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

What is the basic storage of information in accounting called?

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

Flashcards

Journalizing

The process of recording accountable events.

Accounting Purpose

Provides information on economic activities of companies.

Quantitative Info

Accounting info expressed in numbers or amounts.

Accountable Event

Events that affect the business's financial position or performance.

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Account

A basic storage unit for information in accounting.

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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.