Chapter 1 and also its affects as to making economic
decisions.
1. Accounting is a series of activity (ASC);
Accounting is the art of recording..(AICPA);
Accounting is the process (AAA)
2. Accounting is to provide quantitative
information to be useful in making
economic decisions.
3. Identifying is the analytical component;
recognition or nonrecognition of business
activities as accountable events;
4. Economic activities of an entity referred to
as transactions that may be classified as to
external or internal
5. External transactions are economic events
involving one entity and another entity;
internal transactions are economic events
involving the entity only.
6. If it has an effect in the asset, liability and
equity.
7. Measuring is technical; assigning of peso
amounts to accountable transactions.
8. Measurements bases are historical cost,
current cost, realizable value, and present
value.
9. Communicating is formal; preparing and
distributing accounting reports to potential
users.
10. Recording or journalizing is maintaining of
records; classifying is posting to the ledger,
it is also soring or grouping similar
transactions; summarizing is the
preparation of financial statements.
11. It is the universal language because in the
business world they are communicating
through the prepared accounting reports
that are for potential users.
12. Accounting as an information system
because it is about measuring the business
activities and transactions also the key
product is its financial statements that tells
how the entity is performing in terms of
profit and loss or how its stands in financial
terms.
13. Its overall objective is to provide
quantitative information to potential users
14. In order to be an accountant or an auditor
you have to be a graduate of accountancy
and take the CPA board exam
15. RA 9298 is the Philippine accountancy act of
2004
16. BOA is the body authorized by law to
promulgate rules and regulation in the
practice of accountancy; also they are
responsible in making and grading the CPA
examination.
17. Accountants should have at least 3 years of
meaningful experience. SEC shall not
register any corporation organized by
public accountants.
18. They are registered in the PRC and BOA
and that is renewable and valid for 3 years.
They have to practice public, private and
government accounting.
19. public, private and government accounting.
20. Public accounting refers to independent and
expert financial services to the public.
21. Auditing primary service offered by public
accounting, it is examining the financial
statements; taxation is the preparation of
annual income tax return; MAS are
consultants.
22. Private accounting, accounting staff, to
assist management in planning and
controlling the operations.
23. Government funds and property, and also
the custody and administration of public
funds.
24. It raises and enhances the technical skills
and competence of CPA
25.