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WorksheetsACCTG 106-ASSIGNMENT 1
Total questions: 25
Worksheet time: 19mins
What is the law regulating the practice of accountancy?
RA 9298
RA 9198
RA 9928
RA 9892
It is the body authorized by law to promulgate rules and regulations affecting the accountancy profession in the Philippines
BOA
PICPA
SEC
FSRSC
Which of the following does not constitute a practice of accountancy?
A person holding out himself as one skilled in the knowledge and practice of
accounting and as a qualified person to render professional services as a CPA
to more than one client.
A person representing his/her employer before government agencies on tax
and other accounting related matters.
A person in educational institution teaching accounting, auditing, business law,
taxation or other technically related subjects.
A person is appointed as marketing director of a government owned and
controlled corporation.
The Financial Reporting Standards Council (FRSC) is composed of nominees from
all of the following, except
Commission on Audit (CoA)
Bureau of Internal Revenue (BIR)
Financial Accounting Standards Board (FASB)
Professional Regulatory Board of Accountancy (BoA)
A professional identification card has a validity of (a) years.
The International Accounting Standards Board was formed
to enforce IFRS in foreign countries
to develop a single set of high quality standards
to establish accounting standards for multinational entities
to develop accounting standards for countries that do not have their own standard-setting bodies
Which of the following organization has been recognized by the Commission on October 2, 1975per Accreditation No. 15, As Accredited Professional Organization?
Board of Accountancy (BOA)
Association of CPAs in Education (ACPAE)
Association of CPA's in Public Practice (ACPAPP)
Philippine Institute of CPAs (PICPA)
Which of the following statements concerning the practice of accountancy is correct?
A CPA is in the practice of accountancy incommerce and industry when his/her positionrequires civil service eligibility as a CertifiedPublic Accountant.
A CPA is in the practice of accountancy in theacademe/education when he/she is in aneducational institution teaching any of thesubjects included in the BSA curriculum.
A CPA is in public accountancy when he/she renders his/her professional services as a CPA to more than one client on a fee basis in the design, installation, review, and revision of accounting systems and controls
A CPA is in the practice of accountancy in the government when he/she is involved in the auditor verification of financial transactions and accounting records of his/her clients.
All of the following are events considered as external events other than transfers, except
obsolescence
Inflation
imposition of fines
vandalism
Financial statements are said to be a mixture of fact and opinion. Which of the following items is factual?
cost of goods sold
retained earnings
discount on capital stock
. patent amortization expense
Financial accounting applies to which of the following:
Businesses
Non-profit organizations
Governments
All of these
The following relate to financial reporting. Choose the correct statement(s).
I. Since financial statements are historical, they are of little use in making decisions about the future.
II. Financial accounting is based on the presumption that all statement users need the same information.
III. Financial accounting is expressly designed to measure directly the value of a business enterprise.
I, III
II, III
II only
None
Which of the following statements is incorrect regarding accounting concepts?
Under the Accrual Basis of accounting, revenues are recognized when earned and expenses are recognized when incurred, not when cash is received and disbursed
Under the Going concern concept, the business entity is assumed to carry on its operations for an indefinite period of time.
Under the Business entity/ Separate entity/ Entity/ Accounting entity Concept, the business is treated separately from its owners
Under the Time Period/ Periodicity/ Accounting Period concept, the life of the business is divided into series of reporting periods
Under the Cost-benefit concept, the cost of processing and communicating information should exceed the benefits derived from it.
The valuation of an assurance to receive cash in the future at present value on a business entity’s financial statements is well-founded because of the accounting concept of:
Entity
Going-concern
Materiality
Neutrality
Mr. DJ owns a butcher shop, a restaurant, and a catering business. Separate financial statements are prepared for each business independent of the other businesses. What accounting principle or assumption is being applied in this situation?
time period
separate entity
full disclosure
unit-of-measure
For a fiscal year ending April 30, 20x2, the period covered by the statement of profit or loss and other comprehensive income is
April 1, 20x2 to April 30, 20x2
April 1, 20x1 to April 30, 20x2
May 1, 20x1 to April 30, 20x2
April 30, 20x1 to April 30, 20x2
A concept that states that all the components of a complete set of financial statement are interrelated
(a)
The process of converting non-cash resources and rights into cash or equivalent claims to cash is called
(a)
The accounting objective or theory that is directed towards proper valuation of assets
entity theory
residual equity theory
funds theory
proprietary theory
It is the exercise of care and caution in dealing with uncertainties in measurement so as not to overstate assets and income and not understate liabilities and expenses.
(a)
Which of the following is not a characteristic of management accounting?
The level of detail is greater than financial accounting
It must be in compliance with the IFRSs.
There is one primary user group
It deals primarily with segments of an organization.
General-purpose financial statements are the products of
financial accounting
managerial accounting
both financial and managerial accounting.
neither financial nor managerial accounting
A common set of accounting standards and procedures are called
financial account standards
generally accepted accounting principles
objectives of financial reporting
statements of financial accounting concepts
Accounting principles are "generally accepted" only when
a) an authoritative accounting rule-making body has established it in an official pronouncement
b) it has been accepted as appropriate because of its universal application
both a and b
neither a nor b
In the absence of a GAAP addressing a particular transaction
Management may use its judgment in developing a relevant and reliable accounting policy
Management may use its judgment in developing a relevant and reliable accounting policy
The entity should refer to the Conceptual Framework
The entity should refer to its External Auditor
