QUIZ #1 vb
1. Accounting is a service activity and its function is to provide quantitative information, primarily
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financial in nature, about economic activities, that is intended to be useful in making economic
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decisions. This accounting definition is given by:
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A. Accounting Standard Council vb vb
B. AICPA Committee on Accounting Terminology vb vb vb vb
C. American Accounting Association vb vb
D. Board of Accountancy vb vb
2. The basic objective of accounting is
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A. To provide the information that the managers of an economic activity need to control its
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operation vb
B. To provide information that the creditors of an economic entity can use in deciding
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whether to make additional loans to the entity
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C. To measure the periodic income of the economic activity
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D. To provide quantitative financial information about an entity that is useful in making
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rational economic decision
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3. These are the events that affect the entity in which other entities participate
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A. Internal events vb
B. External events vb
C. Current events vb
D. Obligating events vb
4. Accountants employed in entities in various capacity as accounting staff, chief accountant or
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controller are said to be engaged in
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A. Public Accounting vb
B. Private Accounting vb
C. Government Accounting vb
D. Financial Accounting vb
5. It is the body authorized by law to promulgate rules and regulations affecting the practice of the
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accountancy profession in the Philippines
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A. Board of Accountancy vb vb
B. Philippine Institute of Certified Public Accountants vb vb vb vb vb
C. Securities and Exchange Commission vb vb vb
D. Financial Reporting Standards Council vb vb vb
6. What is the law regulating the practice of accountancy in the Philippines
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A. RA No. 9298 vb vb
B. RA No. 9297 vb vb
C. RA No. 9892 vb vb
D. RA No. 9889 vb vb
,7. Financial accounting is concerned with
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A. General purpose reports on financial position and financial performance vb vb vb vb vb vb vb vb
B. Specialized reports for inventory management and control vb vb vb vb vb vb
C. Specialized reports for income tax computation and recognition vb vb vb vb vb vb vb
D. General purpose reports on changes in share prices and future estimates of market
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position vb
8. It is an independent examination that ensures the fairness and reliability of the reports that
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management submits to users outside the business entity
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A. Cost Accounting vb
B. Auditing
C. Tax Accounting vb
D. Accounting for Education vb vb
9. Financial accounting can be broadly defined as the area of accounting that prepares
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A. General purpose financial statements to be used by parties internal to the entity only
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B. Financial statements to be used by investors only vb vb vb vb vb vb vb
C. General purpose financial statements to be used by parties both internal and external to
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the entity vb vb
D. Financial statements to be used primarily by management vb vb vb vb vb vb vb
10. A conceptual framework for financial reporting is
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A. A statement of financial accounting standards that deal with the presentation of financial
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statements vb
B. An embodiment of generally accepted accounting principles that guides users of financial
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statements in assessing the reliability of financial statements
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C. A basic accounting assumption that guides the accountants in the preparation of financial
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statements vb
D. A theoretical foundation that guides the Financial Reporting Standard Council, prepares
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and users of financial accounting information in the preparation and presentation of
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financial statements. vb vb
11. Which of the following is not within the scope of Conceptual Framework?
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A. Objective of financial statements vb vb vb
B. Nature and definition of the elements of financial statements vb vb vb vb vb vb vb vb
C. Form of presentation of financial statements vb vb vb vb vb
D. Qualitative characteristics that make financial statements useful to users vb vb vb vb vb vb vb vb
12. The IASB’s Conceptual Framework
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I. Set out the concepts that underlie the preparation and presentation of financial
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statements for external users
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II. Is a Statement of FInancial Accounting Standards and hence defines the standards for
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various measurement or disclosure issues
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, III. Is connected with general-purpose financial statements, including consolidated financial
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statements
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A. I only
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B. II only vb
C. I and III
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D. I, II and III
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13. The primary responsibility for the financial statements of an enterprise rest with its
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A. Management
B. President
C. Shareholders
D. External Auditors vb
14. Financial accounting is the area of accounting that emphasizes reporting to
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A. Management
B. Regulatory bodies vb
C. Internal auditors vb
D. Creditors and investors vb vb
15. Managerial accounting is the area of accounting that emphasizes
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A. Reporting financial information to external users vb vb vb vb vb
B. Reporting to the SEC vb vb vb
C. Combining accounting knowledge with an expertise in data processing vb vb vb vb vb vb vb vb
D. Developing accounting information for use with an entity vb vb vb vb vb vb vb
16. General purpose financial statements are the product of
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A. Financial accounting vb
B. Managerial accounting vb
C. Both financial and managerial accounting
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D. Neither financial or managerial accounting vb vb vb vb
17. The International Accounting Standard Board was formed
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A. To enforce IFRS in foreign countries
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B. To develop a single set of high quality IFRS….
