1. It is the first process used in accounting.

It refers to events as to whether they are recognized or not in the financial

statements.
a. Identifying
b. Measuring
c. Communicating
d. Reporting
2. In this year, there was a transition from the US GAAP to international accounting standards which arises from SEC’s
membership in the International Organization of Securities Commission.
a. 2006
b. 2005
c. 2004
d. 1997
3. By this year, ASC became the FRSC.
a. 1997
b. 2005
c. 2006
d. 2004
4. This is the international standard-setting body recognized by many countries.
a. FASB
b. IASB
c. IFRIC
d. ASC
5. In this date, the Philippine Accounting Standards Council resolved to adopt the PAS and the PFRS.
a. January 2005
b. September 1997
c. November 2004
d. October 2006
6. The IFRS issues two new standards, what should the FSRSC do?
a. Change the standards and make it appealing to users.
b. Ignore the standards. They are not important.
c. Provide comments to the new standards.
d. Adopt the standards with minor modifications.
7. What is the correct hierarchy?
a. PRC-PRBOA-FSRSC-PIC
b. PRC-PRBOA-PIC-FSRSC
c. PRBOA-FSRSC-PIC-PRC
d. PRBOA-PRC-FSRSC-PIC
8. This is the objective of using the IFRS/PFRS
a. To ensure comparability of businesses within an industry
b. To ensure accuracy and correctness of financial information
c. To ensure the completeness of the recording and measuring of financial transactions
d. To ensure consistency in recording, recognizing and measuring transactions
9. This is a set of accounting standards that are recognized by at least 120 countries.
a. Issuances of the IFRIC
b. US GAAP
c. IFRS
d. IAS
10. Publicly-listed entities must apply the
a. PFRS for SMEs
b. Full PFRS
c. Full PAS
d. Full Interpretations
11. Public interest entities are the following except:
 a. With total assets of more than 350Million and total liab of more than 250Million
b. Companies that hold primary licenses
c. Companies whose securities are traded in a public market.
d. companies that are in the process of filing their financial statements for the purpose of issuing any class of instruments
in a public market
12. These are entities whose total assets and liabilities are below P3Million.
a. SMEs
b. Micro-sized entities
c. Medium-sized entities
d. Banks
13. Renalyn House Apparel has total assets and liabilities of P3Million . The entity is a(n):
a. SME
b. Small-sized entity
c. Medium-sized entity
d. Public interest entity
14. Mark Resto and Bar has total liabilities of P150Million and total asset of P351Million. The entity is a(n):
a. SME
b. Small-sized entity
c. Medium-sized entity
d. Public interest entity
15. Thru the effort of Palpal, the manager, Briel John’s firm reached its goal of having the biggest market share for the previous
year. With that success, the firm’s asset increases to 250Million while its liabilities decrease by 2million from its previous
balance of 108Million. The firm is a(n):
a. SME
b. Small-sized entity
c. Medium-sized entity
d. Public interest entity
16. In this year, BSP has required all banks to follow PFRS
a. 2005
b. 2006
c. 2004
d. 2000
17. In this time, the PIC was created
a. January 2005
b. November 2004
c. October 2000
d. August 2006
18. A recent standard has been passed and that took effect at the beginning of the current year. However, practitioners had a
hard time understanding some of its recognition criteria. What should they do?
a. Ask the PIC for guidance
b. Ask the FSRSC for interpretation
c. Ask the BOA for resolution.
d. Do their own interpretation with the help of google.
e. Ask the Heavenly Father for guidance.
19. 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. Securities and Exchange Commission
c. Philippine Institute of Certified Public Accountants
d. Financial Reporting Standards Council
20. To be able to practice accountancy, the candidate must first pass a licensure examination. This is administered twice a year by
BOA. When are the schedule for this examination?
a. February and October
b. May and October
c. April and September
d. April and October
21. These are the criteria an applicant must meet in order to take the examination, except
a. Be a filipino citizen
b. be of good moral character
c. Be a holder of the degree of Bachelor of Science in Accountancy conferred by a school, college, academy or institute duly
recognized and/or accredited by the Department of Education or other authorized government offices
d. not been convicted of any criminal offense.
22. Ronnie, a natural born Filipino is a graduate of Bachelor of Science in Accountancy and is planning to take the board exam next
year. Unfortunately, he was entangled in a malicious crime and was waiting for the verdict. Will he be able to take the exam?
a. No, he has of bad character
b. No, he has a criminal offense.
c. Yes, he is still innocent until the final verdict.
d. Yes, provided he will ask authorization from the judge to take the exam.
23. This is the accredited, national professional accountancy organization.
a. FSRSC
b. AASC
c. PIC
d. PICPA
24. The following are the responsibilities of BOA, except
a. investigating violations of rules and regulations and issuing sanctions
b. issuing and renewing Certificates of Registration and Accreditation
c. ensuring all tertiary educational providers comply with policies and standards prescribed by the CHED
d. carrying out the fact-finding component of investigations
25. The following are responsibilities of PICPA, except
a. promoting and maintaining high professional and ethical standards among accountants by adopting a Code of Ethics for its
members as a task delegated by the BOA
b. ensuring all tertiary educational providers comply with policies and standards prescribed by the CHED
c. developing and improving the accountancy education
d. protecting the CPA designation
26. Events involving an entity and an external party.
A. External events
B. Non-reciprocal transfers
C. External events other than transfers
D. Internal events
27. Financial accounting applies to which of the following:
A. Businesses
B. Non-profit organizations
C. Government
D. All of these
28. The function of measuring and reporting information to absentee investors is called the:
A. Accounting function
B. Stewardship function
C. Auditing function
D. Management function
29. The primary objective of financial reporting is to provide information:
A. About a firm’s financing and investing activities
B. About a firm’s economic resources and obligations
C. About a firm’s products and services
D. Useful in predicting cash flows
30. In the conceptual framework for financial reporting, what provides "the why"--the purpose of accounting?
A. Recognition, measurement, and disclosure concepts such as assumptions, principles, and constraints B. Qualitative characteristics
of accounting information
C. Elements of financial statements
D. Objective of financial reporting
31. The objective of general-purpose financial reporting is to provide financial information about a reporting entity to each of the
following except
A. Potential equity investors.
B. Potential lenders.
C. Present investors.
D. All of these answers are correct.
32. Accounting provides which type of information?
a. quantitative
b. financial information
c. qualitative
d. all of these
33. It refers to the process of incorporating the effects of an accountable event in the statement of financial position or the statement
of profit or loss and other comprehensive income through a journal entry
a. realization b. derecognition c. recognition d. posting
34. All of the following are events considered as exchange or reciprocal transfer, except
a. purchase of investment in equity securities
b. sale of equipment for non-interest bearing note
c. subscription of the entity’s own equity instrument (i.e., contributions by owners)
d. exchange of a note payable for an account payable
35. All of the following are events considered nonreciprocal transfers, except
a. declaration of cash dividends
b. declaration of stock dividends
c. payment of accounts payable
d. imposition of fines
e. theft
36. During the lifetime of an entity, accountants produce financial statements at arbitrary points in time in accordance with which
basic accounting concept? a. Cost/benefit constraint b. Periodicity assumption c. Conservatism constraint d. Matching principle
37. What accounting concept justifies the use of accruals and deferrals? a. Going concern assumption b. Materiality constraint c.
Consistency characteristic d. Monetary unit assumption
38. Valuing assets at their liquidation values rather than their cost is inconsistent with the a. periodicity assumption. b. matching
principle. c. materiality constraint. d. historical cost principle.
39-40. The effective date of our current conceptual framework.