Accounting Standards and Professional Regulatory Bodies Quiz

Which professional regulatory body is responsible for regulating and licensing the practice of accounting in the Philippines?

• SEC

• PICPA

• BOA

• PRC

What is the primary function of the Professional Regulation Commission (PRC)?

• Maintaining and enforcing professional examinations

• Promulgating and implementing standards and ethics

• Acting on valid complaints by suspending and revoking license

• Providing legal and other regulatory services

Which of the following is not a sector of practice of the accountancy profession?

• Management Advisory Service

• Tax Accounting

• Public Accounting

• Medical Accounting

What is the essential characteristic of an asset according to the new definition?

• The asset is a present economic resource

• The economic resource is a right that has the potential to produce economic benefits

• All of the above

• The economic resource is controlled by the entity as a result of past events

Which of the following is an enhancing qualitative characteristic of useful financial information?

• Timeliness

• Materiality

• Consistency

• Verifiability

What is the purpose of the revised conceptual framework for financial reporting?

• To assist the IASB to develop IFRS standards based on consistent concepts

• To assist preparers of financial statements to develop consistent accounting policy

• All of the above

• To assist all parties to understand and interpret the IFRS Standards

What is the primary function of the Securities and Exchange Commission (SEC) in the Philippines?

• Regulates the operations of all banks and financing institutions

• Safeguards public interest specially investors in capital market

• Collects taxes and license compliance from people and business entities

• Regulates the practice of accountancy in the Philippines

What is the essential characteristic of a liability according to the new definition?

• All of the above

• The obligation is a present obligation that exists as a result of past event

• The obligation is to transfer an economic resource

• The entity has an obligation

What is the process of capturing for inclusion in the financial statements an item that meets the definition of an asset, liability, equity, income, or expense called?

• Verification

• Recognition

• Derecognition

• Measurement

Which of the following is an element directly related to the measurement of financial performance?

• Income

• Liability

• Asset

• Equity