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C. To establish accounting standards for multinational entities
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D. To develop accounting standards for countries that do not have their own standard setting
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bodies vb
18. The International Accounting Standard Board publishes its standards in series of
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pronouncement called
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A. International Accounting Standards vb vb
B. Financial Reporting Standards vb vb
C. International Financial Reporting Standards vb vb vb
D. Statement of Financial Accounting Standards vb vb vb vb
, 19. The International Accounting Standard Committee publishes its standards in series of
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pronouncement called
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A. International Accounting Standards vb vb
B. Financial Reporting Standards vb vb
C. International Financial Reporting Standards vb vb vb
D. Statement of Financial Accounting Standards vb vb vb vb
20. This is a complete, comprehensive and single document promulgated by IASB establishing
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the concept that underlie financial reporting
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A. Conceptual Framework for Financial Reporting vb vb vb vb
B. Conceptual Framework for Financial Statements vb vb vb vb
C. Conceptual Framework for Business Entities vb vb vb vb
D. Framework for the Preparation and Presentation of Financial Statements vb vb vb vb vb vb vb vb
21. What is the authoritative status of the Conceptual Framework?
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A. The Conceptual Framework has the highest level of authority
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B. In the absence of the standard or interpretation that specifically applies to a transaction,
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the Conceptual Framework shall be followed
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C. In the absence of the standard or an interpretation that specifically applies to a
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transaction, management shall consider the applicability of the Conceptual Framework in
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developing and applying an accounting policy that results in information that is relevant
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and faithfully represented
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D. The Conceptual Framework applies only when the FRSC develops new or revised
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standardsvb
22. A Conceptual Framework should
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A. Lead to uniformity of financial statements amount entities within the same industry
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B. Eliminate alternative accounting principles vb vb vb
C. Guide the PICPA in developing generally accepted auditing standards
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D. Define the basic objectives, terms and concepts of accounting vb vb vb vb vb vb vb vb
23. In the Conceptual Framework for Financial Reporting, what provides the “why” of
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accounting?
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A. Measurement and recognition concept vb vb vb
B. Qualitative characteristics of accounting information vb vb vb vb
C. Element of financial statement vb vb vb
D. Objective of financial reporting vb vb vb
24. Which of the following statements is true concerning the Conceptual Framework?
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I. The Conceptual Framework is concerned with general purpose financial statements
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including consolidated financial statements
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II. Special purpose financial reports, for example, prospectuses and computation prepared
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for taxation purposes are within the scope of the Conceptual Framework
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1. Accounting is a service activity and its function is to provide quantitative information, primarily
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financial in nature, about economic activities, that is intended to be useful in making economic
vb vb vb vb vb vb vb vb vb vb vb vb vb vb vb
decisions. This accounting definition is given by:
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A. Accounting Standard Council vb vb
B. AICPA Committee on Accounting Terminology vb vb vb vb
C. American Accounting Association vb vb
D. Board of Accountancy vb vb
2. The basic objective of accounting is
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A. To provide the information that the managers of an economic activity need to control its
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operation vb
B. To provide information that the creditors of an economic entity can use in deciding
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whether to make additional loans to the entity
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C. To measure the periodic income of the economic activity
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D. To provide quantitative financial information about an entity that is useful in making
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rational economic decision
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3. These are the events that affect the entity in which other entities participate
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A. Internal events vb
B. External events vb
C. Current events vb
D. Obligating events vb
4. Accountants employed in entities in various capacity as accounting staff, chief accountant or
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controller are said to be engaged in
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A. Public Accounting vb
B. Private Accounting vb
C. Government Accounting vb
D. Financial Accounting vb
5. It is the body authorized by law to promulgate rules and regulations affecting the practice of the
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accountancy profession in the Philippines
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A. Board of Accountancy vb vb
B. Philippine Institute of Certified Public Accountants vb vb vb vb vb
C. Securities and Exchange Commission vb vb vb
D. Financial Reporting Standards Council vb vb vb
6. What is the law regulating the practice of accountancy in the Philippines
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A. RA No. 9298 vb vb
B. RA No. 9297 vb vb
C. RA No. 9892 vb vb
D. RA No. 9889 vb vb
,7. Financial accounting is concerned with
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A. General purpose reports on financial position and financial performance vb vb vb vb vb vb vb vb
B. Specialized reports for inventory management and control vb vb vb vb vb vb
C. Specialized reports for income tax computation and recognition vb vb vb vb vb vb vb
D. General purpose reports on changes in share prices and future estimates of market
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position vb
8. It is an independent examination that ensures the fairness and reliability of the reports that
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management submits to users outside the business entity
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A. Cost Accounting vb
B. Auditing
C. Tax Accounting vb
D. Accounting for Education vb vb
9. Financial accounting can be broadly defined as the area of accounting that prepares
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A. General purpose financial statements to be used by parties internal to the entity only
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B. Financial statements to be used by investors only vb vb vb vb vb vb vb
C. General purpose financial statements to be used by parties both internal and external to
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the entity vb vb
D. Financial statements to be used primarily by management vb vb vb vb vb vb vb
10. A conceptual framework for financial reporting is
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A. A statement of financial accounting standards that deal with the presentation of financial
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statements vb
B. An embodiment of generally accepted accounting principles that guides users of financial
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statements in assessing the reliability of financial statements
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C. A basic accounting assumption that guides the accountants in the preparation of financial
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statements vb
D. A theoretical foundation that guides the Financial Reporting Standard Council, prepares
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and users of financial accounting information in the preparation and presentation of
