FABM EXAM

PLEASE LORD HELP ME NOW

It is a systematic process of identifying, recording, measuring, interpreting and communicating financial information.

Accounting

This accurately prepares an organizations financial accounts for a specific period

Financial Statements

Accounting is commonly called the ___________

Language of Business

This is when accounting provides assistance to decision makers by providing them financial reports

Accounting is a service activity

Accounting identifies as this, as it performs the specific task of collecting and communicating financial information

Accounting is a process

This is when accounting involves a systematic method consisting of definite techniques with skill, and it follows certain standards and professional ethics

Accounting is an art and a discipline

This is when accounting records financial data and finalize their results given for a specified period of time

Accounting deals with financial information and transactions

This is when accounting is recognized and characterized as a storehouse of information

Accounting is an information system

Accounting is as old as __________ itself.

Civilization

This started as a simple recording of repetitive exchanges

Accounting

Around 3600 B.C this was already common from Mesopotamia

Record-keeping

The oldest evidence of this practice was the “________” of Mesopotamia

Clay tablets

The most important event in accounting history is the dissemination of ___________ by Luca Pacioli (The Father of Accounting) in 14th century italy

double entry bookkeeping

Who is the father of accounting?

Luca Pacioli

He was revered in his day, even being friends with Leonardo da Vinci

Luca Pacioli

The _______ of the 14th-16th centuries are widely acknowledged as the fathers of modern accounting

Italians

They were the first to commonly use arabic numerals for tracking business accounts

Italians

This was the first book published that contained a detailed chapter on double entry bookkeeping by Luca Pacioli

Summa de Arithmetica

The thorough study of accounting and development of accounting theory began during this period

French Revolution (1700s)

Mass production and the great importance of fixed assets were given attention during this period

French Revolution

The modern formal accounting profession emerged in ____________

Scotland in 1854

Chartered accountants from Scotland and Britain came to the U.S. to audit ________ investments

British

The first national U.S accounting society was set up in _____

1887

What does AICPA stand for?

American Institute of Certified Public Accountants

Businesses expanded by _________ other companies

acquiring

In this period rapid changes in accounting practice and reports were made.

19th century

Notable practices such as _______, ________, and growth of _______________ were developed

Mergers, acquisitions, and growth of multinational corporations

This is when one company takes over all the operations of another business entity resulting in the dissolution of another business

Merger

The accounting profession in the 20th century developed around the _______________ for financial statements audits.

State requirements

What does SEC stand for

Securities and exchange commission

As economies worldwide continued to globalize, accounting regulatory bodies required accounting practitioners to observe ______________

International Accounting standards

The trend now for accounting professionals is to observe ________ of global accounting standards in order to have greater transparency

One single set

This is primarily concerned with recording, preparing and presenting transaction in the form of financial statements.

Financial Accounting

This records and measures product cost only, not all of the costs

Cost Accounting

The objective of this accounting branch is to provide reports and information about business transactions to internal users.

Management Accounting

This involves evaluation and handling of accounts that are managed by individual who has been entrusted with the guardianship and custody of a business

Fidicuary accounting

This Fiduciary accounting field refers to the removal of control of the business or property from its owner

Receivership

This Fiduciary accounting field involves the administration and management of funds by a trustee

Trust accounting

This Fiduciary Accounting field refers tot he preparation and management of financial accounts

Estate accounting

This word means that it has something to do with finding evidence that can be presented in court

Forensic

Forensic accounting is often referred to as ________________

Investigative accounting

This Area of accounting involves the investigation and analysis of numbers and records that are usually presented to court

Forensic accounting

This involves when Nonprofit organizations, churches and the government, receive funds that have specific conditions or requirements for Compliance

Fund Accounting/ Grand Accounting

This is a special type of accounting that focuses on taxes rather than financial statements

Tax accounting

This Area of accounting ensures that the business complies with tax law

Tax accounting

This area of accounting is concerned with the systematic collecting, and interpreting of financial transactions related to the expenditures of government insitutions

Government Accounting

In this area of accounting, financial records are carefully examined to determine their accuracy and fairness

Auditing

This type of auditing refers to the examination of financial records and statements

External Auditing

this type of auditing refers tot the evaluation of the adequacy and efficiency of the internal control structure of a company

Internal auditing

This employs accountants as educators and researchers.

Accounting Education

This is a type of academic research that focuses on the study of the effects of economic events on accounting processes

Accounting Research

These are the advantages of Computerized Accounting

Speed, Accuracy, Efficiency, Accounting document production, Up to date information, Availability of information, Staff motivation, Reduced frustration

This is the language employed to communicate financial information of a concern to such parties

Accounting

According to _____ and ______, Accounting is the discipline that provides information on which external and internal users of the information may base decisions

Slavin and Reynolds

These users of accounting information are those individuals inside a company

Internal users

These people need information on the income/earning for the period and the production cost

Management

These people need to know the profit for the period, and salaries paid to employeesTh

Employees

These people need information on the profit or income for the period, resources or assets of the business, and liabilites of it

Owners

These are individuals and organizations outside a company who want financial information about the company

External Users

These users are not directly involved in managing and operating the business.

External users

They use accounting information to make decisions to buy shares of a company

Potential Investors

These people are used for determining the worthiness or credibility of a company

Creditors

These people are for determining the credibility of the tax returns

Tax Authorities (BIR)

They analyze the feasibility of investing in a company

Investors

They need financial information to asses the financial position of its suppliers which is necessary for them to maintain a stable source of supply in the long term

They ensure that a company’s disclosure of accounting information is in accordance with the rules and regulations set

Regulatory Authorities (DOLE)

This means looking at the intangibles

Qualitative Analysis

This means looking at the actual numbers

Quantitative analysis

This is when you should include looking at both qualitative and quantitative factors

Comprehensive analysis

This is the framework and guidelines of accounting profession.

Generally Accepted Accounting Principle (GAAP)

This principle believes that a business enterprise is a separate and distinct from its owner or investor

Business entity principle

This principle believes that business is expected to continue indefinitely

Going concern principle

This principle believes that financial statements are to be divided into specific time intervals

Time period principle

This principle believes are amounts stated into a single monetary unit.

Monetary unit principle