Time period Assumption (Calendar year ends Dec. 31, Natural Business year ends at
any month, By convention accounting period is either or) - CORRECT ANSWERS-This
assumption requires that the indefinite life of an entity is subdivided into time periods or
accounting periods usually equal length purpose on preparing financial reports,
performance, and cash flows
Monetary unit - CORRECT ANSWERS-This assumption has two aspects quantifiability
and the stability of the peso
quantifiability aspect - CORRECT ANSWERS-This means all value on transactions
should be stated in Philippine Peso as unit of measure
stability of the peso - CORRECT ANSWERS-This means that the purchasing power of
the peso is stable or constant
not necessarily valid (accounting function is to account for nominal pesos only not for
changes in purchasing power) - CORRECT ANSWERS-In today's world the assumption
that the peso is a stable measure over time is
PAS 16 - CORRECT ANSWERS-What standard number provides that an entity shall
choose either the cost model or revaluation model as an accounting policy and shall
apply that policy to an entire class of p,p,&e.
The Conceptual Framework (a summary of terms and concepts that underlie the
preparation and presentation of financial statements for external users.) - CORRECT
ANSWERS-For Financial Reporting this is a complete, comprehensive and single
document promulgated by the International Accounting Standards Board
theoretical foundation - CORRECT ANSWERS-The Framework is an attempt to provide
an overall _______________ for accounting which will guide standard-setters,
preparers and users
1|Page
,Special purpose financial reports - CORRECT ANSWERS-What are OUTSIDE the
scope of the Conceptual Framework prospectuses and computations prepared for
taxation purposes
consolidated financial statements - CORRECT ANSWERS-The Framework is
concerned with general purpose financial statements including
Accounting Standards Council (ASC) - it's successor is FRSC - CORRECT ANSWERS-
was created in November 1981 by the Philippine Institute of Certified Public
Accountants (PICPA) to establish generally accepted accounting principles in the
Philippines.
Financial Statements - CORRECT ANSWERS-What are prepared at least annually and
are directed toward the common needs of a wide range of users
interpreting - CORRECT ANSWERS-The purpose of this Framework is to assist users
of ____________ financial statements in the information contained.
Financial Accounting (its focus on the financial statements which are distributed to
stockholders, lenders, financial analysts, and others outside of the company.) -
CORRECT ANSWERS-is a specialized branch of accounting that keeps track of a
company's financial transactions. Using standardized guidelines, the transactions are
recorded, summarized, and presented in a financial report or financial statement such
as an income statement or a balance sheet.
Managerial accounting (its focus on providing information within the company so that its
management can operate the company more effectively.) - CORRECT ANSWERS-Is a
branch of accounting that computes a manufacturer's product costs that are needed for
the external financial statements for better economic decision making.
External transactions - CORRECT ANSWERS-What are those transactions economic
events involving one entity and another entity?
Internal transactions (production and casualty loss) - CORRECT ANSWERS-These are
economic events involving the entity only.
Measuring - CORRECT ANSWERS-This accounting process involves the accountable
economic transactions and events as to Assigning of Peso Amounts
Other assets - CORRECT ANSWERS-Advances to employees is under what line item
in the balance sheet when it is more than the period
Historical Cost (than other 3 measurement basis) - CORRECT ANSWERS-What is the
most common measure of financial transactions?
2|Page
, Current cost, Realizable value and Present Value - CORRECT ANSWERS-What are
other measurement bases?
Communicating - CORRECT ANSWERS-What is the process of PREPARING AND
DISTRIBUTING accounting reports to potential users of accounting information.
Universal Language of Business - CORRECT ANSWERS-The communication process
is the reason why accounting has been called the
Recording, Classifying and Summarizing aspects of accounting - CORRECT
ANSWERS-Implicit in the communication process are the
Recording or Journalizing - CORRECT ANSWERS-Is the process of systematically
maintaining a record of all economic business transactions after they have been
identified and measured.
Classifying (This is accomplished by posting to the ledger) - CORRECT ANSWERS-Is
the sorting or grouping of similar and interrelated economic transactions into their
respective classes
The Ledger - CORRECT ANSWERS-What is a group of accounts which are
systematically categorized into different accounts.
