides intangible services in exchange for money?

<p>Service (B)</p> Signup and view all the answers

Which business organization is characterized by a contractual relationship and sharing of profit/loss?

<p>Partnership (C)</p> Signup and view all the answers

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Study Notes

Accounting Basics

  • The primary purpose of accounting is to provide financial information to stakeholders for decision-making.
  • The basic summary device of accounting is the Balance Sheet, which presents the financial position of a business at a specific point in time.

Professional Certifications

  • The Certified Public Accountant (CPA) Examinations do not cover the subject of Engineering.
  • To take the CPA Examinations, applicants must meet the educational requirement of 120-150 semester hours of college credit.
  • A qualification for applicants taking the CPA Examinations is to meet the age requirement, which varies by state.

Business Organizations

  • A sole proprietorship is a business organization characterized by unlimited liabilities and one-man control.
  • A retail business operation involves buying processed goods and selling them at a mark-up price.
  • In a limited liability company (LLC), the owners' liabilities are limited.
  • A service business operation provides intangible services in exchange for money.
  • A partnership is a business organization characterized by a contractual relationship and sharing of profit/loss.

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