Introduction to Accounting Concepts

Play an AI-generated podcast conversation about this lesson

What is the primary focus of financial accounting?

Preparing financial statements (correct)

Measuring economic transactions

Recording personal transactions

Communicating with internal stakeholders

Which branch of accounting is responsible for interpreting the results from financial statements?

Managerial accounting (correct)

Tax accounting

Cost accounting

Auditing

What type of transactions are recorded in financial books according to the text?

Personal transactions

Investment transactions (correct)

Managerial transactions

Neither business nor personal transactions

Which branch of accounting focuses on the measurement of Peso amounts for economic transactions?

Cost accounting Signup and view all the answers

What are examples of neither business nor personal transactions according to the text?

Death of an owner Signup and view all the answers

Which branch of accounting is primarily concerned with the recording of business transactions?

Financial accounting Signup and view all the answers

When is measuring assets at historical cost appropriate?

When the business is a going concern Signup and view all the answers

What is the opposite of a going concern assumption?

Liquidating concern Signup and view all the answers

Which principle dictates that income should be recognized when earned and expenses when incurred?

Accrual basis of accounting Signup and view all the answers

Under the prudence concept in accounting, what does the accountant do when facing uncertainty?

Choose the unfavorable outcome Signup and view all the answers

What is the purpose of dividing the life of a business into reporting periods?

To match revenues and expenses for each period Signup and view all the answers

When are costs initially recognized as assets and then charged as expenses?

When revenue is recognized Signup and view all the answers

What is the primary focus of Cost Accounting?

Proper accumulation of costs such as materials, labor, and overhead Signup and view all the answers

Which area of accounting involves evaluating business processes and providing management consulting?

Management Accounting Signup and view all the answers

What is the key focus of Taxation in accounting?

Study of provisions of the law with regard to taxation Signup and view all the answers

In which form of business organization is the owner personally liable for all debts?

Sole Proprietorship Signup and view all the answers

Which type of accounting involves examining financial statements to ensure compliance with accounting standards?

Auditing Signup and view all the answers

What is the main purpose of Management Accounting?

Evaluation of business processes and management consulting Signup and view all the answers

Introduction to Accounting Concepts

Podcast Beta

Questions and Answers

What is the primary focus of financial accounting?

Which branch of accounting is responsible for interpreting the results from financial statements?

What type of transactions are recorded in financial books according to the text?

Which branch of accounting focuses on the measurement of Peso amounts for economic transactions?

What are examples of neither business nor personal transactions according to the text?

Which branch of accounting is primarily concerned with the recording of business transactions?

When is measuring assets at historical cost appropriate?

What is the opposite of a going concern assumption?

Which principle dictates that income should be recognized when earned and expenses when incurred?

Under the prudence concept in accounting, what does the accountant do when facing uncertainty?

What is the purpose of dividing the life of a business into reporting periods?

When are costs initially recognized as assets and then charged as expenses?

What is the primary focus of Cost Accounting?

Which area of accounting involves evaluating business processes and providing management consulting?

What is the key focus of Taxation in accounting?

In which form of business organization is the owner personally liable for all debts?

Which type of accounting involves examining financial statements to ensure compliance with accounting standards?

What is the main purpose of Management Accounting?

More Quizzes Like This

Accounting Process and Information Quiz

Accounting Basics

Introduction to Accounting Concepts

FABM 2: Introduction to Accounting

Upgrade to continue