Legacy of Wisdom Academy of Dasmariñas, Inc.

Golden City, Salawag, Dasmariñas City

SY 2020 – 2021

Fundamentals of Accounting
LESSON 2– NATURE OF ACCOUNTING
ACTIVITY NO. 2

Name: Delos Reyes Gianna Date: ______________

Answer the following questions briefly.

1. Why is accounting an art?

- Accounting is an Art because it is the technique of recording, classifying and summarizing financial
transactions. It helps us in achieving our objective of maintaining proper accounts.
2. Explain briefly why accounting is a service activity?
- Accounting is a service activity that provides information to help internal and external users make
decisions which are Lenders, Shareholders, Governments, Consumer groups, External auditors, and
Customers.
3. Explain briefly why accounting is an information system?
- Because it is a system of collecting, storing and processing financial and accounting data that are used
by decision makers. An accounting information system is generally a computer-based method for
tracking accounting activity.