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CFAS Reviewer

The document contains a 37-item quiz about accounting concepts and standards. The quiz questions cover topics such as the objectives of financial statements, accounting equations, cash flow statements, and conceptual framework.

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Ashley Breva
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37 views

CFAS Reviewer

The document contains a 37-item quiz about accounting concepts and standards. The quiz questions cover topics such as the objectives of financial statements, accounting equations, cash flow statements, and conceptual framework.

Uploaded by

Ashley Breva
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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BATHEOAX – Quiz 1 Reviewer

1) Statement 1 – All business activities are accountable transactions


Statement 2 – The focus of government accounting is the custody and
administration of public funds

Answer:

2) Statement 1 – Recording is sorting of similar and interrelated accounts


Statement 2 – Management Advisory Services excludes quality control since
these are task designated only to production managers

Answer:

3) Statement 1 – The key product of the Accounting as an Information System


is the set of financial statements
Statement 2 – Accounting is about quantitative information

Answer:

4) Statement 1 – The three main areas of practice of Certified Public


Accountants excludes Private Accounting since they render service only on
their employer
Statement 2 – The Banko Sentral ng Pilipinas has one representative on the
Financial Reporting Standards Council

Answer:

5) Statement 1 – A member of ASC is prohibited from being appointed to the


Financial Reporting Standards Council
Statement 2 – Treasurer is the highest accounting officer in an entity

Answer:
6) Statement 1 – In case of a conflict, the Conceptual Framework will prevail
since it is the guide in developing IFRSs
Statement 2 – The focus of Financial Capital concept is the monetary
amount invested by shareholders to the net assets of the entity

Answer:

7) Statement 1 – Employees are considered primary users since they are the
one who handles and manages the assets of the company
Statement 2 – Current Value includes Fair Value

Answer:

8) Statement 1 – General Purpose Financial Statements help the primary users


in estimating the value of the entity
Statement 2 – Cause and Effect association of expense recognition is
illustrated when an entity records an advertising expense immediately

Answer:

9) Statement 1 – Conservatism Concept states that an accounting transaction


shall be supported by sufficient evidence to allow two or more qualified
individuals to arrive at essential similar conclusion
Statement 2 – An economic resource is said to produce economic benefit if
the entity is entitled to exchange an economic resource with another entity
on a favorable term

Answer:

10) Statement 1 – The Going Concern assumption is the foundation of the Cost
Principle
Statement 2 – Understandability is an Enhancing Qualitative Characteristic
in which financial statements users assumed to have no reasonable
knowledge of basic business, accounting, and financial matters

Answer:

11) Statement 1 – The main objective of the financial statements is to provide


information about the Financial Position, Financial Performance of the
business but not the cash inflows and outflows of the firm
Statement 2 – The components of “Other Comprehensive Income” excludes
realized gain or loss on sale of Property, Plant, and Equipment

Answer:

12) Statement 1 – It is mandated to prepare the financial statements monthly to


assess the performance of the entity timely
Statement 2 – The level of profit or income earned by an entity is the
primary measurement of the company’s financial performance

Answer:

13) Statement 1 – A restricted cash equivalent shall be presented as Non-


current Liability
Statement 2 – Report Form is the required form of the Statement of
Financial Position as mandated by the Securities and Exchange Commission

Answer:

14) Statement 1 – Current Assets are always presented in the order of their
liquidity
Statement 2 – The discretion to refinance in classifying liabilities as current
or non-current must be at the discretion of the entity to refinance or roll-
over

Answer:

15) Statement 1 – Once a condition or covenant attached to a liability is


breached, the liability is generally shall be classified as current
Statement 2 – Intangible Assets exclude goodwill but includes patent since
the former is unidentifiable

Answer:

16) Statement 1 – The primary purpose of Statement of Cash Flow is to provide


relevant information about the company’s cash receipts and disbursements
Statement 2 – The acquisition of asset by issuing share capital shall be
excluded from the Statement of Cash Flows

Answer:

17) Statement 1 – Cash Equivalents are liquid investments that are long-term
Statement 2 – Cash disbursement in acquisition of treasury shares are
Financing Activities

Answer:

18) Statement 1 – Cash inflow and outflow from purchase of and sale of trading
securities are Investing Activities
Statement 2 – Dividends received may be presented as Investing Activity but
not Operating Activity

Answer:
19) Statement 1 – Investing Activities typically affects Non-current Assets
Statement 2 – Dividends paid may be alternatively presented as Investing
Activity

Answer:

20) Statement 1 – Interest paid and received may be classified as Operating


Cash Flow Activities
Statement 2 – Investment must be acquired three months or more before
the maturity date to be qualified as cash equivalent

Answer:

21) Eme

22) Eme

23) Cash equivalents are ______

Answer:

24) Which of the following is an Investing Activity?

Answer:

25) In preparation of Statement of Cash Flows, which of the following


transactions would be considered an Investing Activity?

Answer:

26) Cash receipts from royalties are _______


Answer:

27) Operating Activities are _______

Answer:

28) Which of the following are valid statements regarding Financial Reporting
and Accounting Standards?

Answer:

29) A Conceptual Framework for Financial Reporting is ______

Answer:

30) The primary responsibility for the financial statements of an enterprise rest
with its ________

Answer:

31) In assessing the Financial Position of an entity, what indicates the amount of
the assets financed by the creditors and the owners?

Answer:

32) Which of the following is incorrect concerning financial statements?

Answer:
33) The providers of funds or capital _______

Answer:

34) Which of the following represents best source for assessing the consistency
of the financial statements?

Answer:

35) What is another term for equity?

Answer:

36) Which statement is incorrect concerning the concept of capital?

Answer:

37) Proper application of accounting principles is most dependent upon ______

Answer:

38)

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