FAR 2: THEORETICAL FOUNDATION OF ACCG AND PH ACCG PROFESSION

Which of the following describes Accountancy?

• Service Activity

• Art of recording, classifying, and summarizing

• Information System

• All of the above

It involves the recognition and non-recognition of business activities.

• Communicating

• Measuring

• Identifying

• None of the above

This involves assigning of peso amounts

• Communicating

• Identifying

• Measurement

• None of the above

It is a formal component. It involve interpreting the significance of the processed information.

• Identifying

• Communication

• Measurement

• None of the above

It is the preparation of financial statements.

• Summarizing

• Recording

• Classifying

• Journalizing

Sorting or grouping similar accounts into their respective classes (Posting).

• Summarizing

• Classifying

• Recording

• Balance Sheet

Process of systematically arranging all transactions after they have been identified and measured.

• Classifying

• Summarizing

• Transactions

• Recording

It is measured when it is affected by estimates.

• Evaluation by Opinion

• Evaluation by Fact

• Valuation by Opinion

• Valuation by Fact

It is measured when it is not affected by estimates.

• Evaluation by Opinion

• Evaluation by Fact

• Valuation by Opinion

• Valuation by Fact

It is considered an accountable event when an economic event involves one entity and another entity.

• Non-Recognition

• Recognition

• Internal Transactions

• External or Exchange Transaction