INTRODUCTION TO ACCOUNTING

1. The area of accounting aimed at serving the decision-making needs of internal users is:

A. Financial Accounting B. Managerial Accounting C. External auditing D. SEC Reporting

LETTER ONLY OK.

2. The best definition of an accounting system is:

A. Journals, ledgers, worksheets.

B. Manual or computer-based records used in developing information about an entity for use by managers and also persons outside the organization.

C. The personnel, procedures, devices, and records used by an entity to develop accounting information and communicate this information to decision-makers.

D. The concepts, principles, and standards specifying the information which should be included in financial statements, and how that information should be presented.

3. 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

4. It 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 Council

D. Financial Reporting Standards Council

5. It is the global phenomenon intended to bring about transparency and a higher degree of comparability in financial reporting in order to achieve the goal of one uniform and globally accepted financial reporting standards.

A. IFRS

B. Borderless Accounting

C. World trade

D. Information technology

6. External users include the following except

A. Creditors

B. Government agencies

C. Board of Directors

D. Suppliers

7. The "watchdog" of financial reporting

A. FASB

B. IFRS

C. SEC

D. BSP

8. Career opportunities in accounting may be divided into four broad areas.

Which of these consists of majority of the opportunities?

A. Public Accounting

B. Private Accounting

C. Governmental Accounting

D. Academe

9. Financial Accounting can be broadly defined as the area of accounting that prepares

A. General purpose financial statements to be used by parties internal to the entity.

B. Financial statements to be used by investors.

C. General purpose financial statements to be used by parties both internal and external to the entity.

D. Financial statements to be used primarily by management.

10. It is the body authorized by the law to promulgate rules and regulations affecting practice of the 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