PAIL #1 Chapter 1
1. What are the essential characteristics of Accounting?
a. The essential characteristics of accounting consist of: communication
of financial information to interested persons, communication of
financial information about economic situa
PAIL #5 Chapter 3
1. List the 8 steps in the accounting cycle.
d. Statement preparation
f. Adjusted trial balance
g. Identification and measurement of transactions and other events
PAIL #4 Chapter 3
1. What is an accounting information system?
a. Collects and processes transaction data and then disseminates the
financial information to interested parties.
2. Discuss the difference between an event and a transaction.
a. Event: a happ
PAIL #2 Chapter 2
1. What is the Conceptual Framework for financial reporting?
a. The conceptual framework for financial reporting is a coherent system
of concepts that flow from an objective that identifies the purpose of
financial reporting. The other c
Pail #6 Chapter 4
1. What are the limitations of the Income Statement?
a. Does not reflect cash changing hands
2. What is meant by earnings management?
a. Deciding what to do with earnings, whether to save it, invest it, or
spend it fr
PAIL #3 Chapter 2
1. List and describe each of the 10 elements of financial information.
a. Assets: future economic benefits obtained previously
b. Liabilities: probable future sacrifices of economic benefits
c. Equity: Residual interest in