sqaniRos } FUNDAMENTALS Dae UNFUXDAMMENTALSOF ACCOUNTING IS BASED 27 EDITION ALRIGHT RESERVED enn) » Se Bote Mots seo ‘Sire ¢ he Ne patel titty togdieia sy frmer ew ‘n/n acta rene, oti. itl he writ pre ‘Aayeoy et to nt bye ipa fal (eoof tau uit age natin nh ‘Sila jeg Fen lea soe ts ‘LEARNG TERE PUBLISHING HOUSE ‘038 Yak Sm Mes, Mele sun ie eats0s1.2 ACKNOWLEDGEMENTS: See Fer tis edition, the uth would Io expres thelr heat ‘ratiuce ar approcskion tothe oewing "To our sucerts, this book i or you. Mebing stunts gun «sod fonndavon in accourtng hat aways been aur passion fhe aston thc ec us to wrting Uns totbook? 1 Te ur colagues in the seadame, thank you for the help {+ Tothe administration ane ety cf tre Univers of Santo Trae Aledo Mi Veiayo College of fexoumtacy, te yu. ler yar entinicd support, comments, Suggest, ad patonage of Our omble wort 10 ai laraios, thank you for the patenco, ndertaning, ond Spporee ou wanes eduestors inthe scouring prlesser 1 nay we express ovr thanks tons tord Almiony. the Teacher of A, fe cerunaoasy larg us the wisdom, Inspraion and ene ‘codes comple ae esse ts boos ta tinaven ee irence ay 31, 2007CONTENTS ‘coat Te anos fuses ‘ecunhg ant Dohoapog Dantes ‘ro feanrtareyPreezen apse kt Best Rt 008 Secer pracy Pace ‘ecu andiersionTeceobyy Detesener ss SHE FARNCAL STATEMENTS a rig Ooi orm ste eennig Piece ese Aaountay comet ‘Poiksss Covet Femevet ‘reteon OoeeToNs ‘we AccoumG EQUATION AND “he DOUBLE ENTRY BOOHRESTING SYSTER % ‘ie Account vere far tournaig, Pose Lin Obes Sronow ‘Shops inte Assoosteg C0 ‘axe onc Trees erprotersive hasan ‘Shaper Surmary Dotisacn auconots ExeReices AND PROBLENE A sence RUSNESS ra TaatBtares ne Pert 2-adjosing Journal Enies 10 temo Seni “The tend o Adsits Bas ets Expos ‘contro Bua Dabs ‘epee tne Aereeeranf Rosato xan of Cnc Asessmont ef Feosatle“ie AccouNTmG CLE OF A SERVICE BUSINEES ‘Par Wisin ond Fasnt Stxoonie m {ari Onectves, Scum Wettont Propet rm Sabet Sobre elconpelaie ree wane Smet ‘Stren’ of Close mE aay ‘Stas’ f rar Posie ance Sheet) (Gert ao Cure Castes ‘Stora of Coa Fos Die are! aod -Opratg tiie Disbison GASTON Exercioes wi Pros {THE ACCOUNTING CYCLE OF A SERVICE BUSINESS Pon Compition a [arte eae ‘Real aed Pesta Aastra Eres ‘Seating aed Pectig Georges ‘ing and Btnig Roatan Roma Accu Prat cle astenstg Talc Propsaten of Rover ees. nasoisiue BUSINESS ster ys) te ron Retna Optra ce Ieertary Sytem odo Nraning Trarostons ncn ton Poe eran Sytem eso or Stes aes Rs ests ‘esouring eraser ellos ose Aezautngter Purchase Osco Siping Charge eo Menara Purchosd or oh ‘Setting these nas Peas ‘Necnntsofte Poptart Sten Semparaon st race tne Psd rd Perpetual oan Ssh eco Vs A Tae WAT) ‘Sree con esroxis Meacwanoisnc ousness -EuDF Pe0O ADJUSTHSUTS AND COMPLETION OF THE sccouio eve ‘2 ooo Conn et Aesuiing Cyl IWotsiee Ur Get of Gout Sed Mata Woks Ua bie! stern metae Pros ofthe Phan! Stoners thom eemae| Fret of Cpenea Pertti Dales soa! Peron taitig end cng cas Prparve fest Cash Tal enon SPECIAL JOURNALS AND SUESIDIARY LEDGERS Steady wig a Cattng Sena Journ Pruebas oul dee ral (een Journal ‘Gesnbibieet Jounal ‘Serra our Med Spec ournat Compute sad Neca Seer ‘rere Session ‘ostons Brora ond tls+1 asic ACCOUNTING conGePTS on ING OPERATIONS “2 CoN te INTRODUCTION TO ACCOUNTINGCaper nveastonte contig usINess perWeD hs nm tetra pain rein he veadelgeisoane kommen dip Cou er or ita oe seu fea operat os eo ad ft mt uae ees en ry che Sn bwn he Rng creel 4m fbn ea er eigen ef ‘ers egaseeesemer t dip poo oa tee ince ests we “est st tae Theta enti mand pot bn FORWS OF BUSINESS ENTERPRISES. A basins enter may Be cused aecorngt the rte af hr ‘uses seers serve amercharsig cr aint entry. ‘sevice Uonnss ofers verve ad generates 4 pot by charging a feetdsenos!intttine charge ton sad stor fee for scatonal Serves renee to stents. Traszrtaton basses cle goes sd Individuals rom ene beatin to another generating pri by eating fates, forces collet fees fron dens in exchange (or seaurty ad Jesteraberriceeadere to thelr ces Acountas, der, frchecs and olherive pefsonal ales ord charge ‘turn Theverietasinaistbesimple smerg ths thr dane Acoting 017i Merchandising Business or Trading Concora ‘A rmercharcing 6 trading butt buy gvds and sel the fn thee ‘gl oem tore of merhnasing conor ea ert-sut tre that hays fe den in Sts adsl dave sft inks in bots and dragster that ‘ay drgs ancl he drugs ersemore Manufacturing Bisiness A marutactang bes aps eps, alles raw mate then conc thes “iw materas hoe nSued profits, called. fnshed good The rmanacuig bese the most etplexBease ofthe everson of ie Fewrmaterls 0 asd goes A soe mnufictrig bins buys re material (eather, aber, ae applic a thred hi, ses and engl), wes the as of weren (ibe) ts conertthxe raw motels to shoes. The Bnd prodacts, te shoes re sblta customers ata pricoigher the het ef prod the LEGAL FORMS OF BUSINESS (BUSINESS OWNERSHIP) asin entero may te organi her a Sle ops, & pamentip, coma, Sole Propistrship sae popistai ntyne owns th prin.‘ peiver may oe evr om ce may onpey ar 49 Busecs penis etd lay ouceol fockos wv dared ets ope Se ‘pops the met esl form aes ile poser eves, gaielantsan cacy, cotape nasi ano sl acals tastes ae mony ie or of epee ‘Atel pono ajo seven dans ox fame of ies coset. the eset hee fale completes neon cms esters reqazemers. Wit guy one evar, bios ante mae {plement pre cys al he eis aed heoperon Acoing Dy te ether tan, ase vlan of busines ies, « propir cs Sing tans bce the entries Hine ably te re capt The These enon exe propuioe whe cae in ues ono by {ie poricoy and wes exe the eagessn uly se om ae with tie bance ofthe opis dodion mtn, prope dos eee he Innctt ofa ssn opin Whee joprtrsjye a pests eared by te nies desler te ine the etepse Fay, 2 SE opts tc milaned pron lly ee db ered by Be ties — ECIENSLIS fancy ewok tly enigma of Se popup Partnership 2 pert nsec ft omer pros te pres, wh id heme 9 conte pope. oF diy 0 a nn with ‘ramon fd he pros srg tics. ati ae gv ‘he ci Che ott Punses, Pairs ce among aber hing, on how th Drsnes wl eugs be sia ofc eet fo cach prt, iv potwleses wil be diidel someg thom, wad de frm and node of {elt ince of wiv by, ord of yo he pastas ‘ptr is ener erie compe to & cereraton Die tthe plucliyof ome the buns et merge eps of the buses i (ly red ag pcr, lee ected at trast ‘Salig to ater de-aing A tae ea ae ete ep compre no dh el ey of rw ey ln gmt edd manage sy kanerng buses opratns Ta Sataip is fagle "it may be Geo y ace geomet, the (Teal oes dash of er epuy ofa pane Fey, paren hve Snel pne abil frei es! corporation = A comnts fm ext come am of buts cra. Conprstion Code fine oration 3 eal Bag raed by ov. Sook te crprten sean be Sta. A paso Who INES an Bers loner of the cepoaion i cles tcl. For vty she psi Sectholder ie ised aofise of sock. A cope us andl wove fr enon, rgn-zton, mage ad Ligiaon specie {nti person Cee The manage ofthe epoca onrnal ie Re copersia st aeons ‘A cpoation tas he pent eau se epi. The cmon an sis pial by sling sas of tock w Oe pubic asa wale. Seer ny {arte th share it ned Toobin ie cans of oer sah ert 39 yeaa oe ve ote gl ona of sie lite ky of oe (fs abi oh slits tte creat tobe eine oo the nour ef he ecthlders msn Inte ‘ception. Ia carga gos aru eee coos et pee ‘ee of i selon, “Teco fing aed mnie eration rebel Siph compat io snmp a sole preety Coryeratons ae ste! ogee sry feoaiion conte a supervision bythe govermien.- Nemec of ‘Cepuats is ma caplet purses ah le prebrsign Whe ‘ceptors cane hip eens capil as lated poet 5 pets Siiea ts he Cojortion Code of te. Pilppars an to" own AS Of ‘Seeyortion, Fel eaparioe eta raligher meee ns, ‘re enprineasupertin mn decsten ming the exten of role Infortaionsigutiantmiaber ois. canes fot cous Infortion Management rakes delon sf he proper selling pe oe Should be sl and ‘eed, aon many oles the tl cs! of those goede nd the elng prices ef comps. Maragpnont ut decide ‘he places nde for pods tbe scqued. Farther des theyre to Trew the ifr th tine patina er fo te tse the pots ‘edhlvered hey Wentz nso bro thetalanee othe gods tl on hind ithe quarity of goo expe tobe soe daring the fea tine, among say ots Making right decors regres got sil, ining, sound presen [pagent ond ho wesel rable Ena fomstionen making pres ears ari ad on fic ifornation a sw iui inortaon say umary ofa the trance the Sc aad eve To eh ins eer od Strnad yUecdeepers or ecoutais. Thus, rit ingot Gand [iorsccacies ies tckiday heecng oy ego cet ‘erven incon to managements Garey prssis re tan ore {iano ht lb el or dconrkng, ACCOUNTING DEFINED cng hasbeen fied so many mays ting the ast of seserding,asaffing and suamarising fx ¢ Signer nner aid tems of money, anzctins elevate which ire in part ot ees of ean chat nd rtarreing heres oe tecrete en catingFeriy of ee tae of Corie bie tcouatat pecountng 6 the process of Wentiine, messing and communiceing ‘xonomie fornia to pert informed adpnest ad deen by wers Substation. Ameren ect scan) Accouting is uervce acy, te function 10 provide quntatve ‘sfoomaon,primaniy nae nate, ston economic enc, hts Intend to Be afl ting enor: dst. Qecoantag Sandans cnc BASIC PURPOSE OF ACCOUNTING ‘The baste papose of acoasing to sap fnclermatlon towers the dem male fared judpnens sndbter devin For sample, «company ic coneidtingsbtining a oa rom the kak in ctr ia fn the operas of the Ein, Helen Yo hie dion, ‘SSsuringeroids tho flowing infomation ag othr: + The estes and bigtons fhe sine manager sts th! the company es ator resource like land nat and in the snes, it may die ead athe land oad ee the resting esp ane ies perstone anager alo anys the exitng debts ft sens to ‘ck Ct could sil fande oat debe a ese tore ra he ‘snk. as lon and lows ae arlyod to see the: posse seurces of firanciygrtedeterminebow te basis wou repay Ue bank oni vt Serie, I the crpeny decides to ay for les the bak’s lending prone wl rece the company to it fis ‘hich wil be used to dtermine ‘ther to approve er rejet the lean npn ACCOUNTING ~ THE LANGUAGE OF BUSINESS A Iiguag 2 ans fer communicating ees sbohlsandetin twothrs In fersation technology, compete guages alow apropraner {oeanmuncate with machines inerder tthe deste captor rel the sue wap, acouning dhe Inpuag wse to commie