1accounting is
the process of identifying, measuring, and communicating economic information to permit informed judgements and decision by users of the information.
2important activities included in the definition of accounting
identifying, measuring, and communicating
3process of analyzing events and transactions if they will be/not be recognized
identifying
4process of including effects of an accountable event through journal entry
recognition
5one that affects the ALICEof an entity
accountable events
6true of false
accountable events are not recognized
FALSE (they are recognized)
7true or false
sociological matters are not recognized while psychological matters are recognized
FALSE (both matter are not recognized)
8types of external events
exchange (reciprocal transfer)
non-reciprocal transfer
exchange event other than transfer
9where can you record non-accountable event that has an accounting relevance?
memorandum entry
10true or false
non-accountable events are recognized and disclosed only in the notes.
false (NA events are not recognized but disclosed only in the notes if they have accounting relevance)
11events that involve an entity and another external party
external events
12one way transaction in that the party giving something does not receive anything in return, while the party receiving does not give anything in exchange
non-reciprocal transfer
13an event wherein there is a reciprocal giving and receiving of economic resources or discharging of obligations between an entity and an external party.
exchange (reciprocal transfer)
14an event involves changes in the economic resources or obligations of an entity caused by an external party or source but does not involve transfers of resources or obligations
external event other than transfer
15an internal event that is a process by which resources are transformed into finished goods
production
16event that do not involve an external party
internal events
17an unanticipated loss from disasters or other similar events
casualty
18assigning numbers (normally in Monetary terms), to an economic transaction and events
measuring
19commonly used measurement bases
historical cost
20what consists of a mixture of costs and values according to financial statement prepared
costs include historical cost and current cost while the other measurement bases is values
21true or false
financial statements are said to be a mixture of fact and opinion
true
22a measurement is affected by estimates, the items measured are to be valued by
opinion
23a measurement is unaffected by estimates, the items measured are to be valued by
fact
24process of transforming economic data into useful accounting information, such fs and other accounting reports, for dissemination to users.
communicating
25tree aspects of communicating
recording
Classifying
summarizing