LET’S CHECK

Activity 1. All this information presented in the metalanguage and essential knowledge help
you to understand better accounting and its environment. Let us check your understanding of
these terms by providing answers on the space provided.
1. ______ is the phase of accounting where transactions are analyzed whether
accountable or non-accountable events. Identifying
2. _______ is a form of organization whose owners are personally liable for the debts
incurred by the business. Partnership
3. ___________ is a form of business organization whose owners are not liable for debts of
the business. Corporation
4. ___________ is an information system that measures, processes and communicates
financial information about an economic entity. Accounting
5. Company ABC obtained loan from Metrobank company to finance plant expansion. This
is an example of ___________ type of business activities. Financing activity
6. Collected the accounts of the customer and payment of account to supplier is an
example of ____________ type of business activities. Operating activity
7. Constructed a building for the factory is an example of _____________ type of business
activities. Investing activity
8. It is an independent examination that ensures the fairness and reliability of the reports
that management submits to users, this branch is called _________. External Auditing
9. Mr. Reyes invested cash into his business to engage in repair shop, is an example of
____________ type of business activities. Financing Activity

10. An organization in Asia that envisioned a stable, prosperous and highly competitive
economic region is called _____________. (ASEAN)
11. An ancient law that requires merchants to give buyers a sealed memorandum
containing the agreed price( in the present times this is the BIR Code) is called
_____________.
Code of Hammurabi
12. The accountant of primitive age is called _________________. scribe
13. Who invented the double-entry bookkeeping? ________________. Amatino Manucci
14. It is during this time where Corporations were established and the factory system was
used to create products. _____________. Industrial Revolution Stage
15. Group of businessmen whose assets is P3m or less is called ___________. Micro
Entities
16. Returned of defective items to the supplier is an example of _______ type of business
activities Operating activity
17. Paid salaries and taxes of the business is an example of ________ type of business
activities. Operating activity
18. ________ an accounting principles which states that omitting or misstating this
information could influence users of the financial statements. Materiality

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19. An accounting principles that states that similar items should receive a similar
accounting treatment is called ______________. Consistency
20. What accounting concept that should be considered when an owner of a business takes
goods from inventory for his personal use ______________. Separate Entity
21. This is a principle in accounting that support the practice of recording an asset based on
the amount actually paid and not what the management thinks is ___________.
Historical cost
22. The financial accounting process provides information about economic activities of an
enterprise for a specified accounting period that is shorter than the life of the
enterprise, this practice is in compliance to concept of _________________. Time
Period/Periodicity
23. An accountant employed by a particular business firm or not-for-profit organization,
perhaps as chief accountant, controller or financial vice president are said to be engaged
in _________. Private Accounting
24. A business organization is owned by people called members is a _________.
Cooperative
25. One basic principles in accounting states that an accounting transaction has to be
supported by sufficient evidence to allow two or more qualified individuals to arrive at
essentially similar conclusion is called _________. Objectivity
26. Carrying out professional responsibilities diligently and in accordance with applicable
technical and professional standards is description of the principle of ____________.
Professional competence and due care
27. A professional accountant should be straightforward and honest in all professional and
business relationships is in consonance with the principle of ____________. Integrity
28. This is an organization whose main function is to establish and improve accounting
standards that will be GAAP. This group is _____________. FRSC
29. Accountant do not recognize that the value of the peso changes over time. This concept
is called ___________. Stable monetary unit concept
30. The set of guidelines and procedures that constitute acceptable accounting practice at a
given time is called ___________________________. GAAP
31. The Filipino accountants should possess knowledge to enable them to compete
internationally. (Enumerate here the knowledge required) 4 pts.
General Knowledge
Organizational and business knowledge
Accounting knowledge
IT knowledge
32. A branch in accounting that concern with the preparation and publish of complete
financial statements to intended users is called ___________. Financial Accounting
33. What area in accounting that is task to manage financial resources of the business?
__________. Financial Management
34. A CPA without any permission divulge an information about an entity under audit, this is
in violation of ____________ principle in professional ethics. Confidentiality

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35. An information that is relevant but not captured on the face of the financial statements
is normally reflected in the notes to financial statement, this practice is in compliance of
_____________ principle. Adequate disclosure/completeness
36. What criteria of GAAP that supports the practice of preparing financial statements on
time so that it can be used in making a decision? __________________. Relevance
37. Accrual accounting of income is an application of __________ basic principle. Revenue
recognition principle
38. Accrual accounting of expense is an application of _________ basic principle. Expense
recognition principle
39. This basic ethical principle requires that CPA must adhere to relevant laws and
regulation and should avoid acts that discredit the profession is called
_______________. Professional Behavior
40. This is a report where the entity’s financial performance is reflected ____________.
Income Statement
41. This is a report where the entity’s financial stability, liquidity and profitability is
reflected, ____________. Statement of Financial Position
42. What type of business organization owned by shareholders? _____________.
Corporation
43. This branch of accounting includes financial and non-financial data from various sources
and utilized it for specific decision is called _____________. Management accounting
44. This area involves collection of financial data and entering these data in the books of
accounts, this is called _______________. bookkeeping
45. (should be answered with True or False). For reporting purposes, the personal assets
and debts of a business owner should be combined with the assets and debts of the
business. False
46. (should be answered with True or False). For accounting purposes, a business and its
owner are considered one and the same entity. False