franca Ina fo trated ps sch ws eer anne, euployec he gete TT, ‘oanchlhformation understand hats ppg the bases enterprise ACCOUNTING AND BOOKKEEPING DISTINGUISHED vest pecle confuse aceuning wiih bodeeing 226. veers wt the poco mechani asec of scan vols he seupupdie nd aninane of accounting reer ‘Account is concapl and ges boyend bekeopng Aecuntinginlndes the iiprttion of wlomistonratrdad ender becbeopng, skeen smay be done even by propor trained nonacousarts, whe the pate of ‘countancy cn pny cet cen publi scare‘THE ACCOUNTANCY PROFESSION ie scouting a5 a formation stem sot 2 now const scout) ors profession sry new. in rccent yen thes tae ‘Rates equvaen to tht of lan mee and engosting”Accuting 2 protic Feces ba te nutes required ls poke, thous Cee ea ad cert a ote ee ot ‘ae gst pts ae ko Sciesce tn Accontingy and fo pss avery gous goverment Ccmintn sdinserd ty the Profesional temitery Goad of ‘ceoomangy. Only he ca se tse the te “erted Pe ‘eccrant(P 4% Moos no ncshe wa crossed ciel 7 Fabris oly diy rating whch clan ene Cao of tc ie manaory for ll CPs. It frost fr ce whenenrthny ecoter "nat the ght eingte dations 2, Aspley sci te de sl cu fortes SPREE «gered inven, cor, fener td ther sector of he Baines comes) as mel he (prernent andthe publeablarge rey en CPAs for sound franc Scouting and reporing. effective frundal management and fmt! adver ns vary abuses and acl male ‘Tie Pippin Accountancy Act of 2004 “The accountanc fecrion i governed by law. Repiiblic Act No. 2298, the chap eon) fe af ou oe ao te ong = 1+ thesandardsatonand regulation faceunting elit 4+ the examination forregbtration of rte pubic acetal + th supervise curl ad elation the practice of accountancy Inthe iipins ‘rice athe palit Na 3Pcreats the raiser Replay oar of cceuntaeys he agency tase to enare the povsons ote nines essing 27 aon Dippin Accountancy Acti alo panted the right to suo, spend, ‘revke_ or rae CPA certieate forthe practice tthe prlesone he Some ae eee ee {pete hasnt praca es ‘The CPA Board Exam fesite the CPN Dou East 9 caiamei bn oder ofa te sesary yen: my gen spe came sa ane ‘Geng equa ote ace ed hat te + baci: + bofgcadmotd cas +e blr of the dene a Beene cei, Auten Setanta lee aakeny tenn hcl snifor ney sc ether tered perm te + Hs not been somdted of any crea ffone faveing art lerptede ‘the leensure examination for cet pe acentants sal cover, bet are hot Erte he alowing sis Feereercr i : ae ) rsetosmnm mts Felcgatlcla meg pcs inser iirc, sce i ee eee Sorvino tans rere ton ean ena Tia Fi tachuns ay do ig sence oe em) snidine ences empey stages od A Ae eee gentle See ae Ss ten oe freeing etna wie eran se aes Peete °aveage of svonty fie perce (5) an ating of a eat sity ve pret (GSpbinencha te sbjes oui hehe hall te consoredas fed a throne crmsratin Candas ubo fal to (2 camplete caminsters shall be Agus som ching arti tof examinaters unless se subats evden fo the ‘sustain the ard hat ete eno nae empeted tat ‘our (2 unttsofabecser Lathe leensureexamtnation, SECTORS OF ACCOUNTING PRACTICE rhs generally practic thee profesin in for sels: gable practee ‘omnect ad indsty, education ot the academe, and the govevomest. Ih sch nets the COA uns spcilized accouatng knowledge ot pinipls h Calero the vor inthat ctor / bla Public practice Thi sector falar iniidsL prstingrs all accurting, frm, ‘nen sine and snarl accents that render indenter Profesional aeunting vcs to tiv pic CPA: charge profesional fee forthe serves. enmplesof serves provide by CPR are 7 iabog i tapas cr gb itvoe te meget Sateen ROSE MnSAe fe ana aap spe he Am ter tant Sur tee ancl sremers have enone acrance frais thy tar ie om ater mittee eto + Taxes - this elas the preparation f tac rots or vases lens pein of se eters aol rprsetaten ef lots Sina CPAs option of eing espe nace and + erat consi selves proving sv cosine EGER clita ce macnn ance i peice, ‘anualon rocoto bgting pct oning athe condo of ‘postion ‘Commerce and Industry Aco eemplyd in aro pony sch vis dents uate, cu scart (etre, gon, ea aut ‘Ge ofee The ght secounting dcr in busines eget ‘our at the gal ere) “ecoatante in commer a industry (opiate econatas) jesk_nonmggment_in-plneare_2nd cmiroiagacmpanyonealias. eueation ‘This area crnlays accountants as professes or tscacchers xh ale ses today alas ag secant aes eeu ty mesinans yber secs They sue he rats of dsm ad ‘ecard calleage ber Svc lets ao pope ep CS fetietluuetaaniains. Goverment Acccmints nay be had a if oudtoy, budget ocean sgprerment unit He he i, buco af vera Levers, epatnen of anc, et_f-fadge-and Maragrient, we the Sora onan [BRIG WSSTORY OF ACCOUNTING -Accomengtras ts ott te Mlle at eon, whereas ey as 00 ti, tgesmen toe da) objets 1 represen conmreies such ws foks of ep rs spend ol, Ults of sthing ard ther gout. Sure ‘Schacooiss lle uicarthed chy tbls marvel with aye and other Siitinge = and lterprted thom fo mesa records of ges dander atts kapha tine. ‘Te anctet citations of byl, Grvece an yp sho wed lay tbls (late years, papel were sed 29 Ube eae for rece erp Tse records dbeuent nage payments, mater rogers and cas of lar, ‘nc oly show tht oecertingalreody Iu vn rig ca i Inthe 1h sth contre withthe gromh of rade and cenmeee. moe syste reer keping mets were develpe, Hbetine Venton eed(Coton Acoeig Censor merchants wad thes chode oka tac of thar sess. ble ny races tt apeted Gen AD. ‘Luca Paciolan me Summa in 494, far La Fak wrote «bok which ontats dase on he cpaleciytedinater sien, etek voce sama etic cl, PoprtndePrperali vey ng abot APT Ge, rea she spas nate romeo te Une, Seon of ie Saas Ftherof Double uy Boothe» ‘Te Indust Revelation thor. te ke mi th contri the nds Revlon alter the tay gonde ars productos the artian/raeman othed to the tently ine std Large suse of commodion were produced Factorietdcommoresbsomed. Wit ths deveepmet cae the problem a eventing fo the ese involved in seni ine manuactrn, portal ‘urbe eon ssa, Us epee fle of scesunag wines a ‘sh thease eps pdt wes developed toads poblen, ‘he coypocete for of basines guration was crete t acomnolte ‘he ned nese are amount of fonds wich are required fiance Ue capasionet business daringthis peo. The funds acudated were wed ‘aun fo cadre muchiery, ball actress teanline naar, ‘aehdsend procases Ut the bith of conrations, a busnee can Ke many owners The ners re gral separtd rr the seas operations, an other pple eh o manage theenerpe. case of thee ws a ned for these who munage te business to perindkaly acount forthe performance of the Sorption "eteoon management end the shareholders a potential confit of ier exes- managnet ey be to penn the may any rope he fecal onde anf rests operations of te buses: ers. 08 the oe hand, Sent rea fa vew othe stats oe busines Ts comic of erst Ted tothe demdfrfeancll statenene sls oe pokes More complex accountng poles and prccodures were develop to it ‘heh nee ses of tnancialrformalo.Sanaés were veloped to promote Lnferaty isthe selection and splits of teepnting poet, fn preenurs.As tustated below, dierent fds of accountng emery fccivone oldest ferent prt ee {etseed of cera wor Tunnel accuntng the cus of is testes 2 Mascot accuntngi concerned pray wth facia porting ‘orinuersa sors ah se ranagenent. These srs ae ena et the acount ant ae Spay rsh the type of eps ‘ned foruseadeeion ain. Sat Sashes cot Sea So a an sgprtisbr ir products servis tale eater profi 4 Tar cecainghae tuo sim: compliane wth the arti ad ‘aig te comp tx Ul Ugh lel wenn Acc rst ang CORAM SET ig ae Clem oe et yet meena me seen ho rire uct > mar sours prea am i ‘pd lngaleral ges tmemnS on peso tnprtng he ‘thks erste Wot os ef ner aos the rope esd dpostion and vezout for pati and Accounting andinermation Technology “te alvest of arnt Technolgy 1) revelatosed acoasting ad ov bigot inter feces, aso pets Ti sh tobe ine consiing can ow be performed wahspe a cerey 1 ccmputers Acting aplatins hve een writen tau erat ide rer organi comforting ote it comptes cx tk ermst ofthe cereal aspcs of accouming but they can never replace the Protester gone ofan aeceuntant ccunting i dye pres, continues to grow and serve the needs wer f Baar aformator. The CDA some of Ws es soup tee profesor inthe bans werd tas. Ml other cours come and go {eins of word demand, cPha and sewuting rs hare tay. Pci weld have been pons CHAPTER SUMMARY, f+ Tuinase ai tecum income cr oft by pring sevens or ng, es 1 tisinses may te case acrding 10 thei mature of operations fther sev busines, eehandsng Wneso, oF mune Sanenen busines maybe cited cong te gl for or Saori ther ‘ck prepress ortho orpaation. Aceutingis on inoration syste at provi quant tatie oration fereseby besser fr ncrning he press of Ment, suri and comnunating ‘cero format ye atormed get and Scones site trmaton + Thobcprpore scant spl ancl foto ter i te tnraon to hap tem male normed Judgmets and beter {econ detions 1 Accuting ithe guns wad te comet Anal ration 0 ‘erred peri: sch buns oer, aagpnoa,emplyes, the prod, ce.Boebenpng the prossdrd seca ape of unting contig eb cme obcoieig, 1 Accs prfesen macy beawe tre anes: mastery ef purl anclecual aul aosion of a common cole of woes ot ‘ncaa secqpancef a utyer response 1 cPs grerly practi the profes our actor pe pace, “Smt duty, cnn the scene over DISCUSSION QUESTIONS, ty do we neo tokaep records? Bola Ge examples conan: deve mode by manegenen ow ca scoalingbepanwer tse ques? -Accontingshrnn asthe angege ofthe. Expat ‘Seccounting te sare s bookkeeping? Sippat your ames it ithe base parpoeeaccenting? Disingahauding rom scoanting. What atiats saxon profes? 9. While ovens the accontaneypofesion 19, Wa eth rel ofthe oar of Acnantney? 1 Wat ace the renee in ower to tke and pass te CFA our fama 12, What athe diferent ctr of ecountng practice? 12, What arson fhe corer opportune or cconntants? 15, Deere the falling specie els efoceuning: isl ceuntng anager scans at citing Foxconn th lips? E14 Tue orrase1 Apsncrip buses ead and peal by two oF mere pres ‘it sia thnselee to contrbe money, pop, ov inutty 103 ramon find, wth the terion ef dialing. te pole a 2 parwerhipalvaysownedby to nid, 9. Partners gencral hee init ailty tht hr perso! popetic ney buen in thesis ofthe abs of he prey. 4A patnctip ie 2 contact between prions th, an exeing ptnerhip ie dlclued whenever here a change tn cpt {ede one of th partners cap of parte, witha eterne a arse). 