Lesson 1: Introduction to Accounting

It is defined by the PICPA as a system that measures business activities, process.

• Accountancy

• Accounting

• Accountant

• Bookkeeping

They are the one define accounting as an art of recording, classifying and summarizing in a significant manner in terms of money, transactions and events which - are, in part at least, of a financial character and interpreting the results thereof.

• PICPA

• AICPA

• Accounting Society of the Philippines

• Chartered of Accounting Professionals of the Philippines

Three interconnected phases in measuring business activities by the AICPA

• recording, classifying and summarizing

• recording, classifying and communicating

• identifying, classifying and summarizing

• identifying, recording and summarizing

Interpretation of data, according to the AICPA definition, is one of the last phases of accounting

• True

• False

According to PICPA, _________ the findings to the decision makers is another important phase of accounting.

• Summarizing

• Recording

• Interpreting

• Communicating

In accounting, it refers to the method of performing any specific job step by step according to the objectives or targets.

• Activity

• Perform

• Process

• transaction

Accounting is both an art and a discipline.

• True

• False

How many are the major financial statements?

• 1

• 3

• 4

• 5

Who is the the Father of Accounting?

• Luca Pacioli

• Leonardo da Vinci

• Queen Victoria

• None of the above

All are the core competencies that an accountant, especially the certified ones, must possess according to AICPA EXCEPT:

• Communication Skills

• Leadership Skills

• Ability to Interpret Converging Information

• Analytical skills