Which of the following is not a appropriate description of accounting?

-Accounting is an art that does not demand critical thinking

Which of the following is not one of the characteristics of a profession?

-Mastery of a particular intellectual skill acquired by training and education

A responsibility to protect exclusively the interest of a client or employer. How long in years is the
renewable term of the chairman and members of FRSC? -3

Which of the following is the overall objective of financial accounting?

-Provide useful information for economic decision making

What is the definition of Accounting according to Accounting Standards Council?

-It refers to a service activity with a function of providing quantitative information primarily financial in
nature, about economic entities, that is intended to be useful in making economic decision.
The FRSC similarly monitors issuances of the International Financial Reporting Interpretations
Committee (IFRIC) of the IASB, which it adopts as Philippine Accounting Standards -false

Both the IASB and the FASB have essentially the same governance structure, that is, a Foundation
that provides oversight, a Board, an Advisory Council, and an Interpretations Committee. -true

In the development of accounting standards, the FRSC employs a "due process" system which
-Enables interested parties to express their views on accounting issues under consideration
The authoritative status of the Conceptual Framework for Financial Reporting is as follows:
-It is used when there is no standard or interpretation related to the reporting issues under
consideration.
Which of the following is incorrect regarding confidentiality?
-The duty of confidentiality ceases after the end of the relationship between the professional
accountant and the client or employer.

This commercial code used historical code as the basis of valuation -Savary Commerical Code

Sectoral Organization have been established to promote the interests of groups of professional
accountants. Which of the following is the sectoral organization for CPAs in Public Practice?
-ACPAPP

To be qualified as having passed the CPA licensure examination;

Statement 1:The candidate must have a general weighted average of at least 75%.
Statement 2:The candidate must not have a grade lower than 65% in any given subject
-Both Statement are Correct

The IASB has a government mandate and therefore does not have to follow due process in issuing
an IFRS. -true

Which authority on the field of accounting defined accounting as an art?

-American Institute of Certified Public Accountant
Which of the following is NOT the function of an Auditor?
-Prepare the Financial Statements
The expectations gap is the difference between:
-what the public thinks accountants should do and what accountants think they can do.
Which of the following is not an appropriate description of accounting?
-Accounting is an art that does not demand critical thinking
Economic consequences of accounting standard-setting means: -
-accounting standards can have detrimental impacts on the wealth levels of the providers of financial
information.

Which of the following does not constitute a practice of accountancy?

-A person is appointed as marketing director of a government owned and controlled corporation.

The major key organizations on the international side are the:

-IASB and IOSCO.

Accountants employed by a business firm or a non-government organization are said to be engaged

in -Private Accounting

The following statements relate to the term of the office of the chairman and the members of the
Board of Accountancy (BOA)
I. No person who has served two (2) successive complete terms shall be eligible for reappointment
until the lapse of one (1) year
II. Appointment to fill up an expired term is not to be considered a complete term
III. A person may serve in the Board of Accountancy for eight consecutive years.
IV. No person shall serve in the Board of more than 12 years.
-All statements are correct

Accounting helps businessmen answer questions such as " How much borrowed capital and owner's
capital are invested in the business?" or its _____
-Capital Structure

The following statements pertain to financial accounting, except

-It is the accumulation and preparation of financial reports for internal users only.

Any person who shall violate any of the provisions of the Accountancy Act or any of its implementing
rules and regulations promulgated by the Board of Accountancy subject to the approval of the PRC,
shall upon the conviction, be punished by
-A fine of not less than P50,000 or by imprisonment for a period not exceeding two year or both