5. theonnesct torpor ae cid ssebees. When pataeahip his fv or more prt inion copes 7. One charicurtie os conpration that shuohodes ar personaly Taber ey ts cared nha aes ess primary concerned wh eine oF peo thou othr purpose ny have prongted ts cet, 1 Ameschcbing busines one which bays gods for appli and alban fr ace not highethan cs. 10. Avarie busine ti mt asc gl orm fain rani 1, Nonufocueag ents aay ere moreduaerchandsig eis, 12, Om of the maler duatvantagss of « sale aropritohip over a prorat ith laser ecunt of capil hat ca acral cing Ee ematon ge 13, rom the sent viewpoint the sl rorictorhip dint omits propsier 1M. Asepute aga ny age nace ith cles al vs ae In whic onnorsiup dic te shares of sock refered fa 8 Svpeation 15, The Eited Haity of socthelders i ope of the reser iy the ‘rpat frm of oan donate bins word eda it atomatilly comets 7" E12 Tre or Flos 1. Cet sevuning ecorde guide manger ia tetng pies for thie ocs end ehiee toechors prelate 2 fe audit the indpeedene exaniston (by a CPA) of an enti’ france staerens for the plepse of expresing 38 pion om he fens ofthese tates, 3. Tyee Decree 1001 sorry Ue wracce of accountancy In the ilppines A. Te 80 6 CEA, one must ich 9 dare in Racklr of Since Iecoutangy and pat grout Heonare examination ghee Uy the Bed of acooty. 3. et cana ns havean average a east 7th no pradelowee ‘than bn ode passthecPA Beerd banat 6 Candidteswhofal tr ics shall uted rom tainganation CPA, 7. Gevereet secontng das wih he proper cated, caption ard Seuning oe pias nde Oe ofthe marks of profession adherence by ts menbers toa ‘cnimen code of vals nd conduct exablshed by 42 adie, fey tocadrg matianeygan oleh wiichseserually sudece. 5 thes a fu cs of the matin ffi toy poe rig cmmmeresand instr, ection ond vermont 10. CPAG emplyed fn a basnet enerprse a accountng stall ci Sccourtant, ttre stor or contrat, are practeng the pale 1. ACTA ay tice ints sss a the ue is er example, hl 1 pub ctonling practice a the sane ime teaching accent In lve 12 one ofthe cuadvataes of cerporaton i that I subject to yreer ‘yal equon Wy tegen 12, Accounting oon characteris the "gue of hs” 14 Seckkeping the precadr portion of heacourtrg proces 15, Doubleentry booeepng was ives by Friar aca Pac.v6 Acoaning Antes measures and communicates inbrnaton out ‘conor er soln nakegecoeuidsbions 17. Managemen accountng seoncered pinay wth etrnl prt 28 Cet scouting manures a baie’: cote to aip management in costing espns 18,_ The Petes etitioncemmison fhe sete body ator ‘bylaw to promulgate reles and reglatns at aflect he pratt of teomang erp. 10, The eabes ofthe Peso Regulatory Baud of Acountansy ae pple the Peso gunn Conon (0) ELS. Ntohing Type Cheine Lda pion: 6. corprtion Bissrpertoe Se tcageil ecnting Ee Sing propitorip 1 Bookheonng D thuncal ating Paes Petnership 1. -Comprelir Serves bse L. Nerchandsing snes 1. Abasines organization owned by oe person, 2 Thearea of ccountna tt provide aut ta services, 5. Chnfaceuting cer ofa age busines ogazation ‘the aspect of accu thts elated othe recording of trast up {bthe peptone al sateneat. 5. Held of accountng thot dese ith providing information onde ofthe Intenatdostion bes 6 croup of persons te intially eran cerpoatn 2. Orgies that ee frned forthe prpe ofan poi 5 branch of accountng hat coc primary wh the prepaton of ‘peel prose aancalstene 9. Ateading basis 10. 0 ovina, ing tr rn tot Wo tt Muttplo Choieae 1, thst he primary go fbi 1h Prof 18 ncecseln thseling pice is prods sone Mae arate the erent. 2 vhs is theses: fr of business aI nls the provision of Series tecbats orastane nexcunge fate 1h ele propitori ‘S Merdansingeoncer 1B Servectuiness D. Mansons. 2. the Glloning ae camp of companies engaged prima in he rehoming baste xp Th nie Gomer Merctaairng B Magietea Rates © Winerlierdare store DL Toplel Wate epee, 4 Aeaminzvim how ery fds are elf compocatin?a toes? TR CORPORATION= TWO. PRKINERSHIP=1W0 CORPORATIONS VE. PARINERSHIP TWO, BB. eBR@ORATION-TWO "PARTNERSHIP HIVE ‘5 ‘Thpurgan of scouting et reid primi Pattie and gua inermaton BQunntlatveinformatin ey € Oui infoeation ely. BL Nodceampabie. 6 Recent below are the advantages of « partnership ovr + sie propor, Sle! he exceptsA. tater deci anting | Pereoal tect ne bues Lange cacy torase capa Nowe ofthese Ths isthe most doadeane Lp ores of business creation Inthe Plipines ey ‘kserecebsnes, 3 Seleprnetesin raressip. SEA poortership ay have seer enpleyes. Sth manufatrig basic eons asl propitr. Which state scorn? ho both standse 2 ae BL Nether Stor, ‘hrs hat th acne ae Kae ony upto the exter of ther “inert ir thebuciose 1X Pesoral voleret. © Comtinanse of epertos. Lime bit ‘ib D. Linked powers wing are sims Laon + corporation ands parteshi. xeon 1 Ajandies posal sare cit from th ors Can be argeitd nly where there la eran, te Snes ped ofa gsegate of ia, 5 Governed pray Se lode he lpi Oa pric bs, te aco requ by owners prepare epi ‘eetabor, nana ifometon on te at tel prtrance ete basins. Inormation ese rm the scot core aa hs reps rouge are pepe wh anual part Te Visncltaterents 1 Final rato D. nee pars ots primary sper for the Gaanci states? 1 The noerae The empayeaudior The Plppine sc D. Company manage! 1H. The i th beach of seeing tht ie concerned primarily with the Preparation gnertpurpe ancl tame Fina aceon nage accounting , Tenscrountng 14. Ths dh ranch of scouting the fe coneras pry wth the rovson of nermaton fr ine eser: Hauling . Government accounting 3 Mangia acouatig. 0. Saxaccourting 15, This tal vervie nde by Cs inp pracie Audis er agrec-ipen proces, 8 Reve, D. Compllan, 16, Tan svi ics ‘h Tox pla, ©. ater sen. 3 Tevcomplase: D. Hatha, 17. Tht nhs proving erie. ode em mttrs of scons ‘inanon bank pales crgnisstion. proce, bl ee cesingandthecomlacte pertions ee 1, Management corsking, 1. Tacsontes, 14, the fling statements rola to the sap of practice of sccontany. Waders contitute prac inconmercendinguty? A. parson who hose appa tes postion ina aeetng press grup geueremert orn a gbveren-owsd aoe fntselld. “eoperaien, where sisi making rece professional nonledgein he sence of count. 8. Apron iswivel in desbionminy reqaring profeslon Inowlege nthe scene of accu, a well the congChapter voto Aoi epee of hanes tation oF peje i 8 poston tt cA who bin an edeationsl tition whi invoice teseing of accounting, ating, manager abvsory sevens, icountng ped of finaee, Bus Taw, tain, er oer fect evades , A pemon whe Tol ou himself or berlf a one sie fn te Twig, scence and prove of acorting. and a smeene ‘quid sender proud era 2 18. The flowing etetomonte prt to the CA Based Beainations. Whi tater torre? "A Wenders pes the Haar ame he/she ota {neal usp of event fe poco (150, wth mo races leer has erent 65) a) gee sb} 1. Inthe event eat pts the Fn OT sveny-fve percent (Cox) and aera asta jr of get 5 prove or Faoza, bh hl cee acoder eat fr the bjs ‘aie Acetined cant sl ake a exaination a the rere, Sbjct wl wo years rom the preedingexamitation. 1, Mie conditouedcaeéat fale obtan at est peceal acrge of soenty-fve perert G9) and rag. of ot as sey ve ‘Seve (2h) in each ofthe abet esamined daring the oveval ‘kimiatony, he/she sl bs eadoed © falled theatre 11. the flloing cantor have mete the reads of thle CPA Board candidite cereal verge Asoprers 95mm cram taken ftndoncsabjet bas acting ef nope 71540N_Romotealew ash niles Pra ese 217 Eten cenly 76M Thies removal examination for revittry tee Deajots.Thto sats nce ‘in rated arom onda ayaa respective ‘at eth rating cence onthe sbvtcsndites? 4 ’ A Condal raned er sed © condnal Peed 3 tate Passed 22 Bostbenpingi 1k ager spin neg 1% Sroaerinscope than accunting. C thesamesacroutng 1 Not related te coon 23 nprfesonwtrgshed by certain characteris lang 1 itstegy of a nai bisleenel ac aed fy tng ad ‘aca, tn Aeberence by ts members toa crud cde of vas an combet ‘Gublsed by i alninbteatog body, Incading seirtsins at ‘culo whieh sent bet. In. Recaplane of day to sodty a 2 whole (way ia reten or rerio inant tice nthe granting of gute) A tan Clon fan ony D. Manton 2eo Nasa BASIC ACCOUNTING CONCEPTS & THE FINANCIAL STATEMENTS of the nthe vceciimsn redeem selChay 2D Aen Col sd te Fac Stents overview FINANCIAL STATEMENTS ps the Use papose of acura to preide eta Sun ian snl» bate i a 0 AccaianaPontheroes scarvlte fara infonsatn th the prepara of func les Tho Coan Salomon: we heavy nichthcatteatonsecnedate an ccard inrencl scouting seormieel to ses cre ily ns (GENERALLY ACCEPTED ACCOUNTING PRINCIPLES 2 dss in Copter, accu ceiderd oe “he Inge of bis” language hs base concept rendering principle fle or 1 propor tse TOF example, the Eaglos Langage fae 9st et principles evening. foger song." poniinion, and serkenoe. otra Programming langage low rules ogi anya Uns, Reng fells cert rales cr pins ow a genray ace acenting priipls 440) nd tne ananassae don embers ofthe accounung prt Have agreed on these pcp and accept then on ie bs of experience, retin cao, wg nd rata neceny. liu the tere "pines" wed, GAAP took iil oF changing -sceounting penile erin to eave epost the ‘hang nthe ian fran ec Fain akchelde FINANCIAL REPORTING STANDAROS COUNCIL the Financ eportng standands counel (FRSC te ea accountng standard sty, boy i the Dippin. Upen the recomerenaton of te oord of Accountancy, the Prefesennl Regulation Covnision erected the TSC, “The primary tle of TESC sto prove and cash seoanig ‘der that lb gnarl aceptod ete igen, dana of Acti 7k "ae rRS hea Chit rl 4 presenta coming fom the fellow anghosenralag peas 1 Bono acoutaney t raf fatrnl Revenue 1 Commision hd t Major orgatation of roporne snd wef Fan Series rl xchange Comin ‘ected atone poleterlorgnianton of CP Commarea init fibre deseo Even 2 he Chaimtan an the members of the FASC serve 2 term of three yas renee for anther term. PILIPINE FINANCIAL REPORTING STANDARDS ‘ae MRSC, pursittos takipuce acca standards called hippne rnc “Grne) which are bool on fei map: (7) ed te trina Reng PYRE conte the oneal scaled acount ras nla th flowing: 2 atbnsernaraicet ara : Senate 2) FA zt the Phipps BASIC ACCOUNTING CONCEPTS