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WorksheetsAccountancy Profession
Total questions: 20
Worksheet time: 15mins
What is the law regulating the practice of accountancy in the Philippines?
R.A. NO. 9298
R.A. NO. 9198
R.A. NO. 9928
R.A. NO. 9892
It is the body authorized by law to promulgate rules and regulations affecting the practice of the accountancy profession in the Philippines.
Board of Accountancy
Philippine Institute of Certified Public Accountancy
Securities and Exchange Commission
Financial Reporting Standards Council
The qualifications of the members of the Board of Accountancy include all of the following, except
Must be a natural-born citizen and a resident of the Philippines.
Must be duly registered CPA with at least ten years of work experience in any scope of practice of accountancy
Must be of good moral character and must not have been convicted of crime involving moral turpitude.
Must have any pecuniary interest, directly or indirectly, in any school conferring an academic degree necessary for admission to the practice of accountancy
What are the three main areas in the practice of the accountancy profession?
Public accounting, private accounting and managerial accounting
Auditing, taxation and managerial accounting
Financial accounting, managerial accounting and corporate accounting
Public accounting, private accounting and government accounting
What is the primary service of CPAs in public practice?
Auditing
Taxation
Managerial Accounting
Controllership
It is the are of the accountancy profession that encompasses the process of analyzing, classifying, summarizing and communicating all transactions involving the receipt and disposition of government funds and property and interpreting the results thereof
Internal auditing
External auditing
Private accounting
Government accounting
The Continuing Professional Development is required for
Renewal of CPA license
Accreditation to practice the accountancy profession.
Both renewal of CPA license and accreditation to practice the accountancy profession
Neither renewal of CPA license nor accreditation to practice the accountancy profession.
The Continuing Professional Development is required for
Renewal of CPA license
Accreditation to practice the accountancy profession
Both renewal of CPA license and accreditation to practice the accountancy profession.
Neither renewal of CPA license nor accreditation to practice the accountancy profession
Which statement is true regarding exemptions from CPD requirements?
A CPA shall be permanently exempted from CPD requirement for renewal of CPA license at the age of 65 years but not for the accreditation to practice the accountancy profession.
A CPA who is working or practicing the profession abroad shall be temporarily exempted from CPD requirement during the period of stay abroad provided the CPA has been out of the country for at least two years prior to the date of renewal.
A CPA who is furthering studies abroad shall be temporarily exempted from CPD requirement during the period of stay abroad provided the CPA has been out of the country for at least two years prior to date of renewal.
All of the statements are true.
Which statement is incorrect in relation to the practice of public accounting?
Single practitioners for the practice of public accounting shall be registered CPAs in the Philippines.
Partners of partnership formed for the practice of public accounting shall be registered CPAs in the Philippines.
The Securities and Exchange Commission can register any corporation organized for the practice of public accounting.
The Professional Regulation Commission upon favorable recommendation of the Board of Accountancy shall issue certificate of accreditation to CPAs in public practice provided the registrant has acquired a minimum of three years of meaningful experience in public practice
Which statement is true regarding the FRSC?
The FRSC is created by Professional Regulation Commission upon recommendation of the Board of Accountancy in carrying out its powers and functions under R.A. 9298.
The FRSC shall be composed of 15 with a Chairman and 14 representatives.
The chairman and members of FRSC are appointed by Professional Regulation Commission upon recommendation of the Board of Accountancy and shall have a term of three years renewable for another term.
All of the statements are true.
The Philippines Financial Reporting Standards collectively include
PFRS corresponding to IFRS.
PAS corresponding to IAS
Philippine Interpretations corresponding to IFRIC and SIC Interpretations and Interpretations developed by PIC.
All of these are included in Philippine Financial Reporting Standards.
What is the chronological order in the evaluation of a typical standard?
Exposure draft, Standard and Discussion paper
Exposure draft, Discussion paper and Standards
Standard, Discussion paper and Exposure draft
Discussion paper, Exposure draft and standard
In the development of accounting standards, the FRSC employs a "due process" system which
Is efficient for collecting dues from members
Enables interested parties to express their views on accounting issues under consideration
Identifies the accounting issues that are the most important
Requires that all CPAs must receive a copy of IFRS
Financial accounting standard-setting
is a democratic process in that a majority of practicing accountants must agree with a standard before it becomes enforceable
is a legislative process based on rules promulgated by government agencies
is based solely on research
is a social process which incorporates political actions of various interested user groups as well as professional research and logic
The purpose of the International Financial Reporting Standard is to
Issue enforceable standards which regulate the financial accounting and reporting of multinational entities
Develop a uniform currency in which the financial transactions of entities throughout the world would be measured
Promote uniform accounting standards among countries of the world
Arbitrate accounting disputes between auditors and international studies
The international Accounting Standards Board was formed to
Enforce IFRS in foreign countries
Develop a single set of high quality IFRS
Establish accounting standards for multinational entities
Develop accounting standards for countries that do not have standard setting-body
It is a "global phenomenon" intended to bring about transparency ad a higher degree of comparability in financial reporting in order to achieve the goal of one uniform and globally accepted financial reporting standards.
IFRS
Borderless accounting
World trade
Information Technology
Accounting is a service activity and its function is to provide quantitative information, primarily financial in nature, about economic entities, that is intended to be useful in making economic decision. This accounting definition is given by
Accounting Standards Council
AICPA Committee on Accounting Terminology
American Accounting Association
Board of Accountancy
The Philippine Financial Reporting Standards collectively include
I. PFRS corresponding to IFRS
II. PAS corresponding to IAS
III. Philippine Interpretations corresponding to IFRIC and SIC Interpretations and Interpretations developed by PIC
I Only
I and II only
I and III only
I, II, and III
