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Post-test - Introduction to Accounting

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Examinees A and B was able to get the following scores when they took the CPA licensure examination:

Examinee A: FAR - 86%, AFAR - 75%, Auditing - 65%, Management Services - 70%, Taxation - 72%, RFBT - 80%

Examinee B: FAR - 74%, AFAR - 85%, Auditing - 85%, Management Services - 65%, Taxation - 90%, RFBT - 88%

a)

Only Examinee A passed the licensure examination for CPAs.

b)

Only Examinee B passed the licensure examination for CPAs.

c)

Both examinees passed the licensure examination for CPAs

d)

Neither examinee passed licensure examination for CPAs.

2.

The branch of accounting dealing with the examination of general purpose financial statements to determine that it if free from material misstatements refers to

a)

General accounting

b)

Financial accounting

c)

Management accounting

d)

Auditing

3.

The end product of accounting and the means by which financial information is communicated to the users is called

a)

Financial statements

b)

General journal

c)

General ledgers

d)

Accountant

4.

As a user of financial statements, customers are interested in the financial information of its suppliers mainly to ensure that the latter

a)

has the ability of pay its employee's salaries

b)

complies with laws and regulations.

c)

can pay off its obligations as they fall due.

d)

will be able to deliver the goods or render the services promised to them.

5.

GHI Company purchases Item A in its operation, which will be used as the primary material in making Product X. GHI is a/an

a)

Service business

b)

Merchandising business

c)

Manufacturing business

d)

None of the above.

6.

Which of the following refers to a service business

a)

Buying and selling of goods in their original form.

b)

Sale of a skill-set and not necessarily a physical object.

c)

Mass production of a particular product.

d)

Stoking of a product for future sale.

7.

This type of business organization is created by a contractual agreement between two or more individual.

a)

Corporation

b)

Cooperative

c)

Partnership

d)

Sole proprietorship

8.

The least worry of a service business compared to merchandising or manufacturing business would be

a)

Sourcing, recruitment, development and retention of human resources.

b)

Procurement, stocking, warehousing and distribution of inventories.

c)

Recording and reporting financial transactions.

d)

Compliance with the requirements of laws and regulations.

9.

Who among the following is not an internal user of financial information?

a)

Rank and file employees of the reporting entity.

b)

Lenders and other creditors.

c)

Stockholders of the reporting entity.

d)

The reporting entity's management.

10.

The branch of accounting that mainly focus on determining the proper treatment of accounting transactions and presentation of the financial statements in accordance with the requirements of the generally accepted financial reporting framework.

a)

Financial accounting

b)

Management accounting

c)

Bookkeeping

d)

Government accounting

11.

The quality of a professional accounting that requires the one's professional or business judgements to be free from bias, conflict of interest or undue influence is

a)

Integrity

b)

Professional behavior

c)

Objectivity

d)

Confidentiality.

12.

To be qualified to take the licensure examination for CPAs, one must possess the following, except

a)

Must be a Filipino citizen

b)

Possesses good moral characters

c)

Must be a graduate of a 4-year course that is related to accounting.

d)

Has not been convicted of any criminal offense involving moral turpitude.

13.

When a professional accountant participates in preparing fraudulent financial statements that is aimed at misleading its users from the true financial condition and performance of an entity, this will put into question his/her

a)

Integrity.

b)

Professional competence and due care.

c)

Objectivity.

d)

Professional behavior.

14.

Financial accounting is concerned with the preparation of financial statements geared towards the needs of external users only.

a)

True

b)

False

15.

Financial statements are structured reports that shows an entity's financial position and performance.

a)

True

b)

False