WorksheetsFor my future CPA
Total questions: 55
Worksheet time: 28mins
Which of the following processes is considered bookkeeping?
a. Analyzing
b. Reporting
c. Recording
d. Summarizing
Krishna started a speech therapy center. He also sells professional books on speech development. What is the nature of his business? Support your answer with a reason
a. manufacturing
b. service
c. trading
d. service and trading
Which of the following is a trading business?
a. a clinic
b. a law firm
c. a pharmacy
d. a telecommunications company
Which of the following statements is false
a. A sole proprietor has a limited risk with respect to the amount of resources he invests in his business
b. A sole proprietorship has only one owner
c. A sole proprietorship is easy to set up
d. A sole proprietorship may not be able to obtain loans easily
A business which prepares financial statements every year is following the ___________ concept
A. accounting entity
B. periodically
C. process
D. objectivity
The ____________ concept assumes that the business has an indefinite economic life.
A. accounting entity
B. accounting period
C. going concern
D. objectivity
Which of the following processes best defines accounting?
a. measuring economic activities
b. communicating results to interested parties
c. Preventing fraud
d. both A and B
Which form of business organization is characterized by limited liability?
a. sole proprietorship
b. partnership
c. corporation
d. relationship
To which area of accounting are generally accepted accounting principles primarily relevant?
a. managerial Accounting
b. Financial Accounting
c. Tax Accounting
d. Financial Reporting to all Regulatory Agencies
Which of the following is not one of the three types of business activities?
a. Investing
b. Financing
c. Marketing
d. Operating
Which of the following is an appropriate definition of accounting?
a. The measurement, process, and communication of financial information about an identifiable economic entity
b. A means of recording transactions and keeping records
c. The interconnected network of subsystems necessary to operate a business.
d. Electronic collection, organization, and communication of vast amounts of information
Accountants employed by a particular business firm or not-for-profit organization, perhaps as chief accountant, controller, of financial vice president, are said to be engaged in.
a. general accounting
b. practice in commerce and industry
c. public accounting
d. independent accounting
The entity concept means that:
a. Because a firm is separate and distinct from its owners, those owners cannot have access to its assets unless the firm ceases to trade
b. Accounts must be prepared for every firm
c. The financial affairs of a firm and its owner are always kept separate for the purpose of preparing accounts.
d. none of the above
The financial accounting process provides information about economic activities of an enterprise for a specified accounting period that is shorter than the life of the enterprise.
a. time period
b. going concern
c. measurement of economic resources and obligations
d. measurement in terms of money
The consistency concept means that:
a. when preparing the account of a firm, one should normally account for similar items in the same way from one accounting period to the next
b. Firms in the same industry must account for similar items in the same way
c. Firms may never change the way in which they prepare their accounts
d. none of the above
Which accounting process os the recognition or non-recognition of business activities as accountable events?
a. Identifying
b. Communicating
c. Recording
d. Measuring
The consistency standard of reporting requires that:
a. expenses be reported as charges against the poried in which they are incurred.
b. the effect of changes in accounting upon income be properly disclosed.
c. extraordinary gains and losses should not appear on the income statement
d. accounting procedures be adopted which give a consistent rate of return
....
The following documents shall be submitted in support of the requirements in the previous question except the:
a. Certificate of Live Birth in National Statistics Office (NSO) security paper
b. Marriage Contract in NSO security paper for married female applicants
c. College diploma with date of graduation and Special Order Number
d. School Identification Card
e. Baccalaureate Transcipt of Records with date of graduation and Special Order Number
The basic purpose of accounting is:
a. To provide the information that the managers of an economic entity need to control its operation
b. To provide information that the creditors of an economic entity can use in deciding whether to make additional loans to the entity
c. To measure the periodic income of the economic entity
d. To provide quantitative financial information about a business enterprise that is useful in making rational economic decision
During the lifetime of an entity, accountants produce financial statements at arbitrary points in time in accordance with which basic accounting concept?
a. Objectivity
b. Periodically
c. Conservation
d. Matching
Which of the following best explain the feature of consistency of presentation?
a. When preparing the accounts of a firm, one should normally account for similar items in the same way from one accounting period to the next
b. Firms in the same industry must account for similar items in the same way
c. Firms must comply with accounting standards and regulations
d. None of the above
Which of the following statements about accounting concepts and the characteristics of financial reporting information is NOT true?
I. Entities may exclude information that is relevant in financial statements because it is too difficult for the users to understand.
ii. The historical cost concept means that only items capable of being measured in monetary terms can be recognized in the financial statements.
iii. Consistency in use of the same accounting policies for the same or similar items from one period to the next is essential to enhance comparability amon the entities.
a. i and ii
b. i and iii
c. ii and iii
d. All of the above
.....
