Chapter 1 Flashcards
(25 cards)
Accounting is a service activity and the function is to provide quantitative information, primarily financial in nature, about economic entities, that is intended to be useful in making economic decision. This accounting definition is given by
a. Accounting Standards Council
b. AICPA Committee on Accounting Terminology
c. American Accounting Association
d. Board of Accountancy
a. Accounting Standards Council
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. An exact science rather than an art
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. Accounting information is both quantitative and qualitative.
This accounting process is the recognition or nonrecognition of business activities as accountable events.
a. Identifying
b. Measuring
c. Communicating
d. Reporting
A. Identifying
What are the events that affect the entity and in which other entities participate?
a. Internal events
b. External events
c. Current events
d. Obligating events
b. External events
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. Sociological and psychological matters are quantifiable
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.The assigning of peso amounts to the accountable events.
The most common financial attribute used in measuring financial information is
a. Historical cost
b. Current cost
c. Realizable value
d. Present value
a. Historical cost
The “communicating” process of accounting includes all of the following, except
a. Recording
b. Classifying
c. Summarizing
d. Interpreting
d. Interpreting
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. To provide quantitative information about an entity that is useful in making economic decisions
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. Board of Accountancy
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. RA No. 9298
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. Public, private, government
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 accreditation to CPAs in public practice provided the registrant has acquired a minimum of 3 yrs of meaningful experience in public practice.
c. The Securities and Exchange Commission can register any corporation organized for the practice of public accountancy.
CPAs are licensed by
a. The PICPA
b. The SEC
c. The city government”
d. State government
a. The PICPA
What is the primary service of CPAs in public practice?
a. Auditing
b. Taxation
c. Managerial accounting
d. Controllership
a. Auditing
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. Private accounting
How many CPD credit units are required for accreditation
to practice the accountancy profession?
a. 120 units
b. 100 units
c. 60 units
d. 15 units
a. 120 units
A CPA shall be permanently exempted from renewal of CPA
license
a. At the age of 65 years
b. When working abroad
c. When practicing the profession abroad
d. When studying abroad
a. At the age of 65 years
It is the area of the accountancy profession that encompasses 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. Government accounting
What is the standard setting body in the Philippines at the present time?
a. Accounting Standards Council
b. Auditing and Assurance Standards Council
c. Philippine Accounting Standards Board
d. Financial Reporting Standards Council
d. Financial Reporting Standards Council
All of the following are representative in FRSC, except
a. Board of Accountancy
b. Securities and Exchange Commission
c. Commission on Audit
d. Department of Budget and Management
d. Department of Budget and Management
The Philippine Financial Reporting Standards collectively include
a. PFRS corresponding to IFRS.
b. PAS corresponding to IAS
c. Philippine Interpretations corresponding to IFRIC and SIC Interpretation and Interpretations developed by PIC.
d. All of these are included in Philippine Financial Reporting Standards
d. All of these are included in Philippine Financial Reporting Standards
Accounting standard-setting has been characterized as
a. A political process
b. Using the scientific method
c. Pure deductive reasoning
d. A legal process
a. A political process
