FAR1C1 B

Question 1

State all content information.
Explain measuring.
5
7
5

Part 1

Answer 1

1) Explain measuring.
2) What are the four (4) measurement bases?
3) What is the most common measure of financial transactions?
4) Explain communicating.
5) What is recording or journalizing?

Question 2

State all content information.
Explain measuring.
5
7
5

Part 2

Answer 2

1) What is classifying?
2) What is ledger?
3) What is summarizing?
4) What is accounting as an information system?
5) What is the key product of accounting information system?
6) What is the overall objective of accounting?
7) What is the essence of accounting?

Question 3

State all content information.
Explain measuring.
5
7
5

Part 3

Answer 3

1) What is the law regulating the practice of accountancy in the Philippines?
2) What is the qualification to practice accountancy profession in the Philippines?3) What BOA stands for?
4) What is Board of Accountancy?
5) Explain limitation of the practice of public accountancy.

Question 4

Explain measuring.

Answer 4

This accounting process is the assigning of peso amounts to the accountable economic transactions and events.

If accounting information is to be useful, it must be expressed in terms of a common financial denominator.

Financial statements without monetary amounts would be largely unintelligible or incomprehensible.

The Philippine peso is the unit of measuring accountable for economic transactions.

Question 5

Explain measuring.

This accounting process is the — of — — to the — — — and —.

If accounting information is to be —, it must be expressed in terms of a — — —.

Financial statements without monetary amounts would be largely — or —.

The Philippine peso is the unit of measuring accountable for — —.

Answer 5

This accounting process is the assigning of peso amounts to the accountable economic transactions and events.

If accounting information is to be useful, it must be expressed in terms of a common financial denominator.

Financial statements without monetary amounts would be largely unintelligible or incomprehensible.

The Philippine peso is the unit of measuring accountable for economic transactions.

Question 6

This accounting process is the assigning of peso amounts to the accountable economic transactions and events.

If accounting information is to be useful, it must be expressed in terms of a common financial denominator.

Financial statements without monetary amounts would be largely unintelligible or incomprehensible.

The Philippine peso is the unit of measuring accountable for economic transactions.

Answer 6

Measuring

Question 7

What are the four (4) measurement bases?

Answer 7

1) Historical cost
2) Current cost
3) Realizable value
4) Present value

Question 8

What are the four (4) measurement bases?

1) — cost
2) — cost
3) — value
4) — value

Answer 8

1) Historical cost
2) Current cost
3) Realizable value
4) Present value

Question 9

What is the most common measure of financial transactions?

Answer 9

Historical cost

Question 10

Explain communicating.

Answer 10

It is the process of preparing and distributing accounting reports to potential users of accounting information.

Identifying and measuring are pointless if the information contained in the accounting records cannot be communicated in some form to potential users.

Actually, this process is the reason why accounting has been called the “universal language of business”.

Implicit in the communicating process are the recording, classifying and summarizing aspects of accounting.

Question 11

Explain communicating.

It is the process of — and — accounting reports to — — of — —.

Identifying and measuring are pointless if the information contained in the accounting records cannot be — in some — to — users.

Actually, this process is the reason why accounting has been called the “— — of —”.

Implicit in the communicating process are the —, — and — aspects of accounting.

Answer 11

It is the process of preparing and distributing accounting reports to potential users of accounting information.

Identifying and measuring are pointless if the information contained in the accounting records cannot be communicated in some form to potential users.

Actually, this process is the reason why accounting has been called the “universal language of business”.

Implicit in the communicating process are the recording, classifying and summarizing aspects of accounting.

Question 12

What is recording or journalizing?

Answer 12

It is the process of systematically maintaining a record of all economic business transactions after they have been identified and measured.

Question 13

It is the process of systematically maintaining a record of all economic business transactions after they have been identified and measured.

Answer 13

Recording or journalizing

Question 14

What is classifying?

Answer 14

It is the sorting or grouping of similar and interrelated economic transactions into their respective classes.

It is accomplished by posting to the ledger.

Question 15

It is the sorting or grouping of similar and interrelated economic transactions into their respective classes.

It is accomplished by posting to the ledger.

Answer 15

Classifying?

Question 16

It is the sorting or grouping of similar and interrelated economic transactions into their respective classes.

Answer 16

Classifying?

Question 17

It is accomplished by posting to the ledger.

Answer 17

Classifying?

Question 18

What is ledger?

Answer 18

It is a group of accounts which are systematically categorized into asset accounts, liability accounts, equity accounts, revenue accounts and expense accounts.

Question 19

It is a group of accounts which are systematically categorized into asset accounts, liability accounts, equity accounts, revenue accounts and expense accounts.

Answer 19

Ledger

Question 20

What is summarizing?

Answer 20

It is the preparation of financial statements which include the statement of financial position, income statement, statement of comprehensive income, statement of changes in equity and statement of cash flows.

Question 21

It is the preparation of financial statements which include the statement of financial position, income statement, statement of comprehensive income, statement of changes in equity and statement of cash flows.

Answer 21

Summarizing

Question 22

What is accounting as an information system?

Answer 22

It is an information system that measures business activities, processes information into reports and communicates the reports to decision makers.

Question 23

It is an information system that measures business activities, processes information into reports and communicates the reports to decision makers.

Answer 23

Accounting

Question 24

What is the key product of accounting information system?

Answer 24

A key product of this information system is a set of financial statements – the documents that report financial information about an entity to decision makers.

Financial reports tell us how well an entity is performing in terms of profit and loss and where it stands in financial terms.

