Quiz # 01

espina
BA 99.1
The Fundamentals of Accounting
1. Accounting is a process as defined by the:
a. Accounting Standards Council (ASC)
b. Financial Accounting Standards Board (FASB)
c. American Accounting Association (AAA)
d. American Institute of Certified Public Accountants (AICPA)
2. Accounting is an art as defined by the:
a. ASC
b. FASB
c. AAA
d. AICPA
3. Accounting is a service activity as defined by the:
a. ASC
b. FASB
c. AAA
d. AICPA
4. This is a form of business organization owned and operated by two or more persons who bind themselves to contribute
money, property or industry to a common fund with the intention of dividing the profits among themselves.
Partnership
5. This business organization has a single owner who is also generally the manager Sole Proprietorship
6. This is an artificial being created by operation of law, having the rights of succession and the powers, attributes, and
properties expressly authorized by law or incident to its existence. Corporation
7. Accountancy in the Philippines is governed by Republic Act No. 9298, also known as the _________________
Philippine Accountancy Act of 2004
8. Certified Public Accountants in the Philippines may engage in the following areas of competence, except:
a. Public practice
b. Commerce and industry
c. Government Service
d. Tax avoidance/ Tax Evasion
e. Education/ Academe
9. This branch of accounting is an independent examination that ensures the fairness and reliability of the reports that
management submits to users outside the business entity External Auditing
10. It is a mechanical task involving the collection of basic financial data Bookkeeping
11. It is focused on the recording of business transactions and the periodic preparation of reports on financial position and
results of operations. Financial Accounting
12. This branch of accounting includes the preparation of tax returns and the consideration of the tax consequences of
proposed business transactions or alternative courses of action Tax Accounting
13. It is concerned with the identification of the sources and uses of resources consistent with the provisions of city,
municipal, provincial or national laws Government Accounting
14. It is often characterized as the “language of business” Accounting
15. Examinees who have successfully passed the CPA Licensure Examinations are given the designation of a
____________________. Certified Public Accountant
True or False.
16. For accounting purposes, a business and its owner are considered one and the same F
17. The terms ‘bookkeeping’ and ‘accounting’ are synonymous F
18. A business transaction is the occurrence of an event or of a condition that must be recorded T
19. Business transactions should be recorded using the single-entry system F
20. Only CPAs may validly enter into the Philippine Accountancy workforce. F