POA Quiz

What is the primary function of accounting according to the Accounting Standards Council (ASC)?

• To provide marketing strategies

• To provide qualitative information

• To provide quantitative information

• To provide legal advice

According to the American Accounting Association (AAA), what does accounting allow users to do?

• Ignore economic information

• Permit informed judgment and decision making

• Focus solely on financial statements

• Make uninformed decisions

What type of transactions involve economic events between two different entities?

• Internal transactions

• External transactions

• Non-accountable transactions

• Private transactions

Which of the following is an example of an internal transaction?

• Borrowing money from a bank

• Purchasing supplies from vendors

• Selling products to customers

• Hiring employees

What is the most common measurement basis in financial transactions?

• Future value

• Current cost

• Historical cost

• Fair value

What is the main objective of accounting?

• To provide quantitative financial information

• To manage human resources

• To create marketing plans

• To entertain stakeholders

What is required to practice accountancy in the Philippines?

• A degree in Business Administration

• A high school diploma

• A Bachelor of Science in Accountancy and passing an exam

• Experience in marketing

What does the Board of Accountancy do?

• Promulgate rules and regulations for accounting practice

• Conduct marketing research

• Manage public relations

• Oversee human resources

Which of the following is NOT a main area of practice for Certified Public Accountants?

• Marketing Accounting

• Government Accounting

• Private Accounting

• Public Accounting

What is the purpose of auditing in public accounting?

• To manage company resources

• To examine financial statements for fairness

• To prepare tax returns

• To provide marketing strategies