Question 25

# What is the key product of accounting information system? A key product of this information system is a set of --- --- – the documents that report --- --- about an entity to decision makers. Financial reports tell us how --- an entity is --- in terms of --- and --- and where it stands in --- terms.

Answer 25

A key product of this information system is a set of **financial statements** – the documents that report financial information about an entity to decision makers. Financial reports tell us how well an entity is performing in terms of profit and loss and where it stands in financial terms.

Question 26

What is the overall objective of accounting?

Answer 26

Is to provide quantitative financial information about a business that is useful to statement users particularly owners and creditors, in making economic decisions. An accountant’s primary task is to supply financial information so that the statement users could make informed judgment and better decision. The essence of accounting is decision-usefulness. Investors and other users are interested in financial accounting information necessary in making important and significant economic decisions.

Question 27

# What is the overall objective of accounting? Is to provide --- --- --- about a --- that is --- to statement --- particularly --- and ---, in making economic ---. An accountant’s primary task is to --- --- --- so that the statement users could make --- --- and --- ---. The essence of accounting is --------. Investors and other users are interested in financial accounting information necessary in making --- and --- --- ---.

Answer 27

Is to provide quantitative financial information about a business that is useful to statement users particularly owners and creditors, in making economic decisions. An accountant’s primary task is to supply financial information so that the statement users could make informed judgment and better decision. The essence of accounting is decision-usefulness. Investors and other users are interested in financial accounting information necessary in making important and significant economic decisions.

Question 28

What is the essence of accounting?

Answer 28

Decision-usefulness

Question 29

What is the law regulating the practice of accountancy in the Philippines?

Answer 29

Republic Act No. 9298 or Philippine Accountancy Act of 2004.

Question 30

What is the qualification to practice accountancy profession in the Philippines?

Answer 30

In the Philippines, in order to qualify to practice the accountancy profession, a person must finish a degree in Bachelor of Science in Accountancy and pass a very difficult government examination given by the Board of Accountancy.

Question 31

What is the qualification to practice accountancy profession in the Philippines? - In the Philippines, in order to qualify to practice the accountancy profession, a person must finish a degree in --- of --- in --- and pass a very difficult --- ---- given by the --- of ---.

Answer 31

In the Philippines, in order to qualify to practice the accountancy profession, a person must finish a degree in Bachelor of Science in Accountancy and pass a very difficult government examination given by the Board of Accountancy.

Question 32

What BOA stands for?

Answer 32

Board of Accountancy

Question 33

What is Board of Accountancy?

Answer 33

It is the body authorized by law to promulgate rules and regulations affecting the practice of the accountancy profession in the Philippines. It is responsible for preparing and grading the Philippine CPA examination. This computer-based examination is offered twice a year, one in May and another one in October, in authorized testing centers around the country.

Question 34

# What is Board of Accountancy? It is the body authorized by law to --- --- and --- affecting the --- of the --- --- in the ----. It is --- for --- and --- the Philippine --- ---. This computer-based examination is --- --- a year, one in --- and another one in ----, in authorized testing centers around the country.

Answer 34

It is the body authorized by law to promulgate rules and regulations affecting the practice of the accountancy profession in the Philippines. It is responsible for preparing and grading the Philippine CPA examination. This computer-based examination is offered twice a year, one in May and another one in October, in authorized testing centers around the country.

Question 35

It is the body authorized by law to promulgate rules and regulations affecting the practice of the accountancy profession in the Philippines. It is responsible for preparing and grading the Philippine CPA examination. This computer-based examination is offered twice a year, one in May and another one in October, in authorized testing centers around the country.

Answer 35

Board of Accountancy

Question 36

It is the body authorized by law to promulgate rules and regulations affecting the practice of the accountancy profession in the Philippines.

Answer 36

Board of Accountancy

Question 37

It is responsible for preparing and grading the Philippine CPA examination. This computer-based examination is offered twice a year, one in May and another one in October, in authorized testing centers around the country.

Answer 37

Board of Accountancy

Question 38

Explain limitation of the practice of public accountancy.

Answer 38

Single practitioners and partnerships for the practice of public accountancy shall be registered certified public accountants in the Philippines. A certificate of accreditation shall be issued to certified public accountants in public practice only upon showing in accordance with rules and regulations promulgated by the Board of Accountancy and approved by the Professional Regulation Commission that such registrant has acquired a minimum of three years of meaningful experience in any of the areas of public practice including taxation. The Securities and Exchange Commission shall not register any corporation organized for the practice of public accountancy.

Question 39

# Explain limitation of the practice of public accountancy. Single practitioners and partnerships for the practice of public accountancy shall be --- certified public accountants in the Philippines. A certificate of --- shall be issued to certified public accountants in --- --- only upon showing in accordance with --- and --- --- by the Board of Accountancy and --- by the Professional Regulation Commission that such registrant has --- a minimum of --- years of meaningful experience in any of the areas of --- practice including ---. The Securities and Exchange Commission shall not --- any corporation organized for the --- of --- accountancy.

Answer 39

Single practitioners and partnerships for the practice of public accountancy shall be registered certified public accountants in the Philippines. A certificate of accreditation shall be issued to certified public accountants in public practice only upon showing in accordance with rules and regulations promulgated by the Board of Accountancy and approved by the Professional Regulation Commission that such registrant has acquired a minimum of three years of meaningful experience in any of the areas of public practice including taxation. The Securities and Exchange Commission shall not register any corporation organized for the practice of public accountancy.