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financial statements. vb vb
11. Which of the following is not within the scope of Conceptual Framework?
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A. Objective of financial statements vb vb vb
B. Nature and definition of the elements of financial statements vb vb vb vb vb vb vb vb
C. Form of presentation of financial statements vb vb vb vb vb
D. Qualitative characteristics that make financial statements useful to users vb vb vb vb vb vb vb vb
12. The IASB’s Conceptual Framework
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I. Set out the concepts that underlie the preparation and presentation of financial
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statements for external users
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II. Is a Statement of FInancial Accounting Standards and hence defines the standards for
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various measurement or disclosure issues
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, III. Is connected with general-purpose financial statements, including consolidated financial
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statements
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A. I only
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B. II only vb
C. I and III
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D. I, II and III
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13. The primary responsibility for the financial statements of an enterprise rest with its
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A. Management
B. President
C. Shareholders
D. External Auditors vb
14. Financial accounting is the area of accounting that emphasizes reporting to
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A. Management
B. Regulatory bodies vb
C. Internal auditors vb
D. Creditors and investors vb vb
15. Managerial accounting is the area of accounting that emphasizes
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A. Reporting financial information to external users vb vb vb vb vb
B. Reporting to the SEC vb vb vb
C. Combining accounting knowledge with an expertise in data processing vb vb vb vb vb vb vb vb
D. Developing accounting information for use with an entity vb vb vb vb vb vb vb
16. General purpose financial statements are the product of
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A. Financial accounting vb
B. Managerial accounting vb
C. Both financial and managerial accounting
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D. Neither financial or managerial accounting vb vb vb vb
17. The International Accounting Standard Board was formed
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A. To enforce IFRS in foreign countries
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B. To develop a single set of high quality IFRS….
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C. To establish accounting standards for multinational entities
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D. To develop accounting standards for countries that do not have their own standard setting
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bodies vb
18. The International Accounting Standard Board publishes its standards in series of
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pronouncement called
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A. International Accounting Standards vb vb
B. Financial Reporting Standards vb vb
C. International Financial Reporting Standards vb vb vb
D. Statement of Financial Accounting Standards vb vb vb vb
, 19. The International Accounting Standard Committee publishes its standards in series of
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pronouncement called
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A. International Accounting Standards vb vb
B. Financial Reporting Standards vb vb
C. International Financial Reporting Standards vb vb vb
D. Statement of Financial Accounting Standards vb vb vb vb
20. This is a complete, comprehensive and single document promulgated by IASB establishing
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the concept that underlie financial reporting
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A. Conceptual Framework for Financial Reporting vb vb vb vb
B. Conceptual Framework for Financial Statements vb vb vb vb
C. Conceptual Framework for Business Entities vb vb vb vb
D. Framework for the Preparation and Presentation of Financial Statements vb vb vb vb vb vb vb vb
21. What is the authoritative status of the Conceptual Framework?
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A. The Conceptual Framework has the highest level of authority
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B. In the absence of the standard or interpretation that specifically applies to a transaction,
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the Conceptual Framework shall be followed
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C. In the absence of the standard or an interpretation that specifically applies to a
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transaction, management shall consider the applicability of the Conceptual Framework in
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developing and applying an accounting policy that results in information that is relevant
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and faithfully represented
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D. The Conceptual Framework applies only when the FRSC develops new or revised
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standardsvb
22. A Conceptual Framework should
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A. Lead to uniformity of financial statements amount entities within the same industry
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B. Eliminate alternative accounting principles vb vb vb
C. Guide the PICPA in developing generally accepted auditing standards
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D. Define the basic objectives, terms and concepts of accounting vb vb vb vb vb vb vb vb
23. In the Conceptual Framework for Financial Reporting, what provides the “why” of
vb vb vb vb vb vb vb vb vb vb vb vb
accounting?
vb
A. Measurement and recognition concept vb vb vb
B. Qualitative characteristics of accounting information vb vb vb vb
C. Element of financial statement vb vb vb
D. Objective of financial reporting vb vb vb
24. Which of the following statements is true concerning the Conceptual Framework?
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I. The Conceptual Framework is concerned with general purpose financial statements
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including consolidated financial statements
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II. Special purpose financial reports, for example, prospectuses and computation prepared
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for taxation purposes are within the scope of the Conceptual Framework
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