Acceving elle’ for siete appmsch tard the recording of Inngrerabicbisres transact. There are ares accu ever, Prices and cones hat are meat eve wala to the wineprocs of ccuntngof« baiae eit. The fling ar base concepts ‘isch fom the bes forprpor secoalieg” Business entty principle “he cop ttt hice de en ert he swan ote ae the pers taaa owners ret eee TEREST tose ome 9 srt esr aise ‘ec saison (or Seton or dision of a9 organo) that aural for vate conor rat ‘Thetis ade teveoenttinscwsctt coe bs fatwa tee Fkcomne or ht thr ni Tor sxaply Sum Cheng. organised the Sara Cheng ttronis pair Saree with he sim of prong igh quty orones reer settee Srvc 2 aerate pero a scoaming wewpor sam Chee (rope) and Sa Goong Hectoce Ropar Serves sine) 4 Wo sStpartecnies. Thus ‘+ When sam Chea inv cash ne te Bsns the a no ener Persea! reste Sam Cheng aeady «resource contd by Ee chenglectoncs eps Serves. + wen san cheng tus expense sch a for fed end dah fox Tercera! oti these eeoe arent wart of pe ove ef Ein chong Herons Rept secoxtioe shal be Wreted = perso espensna a Cheap. + tes that on cra ay Sam Chang reeled P20 ash igo rr hoses patna ol pose oye, aon and bispos fom cusomer ofthe eesroncs tepa service bests. ‘Ueer te une eny principe the sl of Sara chen’ cele Sole prea tranacton cf Sa cheng an therfore the cas feoteed of P1600 foe comidered. ca ef the Easiness, On the $igpon chi eeeed Bra cstomor ofthe basins esol ae Cook fo be roccrded the scouting ool of Sam Cheng etree Repur sande + Assume that Sam Chg rents 4 iets bangin Fond. Assume ‘eter hat Som cheng the ft the or fhe bain Tr ber nat Atig 217 eon ‘uninst and the bt ho ors or her poses aed Taal et {or the emire haber « year Is #00000. Ths row exper ervesoncag tothe tte cose in he bees, which cna be strated a 3/5 o 5000 oe 2 otal of 5.00000 an pene ‘Sam Cong Hlecirones Ret Serves, the Dashes. The real, Tulare of cozbo tH be cnsderol rem eajense of Sm cheng. te omer uatenect orbusiness wansacdre ‘he soar clo ya liness ae refered 10a ts wes. For @ son bay thesia rom 6 pose ores 1 Croiorsho extend esnstothe basis: thew tte mc ts tr lin hey Scant essai ison al tipo yada he ng ter Re " Asses —uanummus_« scurry ory busines bored fave ary busts rants foe ren "Taman I srdady ore toe cr me senate at the a noel othe elt seo the corti eqn aha og othe Ltd fn of the right se of fan Ter the acer ORT 1 tehonee- ny EERE EE cent st be matched wih 3 compceg lunge th lowing re te poles of a busines tenmutne on ieecourtingequloe! Anica bh the eft and ght ie ofthe aecounting equation, 1b Aeron th these ight side fhe accountng eatin. ct © An eens wth s cresponding deerane et he lt skdeof the conning equation or Aa burene wil a eeresponding decrease en the eft sie ofthe conning equation,etching principle ‘der the matching pein, pot le compute by dering he capone narod fcn the ome caved urge secunng psd. TM ‘peas that the incon reer and epocedn aneacening pie sb [Nats agar the enpaer hat det o nde conta 0 Ui {roentionothincoe | laundry nes cod P1509 baller edition of lay service tocusomesfor he month The busines iced en specs of P3609 and ‘erty tn water eperses of P70. The bases corned petit f POD {eisoa0 Paco -F7.99) forthe month ‘Accrual Baio ser dhe sera sss income esameedaondtiserer ropes fw eu creed xp are rea wen cred eps of Swhencath spa 1 sevies have already been endened (or goods ave already eo Aalveted) toaster ame ts eagle evn cack haz nyo hen eched from the euriomersforoams, on Jonary 2, 2015, AJ oped ‘Hower Gl apd rated Pu 00 nto dbase She recived a fer ‘oma a be dled to AB Company on onenry 1A) vod tele lk dag A copy pa a ony Unde aa es tine walle corse Free enon Mh de when mes Sel frth vos ioe an et Jr) 1 he dae wes cs stl From ABC cepa. fea fs rected fom a exctomor efor service i roderol or wos are delivered income fr nt yet earod bersnsn thre ix no service Sr"Keveny of good yt, The cath recoued wou Be earned only pen eadering of service or dsivery af the good er exeelh om Tat 2 ots, A egenad Towers Galore and tnesed Pznyn0 io te Wino Jsaty' sh ein a ofr for Mowers tobe deere o AC Conga on Saray 1, AB cmmpary pal the entire sour F500 on Jontary 8.) cere te lowers on Jnuy 10. Evo ugh He 50 ch wes ced i Suef Jamey td he der as pl wasnt ered 9 Say 8 sce hen very flowers yo Une the erie es. re oie regs How Gabe ot rey the date when cae wesc Fert fowrsaeieed Te 7 1 series ave rca been rected by the Laslnss rom ts sipplcrs expeons ere ocopioed ern I thos treccsbave not fr bee Dad for by toe usices. forex on Jamar 2 201, Hower Clore cited illng tateach for P00 fromthe erco Hate Compan fer Ter the month oDecenber20. The compny very 208, Under ara low lr shed ee mse Decne of hs he acy wre wo ee a aren Dlr Montel onarany 8,208, wnt pd UF cash Is slaty tec paid by the bushcs t is super, a i nbn, ping 200 «8 ‘nce ream covetng re er reer LY Dec 31,299) tie mera es tal es Gel wll card or xe yn 205 fren he teu of eran sonrase il nd tev Brceber 2, 331 le the rer spa eure conn.(Sse 2M contig Cony edie Fiat Sates ‘Stable monstory nit Accu provides iefrmation wich primal ancl ature = issencemed wins wich aa Be anid an expres ners ‘Cinony for nls anacton oben the setutieg eeres thd Feared caterers o Ibe entre, ist be expe eras 8 ihlem news of merece Inthe Pipe, the monetary ur she Dilpsnpes Ter mutton compares hanchl sient: seb Soclifre anny sprue term ars, Th tet eens and ‘coe mane ig eae Pes ‘samo of ea reve the abut of cw pid econ the wl tai for rearing buon tenactoneling co. Transaction wich to ale ca ae signed los scereig fo seep bss for Sectreten ised ot Cte) court aso sms Cat the peso 1 nc materially alleted by tno, tecue tht snanpton, pay values ead record he nical ees fan etn ae nt normal reed one changes nthe prcaing pvr ate peo Period (Tine Prid Concept ‘tome festive scoot decibel Maral aforation ant be sade ala to Gece ake The perodicty cone esames thatthe operang if of n erterprse ay be conveniently de ntotine eds of ‘ul lang uc as eve yeu) ciled antag peas. THs allows ‘steunng to pred aforaton oa tiny as and makes tps oe her of franc ames fo ass the conden a pforaaee of Oe Diss acress tive prods fr earls, comparing the aout et eons thiyear tole yen Going Concem (Continuity Assumption) ‘The faa statements are noraally prepared on the esunpin that a were going ence and wil ents norton fer Ue forsee Fetes ios the ertonpzo anal he ntntion nthe wed toligiator carta mately scl te opraons For example, DEF Corporation i engaged the manfactare and ae of ‘roms oe eter mthins wah are wed the marae cS ‘roduc In preparng fname statemens unde the ging concern bas, DEF Meuld preset the rahins a put of Rs esses (i acer, pene, ‘connie seers could by an enterprise ae knew a> cues. ‘tsumed Ut thee machines wl cinco provid economic bres to DEF inte fates APDEY wll cee operations nd Iga Ue ade ae wotthles (cethexe machines wil no ager ese; Rees the machines ‘Would ote rested eels once bss cies operation mangement bosomos amare of suns ot istncos ging rss to cei vid may eat sgean doubt on an entogpss' bly 1 ‘nine aa ging cover, thot ct thule eect the fa ‘Seinwats iene tna longer cffeed gg centr be bass fon wiih the fencal tstenents are prepared shoud be canged (er texan, te deulceny ce bas and sud basis be leary nde ‘CONCEPTUAL FRAMEWORK DEFINED. every, concept frammuork fe 2 stato of generally arene {heen rise em eff rare 003.hap Bae sc Coc lth Fasc Steet (CONCEPTUAL FRAMEVIORK FOR FINANCIAL REPORTING DERHED In cso eamenork preven the ban fr tot the developmen of nom reporting practices andthe evan of ex ones. ce the fe gpl iden enn tt el sand canon dei cenceptal ranemock wl fr the theres bs or Eder wick evens shod be trcurtd for, they shuld be massre, how they shold be eesied adhe they Ll emanate Fecal teeta in sate far hat a ery acl ead iow The Famcwrk shad be thery of accountng appne! bid practi problant canbe hated objectively. Standard vette would Initially oer Ettmptto rele practical acemting snl roporting pcre thigh the evlopment of accting standard toa hota framork gid SF tte, set of Erghing approach hath a dang of man ‘esasstonis ancerng exes of the arg proba eve not beet screed}. steugh soca fictive, they weld say bo ere ‘esa the followin aie D% cess ein report 2 Unmet therpet Infomalirel nets ihe wre “Types alert tht aly ned of ws PURPOSE OF THE CONCEPTUAL FRAMEWORK ‘The puro to cpa rene to asthe nteratoal coating standards Bourd (Board) athe Sovelopeent ffaee IFRS and ws evew text 8S, 1) to awatthe Bound In pemating harmon of reqalaors, esi alabcards tnd pracodares rcting to Us presentation of Finacial eatements by proving # bai fr eda te menor of trav acon teatmerts ported Se 0) ta mat nana sondage ales in deeoping atest ©) to ait repacers of aca stateent a applying 1135 ade ‘hate withtoples Uae ye orm the sae oa RS, 2 saan the fed tne ooh wih, 0, tomate ere ited itepetng the information ater grec jason iA, dine use van (ima oat ieaad elect Ppt In spor tems the pnp of the Conceptual Tamewor Pspase and wre of ancl tatomonts standard srg bes Dt oa [adnate eu ings shoal ke emphed that the Cosco Frameveré Ino 5.1 snk enciered ata seconteg stander thre wl be come Dwect ic [rosons of an xs al the TAS's conceal Tramewor, the HRS ll prea SCOPE OF THE CONCEPTUAL FRAMEWORK. “The Conceptual ener deals with 2) este fomdlcating 8) Sea cen mdm, © the dtr recog and. measiant tthe ements Com which fnentcatemente eco sn 4) fone ate Asem") ‘Alef he sowe ter are dscssed within ths Cape, wh the ecepten of cept abt on etl matter: ts topics covered by interred ‘counting course (OBJECTIVE OF GENERAL PURPOSE FINANCIAL REPORTING “The wijptv of geval perpoue inincil reprtieg te prewde franc Tnlrmainn stout the rpeting ent that sel to extn and pote Investors, ners and other eedecrs tn making decors box pore fosuves 40 the ei, The devo ivalee bay sellng or hon,hp 2 = as cig Ces ie Facal Senees cca and itruments provig or eli lan other ors oder 083) tc prec tt the Cel ramon empascs eg on tt [esi zines hc on a ican eeose whom goa acl eo aetel Nh ‘hearer ur ih Signe eure oath egy ‘fons shat may bee ree ine oreo (eitaey torent gry repie panirg enn tn le lone drsaiyt em” roar wer rt lyon geet Pepe ‘onsalwparot