ABM

Accounting

Is the systematic process of measuring and reporting relevant financial information about the activities of an economic organization or unit

2. Accounting is a systematic process. Which of the following statements defines process?

c. Is a series of actions that produces something or that lead to a particular result.

recording

3. It is the writing down of business transactions chronologically in the books of account as they transpire.

classifying

4. It is the sorting of similar and related business transactions into the three categories of assets, liabilities and owner’s equity.

Classifying

5. It is the process of preparing financial statements from the transactions recorded in the books of account that are designed to meet the information needs of its users.

luca pacioli

An Italian mathematician known as the "father of accounting"

1.     Who are the users of financial information?

a. Primary users and others

sole proprietorship

8. It is a business owned and managed by only one person

9. The following are the advantages of sole proprietorship, except

c. Decision making is solely in the hands of the BOD

partnership

10. Is a business organization owned and managed by two or more people who agree to contribute money, property, or industry to a common fund for the purpose of earning a profit.

11. The following are the disadvantages of partnership, except

d. All of the above

corporation

12. Is a form of business organization managed by an elected board of directors. The investors are called stockholders and the unit of ownership is called share of stock.

indefinite

13. A corporation has continuous existence as its life is__________.

profession

1.     Is a common body of knowledge that can be learned through formal education and with standards of conduct higher than those imposed by law.

Professional

15. Are the top of the list of occupations

Practice of public accountancy

16. A scope of the practice of accountancy that offers or renders (or both) to more than one client on a fee-basis or otherwise, services such as audit or verification of financial transactions and accounting records

17. Shall constitute in a person involved in decision-making, requiring professional knowledge in the science of accounting, or when such employment or position requires that holder thereof must be a CPA.

b. Practice in commerce and industry

18. Shall constitute in a person involved in an educational institution which involve teaching of accounting, auditing, management advisory services, finance, business law, taxation, and other technically related subjects.

c. Practice in education or academe

19. Shall constitute in a person who holds, or is appointed to, a position in an accounting professional group in government or in a government-owned and/or controlled corporations

d. Practice in government

20. The following are the expanded services of accountants, except

d. Land assessment values

21. The one who conducted the examination for Certified public accountants is the ________, under the administration of the _________.

a. BOA, PRC

22. Certification of accountants includes the following, except

d. CFMP

23. Is a set of moral principles or values

c. Ethics

24. What are the four objectives of the code of ethics for professional accountants

a. Credibility, professionalism, quality of services, confidence

25. A professional accountant should be straightforward and honest in performing professional services

a.integrity

26. A professional accountant should be fair and should not allow prejudice or bias, conflict of interest, or influence of others to override objectivity.

b. objectivity

27. the last step in the accounting process. It is the step that directs attention to the significance of various matters and relationships

d. interpreting

the process of grouping similar transactions and events together

d. classifying

the process of explaining the relationships of the different items in the financial statements.

interpreting

the process of determining the effects on the different accounts of the documented transactions and economic events

A. analyzing

the process of writing in the journal the effects, whether increases or decreases, of the analyzed transactions and events

b. recording

the process of identifying the relationships of various items in the financial statements and pointing out their effects and importance to decisions to be made by their users.

interpreting

the process of preparing balance sheets, income statements, and statement of cash flows.

d. reporting

. the financial statement that reports assets, liabilities, and owner’s equity is called

balance sheet

the financial statement that reports the net income or net loss for a period of time is called

b. income statement

things owned are called

asset

things owed are referred to as

liabilities

an exchange of value is referred to as

a. transaction

. a period of time, at the end of which financial statements are prepared

a. accounting period

a document that supports an activity to be recorded in the accounting books

a. source documents

an accounting period that ends on December 31

a. calendar year

an accounting period that ends on a date other than December 31

fiscal year

the person who records transactions is a

bookeeper

the following are scope of the practice of accountancy, except

d. tax scope

choose that do not belong to the group

d. tax expert

PRC means

a. professional regulation commission

in the whole society there is a need for credibility in information and information systems

credibility

professional accountant should act in a manner consistent with the good reputation of the profession and refrain from any conduct that might bring discredit to the profession

a. professional behavior

choose that do not belong to the group

d. internal auditing

choose that do not belong to the group

a.  financial accounting

b.  business law

c.   tax

d.  budgeting

business law