1. Name the transactions or events which can be considered "IDENTIFYING" based on the definition of Accounting? 2. Name the transactions or events which can be considered "RECORDING" based on the definition of Accounting? 3. Name the "COMMUNICATING" based on the definition of Accounting? transactions or events which can be considered
1. Name the transactions or events which can be considered "IDENTIFYING" based on the definition of Accounting? 2. Name the transactions or events which can be considered "RECORDING" based on the definition of Accounting? 3. Name the "COMMUNICATING" based on the definition of Accounting? transactions or events which can be considered
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Analyze the case below and answer the questions thereafter.
An ABM graduate named Jason decided to start a bakery business in Cateel,
Davao Oriental. Their house is in the heart of the Poblacion and so his mother
allowed him to use a spare portion of their house for his bakeshop. For his
startup capital, he loaned P200,000 from his father. He then proceeded to
purchase an oven, a mixer and other related equipment, machines and tools
for his baking needs. He also purchased raw materials such as flour, sugar,
and all sort of baking supplies.
Because it is the only bakeshop operating in town, the sale of bakery products
rises steeply. In order for him to keep track of sales and expenses, he applied
what he learned in Senior High School about the importance of record
keeping. He uses a journal and a ledger for record keeping purposes.
As his business continues to grow, he sees the opportunity to borrow bigger
capital from the bank. The bank requires a Financial Report showing the
health and operation of his business. He then furnishes the bank the copy of
the Financial report as part of their requirement before a loan will be granted.
Questions:
1. Name the transactions or events which can be considered "IDENTIFYING"
based on the definition of Accounting?
2. Name the transactions or events which can be considered “RECORDING"
based on the definition of Accounting?
3. Name
the transactions
or
events which can
be considered
"COMMUNICATING" based on the definition of Accounting?
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