CFAS

Accounting is a _____ activity

service

ASC

Accounting Standards Council

Accounting is the process of ___ _____ ____ economic information to permit informed judgment and decision by users of the information.

identifying, measuring and communicating

One – Accounting is about ______ information.

quantitative

Two –The information is likely to be ______ in nature.

financial

Three – The information should be ____ in decision making.

useful

Identifying as the _____ component.

analytical

Measuring as the ____ component.

technical

Communicating as the ____ component.

formal

_______ This accounting process is the recognition or nonrecognition of business activities as “accountable” events.

Identifying

An event is accountable or quantifiable when it has an effect on ____ ____ _____

assets, liabilities, and equity.

Only economic activities are emphasized and recognized in accounting. Sociological and psychological matters are beyond the province of accounting.

TRUE OR FALSE

TRUE

The definition that has stood the test of time is the definition given by the AAA OR ?

American Accounting Association.

______or exchange transactions are those economic events involving one entity and another entity.

External transactions

______ are the economic activities that take place entirely within the entity only. No other parties are involved.

Internal transactions

_______ is the process by which resources are transformed into products.

Production

______ is any sudden and unanticipated loss from fire, flood, earthquake, and other events.

Casualty

Casualty is any sudden and unanticipated loss from fire, flood, earthquake, and other events ordinarily termed as an______

act of God.

_____ is the accounting process of assigning of peso amounts to the accountable economic transactions and events.

Measuring

The measurement bases of measuring are _____ _____

historical cost and current value.

____ is the original acquisition cost and the most common measure of financial transactions.

Historical cost

________ includes fair value, value in use, fulfillment value and current cost.

Current value

_______ is the process of preparing and distributing accounting reports to potential users of accounting information.

Communicating

______ ______is the process of systematically maintaining a record of all economic business transactions after they have been identified and measured.

Recording or journalizing

___________ is the sorting or grouping of similar and interrelated economic transactions into their respective classes.

Classifying

_______ is the preparation of financial statements which include the statement of financial position, income statement, statement of comprehensive income, statement of changes in equity and statement of cash flows.

Summarizing

At present, Republic Act No. _____ is the law regulating the practice of accountancy in the Philippines.

9298

At present, Republic Act No. 9298 is the law regulating the practice of accountancy in the Philippines. This law is known as the ________

Philippine Accountancy Act of 2004

The __________ is the body authorized by law to promulgate rules and regulations affecting the practice of the accountancy profession in the Philippines, it is responsible for preparing and grading the Philippine CPA examination.

Board of Accountancy

This computer-based examination is offered twice a year, one in _____ and another one in ______, in authorized testing centers around the country.

May , October

• Certified Public Accountants generally practice their profession in three main areas, namely:

  • _____ accounting

  • _______ accounting

  • _____ accounting

• Public

• Private

• Government

________ is the examination of financial statements by independent certified public accountant for the purpose of expressing an opinion as to the fairness with which the financial statements are prepared.

Auditing or external auditing

________ includes the preparation of annual income tax returns and determination of tax consequences of certain proposed business endeavors.

Taxation service

Public accountants usually offer three kinds of services, namely ____ ____ ______

auditing, taxation and management advisory services.

The major objective of the ______ accountant is to assist management in planning and controlling the entity's operations.

private

The highest accounting officer in an entity is known as the ________

controller.

The major objective of the private accountant is to assist management in ____ ____ the entity's operations.

planning and controlling

________ accounting encompasses the process of analyzing, classifying, summarizing and communicating all transactions involving the receipt and disposition of government funds and property and interpreting the results thereof.

Government accounting

Republic Act No. ______ is the law mandating and strengthening the continuing professional development program for all regulated professions, including the accountancy profession.

10912

A CPA shall be permanently exempted from CPD requirements upon reaching the age of __ years.

65

Financial accounting focuses on _______ reports known as financial statements intended for internal and external users.

general purpose

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

Managerial accounting

_________ or GAAP Accounting has evolved through time changing with the needs of society. and are like laws that must be followed in financial reporting.

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

The generally accepted accounting principles are actually the _____ required for the preparation and presentation of financial statements.

accounting standards

FSRSC

FINANCIAL AND SUSTAINABILITY REPORTING STANDARDS COUNCIL

n the Philippines, the development of generally accepted accounting principles is formalized initially through the creation of the _________ or ASC

Accounting Standards Council

Based on a resolution issued by the Board of Accountancy, the FRSC is now renamed FSRSC or ________

Financial and Sustainability Reporting Standards Council or FSRSC.

This is due to the adoption of IFRS Sustainability Disclosure Standards issued by the _______ or (ISSB).

International Sustainability Standards Board

The ____________ is now the accounting standard setting body created by the Professional Regulation Commission upon recommendation of the Board of Accountancy to assist the Board of Accountancy in carrying out its powers and functions provided under R.A. Act No. 9298.

(FSRSC) FINANCIAL AND SUSTAINABILITY REPORTING STANDARDS COUNCIL

The _________ promulgated by the Financial and Sustainability Reporting Standards Council constitute the highest hierarchy of generally accepted accounting principles in the Philippines.

accounting standards

The approved statements of the FSRSC are known as _______or PAS and _____________ or PFRS.

Philippine Accounting Standards

Philippine Financial Reporting Standards

The __________ or PIC was formed by the FSRSC in August 2006, replacing the Interpretations Committee or IC formed by the Accounting Standards Council in May 2000.