Accounting as an information system - CORRECT ANSWERS-Is an information system
that measures business activities, processes information into reports and communicates
the reports to decision makers
Financial Statements - CORRECT ANSWERS-The documents that report financial
information about an entity to decision makers, it is a key product of this information
system is a set of
Overall Objective of accounting - CORRECT ANSWERS-Is to provide quantitative
information financial information about a business that is useful to statement users
particularly owners and creditors, in making economic decisions
Republic Act No. 9298 (Philippine Accountancy Act of 2004) - CORRECT ANSWERS-
The Law regulating the practice of accountancy in the Philippines
Board of Accountancy (Responsible preparing and grading the Philippine CPA
examination) - CORRECT ANSWERS-Government examination is given by the
Certified Public Accountants in the Philippines - CORRECT ANSWERS-Single
Practitioners and partnerships for the practice of public accountancy shall be registered
as
3|Page
any month, By convention accounting period is either or) - CORRECT ANSWERS-This
assumption requires that the indefinite life of an entity is subdivided into time periods or
accounting periods usually equal length purpose on preparing financial reports,
performance, and cash flows
Monetary unit - CORRECT ANSWERS-This assumption has two aspects quantifiability
and the stability of the peso
quantifiability aspect - CORRECT ANSWERS-This means all value on transactions
should be stated in Philippine Peso as unit of measure
stability of the peso - CORRECT ANSWERS-This means that the purchasing power of
the peso is stable or constant
not necessarily valid (accounting function is to account for nominal pesos only not for
changes in purchasing power) - CORRECT ANSWERS-In today's world the assumption
that the peso is a stable measure over time is
PAS 16 - CORRECT ANSWERS-What standard number provides that an entity shall
choose either the cost model or revaluation model as an accounting policy and shall
apply that policy to an entire class of p,p,&e.
The Conceptual Framework (a summary of terms and concepts that underlie the
preparation and presentation of financial statements for external users.) - CORRECT
ANSWERS-For Financial Reporting this is a complete, comprehensive and single
document promulgated by the International Accounting Standards Board
theoretical foundation - CORRECT ANSWERS-The Framework is an attempt to provide
an overall _______________ for accounting which will guide standard-setters,
preparers and users
1|Page
,Special purpose financial reports - CORRECT ANSWERS-What are OUTSIDE the
scope of the Conceptual Framework prospectuses and computations prepared for
taxation purposes
consolidated financial statements - CORRECT ANSWERS-The Framework is
concerned with general purpose financial statements including
Accounting Standards Council (ASC) - it's successor is FRSC - CORRECT ANSWERS-
was created in November 1981 by the Philippine Institute of Certified Public
Accountants (PICPA) to establish generally accepted accounting principles in the
Philippines.
Financial Statements - CORRECT ANSWERS-What are prepared at least annually and
are directed toward the common needs of a wide range of users
interpreting - CORRECT ANSWERS-The purpose of this Framework is to assist users
of ____________ financial statements in the information contained.
Financial Accounting (its focus on the financial statements which are distributed to
stockholders, lenders, financial analysts, and others outside of the company.) -
CORRECT ANSWERS-is a specialized branch of accounting that keeps track of a
company's financial transactions. Using standardized guidelines, the transactions are
recorded, summarized, and presented in a financial report or financial statement such
as an income statement or a balance sheet.
Managerial accounting (its focus on providing information within the company so that its
management can operate the company more effectively.) - CORRECT ANSWERS-Is a
branch of accounting that computes a manufacturer's product costs that are needed for
the external financial statements for better economic decision making.
External transactions - CORRECT ANSWERS-What are those transactions economic
events involving one entity and another entity?
Internal transactions (production and casualty loss) - CORRECT ANSWERS-These are
economic events involving the entity only.
Measuring - CORRECT ANSWERS-This accounting process involves the accountable
economic transactions and events as to Assigning of Peso Amounts
Other assets - CORRECT ANSWERS-Advances to employees is under what line item
in the balance sheet when it is more than the period
Historical Cost (than other 3 measurement basis) - CORRECT ANSWERS-What is the
most common measure of financial transactions?
2|Page
, Current cost, Realizable value and Present Value - CORRECT ANSWERS-What are
other measurement bases?
Communicating - CORRECT ANSWERS-What is the process of PREPARING AND
DISTRIBUTING accounting reports to potential users of accounting information.
Universal Language of Business - CORRECT ANSWERS-The communication process
is the reason why accounting has been called the
Recording, Classifying and Summarizing aspects of accounting - CORRECT
ANSWERS-Implicit in the communication process are the
Recording or Journalizing - CORRECT ANSWERS-Is the process of systematically
maintaining a record of all economic business transactions after they have been
identified and measured.
Classifying (This is accomplished by posting to the ledger) - CORRECT ANSWERS-Is
the sorting or grouping of similar and interrelated economic transactions into their
respective classes
The Ledger - CORRECT ANSWERS-What is a group of accounts which are
systematically categorized into different accounts.
Accounting as an information system - CORRECT ANSWERS-Is an information system
that measures business activities, processes information into reports and communicates
the reports to decision makers
Financial Statements - CORRECT ANSWERS-The documents that report financial
information about an entity to decision makers, it is a key product of this information
system is a set of
Overall Objective of accounting - CORRECT ANSWERS-Is to provide quantitative
information financial information about a business that is useful to statement users
particularly owners and creditors, in making economic decisions
Republic Act No. 9298 (Philippine Accountancy Act of 2004) - CORRECT ANSWERS-
The Law regulating the practice of accountancy in the Philippines
Board of Accountancy (Responsible preparing and grading the Philippine CPA
examination) - CORRECT ANSWERS-Government examination is given by the
Certified Public Accountants in the Philippines - CORRECT ANSWERS-Single
Practitioners and partnerships for the practice of public accountancy shall be registered
as
3|Page
