ACCTG 106-ASSIGNMENT 1

What is the law regulating the practice of accountancy?

• RA 9298

• RA 9198

• RA 9928

• RA 9892

It is the body authorized by law to promulgate rules and regulations affecting the accountancy profession in the Philippines

• BOA

• PICPA

• SEC

• FSRSC

Which of the following does not constitute a practice of accountancy?

• A person holding out himself as one skilled in the knowledge and practice of

  accounting and as a qualified person to render professional services as a CPA

  to more than one client.

• A person representing his/her employer before government agencies on tax

  and other accounting related matters.

• A person in educational institution teaching accounting, auditing, business law,

  taxation or other technically related subjects.

• A person is appointed as marketing director of a government owned and

  controlled corporation.

Answer explanation

A person is appointed as marketing director of a government owned and controlled corporation. (NOT a CPA)

The Financial Reporting Standards Council (FRSC) is composed of nominees from

all of the following, except

• Commission on Audit (CoA)

• Bureau of Internal Revenue (BIR)

• Financial Accounting Standards Board (FASB)

• Professional Regulatory Board of Accountancy (BoA)

A professional identification card has a validity of (a)   years.

The International Accounting Standards Board was formed

• to enforce IFRS in foreign countries

• to develop a single set of high quality standards

• to establish accounting standards for multinational entities

• to develop accounting standards for countries that do not have their own standard-setting bodies

Which of the following organization has been recognized by the Commission on October 2, 1975per Accreditation No. 15, As Accredited Professional Organization?

• Board of Accountancy (BOA)

   

•  Association of CPAs in Education (ACPAE)

•  Association of CPA's in Public Practice (ACPAPP)

• Philippine Institute of CPAs (PICPA)

Which of the following statements concerning the practice of accountancy is correct?

•  A CPA is in the practice of accountancy incommerce and industry when his/her positionrequires civil service eligibility as a CertifiedPublic Accountant.

•  A CPA is in the practice of accountancy in theacademe/education when he/she is in aneducational institution teaching any of thesubjects included in the BSA curriculum.

• 
   A CPA is in public accountancy when he/she renders his/her professional services as a CPA to more than one client on a fee basis in the design, installation, review, and revision of accounting systems and controls

• A CPA is in the practice of accountancy in the government when he/she is involved in the auditor verification of financial transactions and accounting records of his/her clients.

All of the following are events considered as external events other than transfers, except

• obsolescence

• Inflation

• imposition of fines

• vandalism

Financial statements are said to be a mixture of fact and opinion. Which of the following items is factual?

• cost of goods sold

• retained earnings

• discount on capital stock

• . patent amortization expense