PARCOR - Chapter 1 & 2 Questions
&A+ Solutions
Accounting - Correct answer-It is the body of knowledge governing the science of
recording, classifying, and analyzing financial transactions.
Accountancy - Correct answer-It is the practice and art of the science of
accounting.
American Institute of Certified Public Accountants (AICPA) - Correct answer-Who
defined accounting as an art of recording, classifying, summarizing in a significant
manner and in terms of money, transactions, and events which are of financial
character?
American Accounting Association (AAA) - Correct answer-Who defined
accounting as the process of identifying, measuring, and communicating economic
information to permit informed judgments and decisions by the users of
information?
Identifying - Correct answer-It is the process of analyzing events and transactions
to determine whether or not they'll be recognized.
,Measuring - Correct answer-It involves assigning numbers to the economic
transactions and events.
Communicating - Correct answer-It is the process of transforming economic data
into useful accounting information for dissemination to various stakeholders.
Accounting Standards Council (ASC) - Correct answer-Who defined accounting as
a service activity whose function is to provide quantitative information about
economic entities that is intended to be useful in making economic decisions?
(1) Recording
(2) Classifying
(3) Summarizing
(4) Interpreting - Correct answer-What are the 4 phases of accounting?
Bookkeeping - Correct answer-What is the recording phase also known as?
Classifying - Correct answer-A phase in accounting that involves grouping of
similar accounting elements affected into useful groups.
Summarizing - Correct answer-A phase in accounting that involves the preparation
of financial statements.
Interpreting - Correct answer-A phase in accounting that pertains to analyzing
financial information to evaluate the entity's liquidity, solvency, and profitability.
, Bookkeeping is the process of recording financial transactions, while accounting
involves analyzing, interpreting, and reporting financial data for decision-making. -
Correct answer-Differentiate ACCOUNTING and BOOKKEEPING.
To provide quantitative information about economic entities that is intended to be
useful in making economic decisions. - Correct answer-What is the main purpose
of accounting?
General Purpose Accounting Information - Correct answer-These are accounting
information designed to meet the common needs of most stakeholders.
Special Purpose Accounting Information - Correct answer-These are accounting
information designed to meet the needs of particular stakeholders.
Accounting Standards - Correct answer-These are authoritative standards for
financial reporting and are the primary source of GAAP.
Generally Accepted Accounting Principles - Correct answer-What does GAAP
stand for?
GAAP - Correct answer-It is a collection of commonly followed accounting rules,
standards, and procedures for financial reporting.
Internal and External - Correct answer-What are the two types of users of
accounting information?
&A+ Solutions
Accounting - Correct answer-It is the body of knowledge governing the science of
recording, classifying, and analyzing financial transactions.
Accountancy - Correct answer-It is the practice and art of the science of
accounting.
American Institute of Certified Public Accountants (AICPA) - Correct answer-Who
defined accounting as an art of recording, classifying, summarizing in a significant
manner and in terms of money, transactions, and events which are of financial
character?
American Accounting Association (AAA) - Correct answer-Who defined
accounting as the process of identifying, measuring, and communicating economic
information to permit informed judgments and decisions by the users of
information?
Identifying - Correct answer-It is the process of analyzing events and transactions
to determine whether or not they'll be recognized.
,Measuring - Correct answer-It involves assigning numbers to the economic
transactions and events.
Communicating - Correct answer-It is the process of transforming economic data
into useful accounting information for dissemination to various stakeholders.
Accounting Standards Council (ASC) - Correct answer-Who defined accounting as
a service activity whose function is to provide quantitative information about
economic entities that is intended to be useful in making economic decisions?
(1) Recording
(2) Classifying
(3) Summarizing
(4) Interpreting - Correct answer-What are the 4 phases of accounting?
Bookkeeping - Correct answer-What is the recording phase also known as?
Classifying - Correct answer-A phase in accounting that involves grouping of
similar accounting elements affected into useful groups.
Summarizing - Correct answer-A phase in accounting that involves the preparation
of financial statements.
Interpreting - Correct answer-A phase in accounting that pertains to analyzing
financial information to evaluate the entity's liquidity, solvency, and profitability.
, Bookkeeping is the process of recording financial transactions, while accounting
involves analyzing, interpreting, and reporting financial data for decision-making. -
Correct answer-Differentiate ACCOUNTING and BOOKKEEPING.
To provide quantitative information about economic entities that is intended to be
useful in making economic decisions. - Correct answer-What is the main purpose
of accounting?
General Purpose Accounting Information - Correct answer-These are accounting
information designed to meet the common needs of most stakeholders.
Special Purpose Accounting Information - Correct answer-These are accounting
information designed to meet the needs of particular stakeholders.
Accounting Standards - Correct answer-These are authoritative standards for
financial reporting and are the primary source of GAAP.
Generally Accepted Accounting Principles - Correct answer-What does GAAP
stand for?
GAAP - Correct answer-It is a collection of commonly followed accounting rules,
standards, and procedures for financial reporting.
Internal and External - Correct answer-What are the two types of users of
accounting information?
