Вы находитесь на странице: 1из 1

Terms to remember: Person Agencies Connected with Accounting

Natural Practice:
Business- Entity that intends profit, not for Artificial/Juridical person (entity) 1. PRS
loss, but for positive return. Materiality 2. BOA
Intercomparability 3. FRSC
I. Classification of Business Intracomparability 4. SEC
Financial status 5. CDA
1. According to Nature Net income 6. BIR
 Service Net loss 7. BSP
 Merchandising (simplest) Goal 8. PICPA
 Manufacturing Going Concern
Quitting Concern Fields of Accounting
2. According to Structure or Composition 1. Private
of Ownership 2. Government
 Sole proprietorship Asset 3. Public
 Partnership a. Owned or Controlled Branches of Accounting:
 Corporation b. Past Transaction 1. Management Accounting
 Cooperative c. Economic Benefit in the Future 2. Cost Accounting
Liabilities 3. Financial Accountng
Types of Partner a. Past Event 4. Government Accounting
1. Silent Partner b. Present Obligation 5. Auditing
2. Secret Partner c. Future Settlements 6. Taxation
3. Dormant Partner Capital
4. Partner by estopel Asset = Liabilities + Capital
5. General Partner *greater asset=greater productivity *Income increases the capital.
6. Limited Partner *expense decreases the capital.
7. Capitalist Partner Other Words: *Interest is an income to the lender.
8. Industrial Partner *Services are expected to be paid after
9. Capitalist-Industrial Partner Transaction the event, thus should be recorded.
1) Liability and 2) Obligation to Pay Business Entity Concept
Usefulness of Information Legal Obligation Cash Basis
1. Fundamental Characteristics Constructive Obligation
 Relevance Property
 Faithful Representation Cash
2. Enhancing Characteristics Service
Condonation
 Timeliness
Purchase
 Verifiability
In cash and in full
 Understandability
On account/on credit
 Comparability
Partial cash
Offset/offsetting
Users
2nd hand products
1. Manager
Secured loan
2. Creditors/Suppliers
No effect
3. Employee
Cash on Delivery
4. Investor
Check
5. Government
In Terms= Payable
6. Customers
Partial payment
Collection
Other Words:
*Net loss = Greater expense = Less income
Wholesale
= Greater economic resources
Retail
Input-Output Process (I-O process)
*Net Profit = Lesser expense = Greater
Raw materials
income = greater economic resources
Process
Finished product
Budgeting
Equipment
Monitoring
*greater people=Lower efficiency
*less raw materials=Less finished
Scope of Practices of CPAs:
products=Less profit
1. Public Accounting
2. Commerce/Industry
“two or more” persons
3. Government
Oral agreement
4. Academe
Written agreement

Вам также может понравиться