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Week 2 Discussion

This document contains two items that match information in Group A with options in Group B. Item 1 matches information needs of different users with the specific users that would have those needs. These include needs of government agencies, shareholders, creditors, management, employees, suppliers, customers, and potential investors and creditors. Item 2 matches accounting concepts with their definitions. These include the going concern concept, materiality, business entity concept, accounting period, comparability, understandability, external users, and the accrual basis of accounting. It also matches the accredited professional organization for CPAs in the Philippines.

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Marie Kate
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303 views1 page

Week 2 Discussion

This document contains two items that match information in Group A with options in Group B. Item 1 matches information needs of different users with the specific users that would have those needs. These include needs of government agencies, shareholders, creditors, management, employees, suppliers, customers, and potential investors and creditors. Item 2 matches accounting concepts with their definitions. These include the going concern concept, materiality, business entity concept, accounting period, comparability, understandability, external users, and the accrual basis of accounting. It also matches the accredited professional organization for CPAs in the Philippines.

Uploaded by

Marie Kate
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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ITEM 1

Match the information needs in Group A with the users in Group B. A letter item may be
answered more than once. An item may have more than one answer.

Group A
1) Answer the question " do we lend the money to the firm?" Group B
2) Formualte national policies and develop statistics. a) Government and its agencies
3) Bargain for higher wages and improved benefits. b) Present shareholders
4) Assure safety and profitablity of their holdings. c) Potential shareholders
5) Plan and control the operations of the enterprise. d) Present creditors
6) Ensure full and fair disclosure of information. e) Potential creditors
7) Evaluate whethere the enterprise has the ability to deliver the required goods f) Management
and services. g) Employees
8) Allocation resources through taxation policies implemented. h) Suppliers
9) Determine whether they should hold, buy or sell. i) Customers
10) Determine whether the enterprise could pay the goods or service provided
to them.

ITEM 2
Group A Group B
1) Assumes that the accounting entity will have a long life. a) Comparability
2) This enhancing qualitative charactheristic is achieved when entities use the b) Business entity concept
same accounting methods from period to period. c) Materiality
3) This concept separates financial information into time periods for reporting d) Going concern
purposes. e) Accounting period
4) The enterprise is separate from its owners and other entities. f) Understandability
5) Sound and generally accepted principles should be applied if he amount g) External users
involved is significant when compared with the other elements of financial h) Faithful representation
statements i) Philippine Institute of Certified Public Accountants (PICPA)
6) The ability of the financial information to be comprehended by financial k) Accrual basis
statement users who have a reasonable knowledge of business and economic
activities.
7) At present, the accredited professional organization of practicing CPAs in PH.
8) The primary users of information provided by financial statements.
9) For the information to meet this qualitative characteristic, it mut be complete,
neutral and free from error.
10) A basis of reporting that recognizes the effects of transactions and other
events when they occur, rather than when cash or its equivalent is received or
paid

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