FABM 01

What type of accounting information shows the financial condition of the business?

•   information for tax management

• information on net profit or net loss

• information on total cost and per unit cost

• information of the financial position

Which branch of accounting should you request when you want to investigate if financial statements are reported accurately?

• Accounting research

• Auditing

• Accounting education

• Tax accounting

Instead of following the usual yearly accounting period, Mariah, the accountant of Bida Singers Ltd., preferred to do the accounting cycle bi-annually (every two years). As such, the company’s statutory obligations ballooned up compared to what they needed to settle. Which function of accounting was NOT followed that led to this scenario?

• Protecting the business assets

• Accounting as an information system

• Keeping systematic records of transactions

• Communicating results to different parties

An accountant cannot proceed with recording without identifying first the relevant

financial data. What nature of accounting does this statement manifest?

• Accounting as a service activity

• Accounting as an information system

• Accounting as a process

• Accounting as an art

Which of the following will be considered most by the suppliers when making business decisions?

•   Solvency of the customers

• Repayment ability of the customers

• Production capacity of the customers

• Profitability of the customers

What would help W Bank Corporation decide whether to approve credit applications of their clients?

• The information on the client’s compliance based on tax records                 

• The information on the client’s compensation and benefits programs

• The information on the client’s ability to pay obligations

• The information on the client’s production and distribution capacity

What type of accounting information is needed by the Bureau of Internal Revenue (BIR)?

•   information for tax management

• information on net profit or net loss

• information on total cost and per unit cost

• information on the financial plan of the business

Which branch of accounting offers the service of producing financial statements that follow accounting standards?

• Managerial accounting

• Financial accounting     

• Tax accounting

• Cost accounting

“The management forwarded its financial statements to request a loan from our institution.”

• Internal user, employee

• Internal user, owner  

• External user, creditor

• External user, investor

The company bought machinery to produce more products. Which of the following cash activities is related to this transaction?

• financing activities

• operating activities

• investing activities

• business activities