To which area of accounting are generally accepted accounting principles primarily relevant?

d. Financial Reporting to all Regulatory Agencies

Which of the following is an appropriate definition of accounting?

a. The measurement, process, and communication of financial information about an identifiable economic entity

b. A means of recording transactions and keeping records

c. The interconnected network of subsystems necessary to operate a business.

d. Electronic collection, organization, and communication of vast amounts of information

Accountants employed by a particular business firm or not-for-profit organization, perhaps as chief accountant, controller, of financial vice president, are said to be engaged in.

b. practice in commerce and industry

The entity concept means that:

c. The financial affairs of a firm and its owner are always kept separate for the purpose of preparing accounts.

a. Because a firm is separate and distinct from its owners, those owners cannot have access to its assets unless the firm ceases to trade

b. Accounts must be prepared for every firm

The financial accounting process provides information about economic activities of an enterprise for a specified accounting period that is shorter than the life of the enterprise.

c. measurement of economic resources and obligations

d. measurement in terms of money

The consistency concept means that:

a. when preparing the account of a firm, one should normally account for similar items in the same way from one accounting period to the next

b. Firms in the same industry must account for similar items in the same way

c. Firms may never change the way in which they prepare their accounts

The consistency standard of reporting requires that:

a. expenses be reported as charges against the poried in which they are incurred.

b. the effect of changes in accounting upon income be properly disclosed.

c. extraordinary gains and losses should not appear on the income statement

d. accounting procedures be adopted which give a consistent rate of return

The following documents shall be submitted in support of the requirements in the previous question except the:

a. Certificate of Live Birth in National Statistics Office (NSO) security paper

b. Marriage Contract in NSO security paper for married female applicants

c. College diploma with date of graduation and Special Order Number

e. Baccalaureate Transcipt of Records with date of graduation and Special Order Number

The basic purpose of accounting is:

a. To provide the information that the managers of an economic entity need to control its operation

b. To provide information that the creditors of an economic entity can use in deciding whether to make additional loans to the entity

c. To measure the periodic income of the economic entity

d. To provide quantitative financial information about a business enterprise that is useful in making rational economic decision

Which of the following best explain the feature of consistency of presentation?

a. When preparing the accounts of a firm, one should normally account for similar items in the same way from one accounting period to the next

b. Firms in the same industry must account for similar items in the same way

c. Firms must comply with accounting standards and regulations

Which type of business organization is owned by its stockholders?

d. All the above are owned by stockholders

Stating assets and liabilities and changes in them in terms of a common financial denominator is a prerequisite in measuring financial position and periodic net income.

b. Measurement of economic resources and obligations

Carrying out professional responsibilities diligently and in accordance with applicable technical and professional standards is descriptive of the principle of:

a. professional competence and due care

Carrying out professional responsibilities diligently and in accordance with applicable technical professional standards is descriptive of the principle of:

a. professional competence and due care

A professional accountant should be straightforward and honest in all professional and business relationships. This is in consonance with the fundamental principles of:

D. Professional competence and due care

Proponents of historical costs maintain that in comparison with all other valuation alternatives for general purpose financial reporting, statements prepared using historical costs are more

C. Indicative of the entity's purchasing power

The concept of matching is best demonstrated by:

a. Not recognizing any expense unless some revenue is realized

b. Recognizing prepaid rent received as revenue

c. Associating effort with accomplishment

d. Establising an allowance for possible market decline in inventory account

The measurement phase of accounting is accomplished by:

b. Reporting to decision makers

The main function is to establish and improve accounting standards that will be generally accepted in the Philippines

a. Financial Reporting Standards Council

b. Professional Regulation Commission

c. Philippine Institute of CPAs

Accountants do not recognize that the value of the peso changes over time. This concept is called the?

a. Stable monetary unit concept

Which area of public accounting means the examination of financial statements by a CPA for the purpose of expressing an opinion as to the fairness of the statements.

a. Management advisory services

The periodicity concept

a. Requires that all companies prepare monthly, quarterly and annual financial statements.

b. Results from the bureau of internal revenue requirement that taxable income be reported on an annual basis

c. Requires all companies to use a fiscal year ending December 31

d. Involves dividing the life of a business entity into accounting periods of equal length thus enabling the financial users to periodically evaluate the results of business operations

They encompass the conventions, rules, and procedures necessary to define what is accepted accounting practice

d. Generally accepted accounting principles

The Filipino accountants should possess knowledge to enable them to compete internationally, they are:

b. Organizational and Business Knowledge

Which of the following best describes the attributes of a partnership?

a. Limited ability to raise capital: unlimited personal liability of owners.

b. Limited ability to raise capital; limited personal liability of owners

c. Ability to raise to raise large capitall; unlimited personal liability of owners

d. Ability to raise large amounts of capital; limited personal liability of owners

The concept of accounting entity is applicable

a. only to the legal aspects of business organizations.

b. only to the economic aspects of business organizations

c. only to business organizations

d. whenever accounting is involved

Accounting is the process of ____________, ______________ and ____________ ___________ information to permit informed judgements and decisions by users of information. (di na pagbilangi ang mga underlines kay wala ko na man gi bilang HAHAHAHA)

Identifying, measuring, and communicating economic

developing, transfering and expanding

trading, marketing and industrial development

Accounting is the art of ___________. ____________, and __________ in a significant manner and in terms of money, transactions, and events which are in part at least, of a financial character, and interpreting the results.

recording, classifying and summarizing

transacting, dealing and marketing

calculating, organizing and formulating

For my future CPA

Authored by Gideonn Bote

Business

12th Grade

Used 1+ times

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MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following processes is considered bookkeeping?

a. Analyzing

b. Reporting

c. Recording

d. Summarizing

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Krishna started a speech therapy center. He also sells professional books on speech development. What is the nature of his business? Support your answer with a reason

a. manufacturing

b. service

c. trading

d. service and trading

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is a trading business?

a. a clinic

b. a law firm

c. a pharmacy

d. a telecommunications company

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following statements is false

a. A sole proprietor has a limited risk with respect to the amount of resources he invests in his business

b. A sole proprietorship has only one owner

c. A sole proprietorship is easy to set up

d. A sole proprietorship may not be able to obtain loans easily

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A business which prepares financial statements every year is following the ___________ concept

A. accounting entity

B. periodically

C. process

D. objectivity

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The ____________ concept assumes that the business has an indefinite economic life.

A. accounting entity

B. accounting period

C. going concern

D. objectivity

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following processes best defines accounting?

a. measuring economic activities

b. communicating results to interested parties

c. Preventing fraud

d. both A and B

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For my future CPA

Which of the following processes is considered bookkeeping?

Krishna started a speech therapy center. He also sells professional books on speech development. What is the nature of his business? Support your answer with a reason

Which of the following is a trading business?

Which of the following statements is false

A business which prepares financial statements every year is following the ___________ concept

The ____________ concept assumes that the business has an indefinite economic life.

Which of the following processes best defines accounting?

Which form of business organization is characterized by limited liability?

To which area of accounting are generally accepted accounting principles primarily relevant?

Which of the following is not one of the three types of business activities?

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