Activity 1: Introduction to Accounting (Review of Accounting)

1. Explain why Accounting is both SCIENCE and ART.

2. The Committee on Accounting Terminology of the American Institute of Certified Public
Accountants (AICPA) defines ACCOUNTING as “ 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’. Identify the
ATTRIBUTES of a transaction.
3. Compare and Contrast BOOKKEEPING and ACCOUNTING
4. List five (5) USERS of accounting information and identify their SPECIFIC INFORMATION
NEEDS.
5. In developing generally accepted accounting principles, certain basic assumptions are made.
These assumptions provide a foundation for the accounting process. Two underlying assumptions
were mentioned in the Framework for the Preparation and Presentation of Financial Statements
issued by the ASC: Accrual Basis and Going Concern. However, the Accounting Entity
Assumption, Monetary Unit Assumption, and the Periodicity Assumption are also important
postulates on which the accounting process is based. Briefly define and explain each of these
underlying assumptions and provide examples.

Instructions:
1. Use this word document as your answer sheet.
2. Submit this document (as your answer sheet) to this link (hold the control key (CTRL) then click
the link): https://ucbcfedu-my.sharepoint.com/:f:/g/personal/wlsabala_uc-
bcf_edu_ph/Ek7UtrJ73epFvxHGh4ols3UByywc0sDeVOaZxQ9T8bYagA
3. Deadline will be until midnight.