mucho he finan notion me “he wns financial statements (nd thelr informatin neds) ae peste’ eto Primary Users: vest “prose ofckcaptal’, Intra and th adr re covcevd wt he FL inert and etn provid by thar investments Tey eed eematon to lp them determine whethos thy should gael or selec tment In the ee of Eovponties, sere ae aig ttorestl i informatie, which ‘Sales thom oases the sity ofthe enter psy evans 2 dt sr trad informant eae fepnine wae orbs aetne ore wl bpd wena 5, ekisesthee eer ee interes in oration tht cables the fdsermine etter tacts onny to thes wil be psd when dex ‘rade ered are ley to be Interested in an enterpse ver ‘Mowtr prio than lenders anes they are dopodert upon the Contnusion th entero ar amar cctaner Secondary War 1. Thee tre afer oft ben ay of mas {GF baile enerpies 1a) rae also conoaton te loc ear ta anyways Iced the aber 9 poole sy ‘Slo and Ui tengo local apr nace tne ay asst the puble ty prong formation out the trends ad elope he present of We emer ae the fone he setes They ae terested in infrnaton wich bles tex tases the ably ef the eerpise to provide remuverte, rement befits andemlovment evox, 9 Geno and hk sea These users are interested in the alloca, SFERERS aT tec, the evn of erence thoy so ecient te rout the acres of eterpes, ‘Eeereine tnstion ples and bas for statin all and ldvrang sont eo 4 Cate, These aeoe hve an inter ininormation aot the Snanie af an enterprise opecally won ty are grly ‘Epcot on the etares ov i the came have 3 longer Involemnt athe enteric INFORMATION T0 Be PROVIDED the information provided by general purpose fae repertin bout an ‘creays sonar Wot the Une ca shee {lanes esnoric recurs sinphy lero an cls wets, whe somone ‘ain fer to ery lable, Economie cts and cece abe willbe diced farther succding pages Infomation hoi the mur and smnarts of reposting ely economic Fesoces aed can ca helper to erty the ets Gane segs fe wosksses ad este ey hei heeds fask ees irre fo coer roety mats Lbs rp) ard soley te “ltt of sk one eng ree lth hy fal d,s nce feral arcing and how scold bei obianing sch Sincae(Cape se sng Cosy ede as Stee inorder to max the objets weer purpose Hen raped. whic ‘o provit iforation about a en's economic resources, Fnac Staenets ar propre by aul, acl ators he ears by wich tke inforatien seemed to and pocesed Uy face scountng Comat t ses. ona pride bass acl atemens al to povie Infoaton shove te imnal postion, nance porormance ale ows an ety tha fe tek toa we range of sere in making, ceo ‘sche rani sand the rt ofthe anil acon ces "he cmponets of Grae statement aethe eli: ppRRE Kitt the isncl Statements, Iwlormaton about an onttys Eccromle Resources and Gains « Financial Postion “his refers to the contin of uss a monetary ters. as ofa gen date crs ecta pot ie te: fort aout frail yt mal Feo a sate fal pt tice Sethe et Foson ef an erespene flected y the eanonie resoursitaontol it FReanci strstr, gad and alee, ae is caponty to dart to sige Te seoont WOH opeaee The Statrert of Fan kusn peat rparg the bles ofan ety economic trvcrce and clint at fa given ie lug i te abit of cash nthe nea fare 69 cove carey maneing able olgaon. olen the avy of ah ove th og lao rt elation hon hoy di, ‘opacity fr eptaton the ty the ont os eae ca forancnpocted agrees ad tecteaoppotanies ‘Asanple sateretoffoancil potion it shown blow Sam chong Ropar Service stsament ef FinceilFootion ‘Acof December 31,2015 ‘ecoants rebate loaner dub Pecners P| 90 Supple ar har M4620 ulpmert net Accrnlaadepreciatonct reson 2,27 “ot sets isasae bees and egy - seco pyle seo _wam iam xan ess Intonation about Changes n Economic Resources and Clans dive 0 Pertorance revfrnance ce profs fers to whee a company eae ogee Prof oc nw lu ing «paeslar caning peril fers shot Ferns penely proce ma satemon crenata Jie datoent of cenpebenc aera has opr + thegsivina (reomesttemet and 2 Geetiosconprobeaagron ‘hic tectool dbaes nly the proto orton ofthe statereet of Cemprobenave come. Te seer prt ther crpreersve nea, ielted immedi scovertngeanes j 4“he profess (Ge cle sateen of prformance, nce date Sten fecnhg) 6s wtnloencargnonapents seat teresa the ees tae i ange PUD ‘ettowstah . ‘sample starrer emp ames presented below sum chong hepa Services sunetene couples me ore eae Enel Decenber 3, 2013 Gainanade of fturs "old pews ‘laces alice: Sopp “ane elcome Toles preston -eepesit Niclas 220 rot ibis leformation About Changes in Eeenemie Resources and Claims Not oculting fom Performance ‘nfomtion cncesing charge the Oma pastor of a eerie Selmer tas netgear ie ‘he report pred This noeution provides func stare wer wh {sg to msg the diy of the enterproe to gonerte ah and cask sivlats nd the neds f hs entry to tdi thes et ows ‘ae statomont of hangs fa ogy shams the balace f the onnor [sent intho buns a the heating 9 teen eri, ert lnvectnerts mado by the Gover, withlconals(eanng) by the owe fr pont wo, the prt or os forte pero and tee fale Uc orcs fnvotrt atthe ba of Te seeunting pened. serps ft seme & shown blow ‘Som cheng opr Services statement of Changes ta ogy feet year Ended Deember 3,291) Sum cheng, cata atanairy3 ro ‘AML Accord nvestaerts daring tbeyear Loa Froft ec the yor 1806185 Tod eess Less Whdsanl fr personae 800 ‘um cheng, Catala Dec 3 as ‘latent fash ia srinarnes ca ctv Gels ad aa fr the perio, sed sending to th ature ofa operating neeting ‘inacig) presides en eplaatio, in ancl tery how te cash of the ‘terre neue or dese compart the pov accountng pero [empiasatomont fash done foracoce ery stvmboion peers ee th Yar Eaed December 3, 2015 Cah flow rom peating eves Cadcalletens fet tenes Peraaco carpages W229 Psi930 ach eedininenig etnies Proceeds from seo macney Fano Prciasectdey laingequipent (sama ¢ 7300) Cah Bow from finances ‘Maina nvescat Prseoro Wiieeva er personae (e509 _raz00pe 2 as Accu Cassa he Fl Sunes Ne incre th clan muee ath bslne, jams 2500 (Gaekbalince,Deceberst issn ther Supplementary Iforstion ‘onl formation tha eleven tothe need nance sateen crs ‘et the tens fn tae stnernee of Racal postin and satanent of ‘cemprhesive iene ae present onthe face of ta final Sato InGhenoes tothe ranch Statements They mayne: Dsus aout the isk and unceasing the ener and any rescues and oilatins not recnized the seat of ftaxaal postion fortis geqaphcal an esr ements and 1 Thecffec onthe eterpose af charg pie. QUALITATIVE CHARACTERISTICS OF USEFUL INFORMATION INANCIAL he conceal rramawork sates tat the ype of formation Uke to be sow tie to provides of apa ae tied by vareus qubtatve ‘oracle compre 0€1 “Tw Candanentalor rimary Qsitave cheaters Rekvence rath epresettin Feurtnhatlng or Sovndary Qualitative Charctartics ompuality + Vesta 2 Mindioae 2 Undestandbiey RELEVANCE dees ope te ease nat fo take Toca aeady seus ol fom tier sows norma bs the guy of rleance whe tho econome decisunsaleces by lnbleg don bya pas prams aF We tensor cbtang ‘artng thr pst evans Fanclinfermationfepsble fal + ‘Stevens in dbione dha proceed cenfrmotery ee oboe 1. die oe rm nari hs edie aan be ed a on ts rons eat ye ade a a, ae Indrmner wi pete Se SP te es predton a ict mepbye by mrt wt eden Greate rca te le dons fe Cris or heme naar ere for eum No Canpanysmops bop he ane ‘onan i rts one heteowat nc oven ie iniog Ic bs yon e fertion contd athe rar pb nn tc Pans stots 08 2 cofimatry Vee Tiel rato acetic i alles hanes ‘ess aaa or cals expectations of «Tina stewart CEE TSA corposten moratacere: and lk to ht rods, A and fc Ar long and crf study, c's mansgetet ‘Gece fo introduc anew pode, eflecte Janary 1, 2013. The finan statements of Compra for 201, prepery reared fant presente. cin be wed to chi whey deesion ferdactare ad macht prod ch nsrdance with petal Tid o the facial fermion preterted CIS managment 7 ‘cide fo cont cate mamdactning profes Cit ma eit ‘ido rp pofact or fret) al cncentrate on rhe “The preetve valve anf ecfimatory salve of fica nfrnaton ae intersted, For eerspeintamation en Yevenue te caren ea canbe ‘HETBota the us for ped revenue in ftie year and aba pit ‘compo wh pretions made in pice yas of revenae fr the eureChapt se esi Coma sd Fc Stee sour teres fhe comparons can el ower coerce Inprove th roceses tat were ured tase ioe provi prliions ats he Cancel amir usa to eatrably as eaity ce et of rebwae based ot te ere er mateo” Bath of te eno t wd te Infotiordts ithe content ax aac 1 ther word left i teri nd hore eles nting ce ‘astting 1 oul alaerestho docile of war of Gana adoration ‘hou spoctic erty. case the spctity of mately, th Concept ‘raver oes not dfn dsr tena for trey andl well be [ed on uggrent Ther en learet amar conde be marl ~ ‘shat mstoral te are eampany my be astro anatomy, serial, management wos ste“ tye ker stated ome oP {he fat statement uid tet the econmiedetsions of wes the anever tthe quedo yr, then the Her He conslered. ater Hasan 4 PLA mln hen a5 chartableeoubatin wo te Misiones of Chany. Ths amount uy be marl the dno sa meu Sued garerat morchesing sce Bul stray be cnnalered Innate by 2 nultnaonal company which ears bbe of 1 dni clans shout thie“ monthly loan. You aro tee kl te rceve Hei fh diferent anocerierert poole Hav ferent wage of cag vale to tumors P00 {naj be je ennugh for enn casemate may be insert 9 feared egbetbs much fore ebers FAITHFUL REPRESENTATION th Conca frammesberes tht Encl sepet open eneri {hesomens nents and arbre. Te be wel fentl iron sel ne nly aprons rloarephonomons, bt itm ae fly repro thn ‘oesmana th porpnte ta repre, Th ren thatthe Al ees of tans shold be propel cent for a afc inthe nae “Tobe fall spree the lors rm 8 cera event seal be pl, neta ad is fo meri er EE cin ecrtione Phencmeron being depicted. For exonol a colts depiction of a ase Seton foie anda dowertion of wha the samor:al depiction peste (purchas pearing acer Be vals oar Nissen coe th a psettin f {Gilt Fetal cpcinsent cnet oi, iecmpve er etree mailed to inn the poy ot {andl iferaaion wil be ree ino cr nla 8 ee inal sores othe fee fom ba sci ae ent el Ly then oe resto ot eration. thy nace the trang os econ or edger in rer ctw pdt o l o Sater fr ecanple, a Company apie aoa wh HP Oe thea oyna or at potis the ek wh ate Gee Stamens prepare aed ste, soe ‘ayo fn Sate do Sy gee te a incite chances