1 - The Accountancy Profession

It is a global phenomenon intended to bring about transparency and a higher degree of comparability in financial reporting in order to achieve the goal of one uniform and globally accepted financial reporting standards. a. IFRS b. Borderless accounting c. World trade d. Information technology

a

The events that affect the entity and in which other entities participate are known as a. Internal events b. External events c. Current events d. Obligating events

b.

The IASB publishes standards called a. IAS b. FRS c. IFRS d. Statement of FAS

c.

All of the following are represented in FRSC, except a. BOA b. SEC c. COA d. DBM

d.

It is the area of accountancy profession that encompassed the process of analyzing, classifying, summarizing and communicating all transactions involving the receipt and disposition of government funds and property and interpreting the results thereof. a. Internal auditing b. External auditing c. Private accounting d. Government accounting

d.

It is the standard-setting body in the Philippines at the present time. a. ASC b. Auditing and Assurance Standards Council c. Philippine Accounting Standards Board d. Financial Reporting Standards Council

d.

Managerial accounting is the area of accounting that emphasizes a. Reporting financial information to external users b. Reporting to SEC c. Combining accounting knowledge with an expertise in data processing d. Developing accounting information for use within an entity

d.

Proper application of accounting principles is most dependent upon a. Existence of specific guidelines b. Oversight of regulatory bodies c. External audit function d. Professional judgement of the accountant

d.

The "communicating" process of accounting includes all of the following, except a. Recording b. Classifying c. Summarizing d. Interpreting

d.

The PFRS collectively include a. PFRS corresponding to IFRS b. PAS corresponding to IAS c. Philippine Interpretations corresponding to IFRIC and SIC Interpretations and Interpretations developed by PIC d. All of these

d.

What are the three main areas in the practice of the accountancy profession? a. Public, private, managerial b. Auditing, taxation, managerial c. Financial, managerial, corporate d. Public, private, government

d.

What is the due process in the context of standard-setting by IASB? a. IASB operates in full view of the public. b. Public hearings are held on proposed standards. c. Interested parties can make their views known. d. All of these.

d.

What is the overall objective of accounting? a. To provide the information that the managers of an economic entity need to control the operations. b. To provide information that the creditors can use in deciding whether to grant loans to an entity. c. To measure the periodic income of the economic entity. d. To provide quantitative information about an entity that is useful in making economic decisions.

d.

Which of the following statements is incorrect in relation to accountable event? a. An event is accountable when it has an effect on asset, liability or equity. b. The subject matter of accounting is the measurement of economic resources and obligations. c. Only economic activities are emphasized and recognized in accounting. d. Sociological and psychological matters are quantifiable.

d.

Which of the following statements is true regarding the FRSC? a. The FRSC is created by PRC upon recommendation of BOA to asist BOA in carrying out its powers and functions under RA No. 9298 b. The FRSC shall be composed of 15 with a Chairman and 14 representatives. c. The Chairman and members of FRSC are appointed by PRC upon recommendation of BOA and shall have a term of 3 yrs renewable for another term. d. All of the statements are true.

d.

Accounting is a service activity and its function is to provide quantitative information, primarily financial in nature, about economic entities, that is intended to be useful in making economic decisions. This accounting definition is given by a. Accounting Standards Council b. AICPA Committee on Accounting Technology c. American Accounting Association d. Board of Accountancy

a.

Financial accounting is concerned with a. General purpose reports on financial position and financial performance b. Specialized reports for inventory management and control c. Specialized reports for income tax computation and recognition d. General purpose reports on changes in share prices and future estimate of market position

a.

It is the body authorized by law to promulgate rules and regulations affecting the practice of accountancy profession in the Philippines. a. Board of Accountancy b. Philippine Institute of Certified Public Accountants c. Securities and Exchange Commission d. Financial Reporting Standards Council

a.

Once an accounting standard has been established a. The standard is continually reviewed to see if any modification is necessary. b. The standards is not reviewed unless the regulatory authority makes a complaint. c. The task of reviewing the standard to see if modification is necessary is given to an accredited national organization of CPAs. d. The principle of consistency requires that no revisions should be made to the standard..

a.

The accounting process is the recognition or nonrecognition of business activities as accountable events. a. Identifying b. Measuring c. Communicating d. Reporting

a.

The most common financial attribute used in measuring financial information is a. Historical cost b. Current cost c. Realizable value d. Present value

a.

