FAR1 (prelims)

Question 1

The basic summary device of accounting

Answer 1

The account

Question 2

True or false? The normal balance of an account is the increasing side?

Answer 2

True

Question 3

Reporting entity financial performance?

Answer 3

Expenses & Revenue

Question 4

Sets/Issues Statement of Financial Accounting Standards

Answer 4

Financial Accounting Standards Board (FASB)

Question 5

Coverage of CPALE

Answer 5

Financial Accounting and Reporting
Advanced Financial Accounting and Reporting
Management Advisory services
Auditing
Taxation
Regulatory Framework for Business Transactions

Question 6

What is the integrated national professional organization of CPAs in the Philippines?

Answer 6

Philippine Institute of Certified Public Accountant or PICPA

Question 7

Who issues the Philippine Financial Reporting Standards?

Answer 7

Financial Reporting Standards Council

Question 8

Accounting changes are often made and the monetary impact is reflected in the financial statements of an entity even though, in theory this may violation of the accounting concept of

Answer 8

Consistency

Question 9

Stating assets and liabilities and changes in them in terms of a common financial denominator is a prerequisite in measuring in financial position and periodic net income.

Answer 9

Unit of measure

Question 10

What are the basic element of financial statements?

Answer 10

Assets, Liabilities, Equity, Revenues, Expenses

Question 11

formulates the International Financial Reporting Standards

Answer 11

International Accounting Standards Board (IASB)

Question 12

formulates/adopts the Philippine Financial Reporting Standards

Answer 12

Financial Reporting Standards Council (FRSC)

Question 13

Guidance of elements of financial statements

Answer 13

Conceptual Framework for Financial Reporting

Question 14

gain of the company, what the company owns or plans to own, company resources

Answer 14

Asset

Question 15

present economic obligation of the entity to transfer an economic resource as a result of past events.

Answer 15

Liabilities

Question 16

Reflects residual claims/net assets

Answer 16

Equity

Question 17

profit of the company.

increases in assets, decreases in liabilities, increases in equity/inflow of benefits

Answer 17

Income

Question 18

decrease in assets, increases in liabilities, decreases in equity/outflow of benefits

Answer 18

Expenses

Question 19

assets, liabilities, and equity are related to an entity’s

Answer 19

Financial position /Balance sheet

Question 20

income and expenses are related to an entity’s

Answer 20

Financial performance/ Income statement

Question 21

what is the book of original entry?

Answer 21

Journal

Question 22

Claims against debtors evidenced by a written promise to pay a certain sum of money at a definite time to the order of a specified person or to bearer?

Answer 22

Notes receivable

Question 23

an event where a bookkeeper accidentally reverses two adjacent digits, when recording transactional data.

Answer 23

Transposition

Question 24

an error that results from moving the decimal point of a figure to the left or right of its correct position

Answer 24

Sliding

Question 25

Business organization is characterized by limited liability

Answer 25

corporation

Question 26

First accounting standard setting body in the Philippines

Answer 26

Accounting standards council