CFAS REVIEWER PT. 1

What is the overall objective of accounting?

• a. To provide the information that the managers of an economic entity need to control the operations.

• b. To provide information that the creditors can use in deciding whether to grant loans to an entity.

• c. To measure the periodic income of the economic entity.

• d. To provide quantitative financial information about an entity useful in making economic decision.

What is the law regulating the practice of accountancy in the Philippines?

• a. R.A. No. 9298

• b. R.A. No. 9198

• c. R.A. No. 9928

• d. R.A. No. 9892

What is the body authorized by law to promulgate rules and regulations affecting the practice of the accountancy profession in the Philippines?

• a. Board of Accountancy

• b. Philippine Institute of Certified Public Accountants

• c. Securities and Exchange Commission

• d. Financial Reporting Standards Council

What are the three main areas in the practice of the accountancy profession?

• a. Public accounting, private accounting and managerial accounting.

• b. Auditing, taxation and managerial accounting.

• c. Financial accounting, managerial accounting and corporate accounting.

• d. Public accounting, private accounting and government accounting.

The term recognized is synonymous with the term

• a. Recorded

• b. Realized

• c. Matched

• d. Allocated

Which statement is correct in relation to the practice of public accountancy?

• a. Single practitioners for the practice of public accountancy shall be registered CPAs in the Philippines.

• b. Partners of partnerships formed for the practice of public accountancy shall be registered CPAs in the / Philippines.

• c. The Securities and Exchange Commission shall not register any corporation organized for the practice of public accountancy.

• d. All of these statements are correct about the practice of public accountancy.

5. CPAs are licensed by

• a. The PICPA

• b. The SEC

• c. The city government

• d. State government

What is the standard-setting body in the Philippines at the present time?

• a. Accounting Standards Council

• b. Auditing and Assurance Standards Council

• c. Philippine Accounting Standards Board

• d. Financial Reporting Standards Council

All of the following are represented in FRSC, except

• a. Board of Accountancy

• b. Securities and Exchange Commission

• c. Commission on Audit

• d. Department of Budget and Management

The Philippine Financial Reporting Standards collectively include

• a. PFRS corresponding to IFRS.

• b. PAS corresponding to IAS

• c. Philippine Interpretations corresponding to IFRIC and SIC Interpretations and Interpretations developed by PIC.

• d. All of these are included in Philippine Financial Reporting Standards