Professional Documents
Culture Documents
Chapter 1
Chapter 1
Chapter 1
2. It is the body authorized by law to promulgate rules and regulations affecting the practice of the
accountancy profession in the Philippines.
a. Board of Accountancy
b. Philippine Institute of Certified Public Accountants
c. Securities and Exchange Commission
d. Financial Reporting Standards Council
3. The qualifications of the members of the Board of Accountancy include all of the following,
except
a. Must be a natural born citizen and a resident of the Philippines.
b. Must be duly registered CPA with at least ten years of work experience in any scope of
practice of accountancy.
c. Must be of good moral character and must not have been convicted of crime involving
moral turpitude.
d. Must have any pecuniary interest, directly or indirectly, in any school conferring an
academic degree necessary for admission to the practice of accountancy.
4. 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.
7. 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
9. Which of the following statements is true regarding exemptions from CPD requirements?
a. A CPA shall be permanently exempted from CPD requirement for renewal of CPA License at
the age of 65 years but not for the accreditation to practice the accountancy profession.
b. A CPA who is working or practicing the profession abroad shall be temporarily exempted
from CPD requirement during the period of stay abroad provided the CPA has been out of
the country for at least two years prior to the date of renewal.
c. A CPA who is furthering studies abroad shall be temporarily exempted from CPD
requirement during the period of stay abroad provided the CPA has been out of the country
for at least two years prior to date of renewal.
d. All of the statements are true.
10. 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.
11. 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
16. The IASB declared that the merits of proposed standards are assessed
a. From position of neutrality
b. From a position of materiality
c. Based on possible impact on behavior
d. Based on arguments of lobbyist
21. What is a possible danger if politics plays 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.
24. 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.
27. 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.
29. Which of the following statements best describes generally accepted accounting principles?
a. The accounting principles have been formulated in the public sector.
b. The accounting principles have been developed on the basis of such factors as usage and
practical necessity.
c. The accounting principles are the same as laws
d. The accounting principles do not apply to SMEs.
Answers:
1. A
2. A
3. D
4. D
5. A
6. B
7. D
8. C
9. D
10. C
11. D
12. D
13. D
14. D
15. B
16. A
17. D
18. C
19. B
20. D
21. A
22. A
23. D
24. C
25. D
26. D
27. B
28. D
29. B
30. D
31. A