Data Analytics for Accounting, Third Edition by
Vernon Richardson Latest Updated version, Correct
Questions and Answers Graded A+
Liquidation Value - ANSWER✔ Net amount that can be realized by selling
the assets of a firm and paying off the debt.
Noncumulative Preference Share - ANSWER✔ The dividend entitlement
for a year is forfeited when dividends are not declared in that year.
Cumulative Preference Share - ANSWER✔ The dividend entitlement
accumulates each year until paid.
Nonparticipating Preference Share - ANSWER✔ Entitled only to a fixed
amount of dividends.
Participating Preference Share - ANSWER✔ Entitled to an amount in
excess of the fixed amount of dividends.
Fully Participating Preference Share - ANSWER✔ Participates on pro rata
basis with ordinary shareholders.
Partially Participating Preference Share - ANSWER✔ Participates only up
to a certain amount or percentage.
Liquidating Dividends - ANSWER✔ Dividends declared out of capital,
rather than from retained earnings. It is normally declared only upon
corporate liquidation.
Share Split - ANSWER✔ Results in shareholders receiving a specified
number of shares in exchange for each share that they currently own.
Tax Accounting - ANSWER✔ A service that involves tax compliance and
tax planning.
, Cost Accounting - ANSWER✔ The analysis of costs, including methods for
classifying costs, allocating costs, assembling costs, and determining
product costs
Accounting Education - ANSWER✔ Refers to teaching accounting and
accounting-related subjects in an organized learning environment.
Accounting Research - ANSWER✔ pertains to the careful analysis of
economic events and other variables to understand their impact on
decisions
Sole Proprietorship
Partnership
Corporation
Cooperative - ANSWER✔ 4 Forms of Business Organizations
One individual and it is registered with the DTI. - ANSWER✔ What is the
ownership of the sole proprietor and its formation/registration?
What is the ownership of the partnership and its formation/registration? -
ANSWER✔ More than one; it is formed by contractual agreement and it is
registered with the SEC.
Department of Trade and Industry - ANSWER✔ What is the meaning of
DTI?
Security and Exchange Commission - ANSWER✔ What is the meaning of
SEC?
More than one; it is formed by operation of law and it is registered with the
SEC. - ANSWER✔ What is the ownership of the corporation and its
formation/registration?
More than one; it is formed in accordance with the Cooperative Code and
it is registered with the CDA. - ANSWER✔ What is the ownership of the
cooperative and its formation/registration?
,Cooperative Development Authority - ANSWER✔ What is the meaning of
CDA?
Service business
Merchandising business
Manufacturing business - ANSWER✔ What are the 3 types of business
according to activities?
Service Business - ANSWER✔ offers services as its main product rather
than physical goods
Merchandising Business - ANSWER✔ Also called as trading business.
Buys and sells goods without changing their physical form.
Manufacturing Business - ANSWER✔ buys raw materials, uses labor and
machinery to transform them into finished products, and sells the finished
products to individuals or other businesses
Accounting Concepts and Principles - ANSWER✔ set of logical ideas and
procedures that guide the accountant in recording and communicating
economic information
True - ANSWER✔ True or False.
Accounting is constantly changing and new concepts are continuously
emerging.
Philippine Financial Reporting Standards (PFRS) - ANSWER✔ What
conceptual framework for financial reporting is used in the Philippines?
Separate Entity Concept
Historical Cost Concept (cost principle)
Going Concern Assumption
Matching
Accrual Basis of Accounting
Prudence (or Conservatism)
Time Period
Stable Monetary Unit
Materiality Concept
, Cost-benefit (Cost constraint)
Full Disclosure Principle
Consistency Concept - ANSWER✔ What are the 12 basic accounting
concepts?
Separate Entity Concept - ANSWER✔ The business is treated as a
separate entity, separated from its owners, creditors and customers.
Historical Cost Concept - ANSWER✔ Asset are initially recorded at their
acquisition (purchase) cost and it also known as cost principle.
Going Concern Assumption - ANSWER✔ The assumption that the
company will continue in operation for the foreseeable future or for an
indefinite period of time.
Liquidating Concern - ANSWER✔ Opposite of going concern
Matching - ANSWER✔ recognize expenses in the same period as the
revenues they help to generate
Accrual Basis of Accounting - ANSWER✔ reporting income when it is
earned and expenses when they are incurred
Prudence - ANSWER✔ The principle of recognizing expenses immediately
and not recognizing income until it is reasonably certain. Also known as
conservatism.
Time Period Concept - ANSWER✔ ensures that accounting information is
reported at regular intervals
calendar year - ANSWER✔ An accounting period that extends from
January 1 to December 31.
fiscal year - ANSWER✔ Covers 12 months but starts on a date other than
January 1.
