CHAPTER1-CFAS

1. Under the Philippine Accountancy Act of 2004 or RA 9298, The Professional

Regulatory Board of Accountancy shall be composed of

• a. Chairman and six members to be appointed by the President of the

  Philippines

• b. Chairman, Vice chairman and six members to be appointed by the

  President of the Philippines

• c. Chairman and six members to be appointed by PICPA

• d. Chairman and six members to be appointed by PRC.

2. 2. Which statement is correct regarding the Financial Sustainability and Reporting

Standards Council?

• a. Established by PICPA in 2006 under the Implementing Rules and

  Regulations of the Philippine Accountancy Act of 2004.

• b. The main function is to establish generally accepted auditing standards

  in thé Philippines.

• c. The chairman and the members, of the FSRSC are appointed by the

  President of the Philippines upon the recommendation of the PRC in

  coordination with the APo.

• d. The FSRSC is the successor of the Accounting Standards Council which

  was created in November 1981 by the Philippine Institute of Certified

  Public Accountants (PICPA)

3. The FSRSC was created by the Board of Accountancy to assist the BOA in

carrying out its power and function to

• a. Promulgate accounting standards in the Philippines

• b. Promulgate auditing standards in the Philippines

• c. Ensure that all higher educational instruction and offering accountancy comply with the policies, standards and requirements of the course prescribe by CHED

• d. implement the CPE program.

4. Which of the following is correct regarding FSRSC?

• a. Any mernber of the ASC shall be disqualified from being appointed to

  the FRSC

• b. FRSC members are required to render service to the council on a full

  time basis

• c. FRSC members should be CPAs

• d. FRSC members serve for a term of three years renewable for another

  term

5. The chairman of the FSRSC should have been or presently a senior practitioner in

• a. Public accountancy

• b. Commerce and Industry

• C. Academe

• d. Any scope of accounting practice

6. Which of the following is represented in FSRSC?

• a. FINEX

• b. Bureau of Fisheries

• C. Insurance Commission

• d. Commission on Higher Education

7. The purpose of IASB is to

• a. Issue enforceable standards which regulate the financial accounting and

  reporting of multinational corporations

• b. Develop a uniform currency in which the financial transactions of

  companies through out the world would be measured.

• c. Develop a single set of high-quality IFRS

• d. Arbitrate accounting disputes between auditors and international

  companies.

8. In "due process" system used by the IASB in the evolution of a typical IASB Standard. The chronological order of the following documents are released is as follows:

I - Exposure Dratt

II - ASB Standard

III - Discussion Paper

• a. I, II and III

• b. I, III and II

• C. II, III, I

• d. III, I, II

9. Which statement is true about the IASB's development of IFRSs?

• a. The IASB gives precedence to the balance sheet over Profit or Loss

• b. The IASB gives precedence to fair value accounting over amortized cost

• c. Both A and B

• d. Neither A nor B

10.Which of these statements regarding the IFRS and US GAAP is correct?

• a. IFRS is considered to be "principled based" and less detailed than US GAAP

• b. Both US GAAP and IFRS are considered to be "rules based", but US GAAP tends to be more complex

• c. US GAAP is considered to be "rules-base" and less detailed than IFRS

• d. US GAAP is considered to be "principled based and more detailed than IFRS