ACCTG 22 Final Quiz

Which of the following organizations is responsible for setting International Financial Reporting Standards?

• Financial Accounting Standards Board.

• International Accounting Standards Committee.

• Financial Accounting Committee

• International Accounting Standards Board.

Which of the following is a counter-balancing error?

• Understated depletion expense

• Bond premium under amortized

• Prepaid expense adjusted incorrectly

• Overstated depreciation expense

What is the relationship between the Securities and Exchange Commission and accounting standard setting in the Philippines?

• The SEC requires all companies listed on an exchange to submit their financial statements to the SEC.

• The SEC coordinates with the FRSC in establishing accounting standards.

• The SEC has the mandate to establish accounting standards to be followed by enterprises under its jurisdiction.

• The SEC reviews financial statements for compliance.

If an entity uses a modified cash basis of accounting, the modifications from the accrual basis should have substantial support which requires that

• The financial statements have only minor modifications from GAAP.

• The modifications must be the same as those required by a regulatory body

• The modifications must be the same as GAAP and not illogical

• No modifications are allowed

In accounting, the concept of “recognition” means

• The process of formally incorporating in the totals of balance sheet and income statement an item that meets the” probability” and “measurability” criteria for accountable events

• Journalizing a transaction in the books of original entry and posting it to the ledger

• Assigning an amount or value to an accountable event and reporting it in the financial statements.

• Journalizing and posting an accountable event and including it in the trial balance totals

Which of the following statements about the accounting cycle is true?

• The first step in posting is to transfer the debit account from the journal to the ledger

• A periodic adjusting entry affects both a balance sheet and income statement accounts, or in some rare instances, only income statement accounts

• Selecting and analyzing accountable events are part of the recording phase of the accounting cycle

• Adjusting is part of the recording phase of accounting

Which of the following is not an objective of using the present value in accounting measurements?

• To capture the value of an asset or a liability in the context of a particular entity

• To estimate fair value.

• To capture the economic difference between sets of future cash flows

• To capture the elements that taken together would comprise a market price if one existed.

Which statement is incorrect?

• The Board of Accountancy(BOA) is under the supervision and administrative control of the Professional Regulation Commission

• The Financial Reporting Standards Council assists the BOA in carrying out its own power and function to promulgate accounting standards in the Philippines

• The Auditing and Assurance Standards Council shall be composed of fifteen members with a Chairman

• Commission on Audit is represented in the Philippines Interpretations Committee

An entity with total liabilities of P 100 million is considered as

• Publicly accounted entity

• Medium-sized entity

• Small entity

• Micro entity

Which statement is correct regarding the Conceptual Framework for Financial Reporting?

• Prevails in cases where there is a conflict with a PFRS

• Its foundation is the elements of financial statements

• Assist users of financial statements in applying the accounting standards

• It addresses the characteristics that make financial information useful