Mark Erickson Balahadia BSC 2-3 Chapter 1 Accounting.docx -...

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ReviewQuestions,ExercisesandProblemsChapterIBasicAccountingConceptsandPrinciplesReviewQuestions:1.In general terms, how is accounting defined? What is its general objective?2.What is financial reporting? Identify the different users of financial statements. Give examples ofdecisions that may be made by specific users of financial statements.3.What are economic activities? Give examples.4.What are economic resources? Economic obligations?5.Identify the general-purpose financial statements and describe the elements or items presented in eachstatement.6.Financial statements are prepared in accordance with generally accepted accounting principles.Describe briefly accounting concepts and principles adopted in preparing financial statements.7.What are the elements of financial accounting that will affect an enterprise’s financial condition? Resultsof operations?8.What is accounting equation? Illustrate.Exercises1.Identify the term/s described or defined below:a.Procedures undertaken to measure and convert the monetary value of economic activities intomeaningful information.b.The men and women who make economic decisions using accounting informationc.The conversion of economic resources into outputs of goods and services which have greater usethat than the required inputsd.Setting aside of rights to present consumption in exchange for rights to future consumption.e.Represents the actual contribution of the owner/stakeholders to the capital required of an entity.f.The means to provide quantitative financial information about a business enterprise that is useful tostatement users in making economic decisions.g.A business entity is viewed as a continuing enterprise without interruption in its operations.h.Specific time period, usually one year, for which financial reports should contain information abouteconomic activities of an enterprise.i.Basis of accounting that recognizes revenues when earned and expense when incurred rather thanwhen received or paid
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Term
Summer
Professor
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Tags
Balance Sheet, Income Statement, Generally Accepted Accounting Principles, Basic accounting Concepts and Principles, different users of financial statements

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