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Financial Accounting 1 Valix Part 1

Accounting involves identifying, measuring, and communicating financial information to help users make economic decisions. It is the process of recording, classifying, and summarizing transactions and events. Accountants provide summarized financial statements to allow statement users to make informed judgments. The Philippine Accountancy Act regulates the accounting profession in the Philippines and requires accountants to obtain certification which involves work experience and renewal every three years.

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339 views2 pages

Financial Accounting 1 Valix Part 1

Accounting involves identifying, measuring, and communicating financial information to help users make economic decisions. It is the process of recording, classifying, and summarizing transactions and events. Accountants provide summarized financial statements to allow statement users to make informed judgments. The Philippine Accountancy Act regulates the accounting profession in the Philippines and requires accountants to obtain certification which involves work experience and renewal every three years.

Uploaded by

Aki
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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FINANCIAL ACCOUNTING VOL1 SUMMARY VALIX

1. ASC- accounting is a service activity. Its function is to provide quantitative information primarily

financial in nature that is intended to be useful in making economic decisions.

2. AICPA- accounting is the ART of recording, classifying, summarizing(RCS--communication process)

3. AAA(statement of basic accounting theory)- PROCESS of identifying, measuring, communicating(IMC)

4. Identifying as the analytical component

5. Measuring as the technical component

6. Communicating as the formal component

7. In order to be identifiable, a certain event must be quantifiable or expressed in terms of a unit of

measure. It must have an effect on Assets, Liabilties, OE.

8. External transaction is also known as exchange transaction which involves 2 entities. Example is

payment of salaries to employees.

9. Internal transaction- production and casualty loss(unanticipated losses, act of god)

10. Accounting is the language of business because of the communication process.

11. Classifying- is accomplished by posting to the ledger

12. Summarizing- preparation of FS.

13. Accountant’s primary task is to supply financial information to statement users so that they could

make informed judgment and better decision.

14. Rep. Act 9298- Philippine accountancy act of 2004 regulates the practice of accountancy in the Phil.

15. BOA- body authorized by law to promulgate rules and regulations affecting the practice of the

accountancy profession

16. Certificate of registration shall be issued if the registrant has acquired a minimum of 3 years of

meaningful experience in any areas of public practice including taxation. It will be valid for 3 years,

renewable every 3 years upon payment of required fees.

17. Management advisory services- business conduct and operations


FINANCIAL ACCOUNTING VOL1 SUMMARY VALIX

18. Controller is the highest accounting officer

19. Accounting is essentially constructive in nature

20. Auditor examines FS to ascertain whether they are in conformity with GAAP.

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