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FAR Midterm Exam Reviewer Chapter 1: Introduction to Accounting
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FAR Midterm Exam Reviewer Chapter 1: Introduction to Accounting

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Questions and Answers

What is the process called when an accountant recognizes the identified accountable events?

  • Summarizing
  • Identifying
  • Classifying
  • Journalizing (correct)
  • What is the main purpose of accounting?

  • Communicating with stakeholders
  • Recording financial transactions
  • Providing information about economic activities (correct)
  • Analyzing business strategies
  • What type of information is expressed in numbers, quantities, or units?

  • Descriptive information
  • Qualitative information
  • Quantitative information (correct)
  • Non-financial information
  • What are accountable events in accounting?

    <p>Events that affect the assets, liabilities, equity, income, or expenses of a business</p> Signup and view all the answers

    What is the basic storage of information in accounting called?

    <p>Account</p> Signup and view all the answers

    Study Notes

    Accounting Basics

    • The process of recognizing identified accountable events is called recording.

    Accounting Purpose

    • The main purpose of accounting is to provide financial information for decision-making.

    Types of Information

    • Quantitative information is expressed in numbers, quantities, or units.

    Accountable Events

    • Accountable events are economic occurrences that can be reliably measured and have a direct effect on the financial position or financial performance of an entity.

    Information Storage

    • The basic storage of information in accounting is called a ledger.

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    Description

    Prepare for your Financial Accounting and Reporting (FAR) midterm with this review of Chapter 1: Introduction to Accounting. Learn about the essential elements of the definition of accounting, including the process of identifying, recording, and communicating economic information.

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