Financial Analysis and Reporting: Introduction to Accounting

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What is the process of analyzing each business transaction to identify whether it is an 'accountable event' or 'non-accountable event' called?

Classifying

Journalizing

Posting

Identifying (correct)

What is the term for recognizing and recording the identified 'accountable events' in accounting?

Classifying

Communicating

Journalizing (correct)

Posting

What is the common form through which accounting information is communicated to interested users?

Balance sheets

Financial statements (correct)

Income statements

Ledgers

What is the main purpose of accounting?

Providing information about economic activities Signup and view all the answers

What is the term for the process of summarizing the information processed in the accounting system to produce meaningful reports at the end of each accounting period?

Communicating Signup and view all the answers

Which body created the Financial Reporting Standards Council (FRSC)?

The Professional Regulatory Commission Signup and view all the answers

What are the primary users of financial statements?

Existing and potential investors Signup and view all the answers

What is the basic notion on which the accounting process is based?

Going Concern Signup and view all the answers

Which type of accounting refers to the processes used to generate interim and annual financial statements?

Financial accounting Signup and view all the answers

What does managerial accounting primarily help businesses with?

Organizing and utilizing financial information Signup and view all the answers

Identifying – the accountant analyzes each business transaction and identifies whether the transaction is an “______ event” or “non-accountable event”.

accountable Signup and view all the answers

Recording – the accountant recognizes (i.e., records) the identified “______ events”.

accountable Signup and view all the answers

At the end of each accounting period, the accountant summarizes the information processed in the accounting system to produce meaningful ______.

reports Signup and view all the answers

Accounting is a process with the basic purpose of providing information about economic activities that is intended to be useful in making economic ______.

decisions Signup and view all the answers

Accounting information is communicated to interested users through accounting ______, the most common form of which is the financial statements.

reports Signup and view all the answers

Financial reporting standards council (FRSC) is a(n) ______ standard setting body created by the Professional Regulatory Commission

accounting Signup and view all the answers

The approved statements of the FRSC are known as Philippine Accounting Standards (PAS) and Philippine Financial Reporting Standards (PFRS). Users of Financial Statements & Information Needs Primary Users – those who are most critical & immediate need for information of financial reports. o Existing and potential ______

investors Signup and view all the answers

Monetary Unit – o Quantifiability – the assets, liabilities, equity, income, and expenses should be stated in terms of a unit of measure which is the ______ peso.

Philippine Signup and view all the answers

Financial accounting refers to the processes used to generate interim and annual financial ______. The results of all financial transactions that occur during an accounting period are summarized in the balance sheet, income statement, and cash flow statement.

statements Signup and view all the answers

Managerial accounting uses much of the same data as financial accounting, but it organizes and utilizes information in different ways. Namely, in managerial accounting, an accountant generates monthly or quarterly reports that a business's management team can use to make decisions about how the business ______.

operates Signup and view all the answers