Imus Institute of Science and Technology

City of Imus, Cavite

College of Accountancy

Concept Framework and Accounting Standards

Name:_________________________________________________ Score:___________
Section:____________________ Quiz No. 1

I. True or False
_______ 1. All business activities are accountable.
_______ 2. Sociological and psychological matters are beyond the province of accounting.
_______ 3. Production and casualty loss are example of internal transactions.
_______ 4. Journal entries tell us how well an entity is performing in terms of profit and loss and where
it stands in financial terms.
_______ 5. The Board of Accountancy is responsible for preparing and grading the Philippine CPA
examination.
_______ 6. The Securities and Exchange Commission shall register any corporation organized for the
practice of public accountancy.
_______ 7. The highest accounting officer in an entity is known as the controller.
_______ 8. Excess credit units earned can be carried over to the next three-year period.
_______ 9. A CPA shall be permanently exempted from CPD requirements upon reaching the age of 60
years.
_______10. The approved statements of the FRSC are known as International Accounting Standards and
International Financial Reporting Standards.

II. Identification
1. Law regulating the practice of accountancy in the Philippines which is also known as the
“Philippine Accountancy Act of 2004.
2. Body authorized by law to promulgate rules and regulations affecting the practice of the
accountancy profession in the Philippines.
3. Is the art of recording, classifying and summarizing 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 thereof.
4. This accounting process is the recognition or nonrecognition of business activities as
“accountable” events.
5. Primary service offered y most public accounting practitioners.

III. Multiple Choice

1. Which of the following statements is incorrect in relation to the practice of public accounting?
a. Single practitioners for the practice of public accounting shall be registered CPAs in the
Philippines.
b. Partners of partnership formed for the practice of public accounting shall be registered CPAs
in the Philippines.
c. The Securities and Exchange Commission can register any corporation organized for the
practice of public accounting.
d. The Professional Regulation Commission upon favorable recommendation of the Board of
Accountancy shall issue certificate of accreditation to CPAs in public practice provided the
registrant has acquired a minimum of three years of meaningful experience in public
practice.

2. The continuing professional development is required for

a. Renewal of CPA license
b. Accreditation to practice the accountancy profession
c. Both a and b
d. Neither a nor b.
 3. Which is the accounting standard setting body in the Philippines at the present time?
a. Accounting Standards Council
b. Auditing and Assurance Standards Council
c. Philippine Accounting Standards Board
d. Financial Reporting Standards Council

4. Once an accounting standard has been established

a. The standard is continually reviewed to see if modification is necessary.
b. The standard is not reviewed.
c. The task of reviewing the standard is given to a national organization of CPAs.
d. No revisions should be made to the standard.

5. All of the following are services offered in public accounting, except

a. Management advisory services
b. Government accounting
c. Auditing
d. Taxation

6. All of the following are represented in FRSC, except

a. Board of Accountancy
b. Securities and Exchange Commission
c. Commission on Audit
d. Department of Budget and Management

7. The IASB published standards called

a. International Accounting Standards
b. Financial Reporting Standards
c. Internal Financial Reporting Standards
d. Statement of Financial Accounting Standard

8. Accountants employed in entities in various capacity as accounting staff, chief accountant or

controller are said to be engaged in
a. Public accounting
b. Private accounting
c. Government accounting
d. Financial accounting

9. Financial accounting emphasizes reporting to

a. Management
b. Regulatory bodies
c. Internal auditors
d. Creditors and investors

10. Which of the following statements is true regarding the comparison of managerial and financial
accounting?
a. Managerial accounting is generally more precise.
b. Managerial accounting need not follow generally accepted accounting principles while
financial accounting must follow GAAP.
c. Managerial accounting has a future focus.
d. The emphasis on managerial accounting is relevance and the emphasis on financial
accounting is timeliness.

IV. Essay
Give one definition of Accounting either from Accounting Standards Council, American Institute of
Certified Public Accountants or American Accounting Association.