Accounting Concepts and Standards Quiz

What is the overall objective of accounting?

• To provide information about the business operations

• To provide qualitative information about a business

• To provide information about the business environment

• To provide quantitative financial information about a business

What is the composition of FRSC?

• 5 members with a Chairman

• 20 members with a Chairman

• 15 members with a Chairman

• 10 members with a Chairman

What is the purpose of accounting standards?

• To regulate the accounting profession

• To provide guidelines for tax preparation

• To standardize the accounting software

• To identify proper accounting practices for the preparation and presentation of financial statements

What is R.A 9298?

• A regulation for public accounting

• A law regulating the practice of accountancy in the Philippines

• A standard-setting body for accounting practices

• A professional organization for accountants

What are the measurement bases used in accounting?

• Fulfillment value and current cost

• Historical cost and current value

• Current value and value in use

• Historical cost and fair value

What is the exemption from the CPD requirements?

• A CPA shall be permanently exempted from CPD requirements upon reaching the age of 60 years

• A CPA shall be permanently exempted from CPD requirements upon reaching the age of 65 years

• A CPA shall be permanently exempted from CPD requirements upon reaching the age of 70 years

• A CPA shall be permanently exempted from CPD requirements upon reaching the age of 55 years

What is the meaning of generally accepted accounting principles or GAAP?

• A set of guidelines for budgeting

• A set of guidelines for tax preparation

• A set of guidelines for internal audits

• Rules, procedures, practice and standards followed in the preparation and presentation of financial statements

What do you understand about PIC and IFRIC?

• PIC prepares interpretations of IFRS for approval by the FRSC and IFRIC is the counterpart of the PIC

• PIC prepares interpretations of IFRS for approval by the IFRIC and IFRIC is the counterpart of the FRSC

• PIC prepares interpretations of PFRS for approval by the IFRIC and IFRIC is the counterpart of the FRSC

• PIC prepares interpretations of PFRS for approval by the FRSC and IFRIC is the counterpart of the PIC

What do you understand about the International Accounting Standards Committee?

• It is a regulatory authority

• It is a government body

• It is a private sector body

• It is a non-profit organization

What are the twin objectives of IASC?

• To create chaos in financial reporting

• To work against the improvement of regulations

• To achieve uniformity in accounting principles

• To promote financial fraud