LET’S CHECK Activity

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.

2. _______ is a form of organization whose owners are personally liable for the debts incurred by the
business.

3. ___________ is a form of business organization whose owners are not liable for debts of the business.

4. ___________ is an information system that measures, processes and communicates financial

5. Company ABC obtained loan from Metrobank company to finance plant expansion. This is an example
of ___________ type of business activities.

6. Collected the accounts of the customer and payment of account to supplier is an example of
____________ type of business activities.

7. Constructed a building for the factory is an example of _____________ type of business activities.

8. It is an independent examination that ensures the fairness and reliability of the reports that
management submits to users, this branch is called _________.

9. Mr. Reyes invested cash into his business to engage in repair shop, is an example of____________
type of business activities.

10. An organization in Asia that envisioned a stable, prosperous and highly competitive economic region
is called _____________.

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 _____________.

12. The accountant of primitive age is called _________________.

13. Who invented the double-entry bookkeeping? ________________.

14. It is during this time where Corporations were established and the factory system was used to create
products. _____________.

15. Group of businessmen whose assets is P3m or less is called ___________.

16. Returned of defective items to the supplier is an example of _______ type of business activities

17. Paid salaries and taxes of the business is an example of ________ type of business activities.

18. ________ an accounting principle which states that omitting or misstating this information could
influence users of the financial statements.
19. An accounting principle that states that similar items should receive a similar accounting treatment
is called ______________.

20. What accounting concept that should be considered when an owner of a business takes goods from
inventory for his personal use ______________.

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 ___________.

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 _________________.

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 _________.

24. A business organization is owned by people called members is a _________.

25. One basic principle 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 _________.

26. Carrying out professional responsibilities diligently and in accordance with applicable technical and
professional standards is description of the principle of ____________.

27. A professional accountant should be straightforward and hones in all professional and business
relationships is in consonance with the principle of ____________.

28. This is an organization whose main function is to establish and improve accounting standards that
will be GAAP. This group is _____________.

29. Accountant do not recognize that the value of the peso changes over time. This concept is called
___________.

30. The set of guidelines and procedures that constitute acceptable accounting practice at a given time
is called ___________________________.

31. The Filipino accountants should possess knowledge to enable them to compete internationally.
(Enumerate here the knowledge required) 4 pts.

32. A branch in accounting that concern with the preparation and publish of complete financial
statements to intended users is called ___________.33. What area in accounting that is task to manage
financial resources of the business? __________.

34. A CPA without any permission divulge an information about an entity under audit, this is in violation
of ____________ principle in professional ethics.

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.
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? __________________.

37. Accrual accounting of income is an application of __________ basic principle.

38. Accrual accounting of expense is an application of _________ basic 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 _______________.

40. This is a report where the entity’s financial performance is reflected ____________.

41. This is a report where the entity’s financial stability, liquidity and profitability is reflected,
____________.

42. What type of business organization owned by shareholders? _____________.

43. This branch of accounting includes financial and non-financial data from various sources and utilized
it for specific decision is called _____________.

44. This area involves collection of financial data and entering these data in the books of accounts, this is
called _______________.

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.46. (should be answered
with True or False). For accounting purposes, a business and its owner are considered one and the same
entity.

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