Accounting Quiz

Accounting has been various definitions, which of the following is not one of those definitions?

• Accounting is a service activity. Its function is to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions.

• Accounting is the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part of at least, of a financial character and interpreting the results thereof.

• Accounting is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between these assertions and established criteria communicating the results to interested users

• Accounting is the process of identifying, measuring and communicating economic information to permit informed judgement and decisions by users of information.

What is the overall objective of accounting?

• To measure the periodic income of the economic entity.

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

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

• To provide quantitative financial information about an entity that is useful in making economic decisions.

Which of the following is considered to be an external event other than transfers?

• I. Theft II. Vandalism III. Change in market value of assets

• I and II

• II and III

• I and III

One of the basic features of financial accounting is.

• Direct measurement of economic resources and obligations and changes in them in terms of money.

• Direct measurement of economic resources and obligations and changes in them in terms of money and sociological impact.

• Direct measurement of economic resources and obligations and changes in them in terms of money and psychological impact

Which of the following statements in relation to the Board of Accountancy and its composition is(are) incorrect?

• Board shall be composed of a chairman and six (6) members to be appointed by the Chairman of the Professional Regulations Commission.

• The Board shall elect a chairman from, among its members to serve for a term for one year.

• The Board consists of a chairman and six members with a term of 3 years, renewable:

If the PICPA fails to submit to the PRC its own nominees within 60days prior to the expiry of the term of an incumbent chairman or member of BOA, the PRC shall submit to President a list of how many nominees?

• 2

• 1

• 3

• 5

Which of the following is not a qualification of a member of the BOA?

• He must be a natural born citizen and a resident of the Phils.

• He must not a director or officer of APO of CPAs at time of his appointment

• He must be of good moral character and must not have been convicted of crimes involving moral turpitude.

• He must be a duly registered CPA with at least 10yrs of experience in public accounting.

Who has the power to suspend and remove any member of members of BOA?

• The chairman of FSRSC

• The chairman of PRC

• The Chairman of AASC

• The President of Phils.

S1: The law regulating practice of accountancy in the Phils is RA 9289 or the Phil Accountancy Act of 2004 S2: A corporation can be registered for the purpose of practicing public accounting profession in the Phils. S3: CPD is required for both renewal of CPA license and accreditation to practice accountancy profession

• True, true, false

• False, false, true

• True, false, false

• True, false, true

Unless there is a valid reason to have additional representation, the PICPA shall have how many national directors?

• 12

• 14

• 15

• 20