Podcast
Questions and Answers
What does Philippine Financial Reporting Standards (PFRS) define accounting as?
What does Philippine Financial Reporting Standards (PFRS) define accounting as?
A service entity that provides quantitative information.
What is the definition of the art of accounting according to AICPA?
What is the definition of the art of accounting according to AICPA?
The art of recording, classifying, and summarizing in a manner and in terms of money, transactions, and events.
What does the Republic Act RA No. 9298 pertain to?
What does the Republic Act RA No. 9298 pertain to?
Practice of accountancy or CPA in the Philippines.
Which of the following is included in public accounting?
Which of the following is included in public accounting?
Signup and view all the answers
What type of accounting is management accounting?
What type of accounting is management accounting?
Signup and view all the answers
What are some key government agencies involved in accounting?
What are some key government agencies involved in accounting?
Signup and view all the answers
What does objectivity in accounting mean?
What does objectivity in accounting mean?
Signup and view all the answers
What is the duration of an accounting period?
What is the duration of an accounting period?
Signup and view all the answers
How long is one full accounting time period?
How long is one full accounting time period?
Signup and view all the answers
When is revenue recognized and reported?
When is revenue recognized and reported?
Signup and view all the answers
When is an expense recognized and reported according to the accrual rule?
When is an expense recognized and reported according to the accrual rule?
Signup and view all the answers
What are qualitative characteristics in accounting?
What are qualitative characteristics in accounting?
Signup and view all the answers
Study Notes
Philippine Financial Reporting Standards (PFRS)
- Defines accounting as a service that provides quantitative information to users.
American Institute of Certified Public Accountants (AICPA)
- Defines accounting as the art of recording, classifying, and summarizing transactions and events in monetary terms.
Republic Act RA No. 9298 (Accountancy Act of 2004)
- Governs the practice of accountancy in the Philippines.
- Establishes standards for examinations related to the accounting profession.
Types of Accounting
- Public Accounting: Encompasses services such as bookkeeping, independent audits, and income tax preparation.
- Management Accounting: Focuses on private accounting for a single client or organization.
- Government Agencies Accounting: Involves entities like the Commission on Audit (COA), Bureau of Internal Revenue (BIR), and Securities Exchange Commission (SEC).
Fundamental Principles of Accounting
- Objectivity: Emphasizes that all accounting information must be factual and verifiable, supported by documentation like invoices, vouchers, and receipts.
Accounting Period
- Typically spans one year with optional interim reporting periods (semi-annual or monthly).
Time Period
- A fiscal year is designated as 12 months long.
Revenue Recognition Principle
- Revenue is recognized and reported when it is earned, regardless of cash receipt.
Expense Recognition Principle
- Under the accrual basis, expenses are recognized and reported when incurred, not necessarily when paid.
Qualitative Characteristics of Financial Information
- Refers to the attributes that enhance the usefulness of financial data to users, ensuring reliability and relevance.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Test your knowledge on the Philippine Financial Reporting Standards (PFRS) and the American Institute of Certified Public Accountants (AICPA). This quiz covers the essentials of accounting, recording, and summarizing transactions as defined by various legislative frameworks, including the Accountancy Act of 2004. Prepare for your prelims and enhance your understanding of these crucial accounting standards.