of tg ows «wl of ney Beene foot AOC ampay to he denen of Instant dminet xpencs sla hla reson Fir Getaed ranevork ess thatthe tr eto er does ot necessary imply that informstion acute abaipae™ Tor espe ‘timate of ar ubsenable pce er valoe ant te debe io be cute tr imesuratHowerer, a repreveraton of tat esas canbe fla he Snoant deed cll and accurtly being on ett the aire a mations ofthe etimaing proces are explained and no ars hve bece ‘male Ia slectng and prying an appropiate proces for devlping the tit‘onadinaconanc ih Bs sbtance rather tn og frm COMPARABILITY Compara tho uniatechretcsie hat ens she users to erty setiraed dates tx abl dace aman terk. Uleolet pane characteris crmpaeag dos to Fe sige We, sie ‘comprar by definition wld ed a least two ems. For wfraaiotobe Compara, Ho thrgs amt Tok” alle and cere this must "eck Giro comport of farts oration weuld wat Ue chanced by ranking diferent things Tol lke. (t may ever kad toa vot of Fandamereqellatve characterise. Coiserey lye to wcheve ‘compara bu tevare nt theses VERIFIABILTY ‘efiyana tifa eet te comeric esonen ac ‘entity ca dat ret ont Wena een bce masterly compe apeamen hc dapeionel pier om ikkyo gait fomatontsinbecargepontoee fiat ckrvesble avenge ej cnts née robinson dosbevering “TELINESS Timeliness meansthaesfomaton sqlite nde atin fo tecanibe of wehncig th ders, Generally the obs inferatibn bth les GE Benes However soe iematin ay ‘itu tbe tine eng alter Uheendo erportngpvingfor wees ay eed det sd ames rons UNDERSTANDABILITY on mie eden deg, duping a rami I deat 360 comic). Were ne some icnonens fronies bares ‘inherently complex and difficult to understand that aa ropes img eee to tear ifrmaon sat the deresipee in i eett ere eect ee eae posarerenieee teehee ee es, Suenos onan Sore ‘We Cost CoNsTRANT ‘entiea pervect on th afro rosie by aril pe ld th otf proacng tora nat be used by the Bnet tat E provi. whee tere ty carly an slit ott the propre fare Fcrnatin, Fmt empathetic ll nately bere by the emmy wns gor ot ol craton wad oan eset ernest: flex wale renders anderoiosfrthor dans Financ statexens are norally prepired en the esurpton Un the report eaty bt yay corcero all conc In operation fr the foresee fre Hen his une tht the ay bs ete th iterton fered gaa cael may sale of opr ach ition or eed exit th fant sttemena ay hae on ‘Rie task ay heb wed doce eee [ELEMENTS OF FINANCIAL STATEMENTS. Sinanclaatemens pons the Manel fects of transactions ad ther frets by goaping the Into reid esses aceyelay to the cone duraceiss hse oud clases we tetied the dnensef fel tenet “Tho lente hat are dict Flated othe meaivamet of Gaon pon te sty bb naga, The elements hat ae diet ated to Oo res tine are cone and expanse Th salon’ ef ‘Samper gut athe eatementefech wr aly eles combi liege obmants Tostmarae ge!aye 2 Bs Aci Compt Fa Sunes Tasca | Peterman) | cing fostion | rofiailty_| rina Pst Sinimerkol | Sateent of fe Satna fang Fmmacutnestion | compreenswve | rauty (taecestea) | tome Statement of aeons Sar + ime Stuces | MEM | comes Sn — ELEMENTS PERTAINING TO FINANCIAL POSITION Te ements of Banca posion are: Ass thie and sy fh ict rious by the ety ap aseak a gt eens end ‘moc te eon et ronal ew fo hey ta inetd te cont to boll totter Some durscerie of reams rachis a samp of sete ast ory on an or banks and oer as considered as me of ‘range nbusiss ransicons leche. Ascot reve ral das fom customers ce ios ring rom the froviden af cee or deny of goede athe entrar course bis, ire the price or thee nese ods hae not yt ban pu. Th got or “eevee dlsnecen acount eon ret Fnencno Acai 207 tin Senseo on i pe padi on eters pe ‘tee spree tod pres ewehpen peter Sens pea taps pewhehare anand st terepring ae Merton trecry ~ gods whic have been bought from spl o ‘eae ochttoaers apt tapher han cs. Property, plan and egipment-lon-lved atts whic have Leon cued or tency, tne ati, mince, fate tee, equ hopataton of ddvery wit ae example of prope, pat ad syuipeen abies ay pct gon thee ag gc he fatlonon 0 oHRE optic a tet a alow fee ey es a enter testes per ef Tener when § pay frevhue merchant sot or crete bay {Severo te tpeay. when a cogy tres ony from heb, the tain tract cewes + aay trevor oe bak” Sane ‘Saracens cabins + chy amen atenina + A otiy es opapant Als repented inthe tue eamplesof abies: ‘Accounts pope anus du, payable to supers for gods purchaseon ‘cout of orsenvce eed ecu Salaries pele sro dae te empleo whic re unplds frparting, Lutes pvoie~amoants uso pays wo tay compas freer, Ta ghtand water careslo ie Astin Can abe Haan Sano vores fom csamers~ nents recived from eaters in avant. fF eTRinery wt pots or pron seve to be ace sate tn the fare Loans payable - bls! ofan etergice to lenders (ach as banks and td rps) tee ld on domand or at spss fatre datas ged umbebcta the erarpce andthe onder uty tpitymesns (etal croftersand omnes bth hare abe the ‘he tthe terse The eae retors hno 3 reir? yor tap, eines Tec of aes bc sce ayo si. ty (Gametime ts abo knew cata kn counting prlnce, when the word ply ees oe ey pty shred neta he asso the eter fer doug all Fels Tally for pertnes” ety, i the che of prtneshis, et Sarl ety i he case of eerortion) eee 1o the clam ofthe Geer) of the entering othe seas of the bans ae lhe cms of ‘odors fave beans pas regia fom the eign imestent by an ie (proper, ere ‘Rivcolded ine the bins gy te nresed by ate iets cee ety paftexmatccengsyerot fn the thera. lee ‘hd widely he pe) cece ey. ELEENTS PERTAINING TO PERFORMANCE OR PROFITABILITY rots rogue sa aa mesa of performance o the bs fo ote ‘onaes soe eur ov ievertmt The laments ety red to the ‘Teturcmcnt of peo or psa are income andoxpens Irene vfs tances in economic heres during courting prod ie ‘Reveem of ebwescrelanconets of act ot deceees of abies that cat icenco a cqaty ster tha hose ating to cotton rer uy yarn ‘eden of name enonyssesbothreenucan at everarses in the core ofthe ordinary acts of en enterpise eal trapleof bones rmacton or events tht ive He ovens ae + deat cen sf pring etal crete int 1 eq serves ar ended for eaters, cher on ah oon crit ts + Heticapplaess resold tow aster iter on cash ron creer coat + Aprfessrrerorsteihing series to sues, {uber ae provial acting ses, Cainsepcent ther toms tht met the inion af face and ye 5) var the corse af he odin atest aneseerprise Bamps of (Cohentene esl aise {nd comedies apie higher than aqua cs ‘Stet compay' rele fora pe higher an ts recerded vale in pense Epnsearfr to deeass i conn beefs ring te acouning period IRERD Sener eti o-dene aan br nen lest (elma opty than aerate to sr btions ogy parteian|haga Asamng Cash he anal Smet “Thodnton expenses enopaces aie wll as thse een oie Tne eure of teed eis ofthe eaterp, Example of peste Untarsein the ondary couse of beste 1 Salatesend eter employee eis pid toemplyees 1 Expene fv sett, water and the ates Castel wet spe 1 Tan busin petal icness pid 1 refesional fs patethocompanys layer an necontant + conmissns paid tocompany salespersons 4+ Advertngand romaton expenses sesrepresent ote Wes dat mt the dfn of expencs and my ‘ny it afie in the cure ofthe ordkmy activin of te entonrisn. Tranplescfansas and rts hal pverieto sss are: 4+ Landissaldtapreslower than agston cst Natural dates utc, od cause damage te the compu’ tests Ieuling machinery arte. + Thecompay' enter ws dstryed ty fie de to fy electra vig ‘he determination of wether a tansctioni assfe2 n eapsne or 2 8 tos depend ot ented the transact andthe nature tthe cmp RECOGNITION OF THE ELEMENTS OF THE FNVANCIAL STATENENTS cot te proce of neongnsing i the stern f franc poston rastonan of crpecontve eames ter that ret The efln 9 ements te cera fr recogni. Criteria fr recgaiton 1. ti probable ny fate economic bf sacked sal om rom th ener and 2, Theitom tara cortertlue at eanbertatired wi abt, feleng than ai ctrl we ce uma he erin pic Tar each elomont, a follows: ar +h ste cogead in th tatemont of fisnel potion when i real tht the loaresamamae tnt al i the eter Erlthe seat hp aco ovale tat canbe mean coy 1 Ait roegizad in he steer fil posi when rebate a anon alte it Frat rm ster of 2 rece elton snd th snc! a ‘ich hosstomer llc pene be mented lb + Inconscopsied in the eae of comprehensive incre wt trated oan inrse naa ot Eby hae ae at cantormenird eis 1+ Raperoire raced in the esemeat of compete Income ‘Meee daceato te utr ecmoie Bevel rested oa acre ‘hurt con coun of 4 Laity hat aren Ht can be mse hab, MEASUREVENT OF THE ELEMENTS OF THE FINANCIAL Srateneuts Merona th proces of detsmaing the monetary rvs at which he Sloe the sires eel snd cord Inte Financ datowente Th tvelves the sltion othe bas of mesure “Mensur! bassin the ellowing: hrc ane tte ‘eee le ard presenteCte? sae sig Cones Fea tenets ‘CONCEPTS OF CATAL AND CAPITAL IAITENANCE ‘fn concept cpl ated by mites in preparing ie femnctlstatemerts Unter fmacal atept of cpl, uc as ested ipa incllnelonamee pede operns nhs mae wieainy thet. Ukr physel concep feel ch yop pally capa earded a th proce cpl teeny tase on ‘ePeanplts oat pore. ‘The concep ef apa es dct above vis het th ln cota maitenane entgeer 1 rail capa martenace Under ts oncepa prot cated aly th ee mae mount ef Ua rt sss a te Se Ce [Bint ocsede he Grail (er mone) amount ant sts Ue Egimang of Uw period, after cxaing my tron to, and Stidion owns ang he posal Toon cpl Thtectengent peta. =e 1) acpi rvoans Under ts concept b exten & tie Peg cpaty (or operate capt) of hee, (ortheresourcesc fans reed acvevtat capid) a heed {he period exes the plyseal productive apy a the begin el thee ect any daebotors toad conetations rom, ‘het depth damon Cece ipl on Capital Meine scoeredy Intense counting es, CuAPTER SUMMARY + Accouting a angus a setts accounting concep 1 cenerly mepted scouting” propor (GAAP) engin the SSSountng pings aed process, sands ard underline {Simp in aroused my proatngnsnal saremert. 