Reviewer ni Ritsard sa CFAs Padayon!!!!

Financial accounting is concerned with

• General- purpose reports on financial position and financial performance

• Specialized reports for inventory management and control.

• Specialized reports for income tax computation and recognition

• General- purpose reports on changes in stock prices and future estimates of market position.

The assumed continuation of a business entity in the absence of evidence to the contrary is an example of the accounting concept of

• Accrual

• Consistency

• Comparability

• Going concern

The primary focus of financial accounting has been on meeting the needs of which of

the following groups?

• Managers of an entity

• Present and potential creditors of an entity

• National and local taxing authorities

• Independent auditors

It is a global phenomenon" intended to bring about transparency and a higher degree of comparability in financial reporting, both of which will benefit the investors and are essential to achieve the goal of one uniform and globally accepted financial reporting standards.

• IFRS

• Borderless accounting

• World trade

• Information technology

Accounting is a service activity and its function is to provide quantitative information, primarily financial in nature, about economic entities, that is intended to be usefiul in making economic decision. This accounting definition is given by

• Financial Reporting Standards Council

• AICPA Committee on Accounting Terminology

• American Accounting Association

• Board of Accountancy

Once an accounting standard has been established

• The standard is continually reviewed to see if modification is necessary

• The standard is not reviewed unless the SEC makes a compliant.

• The task of reviewing the standard to see if modification is necessary is given to the PICPA,

• The principle of consistency requires that no revisions ever be made to the standard.

The process of establishing financial accounting standards

• Is a democratic process in that a majority of practicing accountants must agree with a standard before it becomes implemented.

• Is a legislative process based on rules promulgated by government agencies

• Is based solely on economic analysis of the effects each standard will have if it is implemented.

• Is a social process which incorporates political actions of various interested users groups as

  well as professional research and logic

Which accounting process is the recognition or non-recognition of business activities as accountable events?

• Identifying

• Measuring

• Recording

• Communicating

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

• Board of Accountancy

• Philippine Institute of Certified Public Accountant

• Securities and Exchange Commission

• Financial Reporting Standards Council

The basic purpose of accounting is

• To provide the information that the managers of an economic entity need to control its operation.

• To provide information that the creditors of an economic entity can use in deciding whether to make additional loans to the entity.

• To measure the periodic income of the economic entity.

• To provide quantitative financial information about an entity that is useful in making rational economic decision,