CFAS- Chapter 1: The Accountancy Profession graded A+ already passed 2022

CFAS- Chapter 1: The Accountancy Profession graded A+ already passed 2022Accounting Standards Council Accounting is a service activity Accounting Standards Council Accounting function is to provide quantitative information, primarily financial in nature, about economic entities, that is intended to be useful in making economic decision. American Institute of Certified Public Accountants Accounting is 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. American Accounting Association Accounting is the process of identifying, measuring, and communicating economic information to permit informed judgement and decision by users of the information. Identifying analytical component of accounting Identifying recognition or nonrecognition of business activities as "accountable" events External Transactions or Exchange Transaction economic events involving one entity and another entity Internal Transactions economic events involving the entity only Production process by which resources are transformed into products Casualty Loss sudden and unanticipated loss from fire, flood, earthquake, and other event ordinarily termed as an act of God Measuring technical component of accounting Measuring Assigning of peso amounts to the accountable economic transactions and events Communicating formal component of accounting Communicating preparing and distributing accounting reports to potential users of accounting information Aspects of accounting implicit in the communication process recording, classifying, and summarizing Recording or Journalizing The process of systematically maintaining a record of all economic business transactions after they have been identified and measured. Classifying Sorting and grouping of similar and interrelated economic transactions into their respective classes Ledger a group of accounts which are systematically categorized into asset accounts, liability accounts, equity accounts, revenue accounts, and expense accounts Summarizing preparation of financial statements Financial Reports tells how well an entity is performing in terms of profit and loss and where it stands in financial terms Overall Objective of Accounting To provide quantitative financial information about a business that is useful to statement users particularly owners and creditors in making economic decisions accountant's primary task to supply financial information so that the statement users could make informed judgement and better decision essence of accounting decision-usefulness Republic act No. 9298 The law regulating the practice of accountancy in the Philippines. Philippine Accountancy Act of 2004 RA No. 9298 is also known as Board of Accountancy Body authorized by law to promulgate rules and regulations affecting the practice of the accountancy profession in the Philippines Board of Accountancy responsible for preparing and grading the Philippine CPA examination May and October LECPA is offered twice a year 3 years Certificate of Registration to practice public accountancy is valid for _______ and renewable every ____________ upon payment of required fees Private Accounting, Public Accounting, Government Accounting 3 main areas where CPAs generally practice their profession Public Accounting renders independent and expert services to the public auditing, taxation, and management advisory services 3 kinds of services offered by public accountants Auditing or External Auditing primary service offered by public accounting practitioners Auditing or External Auditing the examination of financial statements to express an opinion as to the fairness with which the financial statements are prepared Auditing or External Auditing declared function of independent CPAs Taxation includes preparation of annual income tax returns and determination of tax consequences Management Advisory Services refers to services to clients on matters of accounting, finance, business policies, organization procedures, product costs, distribution, and many other phases of business conduct and operations Private Accounting assist management in planning and controlling the entity's operations Controller Highest accounting officer in an entity Private Accounting CPAs are employed in business entities in various capacity as accounting staff, chief accountant, internal auditor, and controller Government Accounting process of analyzing, classifying, summarizing, and communication all transactions involving the receipt and disposition of government funds and property and interpreting the results thereof Government Accounting custody and administration of public funds Republic Act No. 10912 law mandating and strengthening the contin