1 Ghat i devsoped by the Thana Reporting, Stacards Count {teochin the Types GAAP te Inova Phppine Tac Kept AS ich edo taal ea eyeing Standards (HRS) sand ty the tneratonal Acer Steir toed Financia statements ace the mean by whi the information ‘Scum in a proceed by fan accunteg ic commerce fours ene pete bss ‘= Phmaclasetmentsace the end-product he acouring procesuse? Dk ecm Concy die Fl ats A complete et of Banc statement fades the sett of {ancl peti lane the) trent feomprnsen rea nent fangs tn iy, sateen of sh Hees andthe 20 tothe incl stamens 1 Information about Anat podon Is primary provided fn = Satemeat of fuel postion, inernacion abot parernance Peaunly provided ina sulemert of conprelenive inn Tnforaton about chinacs in San goon © rede i Fianclssreers by mca of the satement fe fw an ‘Seema efchagesin ul. tional oration ha reat te the neds of ses aout he tone ith tance shat and incor atone are precntod os he face of the nana sstments or in the motes fo the Bnancal Eetomoats, 4 uses of anil terns ical: the pramary wes (exilag and oni investors ier sete eels) reer wars uch ‘epoyes, eanapererk, goverment and dhe agecis, and Ue ae, Titec atnoas tha oot mst ofthe nde of thar wes ro num gesralpupore nana atria Financia statesnt are propria ent nly. Me eangenet of aentorpis asthe primary respansbly for te preparation and munestemafthe ante denen heer The rramewerk fr the reparation and. Prectatin of lance ‘atenntsIhrencer alll the sTamowol) st ot the cosy that undrts the prsparston end presentation of Baer tenons forestreal eer she we pray quale characterises of uefa nfrmation are relevance od ad regression The Sou etancng oe nora quale charactors of wall Inematioa "ae comparably, verfablity, telnss and ean. nancial statement porzay the Gran lets of tonsctions and ‘hor sve by groping thm int bread asc scoring thee Sconnmi chacterates Thee brndclases are ered the women Fromataters “he cleats cat ltd othe messmo of facil poston ares habiiioandegey. ™ 1s ents ey ul he anit of pene Inoncandompnee ‘Ant tht ets the fin fan element sad be recognized ‘proc t ay tre conome bom seted wt the tlle teen he ertegrtesard ee ha cos Oe Girbemenured wraiths easement is the roms of dlraig the monday moans lich de demetc the anc dates obe oped nd ‘Seed inthe nae ststemnts Nearrentt barred ict irc co cart ol rele (toca va apse) Caste caer ae the ates that me tke formation proved nasal tenets ada “the prinmcy gli china we Reeves and atl etait “he reise rence nde: cntmatn wai ee) an predic aac fo) “he Ingrosso fail reprsaten Ichi: comple, ely ad ec homer the, cahvcing qpultave chareteiies er Compaab estan tlic ond Undorandity are “he ely peresive constraint in providing wl afrmaton i ot contrat Ey apee Acting Cap athe Fal Salons DISCUSSION QUESTIONS p:JH. What is the secouting framework? Describe the scope of the FT” framework. 44 _Glve atest these purposes the accountng frammwork, 8. WHRARRA york an ccoerting standard? Suppor our answer ‘ae hat san eccounting pincip? ¢_& What re nani eaten? Let dwn the components Gant 1 eaten hat isthe bce of rane statements? 1. Who arth prinary an secondary of ancl nfermaton? How Sofnchlatoncs eth aed ofc? 1. pan tho mong of re proc one atoms 1 efit fling Laity 1 belency Cape oration & incomesatement fe Reberaree 6 rath reprcomation 2. what are prt ofthe statement of comprehensive none 1. What are the em shen in th oem changes in gly? 12. What mss iefrmation: a Rebvat? cir thengreietserobvancandexchin bee 1 ratfaly opreoatel? Give the fctesfingedots of Faith aprocntton sd expnbly 18, Emaar the ve elects of func statements a be Neca eee where eck len canbe id 14, Name the vo fandamertal or primary qultatve characteris of {ef aan infomation, 1s, Enema ik ou enhance or secondary elas chaste bes mani infermaion. 16, alin neg, Wt ae the clea or cog a ca i Seta omer? ~ 17 Define messmo. ive xno ef les for mani ts lamers (inal tater ny thee ane wo ap neratonal Accounting standards? 19, aiuto fac felling ogi 1 Sect and achange Commision 1s Professor oad of Acounig tential ectting dads Cou A Accopating StanfurdCounl EXERCISES 21 Hentlfy the aseuntngconcpt apis each situation i ac i ins pig cn syd ita hen saps aetiy ee brag opener reptc ete batig eed won pre thandeprecalingitscntovr tr fli » Spe crear gece wouy poe . teh enon ted by blag dca Sesrieduie 5. OLY Sent WS catoroent for reporting financial activity pots destttzoresuted nd mort etbeimdete #il eo poetry Df we pel ener eee i: tatpey eee pre Hen rae ald St (Elescel aporeen epeteareet kana, i Fa ec tome ein a pe 6 te a Saar proves he »(get Bos Arsouning Coy ete Fal iene 1 Acampiy hsb ad ration yr 208 bat go hooey Aap! Teta Ta cmp pcrdny the bt Findlee 22 ‘Trinoctalee 1 risa sstmnts ae the meas by which theafcetn accreted inane proceed ty finn acting omminted to es 0 2 enead bess 1 The we ef fun atements prevent wes fom making, ers fn Bsns ddstns Ut hey mck 3. cane purpoe fae tated ro propered at et nna nde rested ovards hens nara sets ach Range 4 The ascent of a enteric Ma the pray responsty or the repsatin and eeseriton athe facial states 9 The ramenert set ot he tt cncept nd delish nih ‘rsp se prevatlon ef Conta sated or extra ers ed ‘Rat befallowed naleaes 6 The Framonorkie Phipps Finacial Reporting Standard (PHS) 2 nos feof, the reements of the FF shal be sbserve ‘hose often 1 Manet bos orofacial siemens, 9. Employee are the provides fk capt vo, esos an ter avers are coceraed ih the rk etn and ‘tam povelby. the nese 1, Lenders ate primary ntreedin information wich enbls then 10 ‘Stes the ally ofthe entergisto prove remuneration, revert Senet a plement oppor 12, The Natlorl Sut ofr eae ener with infomation wich cn {eprovdelly nancial statement. 13. Anwar are proviescf rc capt to the enterprise. the proven | "nant iterate tat met i ees wl lo met most Ue ees fete wars hac anal states sl re eats Asotin 217 Bion 14. font shot final postion primary povided én an income 25 aquifers wo the avalbty of cash over the lenge tee to rest finaril ont as they i de, 16 Selene resto the aaa cash inthe ner fro ie taking ‘Stunt offal comestnants eo hi peed 1. efrmaten sh ehnges natal postion prvi the ancl ‘toementsby memset eaten oan pon 19, There ae tive wey esunptons mesioned inthe Feiner crud, gg eoncen aed Me matching ie pe 19, Uner the acral Las, th eft of tranacons and other evs ae reoxgnied when cach or is eglalrt rcelved or pid snd they 2 ‘eneddinthescsuning recone andrspetes inthe ancl tomas tho pede whchthess utile roto oe 2 theca facounting ia lea methd of acca bushes 23 tueertalie PA cairn de generally accepted aeconting pips in the Pills ‘Stelle arent finan Acsuating Sadar SPAS) Recher are he arbi tht ra he nea roedin fal tuorasusi we 9. Ura and copay eft cntnt ble vce iad epreaeneion fer topcoat iacletemens 4 Inlormaton st complex mates wih re eleva oes shoal be ‘add se Wa be tn iat for coat we Weert ‘seatnghepurnce aa tones tnormatin has the guy of lay who inner team ttn fry bg thon vet pat sent reeves rennin orient th paren 6 Inert fabalrepresaned Fit basa thai when itis ello conn or corte caer expectations of + naaayer 2 Ba caning Cd he Fel Smeets 2, taformatien mtr omisin mistreated aac the ‘Sonam deion fans ten the be th financial atone Ont pe nts reconsider as real mate, 9. mat she qa of Re aay eed wen ie from material er md can be depended oom by wes 1 tt fahily el with ie pu epraee or ood ‘esonly be epeted repre 10, evoking fr bates rere toe he eg oso to {Sadvetrthen the econ raly or estan, Jn rade the tacason of degree of caution the ens of alent edad n aking the etiates repre unr condiion of wncetat, ch hat aces 9 pcm are ne ested and Uables or exper we nstowntated 12 ner compatbity sfers to canpvion of Gracia stteent ef too ‘Sterpiethinthe sae este. there und clay inthe eeperting of sfrmaton AC may les is testes. v4 Inco alec between relevance and Gath representation the ‘escig eoseraion b How ot to Salsfy the economic decion lag aeabof wes. 15 Finacial statements porte the facial eft of ransactins ard ether events them ite breed cor acorn wo Hh econo Sarcachdia ie Eee ca ae tred on emerson 4 Traeortabe 1. Thee are only these elements of nna tatenes mented the rameworke ces bes se ea. 1 ds soe ba rescuve centrally the entre a ol of pt ever ial rom th Eure enone bea rt pete © Ge fms the crepe 4. ener, rather than omer, the mak factor to conser In ‘ecrguang an ast, Fada of Assn 27 Aliya present bltion ofthe enterprise aris the actert ef which & expected real tn ‘rterpr of essurtcembedyngcsnenc tees 5 ty the roids terest tthe bile ofthe enterpie afer (Sietingall tease, rein 6 cae refers to increases i econo Dents during the scouting brid inthe for of nos or enhancerentsof aes oF deat Tobias tat rut ta cease eu ibec than tess 3 welt contest eu stp 1) The nents of marating compe aso poprictorsi. Revove notin the cours of he odin sees af an eerie and {eter toby wary of ieee mes inn sles, fester, Avie. ryan ert 9 Ges represent other ttt eee the define ad aay Stans inthecouse of theordnary abies ofan entry 10. Ales enseparae erent oth nce ltrs 1 Region the proces ef neeprating inte Graci statnunt’s a Str ist mss the defaton ofan cement ord sases the eter oF rections ou nthe ramewer 12, Aner that nets the dfn of clement soa eco fs ‘ee Ua yar cence Done cated mi the am wl lo {Sree eom te etary and the tam hae cot o naa tha om be ‘mecsned wth ety. i Spel temp eel a tr vie ori Re conor hereto to a deaease i a asc ora nereae Tihs ren has canbe mesied realy. 14, Mesearenert the pov of etomsng the monetary amounts at wih the slament the fan etatonnte arte be ramped andes theta atonent 15. The measuenent bas mast commonly adapted by. enterprise ‘repre i financial tatcenis the realabl value bas fron pst vents, ttn fron the ys large ha the incomeagi? cso Cone Fa Sees 125 Multiple choles 1. ety for which here ae wer who ely onthe nancial tata ‘helm sour! anc iaforration about the ety. Solefroprstorsep co eerigetiy Bi. Corporaton 3. Penerhip 1 the spt th ty Ral er of mations a eer REG pc a ne too ast arg ani Sent fic postin Eston otomyeente nme © rarcal sate f nemeal begee 3, The teamwork isconcered wth the spec pupsefiancil tatnets Sk Thisttonee steve, ETc staeent ise Thc estes tru bt sft ti fle {)) The staeret ssoetines fae but et ofthe te re, 4 Acdefnedinthe ramevork anaes (29 hres wae by ey se of pet rn ad fro ‘nic future econo vets ereexpeced tol ot oy. ‘.Ntsiure sontelled Uy the ery sear of pat everts and ESSISGh faure sconomie svete are pected to fl 10 the ‘tty. . rmearce owned y the ny 5 resulta eves an eh ‘entire ceo eves arexpece ofl othe ely >. Rrwsurce ova bythe ery 9 a reel of past vets and rom cat eon eens are expected flow tthe only 4 ned a hemor fr nr in cen et SSE teeming ported the form of tows 0: enhancements of ‘Snr csresesef aie tht esta nereses neq eke than ites lating a ener rm ge part anis pane te iba, eames Aco 2017 Fn ‘The ramework defies recognition of a Gracia clement when the {elloing contiensare met 1} tn produ tay ftarceononiceneftestcatd withthe {te il fw ad tom tel 1) theltom have conte lu tt canbe measured wth elisbity, 3) when te enty elaine cnt of te eso obliton anced Tethihekems.