FAR 1

According to the American Accounting Association (AAA), what is the process of accounting?

• Identifying, Measuring, Communicating

• Recording, Classifying, Summarizing

• Analyzing, Determining, Preparing

• Examining, Sorting, Distributing

What is the primary service offered by most public accounting practitioners?

• Auditing

• Financial reporting

• Taxation service

• Management advisory service

What is the highest accounting officer in a business entity in the Commerce and Industry field?

• Financial analyst

• Tax consultant

• Auditor

• Controller

What do PFRSS set out dealing with transactions and events in financial statements?

• Recognition, Measurement, Presentation, Disclosure

• Recording, Classifying, Summarizing

• Analyzing, Determining, Communicating

• Examining, Sorting, Distributing, Preparing

To which entities do PFRSS apply?

• Only public accounting practitioners

• Only private accounting entities

• Only government entities

• All profit-oriented entities preparing general purpose financial statements

What do paragraphs in bold type indicate in the structure of PFRS?

• Supporting principles

• Exceptions

• Main principles

• Limitations

Who is the current standard setting body in the Philippines?

• Philippine Interpretations Committee (PIC)

• Financial Reporting Standards Council (FRSC)

• International Accounting Standards Board (IASB)

• Accounting Standards Council (ASC)

Who appoints the chairman and all the members of FRSC?

• Professional Regulation Commission (PRC)

• Board of Accountancy (BOA)

• International Financial Reporting Standards Foundation (IFRSF)

• Commission on Audit (COA)

How long is the term of office for the chairman and all the members of FRSC?

• 4 years

• 2 years

• 5 years

• 3 years

What is the primary function of the Interpretations issued by PIC?

• Provide general principles for financial reporting

• Create new accounting standards

• Give authoritative guidance on issues likely to receive divergent treatment

• Set limitations on the scope of PFRS