ABM Chapter 1 Accounting as an information system

Sample exercises
Answer the following items. Choose the correct answer from the choices given.
a. Analyzing
b. Recording
c. Classifying
d. Summarizing
e. Reporting
f. Interpreting

_________ 1. The process of grouping similar transactions and events together

_________ 2. The process of explaining the relationship of the different items in the financial
statements
_________ 3. The process of writing in the journal the effects, whether increase or decrease, of the
analyzed transactions and events
_________ 4. The process of determining the effects on the different accounts of the documented
transactions and economic events
_________ 5. The process of preparing the balance sheets, income statements, and statements of
cash flow
_________ 6. The process of identifying the relationships of various items in the financial statements
and pointing out their effects and importance to decisions to be made by their users