CFAS BSA 1 - Quiz 03

Statement 1: IFRS are more rules-based.

Statement 2: US GAAP is more principles-based.

• Statement 1 is true.

• Statement 2 is true.

• Both statements are false.

• Both statements are true.

Bookkeeping and accounting are the same.

• True.

• False

• Cannot say.

• Maybe.

A calendar year period in accounting refers to a 12-month period that starts at a date other than

January 1.

• True.

• False.

In case of a conflict between Standards and the Conceptual Framework, the Standards prevail.

• True.

• False.

The stated purpose of the conceptual framework is as listed except for one. Which is it?

• To assist the IASB to develop IFRS

  Standards that are based on consistent concepts.

• To assist all parties to understand and

  interpret the standards.

• To assist preparers to develop consistent

  accounting policies when no standard applies to a particular transaction or another event or

  when a standard allows a choice of accounting policy

• To assist all Accounting professionals in the practice of their profession or sector.

The Conceptual Framework is an accounting standard in itself.

• True.

• False.

Large entities are companies that have:

• Total assets of more than ₱350 million or Total liabilities of more

  than ₱250 million.

• Total assets of more than ₱250 million or Total liabilities of more

  than ₱350 million.

• Total assets of more than ₱350 million or Total liabilities of more

  than ₱350 million.

• Total assets of more than ₱250 million or Total liabilities of more

  than ₱250 million.

All are part of the three important activities included in the definition of Accounting except for one. Choose the incorrect answer.

• Communicating

• Identification

• Measuring

• Recording

Which of the following statements is correct?

• Accounting provides quantitative information only.

• Qualitative information can be found only in the notes to the financial statements.

• The only acceptable measurement basis in Accounting is historical cost.

• Accounting is considered an art because it requires the use of creative skills and judgement.

Which of the following is not among the Four Sectors in the practice of accountancy as enumerated in R.A. 9298 also known as the “Philippine Accountancy Act of 2004”?

• Practice in Commerce and Industry

• Practice in Education/Academe

• Practice in Private Accountancy

• Practice in the Government