Philippine Interpretations Committee

The counterpart of the PIC in the International Financial Reporting Standards Board is the ___________ or IFRIC.

International Financial Reporting Interpretations Committee

The _________ or IASC is an independent private sector body, with the objective of achieving uniformity in the accounting principles which are used by business and other organizations for financial reporting around the world.

International Accounting Standards Committee

The ____________ or IASB now replaces the International Accounting Standards Committee or IASC.

International Accounting Standards Board

The move toward _________ is essential to achieve the goal of one uniform and globally accepted financial reporting standards.

IFRS International Financial Reporting Standards

The Financial and Sustainability Reporting Standards Council issues standards in a series of pronouncements called___________ or PFRS.

Philippine Financial Reporting Standards

The Philippine Financial Reporting Standards collectively include 3 of the following:

a. Philippine Financial Reporting Standards

b. Philippine Accounting Standards

c. Philippine Interpretations

The ________ for Financial Reporting is a complete, comprehensive and single document promulgated by the International Accounting Standards Board.

Conceptual Framework

The Conceptual Framework for Financial Reporting is a complete, comprehensive and single document promulgated by the __________

International Accounting Standards Board.

The _______________ is a summary of the terms and concepts that underlie the preparation and presentation of financial statements for external users

Conceptual Framework

The Conceptual Framework provides the foundation for Standards that:

a. Contribute to transparency

b. Strengthen accountability

c. Contribute to economic efficiency

However, it is to be stated that the Conceptual Framework is not an International Financial Reporting Standard.

true or false

true

Under the Conceptual Framework for Financial Reporting, the users of financial information may be classified into two, namely:

a. Primary users
b. Other users

The _____ of financial information are the parties to whom general purpose financial reports are primarily directed.

primary users

The ______include the employees, customers, governments and their agencies, and the public.

other users

_____ __ _______ are concerned with the risk inherent in and return provided by their investments.

Existing and potential investors

____and _____are interested in information which enables them to determine whether their loans, interest thereon and other amounts owing to them will be paid when due.

Lenders and other creditors

By residual definition, ___ ____ are users of financial information other than the existing and potential investors, lenders and other creditors.

other users

______ are interested in information about the stability and profitability of the entity.

___________ have an interest in information about the continuance of an entity especially when they have a long-term involvement with or are dependent on the entity.

Customers

________ and their agencies are interested in the allocation of resources and therefore the activities of the entity.

Governments

Entities affect members of the_____ in a variety of ways. For example, entities make substantial contribution to the local economy in many ways including the number of people they employ and their patronage of local suppliers.

public

The overall objective of financial reporting is to provide_____ _____ about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entity.

financial information

The objective of financial reporting is the “___”, purpose or goal of accounting.

why

Financial reports also include _________ such as description of major products and a listing of corporate officers and directors.

nonfinancial information

Financial reporting is directed primarily to the existing and potential investors, lenders and other creditors which compose the _________group.

primary user

As a matter of fact, the ______ of financial information are the parties that provide resources or capital to the entity.

primary users

The overall objective of financial reporting is to provide information useful for _______ making.

decision

the objectives of financial reporting are:

a. To provide information useful in making decisions about providing resources to the entity.

b. To provide information useful in assessing the cash flow prospects of the entity.

c. To provide information about entity resources, claims and changes in resources and claims.

Existing and potential investors need __________ in order to enable them in making decisions whether to buy, sell or hold equity investments.

general purpose financial reports

Decisions by existing and potential investors about buying, selling or holding equity instruments depend on the ______ that they expect from an investment, for example, dividends.

returns

General purpose financial reports provide information about the ________ of a reporting entity.

financial position

________ is information about the entity’s economic resources and the claims against the reporting entity.

Financial position

The ____________ are the assets and the claims are the liabilities and equity of the entity.

economic resources

the financial position comprises the ____ ______ ____ of an entity at a particular moment in time.

assets, liabilities and equity

__________ is the availability of cash in the near future to cover currently maturing obligations.

Liquidity

_____ is the availability of cash over a long term to meet financial commitments when they fall due.

Solvency

The _____________ of an entity comprises revenue, expenses and net income or loss for a period of time.

financial performance

_________ is the level of income earned by the entity through the efficient and effective use of its resources.

financial performance

The financial performance of the entity must be measured using the __________

accrual basis of accounting

______________ depicts the effects of transactions and other events and circumstances on an entity’s economic resources and claims in the periods in which those effects occur even if the resulting cash receipts and payments occur in a different period.

Accrual accounting

_____________ means that income is recognized when earned regardless of when received and expense is recognized when incurred regardless of when paid.

accrual accounting

_______________ is the responsibility of management in efficiently and effectively using the economic resources of the entity.

Management stewardship

Such information on management stewardship is useful for ____ how management will use the entity’s economic resources in future periods.

predicting

___________ are the qualities or attributes that make financial accounting information useful to the users.

Qualitative characteristics

The_________________ relate to the content or substance of financial information.

fundamental qualitative characteristics

The two fundamental qualitative characteristics are?

relevance and faithful representation.

The most efficient and effective process of applying the fundamental qualitative characteristics would usually be:

First, identify an economic phenomenon or transaction that has the potential to be useful.

Second, identify the type of information about the phenomenon or transaction that would be most relevant and can be faithfully represented.

Third, determine whether the information is available.

In the simplest terms, ________ is the capacity of the information to influence a decision.

relevance