ACCCOB2 Quiz 1 Questions and
Answers 100% Pass
relevance - ✔✔a fundamental qualitative characteristic of a financial information which
enables it to influence the decision of financial statement users
materiality - ✔✔the non-inclusion of such information could change the decision of a
financial statement user on the basis of the financial information of a specific entity
faithful representation - ✔✔a fundamental qualitative characteristic of a financial
information which states that the information should complete, neutral, and free from
material mistakes
comparability - ✔✔a qualitative characteristic that allows users to compare and contrast
items presented in a financial information, whether from the same entity at different
periods or with different entities in the same period
consistency - ✔✔refers to the application of the same procedures for the same items,
either from across periods within a reporting entity or in a single period among
different reporting entities
verifiability - ✔✔the qualitative characteristic that is displayed when different informed
and independent observers could reach the same conclusion, although not necessarily
complete agreement, that a particular financial information is faithfully represented
timeliness - ✔✔refers to promptly having information available to decision-makers to
allow them to make decisions
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,Understandability - ✔✔refers to the classifying, characterizing, and presenting of
information plainly and succinctly
Going Concern (Assumption) - ✔✔assumes that an entity has neither the intention nor
the need to liquidate or reduce materially the scale of its operations
asset - ✔✔a present economic resource controlled by an entity as a result of past events
liability - ✔✔the present obligation of an entity to transfer an economic resource as a
result of past events
equity - ✔✔the residual interest in the assets of an entity after deducting all its liabilities
income - ✔✔refers to the increase in economic benefits during an accounting period, in
the form of inflows or enhancement of assets or decrease in liabilities, that results in an
increase in equity, other than those relating to contributions from equity participants
expense - ✔✔refers to the decrease in economic benefits during an accounting period in
the form of outflows or depletion of assets or incurrence of liabilities that results in a
decrease in equity, other than those relating to distributions to equity participants
recognition - ✔✔the process of incorporating an item that meets the definition of an
element in the statement of financial position or profit or loss statement
measurement - ✔✔the process of determining the monetary amounts at which the
elements of the financial statements are to be recognized and carried on the statement of
financial position and profit or loss statement
historical cost - ✔✔the amount of cash or cash equivalents given or the fair value of an
asset exchanged to obtain at the time of its acquisition
current cost - ✔✔the amount of cash or cash equivalents that would have to be paid if
the same or an equivalent asset is acquired currently
© EMILY CHARLENE YEAR 2025-2026, ALL RIGHTS RESERVED 2
, fair value - ✔✔the amount of cash or cash equivalents that could currently be received
through the sale of an asset in an orderly manner
fair value - ✔✔the amount that could be paid in an arms-length transaction
general purpose financial statements - ✔✔a particular form of general purpose financial
reports that provides information about an reporting entity's assets, liabilities, equity,
income, and expenses
IFRS or International Financial Reporting Standards - ✔✔refers to the standards and
interpretations issued by the International Accounting Standards Board
Notes to the financial statements - ✔✔they contain information that supplements the
information already presented on the face of the financial statements
OCI or Other Comprehensive Income - ✔✔refer to items of income and expenses that
are not recognized in profit or loss as required or permitted by other Philippine
Financial Reporting Standards (PFRS)
profit or loss - ✔✔the total of income less expenses, excluding the components of other
comprehensive income
total comprehensive income - ✔✔the change in equity during a period resulting from
transactions and other events, other than those changes resulting from transactions with
owners in their capacity as owners
Statement of Financial Position/balance sheet - ✔✔the financial statement that shows
an entity's assets, liabilities, and equity as of a particular date
Statement of Changes in Equity - ✔✔the financial statement that shows the changes in
an entity's net assets during a particular period
© EMILY CHARLENE YEAR 2025-2026, ALL RIGHTS RESERVED 3
Answers 100% Pass
relevance - ✔✔a fundamental qualitative characteristic of a financial information which
enables it to influence the decision of financial statement users
materiality - ✔✔the non-inclusion of such information could change the decision of a
financial statement user on the basis of the financial information of a specific entity
faithful representation - ✔✔a fundamental qualitative characteristic of a financial
information which states that the information should complete, neutral, and free from
material mistakes
comparability - ✔✔a qualitative characteristic that allows users to compare and contrast
items presented in a financial information, whether from the same entity at different
periods or with different entities in the same period
consistency - ✔✔refers to the application of the same procedures for the same items,
either from across periods within a reporting entity or in a single period among
different reporting entities
verifiability - ✔✔the qualitative characteristic that is displayed when different informed
and independent observers could reach the same conclusion, although not necessarily
complete agreement, that a particular financial information is faithfully represented
timeliness - ✔✔refers to promptly having information available to decision-makers to
allow them to make decisions
© EMILY CHARLENE YEAR 2025-2026, ALL RIGHTS RESERVED 1
,Understandability - ✔✔refers to the classifying, characterizing, and presenting of
information plainly and succinctly
Going Concern (Assumption) - ✔✔assumes that an entity has neither the intention nor
the need to liquidate or reduce materially the scale of its operations
asset - ✔✔a present economic resource controlled by an entity as a result of past events
liability - ✔✔the present obligation of an entity to transfer an economic resource as a
result of past events
equity - ✔✔the residual interest in the assets of an entity after deducting all its liabilities
income - ✔✔refers to the increase in economic benefits during an accounting period, in
the form of inflows or enhancement of assets or decrease in liabilities, that results in an
increase in equity, other than those relating to contributions from equity participants
expense - ✔✔refers to the decrease in economic benefits during an accounting period in
the form of outflows or depletion of assets or incurrence of liabilities that results in a
decrease in equity, other than those relating to distributions to equity participants
recognition - ✔✔the process of incorporating an item that meets the definition of an
element in the statement of financial position or profit or loss statement
measurement - ✔✔the process of determining the monetary amounts at which the
elements of the financial statements are to be recognized and carried on the statement of
financial position and profit or loss statement
historical cost - ✔✔the amount of cash or cash equivalents given or the fair value of an
asset exchanged to obtain at the time of its acquisition
current cost - ✔✔the amount of cash or cash equivalents that would have to be paid if
the same or an equivalent asset is acquired currently
© EMILY CHARLENE YEAR 2025-2026, ALL RIGHTS RESERVED 2
, fair value - ✔✔the amount of cash or cash equivalents that could currently be received
through the sale of an asset in an orderly manner
fair value - ✔✔the amount that could be paid in an arms-length transaction
general purpose financial statements - ✔✔a particular form of general purpose financial
reports that provides information about an reporting entity's assets, liabilities, equity,
income, and expenses
IFRS or International Financial Reporting Standards - ✔✔refers to the standards and
interpretations issued by the International Accounting Standards Board
Notes to the financial statements - ✔✔they contain information that supplements the
information already presented on the face of the financial statements
OCI or Other Comprehensive Income - ✔✔refer to items of income and expenses that
are not recognized in profit or loss as required or permitted by other Philippine
Financial Reporting Standards (PFRS)
profit or loss - ✔✔the total of income less expenses, excluding the components of other
comprehensive income
total comprehensive income - ✔✔the change in equity during a period resulting from
transactions and other events, other than those changes resulting from transactions with
owners in their capacity as owners
Statement of Financial Position/balance sheet - ✔✔the financial statement that shows
an entity's assets, liabilities, and equity as of a particular date
Statement of Changes in Equity - ✔✔the financial statement that shows the changes in
an entity's net assets during a particular period
© EMILY CHARLENE YEAR 2025-2026, ALL RIGHTS RESERVED 3
