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  • Republic of The Philippines Romblon State University: San Fernando Campus San Fernando, Romblon

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    Jessabel Rosas Bersaba
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    The document contains an accounting exercise asking students to: 1) Explain why financial statement users need basic accounting knowledge and the components of the three main financial statements. 2) Define the general rule for recognizing items in financial statements such as assets, liabilities, revenue, and expenses. 3) Identify the four qualitative characteristics of financial statements and discuss the characteristics of relevance and reliability. 4) Explain the differences between comparability and consistency.

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    Original Title

    EXERCISES ACCTG.1b 2020

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    The document contains an accounting exercise asking students to: 1) Explain why financial statement users need basic accounting knowledge and the components of the three main financial statements. 2) Define the general rule for recognizing items in financial statements such as assets, liabilities, revenue, and expenses. 3) Identify the four qualitative characteristics of financial statements and discuss the characteristics of relevance and reliability. 4) Explain the differences between comparability and consistency.

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    © All Rights Reserved
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    4 views1 page

    Republic of The Philippines Romblon State University: San Fernando Campus San Fernando, Romblon

    Uploaded by

    Jessabel Rosas Bersaba
    The document contains an accounting exercise asking students to: 1) Explain why financial statement users need basic accounting knowledge and the components of the three main financial statements. 2) Define the general rule for recognizing items in financial statements such as assets, liabilities, revenue, and expenses. 3) Identify the four qualitative characteristics of financial statements and discuss the characteristics of relevance and reliability. 4) Explain the differences between comparability and consistency.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Republic of the Philippines

    ROMBLON STATE UNIVERSITY


    San Fernando Campus
    San Fernando, Romblon

    Accounting 1b – Accounting for Service, Merchandising & Manufacturing

    1st Exercise

    1. Why is it that the financial statement users need to at least have a basic knowledge of
    accounting concepts?

    2. Enumerate and explain the components of the three basic financial statements.

    3. What is the general rule when recognizing an item? Explain the rules when to recognize
    a. Asset
    b. Liabilities
    c. Revenue
    d. Expense

    4. Enumerate and discuss the four qualitative characteristics of financial statements.

    5. Discuss the four major characteristics of relevance.

    6. Explain the five essential characteristics of reliability.

    7. Differentiate “comparability” from “consistency”.

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