(BOOK BASED) Chapter 1

C) Regulatory agency

Which among the following id an indirect user of accounting information?

A) Management of the enterprise

B) Taxing authority

C) Regulatory agency

D) Lenders of the enterprise

D) all of these

Financial Accounting is concerned with

A) recording financial transactions

B) summarizing and presenting financial information on financial reports

C) analyzing the financial reports

D) all of these

A) Board of directord

Which of the following is an internal user of a company’s financial information?

A) Board of directors

B) Long-term creditors of an enterprise

C) Shareholders of the company

D) Regulatory agencies

C) Taxing authority

Which of the following is considered a direct user of accounting information?

A) A regulatory agency

B) Trade association

C) Taxing authority

D) Labor unions

D) any of these

As used in the definition of accounting, an economic entity may be

A) a business enterprise

B) an individual

C) a division within a business enterprise

D) any of these

D) the needs of the users of the information

The objectives of financial reporting for business enterprises are based on

A) generally accepted accounting principles

B) reporting on management’s stewardship

C) the need for profit maximization

D) the needs of the users of the information

B) Financial accounting

What is the branch of accounting that makes financial information about an entity accessible to the external users?

A) Auditing

B) Financial accounting

C) Government accounting

D) Management accounting

D) Management accounting

What is the branch of accounting that serves the information needs of internal users?

A) Cost accounting

B) Financial accounting

C) Government accounting

D) Management accounting

C) Creditors

Which of the following users of accounting information are both an external user and a direct user?

A) Management

B) Labor units

C) Creditors

D) Regulatory bodies

D) I, III, IV, and V

Which of the following are represented in the Financial and Sustainability Reporting Standards Council?

I. Securities and Exchange Commission

II. Department of Trade and Industry

III. Board of Accountancy

IV. Philippine Institute of Certified Public Accountants

V. Bureau of Internal Revenue

VI. Social Security System

A) I, II, III, IV, V, and VI

B) I, II, III, V, and VI

C) II, IV, V, and VI

D) I, III, IV, and V

C) Board of Accountancy

What is the body authorized by law to promulgate rules and regulations affecting the practice of Accountancy in the Philippines?

A) Accounting Standards Council

B) Philippine Institute of Certified Public Accountants

C) Board of Accountancy

D) Auditing Standards and Practices Council

B) I, III, and IV

Which of the following are parts of the due process applied by the Financial and Sustainability Reporting Standards Council in developing a financial reporting standard?

I. Formation of a task force to address the issue

II. Publication of the exposure draft in the official gazette or newspaper of general circulation

III. Consideration of comments on the exposure draft

IV. Approval vote by a majority members of the FRSC members

A) I, II, III, and IV

B) I, III, and IV

C) II, III, and IV

D) I, II, and IV

C) I, IV, V, II, III

What is the correct chronological sequence for the evaluation of a standard for adoption?

I. Setting the agenda

II. An exposure draft is issued for comment

III. Final standard is issued

IV. Planning the project

V. Discussion paper

A. IV, V, I, II, III

B) IV, I, V, II, III

C) I, IV, V, II, III

D) I, V, IV, II, III

C) a social process, which incorporates political actions of various interested user groups as well as professional research and logic

The process of establishing financial reporting standards is

A) a democratic process in that a majority of practicing certified public accountants must vote in favor of a proposed standard

B) a legislative process based on set of laws promulgated by the House of Represents

C) a social process, which incorporates political actions of various interested user groups as well as professional research and logic

D) based solely on economic analysis of the effects each standard will have if it is comprehended

C) International Accounting Standards Board

The body that authors the International Financial Reporting Standards is the

A) Accounting Standards Council

B) Financial Reporting Standards Council

C) International Accounting Standards Board

D) International Accounting Standards Committee

B) IFRS Foundation

An independent, not-for-profit private sector organization that governs the activities of the International AccountIng Standards Board and the International Sustainability Standards Board is the

A) International Accounting Standards Committee

B) IFRS Foundation

C) International Financial Interpretations Committee

D) Standards Advisory Council

C) Not less than 30 days

As part of the due process of developing an accounting standard, the Financial and Sustainability Reporting Standards Council issues exposure draft for comment within a period of 60 days, unless a shorter period is considered appropriate. How long is this shorter period?

A) Not less than 50 days

B) Not less than 45 days

C) Not less than 30 days

D) It depends on the issue being resolved

C) 15 members

Based on the RA 9298, the Financial and Sustainability Reporting Standards Council is composed of

A) 13 members

B) 14 members

C) 15 members

D) 16 members

C) Philippine Accountancy Act of 2004

RA 9298 is otherwise known as

A) Revised Accountancy Law

B) Revised Accountancy Act

C) Philippine Accountancy Act of 2004

D) Code of Professional Ethics for CPAs

D) Financial Reporting Standards Council

This is the body created by the Board of Accountancy in 2006 to assist the Board in carrying out its power and function to promulgate accounting standards in the Philippines.

A) Philippine Institute of Certified Public Accountants

B) International Accounting Standards Committee

C) Auditing and Assurance Standards Council

D) Financial Reporting Standards Council

A) I, II, Ill and IV

The PFRSs consist of-

I. Specific Philippine Financial Reporting Standards (PFRS), which are adopted from the IFSs

II. Philippine Accounting Standards (PAS), which are adopted from the lASs

III. Philippine Interpretations, which are adopted from the interpretations of the IFRIC and the SIC

IV. Interpretations of the PIC

A) I, II, Ill and IV

B) I, Il and Ill only

C) I and Il only

D) I only

A) Both statements are false

Statement 1: The PFRSs set out the recognition, measurement, presentation and disclosure requirements dealing with transactions and events required in special-purpose (general-purpose) financial statements.

Statement 2: The PFRSs are not allowed (allowed) to set out requirements for transactions and events that arise only on specific industries

Statement 1: The PFRSs set out the recognition, measurement, presentation and disclosure requirements dealing with transactions and events required in special-purpose financial statements.

Statement 2: The PFRSs are not allowed to set out requirements for transactions and events that arise only on specific industries

A) Both statements are false

B) Only Statement 2 is true

C) Both statements are true

D) Only Statement 1 is true

B) Government Institute of Internal Auditors

Which of the following is not an accredited professional organization of the Philippine Institute of Certified Public Accountants that is represented in the FRSC?

A) National Association of CPAs in Education

B) Government Institute of Internal Auditors

C) Association of CPAs in Commerce and Industry

D) Association of CPAs in Public Practice