Topic 1 - Introduction to Account

This is the meaning of accounting, except

• Recording

• Classifying

• Interpreting

• Transaction

The purpose of recording and analyzing the accounting information are, except

• to know the financial status of the organization whether the business is making profit or running at a loss and what are the corrective actions to be taken

• sorting out the mass of accounting data into orderly & meaningful categories

• If the transactions were being recorded, it would be easier to refer

• If there are no proper records, the financial statements would be misleading.

“the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events, which are, in part at least, of a financial character and interpreting the results thereof”

• Accounting Standards Council

• AICPA Committee on Accounting Technology

• American Accounting Associationv

• Board of Accountancy

What is the "recording" component in the definition of accounting?

• Where preriodically the accounting data are summarized

• Which involves sorting out the mass of accounting data into orderly & meaningful categories

• Where transactions are recorded in the books of the business

• Where the financial data are analyzed & used to assist in more effective decision making.

List down TWO (2) important of Financial Accounting.

Identifying, Classifying, Recording and Summarizing

• Accounting

• Bookkeeping

Identifying, Classifying, Recording, Summarizing, Interpreting and Communicating

• Bookkeeping

• Accounting

"The process of recording data relating to accounting transactions in the accounting book". Which is the correct definition of the statement?

• Accounting

• Bookkeeping

Write the accounting cycle from transaction to closing nominal account.

This is the types of business, except

• Sole Proprietorship

• Partnership

• Companies

• Individual