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Quiz - CFAS

Accounting involves identifying, measuring, and communicating information useful for economic decision making. Recognition refers to incorporating the effects of an event in financial statements. Financial reporting standards change in response to user needs. Measuring assigns numbers, commonly monetary terms, to economic transactions and events. The elements directly related to measuring financial position are assets, liabilities, and equity.

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Christianne Joyse Merrera
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82 views

Quiz - CFAS

Accounting involves identifying, measuring, and communicating information useful for economic decision making. Recognition refers to incorporating the effects of an event in financial statements. Financial reporting standards change in response to user needs. Measuring assigns numbers, commonly monetary terms, to economic transactions and events. The elements directly related to measuring financial position are assets, liabilities, and equity.

Uploaded by

Christianne Joyse Merrera
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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Conceptual Framework and Accounting Standards

Quiz (Check Up Period)

Name: ________________________________________________________ Score:________


Course/Yr/ Blk: _______________________ Date: _________

True or False. Write TRUE if the statement is correct and FALSE if the statement is incorrect
(20 pts).

__________1. Accounting involves the activities of identifying, measuring and communicating


information that is useful in making economic decisions.
__________2. Recognition refers to the process of incorporating the effects of an accountable
even in the financial statements through a financial statement.
__________3. Financial reporting standards continuously change primarily in response to user’s
needs.
__________4. Measuring is the accounting process of assigning numbers, commonly in
monetary terms, to the economic transactions and events.
__________5. The four (4) sectors in the practice of accountancy are: (a) public practice, (b)
commerce and industry, (c) education and (d) government.
__________6. Cost is a pervasive constraint – it affects virtually all aspects of financial
reporting.
__________7. The objective of a reporting entity is to provide financial information about the
reporting entity’s assets, liabilities,equity, income and expenses that is useful in assessing.
__________8. The elements directly related to the measurement of financial position are
assets, liabilities and income.
__________9. Equity is assets less liabilities.
__________10. Income and Expenses are changes in assets and liabilities excluding owner
contributions/ distributions and capital maintenance adjustments.
__________11. An item is recognized if it ceases to meet the definition of asset or a liability.
__________12. An item is derecognized if it meets the definitions of an element and
recognizing it would provide useful information.
__________13. Liability is a present economic resource controlled by the entity as a result of
past events.
__________14. The two concepts of capital are financial and industrial.
__________15. Internal events are events which do not involve an external party.
__________16. External events are events which involve an entity and another external party.
__________17. Financial accounting is the branch of accounting that focuses on general
purpose financial statements.
__________18. General purpose financial statements are those that cater to the common
needs of a wide range of external users.
__________19. Relevant information has a predictive value and feedback value.
__________20. The elements directly related to the measurement of financial position are
income and expenses.
Enumeration. (10 pts.)

1.-3. Three (3) Important activities included in the definition of Accounting


4.-6. Three (3) aspects in the Communicating Process of Accounting
7.-10. The Four (4) Steps in Materiality Process

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