Interim Period - ANSWER✔ A period of time less than a year; usually
quarterly
Vernon Richardson Latest Updated version, Correct
Questions and Answers Graded A+
Liquidation Value - ANSWER✔ Net amount that can be realized by selling
the assets of a firm and paying off the debt.
Noncumulative Preference Share - ANSWER✔ The dividend entitlement
for a year is forfeited when dividends are not declared in that year.
Cumulative Preference Share - ANSWER✔ The dividend entitlement
accumulates each year until paid.
Nonparticipating Preference Share - ANSWER✔ Entitled only to a fixed
amount of dividends.
Participating Preference Share - ANSWER✔ Entitled to an amount in
excess of the fixed amount of dividends.
Fully Participating Preference Share - ANSWER✔ Participates on pro rata
basis with ordinary shareholders.
Partially Participating Preference Share - ANSWER✔ Participates only up
to a certain amount or percentage.
Liquidating Dividends - ANSWER✔ Dividends declared out of capital,
rather than from retained earnings. It is normally declared only upon
corporate liquidation.
Share Split - ANSWER✔ Results in shareholders receiving a specified
number of shares in exchange for each share that they currently own.
Tax Accounting - ANSWER✔ A service that involves tax compliance and
tax planning.
, Cost Accounting - ANSWER✔ The analysis of costs, including methods for
classifying costs, allocating costs, assembling costs, and determining
product costs
Accounting Education - ANSWER✔ Refers to teaching accounting and
accounting-related subjects in an organized learning environment.
Accounting Research - ANSWER✔ pertains to the careful analysis of
economic events and other variables to understand their impact on
decisions
Sole Proprietorship
Partnership
Corporation
Cooperative - ANSWER✔ 4 Forms of Business Organizations
One individual and it is registered with the DTI. - ANSWER✔ What is the
ownership of the sole proprietor and its formation/registration?
What is the ownership of the partnership and its formation/registration? -
ANSWER✔ More than one; it is formed by contractual agreement and it is
registered with the SEC.
Department of Trade and Industry - ANSWER✔ What is the meaning of
DTI?
Security and Exchange Commission - ANSWER✔ What is the meaning of
SEC?
More than one; it is formed by operation of law and it is registered with the
SEC. - ANSWER✔ What is the ownership of the corporation and its
formation/registration?
More than one; it is formed in accordance with the Cooperative Code and
it is registered with the CDA. - ANSWER✔ What is the ownership of the
cooperative and its formation/registration?
,Cooperative Development Authority - ANSWER✔ What is the meaning of
CDA?
Service business
Merchandising business
Manufacturing business - ANSWER✔ What are the 3 types of business
according to activities?
Service Business - ANSWER✔ offers services as its main product rather
than physical goods
Merchandising Business - ANSWER✔ Also called as trading business.
Buys and sells goods without changing their physical form.
Manufacturing Business - ANSWER✔ buys raw materials, uses labor and
machinery to transform them into finished products, and sells the finished
products to individuals or other businesses
Accounting Concepts and Principles - ANSWER✔ set of logical ideas and
procedures that guide the accountant in recording and communicating
economic information
True - ANSWER✔ True or False.
Accounting is constantly changing and new concepts are continuously
emerging.
Philippine Financial Reporting Standards (PFRS) - ANSWER✔ What
conceptual framework for financial reporting is used in the Philippines?
Separate Entity Concept
Historical Cost Concept (cost principle)
Going Concern Assumption
Matching
Accrual Basis of Accounting
Prudence (or Conservatism)
Time Period
Stable Monetary Unit
Materiality Concept
, Cost-benefit (Cost constraint)
Full Disclosure Principle
Consistency Concept - ANSWER✔ What are the 12 basic accounting
concepts?
Separate Entity Concept - ANSWER✔ The business is treated as a
separate entity, separated from its owners, creditors and customers.
Historical Cost Concept - ANSWER✔ Asset are initially recorded at their
acquisition (purchase) cost and it also known as cost principle.
Going Concern Assumption - ANSWER✔ The assumption that the
company will continue in operation for the foreseeable future or for an
indefinite period of time.
Liquidating Concern - ANSWER✔ Opposite of going concern
Matching - ANSWER✔ recognize expenses in the same period as the
revenues they help to generate
Accrual Basis of Accounting - ANSWER✔ reporting income when it is
earned and expenses when they are incurred
Prudence - ANSWER✔ The principle of recognizing expenses immediately
and not recognizing income until it is reasonably certain. Also known as
conservatism.
Time Period Concept - ANSWER✔ ensures that accounting information is
reported at regular intervals
calendar year - ANSWER✔ An accounting period that extends from
January 1 to December 31.
fiscal year - ANSWER✔ Covers 12 months but starts on a date other than
January 1.
Interim Period - ANSWER✔ A period of time less than a year; usually
quarterly
