Lesson 1 N-ABM 5

The primary motive of a person engaged in business is _.

Under this field, they are accountants and accounting employees who are render services in the government. Thus,

Government accounting defines as the process of recording, analyzing, classifying, summarizing communicating and interpreting financial information about government in aggregate and in detail reflecting transactions and other economic events involving the receipt, spending, transfer, usability and disposition of assets and liabilities.

• Tax Accounting

• Government Accounting

• Financial Accounting

It involves the preparation of Income Tax Returns and submit to the Bureau of Internal Revenue (BIR).

• Financial Accounting

• Auditing

• Tax Accounting

Its function is to provide quantitative information, primarily financial in nature, about economics entities, that is intended to be useful in making economic decision.

• Accounting

• Economics

• Auditing

It focuses on the preparation of financial data, statements, etc. for interested parties outside of the business or organization.

• Managerial Accounting

• Financial Accounting

• Auditing

There are some business have a legal standing that is essentially synonymous with the business owner’s and other business are treated as independent entities that can assert their own legal standing such as corporations.

• Liability

• Costs of formation and ongoing administration

• Legal Standing

It is the examination of financial statements and reports our findings to the concerned

parties.

• Auditing

• Government Accounting

• Financial Accounting

Partnerships and sole proprietorships are cheap and easy to form and administer. On other hand, corporations and LLC’s require more investments.

• Liability

• Costs of formation and ongoing administration

• Legal Standing

It is an artificial being created by the operation of the law, having the right of succession and the powers, attributes, and properties expressly authorized by law incident to its existence.

• LLC (Limited Liability Company)

• Partnership

• Corporation

Are uniform set of accounting rules, procedures, practices, and standards that are

followed in preparing the financial statements.