Which of the following most accurately states how objectivity has been defined by the Code of
Ethics?
- A combination of impartiality, intellectual honesty and a freedom from conflict of interese
Accountant whose services as professional are hired not on employee-employer relationships are
said to be engaged in
- Public Accounting
The number of members (including the chairman) in the Financial Reporting
Standards Council. -15
He believed that the Chart of Accounts contains relevant dynamic information affecting the economics
flight of an enterprise
- Eugene Schmalenbach
It involves a study or appraisal by the Board or its duly authorized representatives of the quality of
audit of financial statements through an evaluation of the quality control measures instituted by the
CPA firm to ascertain compliance with ethical and technical standards of the public practice.
- Quality review
-1,2,3 A professional accountant should not be associated with reports, returns, communications or
other information that

1. Contains a false or misleading statement

2. Contains statements or information furnished recklessly or without any real knowledge of
whether they are true or false.
3. Omits or obscures information required to be submitted and such omission or obscurity would
be misleading.

IFRS stands for:

- International Financial Reporting Standards.
IFRS is comprised of:
-International Financial Reporting Standards, International Accounting Standards, and Interna tional
Accounting Standards Interpretations
Accounting helps businessmen answer questions such as " Can the business sustain its long-term
profitability and cash flow?" or its stability
What is the definition of Accounting according to Accounting Standards Council?
-It refers to a service activity with a function of providing quantitative information primarily financial in
nature, about economic entities, that is intended to be useful in making economic decision
Generally accepted accounting principles (GAAP) for U.S.companies are developed by the Financial
Accounting Standards Board (FASB). -true
Which of the following shall be issued to examinees who pass the CPA licensure
examination? - Certificate of registration and professional identification card
The IASB has a government mandate and therefore does not have to follow due process in issuing
an IFRS. -false
U.S. GAAP is more detailed or rules-based while IFRS tends to be simpler and more flexible in the
accounting and disclosure requirements. -true
The auditing standard setting body created by the Board of Accountancy is known as - Auditing and
Assurance Standards Council (AASC)
The underlying reason for a code of professional ethics is - The need for public confidence in the
quality of service of the profession
The overriding requirement of IFRS is for the financial statements to give a fair presentation (or true
and fair view). -true
The following are fields of private accounting, except External Audit
The following qualifications of applicants for CPA licensure examination, except He/She is at least 21
years of age
The objective of financial reporting is to prepare a statement of financial position, a statement of
comprehensive income, a statement of cash flows, and a statement of changes in equity. -false
Accounting helps businessmen answer questions such as " How much borrowed capital and owner's
capital are invested in the business?" or its capital structure
It covers the efficient management of cash and other resources by anticipating or predicting monetary
objectives in the future – budget accounting
Which of the following functions to promulgate auditing standards?
-Auditing and Assurance Standards Council
Which of the following statements in relation to information needs is TRUE?
I. Information that meets the needs of specified primary users is likely to meet the needs of other
users, such as employees, customers, governments and other agencies and the public
II. The management is also interested in financial information but it need not rely on general purposes
financial reports because it can access additional information internally
-both 1 and 2
In the development of accounting standards, the FRSC employs a "due process" system which
-Enables interested parties to express their views on accounting issues under consideration

"Credit" in the context or recording financial transaction is:

- To record an amount on the right-hand side of an account

The following statements describe the nature of accounting, except;

- Accounting is perfect science of business

Accounting helps businessmen answer questions such as " Can the business pay its long-term
obligations to others?" or its Solvency
A business transaction is
- A financial event that changes the values in certain accounts therefore affects the financial position
of the business
The "Double-Entry System of Accounting" is
- An accounting system in which every transaction is recorded with both of at least one debit entry
and at least one credit entry
Which of the following is not one of the functions of the Board of Accountancy?
- To adopt an official seal of the Commission
The FRSC formed the Philippine Interpretations Committee (PIC)  in August 2006 to assist the FRSC
in establishing and improving financial reporting standards in the Philippines -True
These users require information on risk and return on investment -investor
The following are the books Luca Pacioli introduced into his book called "Summa de Arithmetica"
EXCEPT - T-Account Book
This field of accounting was born due to the infusion of CPA's in the practice of taxation
- Tax Accounting