Accounting Basics
Accounting entries involve a minimum of how many accounts?
Two
Assets taken out of a business for the owner's personal use
Withdrawals
Revenues minus expenses equals
Profit or Loss
How many CPA Licensure exam is conducted in a year in PH?
2
Father of Accounting
Luca Pacioli
Liabilities often have the word __________ in their account title
Payable
Accrued expense is a/an ____ account
Expense
General Average needed to pass CPA Licensure Exam
75%
x2! (+-)
Accounting is the ________ of business.
Language
Share premium is a/an ____ account
Capital/Equity
Revenues are reported in the accounting period when the
Service Or Goods Have Been Delivered
The Philippine Accountancy Act of 2004
Republic Act No.9298
User of FS that determines the taxation policies applicable to the organisation
Government
Requires that assets should be recorded initially at original acquisition cost
Cost Principle
The effects of transactions and other events are recognized when they occur and not as cash is received or paid
Accrual Basis of Accounting
x2! (+-)
CPA Board Exam Subjects
Financial Accounting and Reporting, Advanced Financial Accounting and Reporting, Management Accounting Services, Auditing, Taxation, and Regulatory Framework for Business Transactions
Under this assumption, FS are prepared on the assumption that the entity will continue to be in operation for the foreseeable future
Going Concern Assumption
A measure of a company’s ability to pay off its short-term liabilities
Liquidity
Comprised of income and expenses that are not recognized in profit or loss
Other Comprehensive Items
Last CPA Passing rate in PH
21.87%