Flashcards in this deck (30)

• Who started the rudimentary form of accounting?

  Lucia Pacioli
  accounting history
• What year was 'Summa de Arithmetical, Geometrica, proportioni et proportionalita' published?

  1494
  history books
• What system did Pacioli expound in his book?

  Double entry system
  accounting systems
• What must managers report to business owners?

  Financial resource investment, profit or loss, assets, liabilities, owner’s equity
  accounting reporting
• What act regulates business in Nigeria?

  Companies and Allied Matters Act 1990
  law nigeria
• What is the purpose of statutory regulations in accounting?

  Ensure reliability, relevance, and comprehensiveness of financial information
  accounting regulations
• What act relates to banks in Nigeria?

  Banks and Other Financial Institutions Act of 1991
  law banking
• What are SAS in accounting?

  Statements of Accounting Standards
  accounting standards
• What does bookkeeping involve?

  Recording and classifying business transactions
  accounting bookkeeping
• What is the first step in the bookkeeping process?

  Classification of business transactions
  accounting bookkeeping
• What is the final step in the bookkeeping process?

  Extraction of the Trial Balance
  accounting bookkeeping
• What is financial accounting?

  Accounting process from bookkeeping to financial statement preparation
  accounting financial
• What are the components of financial statements?

  Statement of financial position, statement of financial performance, cash flow statement
  accounting financial_statements
• What does cost accounting provide?

  Information for managerial action
  accounting cost
• What is the focus of management accounting?

  Providing information to management for better decision-making
  accounting management
• What is the purpose of auditing?

  To guarantee complete and reliable financial statements.
  auditing finance
• Who conducts an audit?

  An independent person called an Auditor.
  auditing professionals
• What is government accounting?

  Recognizing and reflecting government revenue and expenditure.
  government accounting
• What is the basis for determining taxable profits?

  Accounting profits generated in financial statements.
  taxation accounting
• What distinguishes taxable profits from accounting profits?

  Certain expenses and income are allowable for accounting but disallowable for tax.
  taxation profits
• What is a key need for accounting information?

  To make economic decisions.
  accounting information
• How does accounting information help creditors?

  It helps predict and evaluate cash flows of the entity.
  creditors accounting
• What is one quality of good accounting information?

  Relevance.
  qualities accounting
• What does reliability in accounting information mean?

  The source must be verifiable and corroborated.
  qualities reliability
• Why is comparability important in accounting?

  To easily compare results over accounting periods.
  qualities comparability
• What does timeliness refer to in accounting information?

  Information must be available early enough for use.
  qualities timeliness
• What does objectivity mean in accounting?

  No bias or subjective judgments in presentation.
  qualities objectivity
• What is comprehensiveness in accounting information?

  Contains enough details for good understanding.
  qualities comprehensiveness
• What is the importance of detail in understanding?

  Detail must be balanced, neither too little nor too much.
  understanding detail
• What should detail achieve in understanding?

  It should provide clarity without overwhelming.
  understanding clarity