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Cfas Exercise 2
Cfas Exercise 2
CFAS - EXERCISE 2
3. The important points made in the definition of accounting include all of the
following except:
A. Accounting information is quantitative
B. Accounting information is both quantitative and qualitative
C. Accounting information is financial in nature
D. Accounting information is useful in decision making.
5. What are the events that affect the entity and in which other entities
participate?
A. Internal events
B. External events
C. Current events
D. Obligating events
11. What is the law regulating the practice of Accountancy in the Philippines?
A. RA 9298
B. RA 9198
C. RA 9928
D. RA 9892
12. What is the body authorized bylaw to promulgate rules and regulations
affecting the practice of the Accountancy profession in the Philippines?
A. Board of Accountancy
B. PICPA
C. SEC
D. FRSC
13. What are the three main areas in the practice of the accountancy profession?
A. Public Accounting, private accounting and managerial accounting.
B. Auditing, taxation and managerial accounting.
C. Financial accounting , managerial accounting and corporate accounting.
D. Public accounting, private accounting and government accounting.
16. What is the standard-setting body in the Philippines at the present time?
A. Accounting Standards Council
B. Auditing and Assurance Standard Council
C. Philippine Accounting Standards Board
D. Financial Reporting Standards Council
23. It is the area of the accountancy profession that 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.
A. Internal auditing
B. External auditing
C. Private accounting
D. Government accounting
24. How many CPD credit units are required for accreditation to practice the
accountancy profession?
A. 120
B. 100
C. 60
D. 15
28. The IASB declared that the merits of proposed standards are assessed
A. From a position of neutrality
B. From a position of materiality
C. Based on possible impact on behavior
D. Based on arguments of lobbyist
33. What is a possible danger if politics play too big a role in developing IFRS?
A. Financial reporting standards are not truly generally accepted
B. Individuals may influence the standards
C. User groups become active
D. The IASB delegates its authority to elected officials
36. Financial accounting can be broadly defined as the area of accounting that
prepares
A. General purpose financial statements to be used by parties internal to the
entity
B. Financial statements to be used by investors
C. General purpose financial statements to be used by parties both internal
and external to the entity
D. Financial statements to be used primarily by management
44. The primary responsibility for properly applying GAAP lies with
A. External auditor
B. Internal auditor
C. Management
D. National accounting organization