| e toaly cies B tind 5. tony 1 The filter with siete that fsa to the accounting opetion: Ma Sateen cfcompeehanie coe Satoment offal pston Stata fa om Db Stone efchangetn Owners Eguy ‘8 Co, incurs Jantoril expense of 5000 on Deceiber 3 ‘pence ates he P0008 a: by Jnuay 30, 2616 and ARC ii pay the tavole on Jansry 9,236. ADC felons th acer st of [rcoug ans accourting ya ens Deceber 3 What the flee tthe Jani expense on the December 31 26statnert f fines estima ABE Mh foie decreased 1G lisbives tare 5, the © tod DL Ountrogiy need the peronl ests ofthe ewer of company wll nt appear 08 the Tea aatement of final postion” Soause™ wich einer © my DL Gamers ch concent requires « company’s setemaat of fnacal poston TEA snd Uke amu the company pads seqtire tear orn (Belund could beseldfodytasiguiallpighor amon “hint cat B Monty ane Dnehingic ofthe lings esi th Prudence Pini? "h festate be oprtodat shige pose vlc Toft bereporeat the highest ponte vals Lilies exons be roared the lowest possible values BL dlentispted nesta be reared even Bloc tiny 2 126 MuipteChaes Under ta teitactsof ansrers and eter eons are regal hen thy ect and ms at or equa i esved opal an Thy are recorded in the scouting eons a epee # the anc "ssn the pest which hy relate ‘h Going cece “cbuthaandl, & heer 1, Raters aor. nt, ropa two kk zens: nein is personal ame and Uterine are of busine, he J Larry Shop. ih fhe Kellowing concepts mou vit) nclades both acount pr ‘heen ofthobcines? ih deca concep tnttyeoner, ‘hn eoterpie besured to be 4 gsing concer and il contin in Sperton forth reseble ture Tor ecuntrg purposes, he He cf BocRetpen te ddim teen eps np lg ‘hetreiflnal eecnting period? 1 todas «mda 3 woes. @ evan 1G Geingcorsnm cence D, Thee cation sore cmt 3 « meszarenent bao curly sed in Snail awning, Which of the felling measrement tes als axserly ‘dint eocourting? 1 cameat ant ._rresentvabe B ReceabnGattemend vie. Motte. ry Fea | Funke Acai 97 Eti ‘is scan erzanztion sn to promulgate ad improve oeeurting, ‘Kandrds ht il asitate GAAP athe Pipes 1 Philopine asta of etd Public ecertans. 2 The fess patery oad of ecbantan. rales Reption Goemision. G Finns Reporting Sandor: Coon ‘ese encompass the convention, rls, and procedes mies 10 {Dine cat scoped accocting practice tof pabeaar ive TRS Dnderging santos 1B Quatatvechratorisics Contesatcen vant nd eile fomaten, 1, Sane scoped aecurting prices. Which of thefiiwng woul net bean ase) "A neconts ecole Pega surance @ Siw raasie 5, Ofteesuppies ‘nee ssc atures of Oran acourting the: “A tec recurane of exeramie rovers and bliptons an hunges iether af money eed social an evel pect 1 Hi meron of nn macs ad sts sd ‘hunger in hem in terms of mony ¢ Dee mcsneerert of scoremie vexures and blptons aad Uisgese thn is rms of mony ond eestaga nna . bcd tosawerat of copemic resources and tions ant ‘hanger aterm rom nd psyehoiogcal np Wich of the fotwing organizations tus Il ati t eal Feporting regents or pti bel corporations nthe Pines? TA tertonl Aout Sendra ASS) ‘anil Acuring stncarde Beard 2S) puree often! Rewouse (8) Scan nd Exchange Commision (S10 ohp Bac Atcning Comp ad er Stent 18 whof te loungstpen core edge ramet “Thetranewok baPlulsverinanial Reporte Sana. “he Teaneck ts oath concepts tht une ie pepralin dnupresonaticnet Onan statement for mierause . Theframeworkbacomponetof the fia statment. 1, Theprovbns ofS al pevl over oe of he Tarnewerk Win sti of ener upon tr? "ole gor hawt he te Lira of the company’s net “olelp aver ake cco deans ‘Tomb werent emote tare wth he copy ‘oddermine lather Fmd har seared Pe@> 12, Slang deine at The vl of nome carol by an enterprize teagh the file Shdefitve tation of eae. 1, Tho seals sth he ear Fate ter thing accune ancl artes evr hie ero The irae exit of sn erteepse. “The avalabey of cash ovr te Inger term to ret fare commitment 2 thy alld. aay deta The level of ome ean by an entre through the fie Gidlsve ulin of ener. 1b, The snail of eh in We nen Fetus llr ting accu of Gear ornkticrts eye his pero. “ThefisancalMexbdty ofan ertrpes. ‘The aeslabay of each ovr Ur age term to met ancl cenit thy ll 16, whic sors ed unc frat to enable ent aes the abi bie eters to. provile remeretain, rement tenets ad ‘pleat epprtaes? pian mpage E evommostanditeagencion —D._ Inestor 15, Wh uses ned fmcll nermatn ep he tee wheter ty sede, adore heir itres fan enlerprise? lnc. D. Tropic 16, Whi of fllowing gustav characteris rit to he conten! of Fanci tates? rh represen Yes Yo No Ke * ndrsandabity Te Ne Ye Ye * compaasty Tes Ne Yes he 1 Whee lle guaatv characters et ‘fossa atu? ae cD 1 path Rpesetatin Tes Ys NO te 1 Undortandoity Ye No es Yes * compaaty Yr Me Yer Ne 16, This eer te the capacity of ofa decir fuer y Ealing hem fn prdistins stout _Undetaedaty. 1 tail Repesentaton DL Comper 1s, heres unde day a epeting acta ifomaton then sey se Korennee, isbjeaiy. Re endotandaiey. D. Hecomerntin 2 The eve ding qultatve hacer scouting iormstion A. Caines forcsson eine 1 Reed rambiss €. felevane D. Compesaty ceoesltiy, our.otra Conte Fina St 2, $1 LS the dese for eject thas elas wey hier ast ater than suvke aie ores the bss ef alton sets 2 Gonsstncy in accoumling reeds b eerved te preven meng, ols rl fien diferet accu etodsrembeng ped 5 Thesmoratary unt measuranet eliinctessaporarifxentie ie raat ee inet nmap o: poor werkingcondo. 2 pdsetrvcteve Tabs fabetrve Trustee D. Trueilsease 22, Company STU has 2 mans ending December 1, 2015 5 ite aconting fporied pad’ PRiQ60 iverance promis routing tthe. prind ‘iy 1st Jae 39,2016. Daly P2400 I atred aan exponse or the vid ending Decor 3,205 the Blanes cee ord te 286. Taisen onto cfeocep ‘Ging conor Prudence Bat 5. eeation 1, Going cancer eancopl cn oy spliedte afr wit 1 ll never wound tp 1 Bnotenpecte tobe able continvecrerating expected ica losses nthe fresanbleutre DY. expected ocartiuc in opetatbnal existence tke foresee fre at level of sey aot significantly fs han i caren berclofactiny 8 Mali Ces 1. Theingeent frlevanc nade hefllowing,encpt ie Predictive re ‘CUnerstandbilty Catenin roe 1. hit the aon are pt of relevance 2h the qui of formation tat pov surance to ers the the infrmation i fee fom bis or error nd aly reprsets what eeporsterapreens| taevane 1G Urdentandbity. fat open, 1D. Compara the even of cae bane the scone sbsare of a transeton ates lors “A The trasction shal be revered twice ~ ance wo ccd it eal {oon rd tieotertorecrd ts econ sustanee 2, Theil fer sal peal ove the economies € Theccononcaubtancedallpresal over ths ea erm 1D. Thotrrametonscondered te on scounabl. esl setnoing flected pryton ace ‘ulomeats dread towards the cammon information sede of 2 wide ange of enc, Tiny tho rot lace the raking fo dese oF Judgment nocd achive arecetenine’ res or onto, rabid copes ‘e Natraiy. Stance oer for: DL Concern Th A the inser ofa gree of cation whe execs of jx nocd neg the esinates read under ations 1h fal repeseratin Cpr. 1 Stbstance ever om. BL Gaperatin, adr de sal be tae ahi Masel inc are nt wdrstated rd halite or expenses ate overt 1, Rector ine oreo esr nd atin or oper ae fe undeeted { Iaseorncom ar ot widotatd, nd lati or expense fetuses , see or ncomeare not everest exper ae retowerste 1 Cotsen orlean ed atl reprsentd information sca te fonmept tint the useless af providing, Information ie vemearschouke 1 "Ener tho cot proving the infomation B Epel thecetet providing the foraton {C eessthan the cst of proverg the nfortion D. Reneet thesehap Ba ccuting Coit li ec Sart 4, Which ofthe foowing laren of nance starrer ae recy reed {the metsarenent fn postion? ae e pares Ye ye te Ye 2 yu Ye Ye te Ne 2 nhsone Ye to te 8 2 Spon Ye No Ye Ne 9. Acesoute contre bythe etre wre of pst event dom ‘eck tare eoroictenetts are expected tlm tothe eterpe. ‘S Eaaty © hee Busy Deere 10. A present blgation of the enterprise arg fom pat events the ‘ectement of wb expected esa an oie fron the eerie tfrescrces enbolying ener benef, a ey. © Ast 1 tty B, evee. 1. A sexy lige corporation's final statemeats hve th pes emewts founded the nent P2000, Which scnesting. pence fine iste roe epeting he mou treet peso? ‘ Bllescosue C Menetary nit Baty Bing concern 2, which anion be prot or crept mest? kb pucable tht fate cence benfes willow fo the terri, 1b, hove ete ast can berolaty meaurd. © bothaandl.| A Theses aati 12 nome ropa Ta pre Wat bce came Hes al fw fen xen, 1, Arc forrest. C1 Wprtale Gat face scone Bie wi fw Fr the ‘rte, aad he ite coo bene cen beast , hnomer or psde ar breed ross stom 4 1. pens nconpats epee ob tomes only Expense. Dy Nethr expenses or es. 15, The proces of incorporating inthe tatoment of Gran postion we nt ef compreloive noe an ters ht ret he enon a rnd oe the rte for ocgatne Accounting BL Recggntion, 16 theproces ofdeerniry the monciary amounts which le clones le Once statement are o Le eeu nd carded the Fc C Accustng DL Recegnton 7. the measurement bass mest commonly adopted by eaten in repr ther ancl sates 9 hier ont Wht i Ie ma eso fo is? K Wbodhetve. B theta 1 Ase are cared at the amount of cis or cath opetalent that coud ‘Seni sine By ein the at os erderly pos. Lables ‘reared tet setlement talae that the ancoute srreunts o ‘Gl orca quale expt tobe paid tts the Lables tn he ‘arma cewsecttosues in Caren cot alae Gotlonen! vale 19, Notes Payable couldnt appear asa ine othe stator f fran poston in hich dasfeaton? paren Egy 1 tneome BL Welt stove 21, on December 15,25 ABC Cobre tn de In Cru to begin working 08 Janey 2,206 4 amothy ean o PL, ABE ston of Ee alibi of fe Nosy Prec ae D. Mitarieateat.