Financial Accounting and Reporting Prelims
Each solution is perfectly accurate,
guaranteeing full marks.
financial information (Financial Statements) - Answer Accounting has evolved, as in the case of
medicine and law, in response to the social and economic needs of society. As business and society
become more complex, accounting develops new concepts and techniques to meet the ever-increasing
needs for...?
financial information (Financial Statements) - Answer Without such INFORMATION, many
complex economic developments and social programs may never have been undertaken.
financial information (Financial Statements) - Answer In a market economy, INFORMATION
helps decision-makers make informed choices regarding the allocation of scarce resources under their
control. When decision-makers are able to make well-informed decisions, resources are allocated in a way
that better meets the needs and goals of those within the market.
What information was it referring to?
Accounting - Answer It is relevant in all walks of life, and it is absolutely essential in the world of
business. It is the system that measures business activities, processes that information into reports and
communicates the results to decision-makers.
Accounting - Answer quantifies business communication. For this reason, accounting is called the
LANGUAGE of business. The task of learning accounting is very similar to the task of learning a new
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,language; thus, the need for this book which teaches the Basics of Accounting in a very conceptual
manner.
Accounting - Answer No business could operate very long without knowing how much it was
earning and how much it was spending. With this system, it provides the business with these information
and more.
scorekeepers - Answer So, accountants can be called the?_________ of business.
Accounting - Answer Without this system, a business couldn't function optimally; it wouldn't know
where it stands financially, whether it's making a profit or not ,and it wouldn't know its financial situation.
Also, a sound understanding of this language will bring about a better management of the financial
aspects of living. Personal financial planning, education expenses, car amortization, business' loans,
income taxes and investments are based on the information system that we call?
Accounting (Statement of Financial Accounting Standards No. 1, "Basic Concepts and Accounting
Principles Underlying Financial Statements of Business Enterprises" (Manila: Accounting Standards
Council, 1983), par. 1) - Answer is a service activity. Its function is to provide quantitative
information, primarily financial in nature, about economic entities that is intended to be useful in making
economic decisions.
Accounting (Statement of Financial Accounting Concepts No. 1, "Objectives of Financial Reporting by
Business Enterprises". (Norwalk, Conn.: Financial Accounting Standards Board, 1978), par. 9) - Answer
is an information system that measures, processes and communicates financial information about
an economic entity
Accounting (American Accounting Association, "A Statement of Basic Accounting Theory" (Evanston,
Ill.:American Accounting Association, 1966), par. 1; Accounting Principles Board, Statement No. 4,
"Basic Concepts and Accounting Principles Underlying Financial Statements of Business Enterprises"
(New York: AICPA, 1970), par. 40) - Answer is the process of identifying, measuring and
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, communicating economic information. to permit informed judgments and decisions by users of the
information
Accounting (American Institute of Certified Public Accountants, "Review and Resume", Accounting
Terminology Bulletin No. 1 (New York: AICPA, 1953), par. 9) - Answer is 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 history - Answer is important to accounting pedagogy, policy and practice. It makes it
possible to better understand our present and to forecast our future.
Accounting history - Answer is the "study of the evolution in accounting thought, practices and
institutions in response to changes in the environment and societal needs. It also considers the effect that
this evolution has worked on the environment.
Primitive Accounting - Answer An evolution of accounting period where people have counted and
kept records throughout history. The origin of keeping accounts has been traced as far back as 8500 B.C.,
the date archaeologists have established for certain clay tokens-cones, disks, spheres and pellets-found in
Mesopotamia (modern Iraq).
These tokens represented such commodities as sheep, jugs of oil, bread or clothing and were used in the
Middle East to keep records. The tokens were often sealed in clay balls, called bullae, which were broken
on delivery so the shipment could be checked against the invoice; bullae, in effect, were the first bills of
lading. Later, symbols impressed on wet clay tablets replaced the tokens.
8500 B.C. - Answer An evolution of accounting period where people have counted and kept
records throughout history. The origin of keeping accounts has been traced as far back as?
Primitive Accounting - Answer Some experts consider this stage of record keeping the
BEGINNING of the art of writing, which spread rapidly along the trade routes and took hold throughout
the known civilized world.
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