RECITATION CARDS

• Define accounting.

  -   Accounting is the process of identifying, measuring and communicating economic information to the users of financial information.
• Explain identifying as a component of accounting.

  -   The recognition or nonrecognition of business activities as “accountable”.
• When is a transaction accountable or quantifiable?

  -       When it affects assets, liabilities, and equity.
• Explain measuring as a component of accounting?

  -   Assigning peso amounts to accountable events.
• Explain communicating as component of accounting.

  -       It is the process of preparing and distributing reports to the users of financial information.
• Explain recording, classifying and summarizing in relation to the communicating component of accounting.

  • Recording is the process of maintaining all business transactions, classifying is the sorting of similar business transactions, and summarizing is the preparation of the financial statements
• What is the overall objective of accounting?

  -       To supply financial reports to users of financial information

  -       Financial reports tell us how well and entity is performing in terms of profit or loss
• 1.Describe the accountancy profession.

  • It is where you practice being an accountant in public or private sectors
  • Providing accurate financial information to businesses
• 1.What is R.A. No. 9298?

  -       Philippine accountancy act of 2004
• What do you understand by the Board of Accountancy?

  -   The body who promulgates rules and regulations affecting the accountancy profession and responsible for preparing and grading the CPA examinations

   
• Explain the limitation of the practice of public accountancy.

  -       Practioners of accountancy shall be registered as CPA in the Philippines

  -       SEC should not register any corporation organized for the practice of public accountancy.
• Explain the accreditation to practice of accountancy.

  -   BOA should issue a certificate or recognition valid for 3 years and renewable every 3 years.
• What are the three main areas in the practice of the accountancy profession?

  -       Public, private, and government accounting
• Explain public accounting.

  -   Individual practioners who offers auditing, taxation and management advisory services.
• Explain auditing, taxation service and management advisory services.

  -       Auditing is the examining of financial statements, taxation Is the preparation of tax related information and management advisory services has no precise coverage but offers some such as budgeting, advice, planning and forecasting and etc
• Explain private accounting.

  -   Practioners who are employed in companies. 

  -   Positions such as accounting staff chief accountant. Internal auditor, and controller
• Explain government accounting.

  -   Working in government offices and focus is the custody and administration of public funds.
• What do you understand by the Continuing Professional Development of CPAs?

  -   Republic act no. 10912 the law mandating and strengthening accountants.

  -   The acquisition of advanced knowledge, skill and proficiency.
• What is the meaning of CPD credit units?

  -   It is the credit hours required for renewal of CPA license
• How many CPD credit units are required?

  -   120 CPD units are required and 15 CPD for renewal

   
• What is the purpose of the required CPD credit unite?

  -   For renewal of CPA license
• What is the exemption from the CPD requirements?

  -   If accountants reach 65 years of age
• Distinguish accounting and auditing.

  -   Accounting embraces auditing

  -   Auditing is an area of accounting and it is analytical
• Distinguish accounting and bookkeeping.

  -   Bookkeeping is procedural and the “how” of accounting 

  -   Accounting is conceptual
• Distinguish accounting and accountancy.

  -   Accounting is a reference for a particular field and accountancy are the people who practices accounting.

   
• Distinguish financial accounting and managerial accounting.

  -   Financial accounting is for general purpose that is intended for both external and internal users while managerial accounting is solely focuses on a company itself giving information to internal users
• Explain generally accepted accounting principles or
 GAAP.

  -   It represents the rules, procedures, practice and standards followed in the preparation of financial statements
•  

  What constitute GAAP in the Philippines?

  -   The PFRS or Philippine financial reporting standards
• Explain the purpose of accounting standards.

  -   To create a common understanding between the preparers and users of the information
• What do you understand about the Financial Reporting Standards Council?

  -   The body that will establish and improve accounting standards in the Philippines

   
• What is the composition of FRSC?

  -   15 members a chairman and 14 representatives
• What do you understand about the International Accounting Standards Committee?

  -   It was formed by achieving uniformity in the accounting principles, and formed in June 1973
• What do you understand by the International Accounting Standards Board?

  -   a committee that sets the rules for how companies around the world report their finances.
• What do you understand by the International Financial Reporting Standards?

  -   common language for company financial statements, making them easier to compare across different countries.
• What are collectively included in Philippine Financial Reporting Standards?

  -   PFRS which correspond to international financial reporting standards.

  -   Philippine accounting standards which correspond to international accounting standards

  -   Philippine interpretations which correspond to interpretations of the IFRIC and interpretations developed by the Philippine interpretations committee
• What is the meaning of Conceptual Framework?

  -it describes the concepts for general purpose accounting and an attempt to provide an overall theoretical foundation
• What are the purposes of the Revised Conceptual Framework?

  -   To assist preparers of financial statements, and develop consistent accounting policy, assist IAS to develop IFRS standards and to assist all parties to understand and interpret the IFRS standards
• Explain the authoritative status of the Conceptual Framework.

  -   If there is a standard or an interpretation that specifically applies toa transaction 
• Explain the primary users and their information needs.

  -   It is where generally purposed financial statements are primarily directed
• Explain the other users and their information needs.

  -   Users of the generally purposed financially statements but thinks that they are not directly linked to them