CFAS CHAPTER 1

41問 • 2年前

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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

Accounting Standards Council

All of the following describe accounting, exceptAll of the following describe accounting, except

An exact science rather than an art

The important points made in the definition of accounting include all of the following, except

Accounting information is qualitative.

This accounting process is the recognition or nonrecognition of business activities as accountable events.

Identifying

What are the events that affect the entity and in which other entities participate?

External Events

Which is incorrect in relation to an accountable event?

Sociological and psychological matters are quantifiable.

What is the measuring component in the definition of accounting?

The assigning of peso amounts to the accountable events.

The most common financial attribute used in measuring financial intormation is

Historical Cost

The communicating process of accounting includes all of the following, except

Interpreting

What is the overall objective of accounting?

To provide quantitative financial information about an entity useful in making economic decision.

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

R.A. No. 9298

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

Board of Accountancy

What are the three, main areas in the practice of the accountancy profession?

Public accounting, private accounting and government accounting.

Which statement is correct in relation to the practice of public accountancy?

All of these statements are correct about the practice of public accountancy.

CPAs are licensed by

The PICPA

What is the standard-setting body in the Philippines the present time?

Financial Reporting Standards Council

All of the following are represented in FRAC, except

Department of Budget and Management

The Philippine Financial Reporting Standards collectively include

All of these are included in Philippine Financial Reporting Standards

Accounting standard-setting has been characterized as

A political process

GAAP is an abbreviation for

Generally accepted accounting principles

What is the primary service of CPAs in public practice?

Auditing

Accountants employed in entities in various capacity as accounting staff, chief accountant or controller are said to be engaged in

Private accounting

It is the area of the accountancy profession that encompasses the process of analyzing, classifying, summarizing and communcating all transactions involving the receipt and disposition of government funds and property and interpreting the results thereof.

Government Auditing

The Continuing Professional Development is required for

Both renewal of CPA license and accreditation to practice the accountancy profession

A CPA shall be permanently exempted from renewal of CPA license

At the age of 65

The International Accounting Standards Board was formed

To develop a single set of high quality IPRS

The International Accounting Standards Board

Promotes the use of high-quality and understandable global accounting standards.

The IASB declared that the merits of proposed standards are assessed

From a position of neutrality

The standard-setting process includes in the correct order

Research, discussion paper, exposure draft and accounting standard

The IASB employs a due process system which

Enables interested parties to express their views on issues under consideration.

What is due process in standard-setting by IASB?

All of these are part of due process in standard-setting.

The standards published by IASB are called

International Financial Reporting Standards

What is a possible danger if politics plays too big a role in developing IFRS?

Financial reporting standards are not truly generally accepted.

Accounting standard-setting

Can be described as a political process which reflects political actions of various interested user groups as well as a product of research and logic.

IFRIC Interpretations issued by IASB

All of these are true about IPRIC Interpretations.

Financial accounting is concerned with

General purpose reports on financial position and financial performance.

Financial accounting emphasizes reporting to

Creditors and investors

Managerial accounting emphasizes

Developing accounting information for use within an entity

Which statement is true regarding managerial and financial accounting?

Managerial accounting need not follow generally accepted accounting principles while financial accounting must follow GAAP.

Proper application of accounting principles is most dependent upon

Professional judgment of the accountant

The primary responsibility for properly applying GAAP lies with

Management

Quiz I.T Week 3

nicollette claire · 34問 · 2年前

Quiz I.T Week 3