What is the law promulgating the practice of accountancy profession in the Philippines? a. RA No. 9298 b. RA No. 9198 c. RA No. 9928 d. RA No. 9892

a.

Financial accounting is the area of accounting that emphasized reporting to a. Management b. Regulatory bodies c. Internal auditors d. Creditors and investors

d.

Generally accepted accounting principles a. are accounting principles based on law b. derive their credibility and authority from legal rulings and court precedents c. derive their credibility and authority from the national government through a regulatory authority d. derive their credibility and authority from general recognition and acceptance by the accountancy profession

d.

IFRIC Interpretations issued by IASB a. are considered authoritative and must be followed. b. cover newly identified financial reporting issued not specifically addressed. c. cover issued where unsatisfactory or conflicting interpretations have developed. d. All of these

d.

A basic feature of financial accounting is a. Direct measurement of economic resources and obligations and changes in them in terms of money and sociological and psychological impact b. Direct measurement of economic resources and obligations and changes in them in terms of money c. Direct measurement of economic resources and obligations and changes in them in terms of money and sociological impact d. Direct measurement of economic resources and obligations and changes in them in terms of money and psychological impact

b.

Accountants employed in entities in various capacity as accounting staff, chief accountant or controller are said to be engaged in a. Public accounting b. Private accounting c. Government accounting d. Financial accounting

b.

The IASB employs a due process system which a. Is an efficient system for collecting dues from members b. Enables interested partners to express their views on issues under consideration c. Identifies the accounting issued that are the most important d. Requires that all CPAs must receive a copy of IFRS

b.

The IASB was formed a. To enforce IFRS in foreign countries b. To develop a single set of high quality IFRS c. To establish accounting standards for multinational entities d. To develop accounting standards for countries that do not have their own standard-setting bodies.

b.

The important points made in the definition of accounting include all of the following, except a. Accounting information is quantitative. b. Accounting information is both quantitative and qualitative. c. Accounting information is financial in nature. d. Accounting information is useful in decision making.

b.

What is the "measuring" component in the definition of accounting? a. The recognition or nonrecognition of business activities as accountable events. b.The assigning of peso amounts to the accountable events. c. The preparation and distribution of accounting reports to users of accounting information. d. The preparation of audit reports by CPAs.

b.

Which of the following statements best describes GAAP? a. The accounting principles have been formulated in the public sector. b. The accounting principles have been developed on the basis of such factors as usage and practical necessity. c. The accounting principles are the same as laws within our legal system. d. The accounting principles do not apply to small entities.

b.

Who is permanently exempted from the CPD requirement for the renewal of CPA license? a. A 60-year old CPA b. A 65-year old CPA c. A CPA practicing for the profession abroad during the period of stay d. A CPA studying abroad during the period of stay

b.

The singularly unique function performed by CPAs is the attest function which means that CPAs are primarily responsible for a. Preparing financial statements in conformity of GAAP b. Certifying the accuracy of financial statements c. Expressing an opinion as to the fairness of financial statements d. Filing financial statements with the regulatory authority

c

Financial accounting can be broadly defined as the area of accounting that prepares a. General purpose financial statements to be used by parties internal to the entity b. Financial statements to be used by investors c. General purpose financial statements to be used both by parties internal and external to the entity d. Financial statements to be used primarily by managementt

c.

How many CPD credit units or CPD credit hours are required? a. 60 credit units each year for three years b. 20 credit units each year for three years c. 60 credit units for three years which may be earned in any of the three years d. 15 units each year for three years

c.

The Continuing Professional Development is required for a. Renewal of CPA license b. Accreditation to practice accountancy c. Both a and b d. Neither a and b

c.

Which of the following statements is incorrect in relation to the practice of public accountancy? a. Single practitioners for the practice of public accountancy shall be registered CPAs in the Philippines. b. Partners of partnerships formed for the practice of accountancy shall be registered CPAs in the Philippines. c. The Securities and Exchange Commission can register any corporation organized for the practice of public accountancy. d. The PRC upon favorable recommendation of BOA shall issue certificate of of accreditation to CPAs in public practice provided the registrant has acquired a minimum of 3 yrs of meaningful experience in public practice.

c.

The singularly unique function performed by independent CPAs is a. Tax preparation b. Management advisory services c. The attest function d. The preparation of financial statements

c. (also called Auditing; auditors' opinion can be: qualified, nonqualified, or disclaimer)

All of the following describe accounting, except a. A service activity b. An information system c. A universal language of business d. An exact science rather than an art

d.