1 - Introduction to Accounting

- process of recording, classifying, summarizing in a significant manner and in terms of money, transactions, and events which are in part at least, of financial character, and interpreting the results thereof

- process of recording the accounts of transactions of an entity

- process of keeping records

- covers the whole process of identifying, recording, and communicating information to interested users

- bookkeeping is under here

- covers the fields of accounting that an accounting graduate can specialize into

- embraces the accounting profession

- writing down of the business transactions in a record book

- record book where business transactions are written down

- process of arranging or organizing transactions in classes of categories

- summing up of events to find the total so that financial statements can be prepared

- process where in accounting helps in explaining the meaning and significance of the data in the accounting repors in simplified form

- business tha offer service as their main product

• school, hospital, hotel, consultation, cleaning

- buys and sells goods without changing their physical form

• supermarket, hardware stores, pharmacies, bookstores

- other term for merchandising business

- buys raw materials and processes them into final products

- changes the physical form of the goods it has purchased in a production process

• bakery, restaurant, factories

- owned by only one individual

- most common and simplest form of a business organization

- where single proprietorship is registered

- owned by two or more individuals

- enter into a contract to carry on the business and divide among themselves

- term used to call people in partnerships

- where partnerships are registered

- owned by five or more people

- represented by shared of stock. Created by operation of law, thus having a juridical personality

- term used to describe the people who own a corporation

- where corporations are registered

- owned by 15 or more people

- formed in accordance with the provisions of the Philippine Cooperative Code of 2008

- term used to call people who own a cooperative

- where cooperatives are registered

- accounting is called ___ because financial information are communicated to interested users in the form of financial statements

- branch in accounting that focuses on general purpose financial statements

- branch in accounting involved in the accumulation and communication of information for use by internal users

- special purpose financial reports

- branch in accounting that focuses attention on the custody of public funds

- branch in accounting involved in the inspection of entity’s financial statements or business processes

- expression of an opinion (auditor’s report)

- branch in accounting involved in the preparation of tax returns and rendering of tax advice

- branch in accounting involved in the systematic recording and analysis of the cost of materials, labor, etc. to the production of goods

- often in manufacturing firms

- branch in accounting that teaches accounting in an organized environment

- branch in accounting involved in the careful analysis of economic events and other variables to understand their impact or decisions

- may be related to one or more of the other accounting branches-

- branch in accounting that uses accounting skills to investigate fraud or embezzlement

- length of time that covers the business transactions being reported upon, usually has a period of one year

- 12 months, starting on January 1 and ending on December 31

- any succession of 12 months, starting on any month except January and ending on any month except December