Which type of business organization is owned by its stockholders?
a. Corporation
b. Partnership
c. Proprietorship
d. All the above are owned by stockholders
The skills needed to be developed by Filipino accountants included the following
a. Intellectual skills
b. Interpersonal skills
c. Communication Skills
d. "a" and "c" only
"a", "b", amd "c"
Which of the following accounting concepts states that an accounting transaction should be supported by sufficient evidence to allow two or more qualified individuals to arrive at essentially similar conclusions
a. Matching
b. Objectivity
c. Periodicity
d. Stable monetary unit
The financial statements should be stated in terms of a common financial denominator
a. Accrual
b. Going Concern
C. Time Period
D. Stable monetary unit
Stating assets and liabilities and changes in them in terms of a common financial denominator is a prerequisite in measuring financial position and periodic net income.
a. Unit of measure
b. Measurement of economic resources and obligations
c. exchange price
d. accrual
Carrying out professional responsibilities diligently and in accordance with applicable technical and professional standards is descriptive of the principle of:
a. professional competence and due care
b. Objectivity
c. Exchange price
d. Accrual
Carrying out professional responsibilities diligently and in accordance with applicable technical professional standards is descriptive of the principle of:
a. professional competence and due care
b. Objectivity
c. Independence
d. Integrity
A professional accountant should be straightforward and honest in all professional and business relationships. This is in consonance with the fundamental principles of:
A. Integrity
B. Objectivity
C. Confidentiality
D. Professional competence and due care
Proponents of historical costs maintain that in comparison with all other valuation alternatives for general purpose financial reporting, statements prepared using historical costs are more
a. Objective
B. Relevant
C. Indicative of the entity's purchasing power
D. Conservative
..........
The records of properties acquired and services availed of by a business are maintained in accordance with the:
a. business entity concept
b. Cost principle
c. proprietorship principle
d. matching principle
This principle requires relevant information to form part of financial statements for decision-making purposes
a. Objectivity
B. Materiality
C. Adequate Disclosure
D. Accounting Entity
The principle of objectivity includes the concept of:
a. Summarization
b. Verifiability
c. Classification
d. Conservatism
......
The concept of matching is best demonstrated by:
a. Not recognizing any expense unless some revenue is realized
b. Recognizing prepaid rent received as revenue
c. Associating effort with accomplishment
d. Establising an allowance for possible market decline in inventory account
......
Accounting changes are often made and the monetary impact is reflected in the financial statements of an entity even though, in theory, this may be a violation of the accounting concept of:
a. Materiality
b. Objectivity
c. Conservatism
d. Consistency
The measurement phase of accounting is accomplished by:
a. Storing data
b. Reporting to decision makers
c. Recording data
d. Processing data
......
A person applying for examination shall establish the following requisites to the satisfaction of the Board that he:
a. Is a Filipino citizen
b. Is a good moral character
c. Is a holder of the degree of Bachelor of Science in Accountancy conferred by a schoool, college, academy or institute duly recognized and/or accredited by the Commision on Higher Education (CHED) or other authoriized government offices and
d. Has not been convicted of any criminal offense involving moral turpitude
a. "a" and "c" only
b. "a", "b", and "c"
c. All of the above
........
The main function is to establish and improve accounting standards that will be generally accepted in the Philippines
a. Financial Reporting Standards Council
b. Professional Regulation Commission
c. Philippine Institute of CPAs
d. Board of Accountancy
.........
Accountants do not recognize that the value of the peso changes over time. This concept is called the?
a. Stable monetary unit concept
b. Going concern concept
c. Cost of Principle
d. Entity concept
................
Which area of public accounting means the examination of financial statements by a CPA for the purpose of expressing an opinion as to the fairness of the statements.
a. Management advisory services
b. Taxation
c. Internal auditing
d. External auditing
.......
The periodicity concept
a. Requires that all companies prepare monthly, quarterly and annual financial statements.
b. Results from the bureau of internal revenue requirement that taxable income be reported on an annual basis
c. Requires all companies to use a fiscal year ending December 31
d. Involves dividing the life of a business entity into accounting periods of equal length thus enabling the financial users to periodically evaluate the results of business operations
......
They encompass the conventions, rules, and procedures necessary to define what is accepted accounting practice
a. Accounting assumptions
b. Accounting concepts
c. Conceptual frameworks
d. Generally accepted accounting principles
.....
The Filipino accountants should possess knowledge to enable them to compete internationally, they are:
a. General knowledge
b. Organizational and Business Knowledge
c. Accounting Knowledge
d. All of the above
Which of the following best describes the attributes of a partnership?
a. Limited ability to raise capital: unlimited personal liability of owners.
b. Limited ability to raise capital; limited personal liability of owners
c. Ability to raise to raise large capitall; unlimited personal liability of owners
d. Ability to raise large amounts of capital; limited personal liability of owners
.........
The concept of accounting entity is applicable
a. only to the legal aspects of business organizations.
b. only to the economic aspects of business organizations
c. only to business organizations
d. whenever accounting is involved
................
Accounting is a service activity
TRUE
FALSE
Accounting is a general activity
TRUE
FALSE
Accounting doesn't have an information system
TRUE
FALSE
Accounting is the process of ____________, ______________ and ____________ ___________ information to permit informed judgements and decisions by users of information.
(di na pagbilangi ang mga underlines kay wala ko na man gi bilang HAHAHAHA)
Identifying, measuring, and communicating economic
developing, transfering and expanding
trading, marketing and industrial development
Accounting is the art of ___________. ____________, and __________ in a significant manner and in terms of money, transactions, and events which are in part at least, of a financial character, and interpreting the results.
recording, classifying and summarizing
transacting, dealing and marketing
calculating, organizing and formulating
which of the following is not a definition of accounting
1. Accounting is a service activity.
2. Accounting is an information system
3. Accounting is the process of identifying, measuring, and communicating economic information
4. Accounting is the art of recording, classifying, and summarizing
A. 1, 2 and 3
B. 1, 3, and 4
C. 2, 3 and 4
D. All of the above
Whati is accounting called?
"Language of Business"
"Language of Finance"
"Language of Business information"
"Language of Finance information"
A business can operate very long even without knowing how much it was earning and how much it was spending as long as you continue to work hard.
True
False
What are accountants called in business?
a. the scorekeepers
b. the operatives
c. the systemkeeper
d. the logkeeper
