1. Define accounting
Explain recording, classifying and
Accounting is the business language. It is a service
activity that aims to give quantitative information,
particularly financial information, to aid in
decision-making. It is the art of recording,
classifying, and summarizing financial transactions
and interpreting the results thereof. It is also a
process of identifying, measuring, and
communicating economic information.
2. Explain identifying as a component of
accounting.
This is an accounting process whereas recognition
or nonrecognition of business activities as
“accountable” events happens. An event is
accountable or quantifiable only when it has an
effect on assets, liabilities, and equity. Hence, an
activity should be economic to be recognized in
accounting. Psychological and sociological matters
are beyond the province of accounting.
3. When is a transaction accountable or
quantifiable?
An event is accountable or quantifiable when it has
an effect on assets, liabilities, and equity. Only
economic activities, transactions that may be
classified as external and internal, can be
accountable and recognized in accounting.
4. Explain measuring as a component of
accounting?
The accounting practice of allocating peso
amounts to accountable economic transactions and
events is known as measuring. Accounting
information must be stated in terms of a common
financial denominator in order to be relevant, as
failure to do so will result in unclear or
incomprehensible financial statements.
5. Explain communicating as a component
of accounting?
Communicating is the process of preparing and
distributing accounting reports to potential users of
accounting information. The identifying and
measuring process of accounting would be
meaningless if it could not be communicated to
potential users in some way. Accounting is known
as the "universal language of business" because of
this component. .
6.
summarizing relation to the
communicating component of
accounting.
Implicit in the communication process is the
recording, classifying, and summarizing aspects of
accounting. Recording or journalizing is the
process of systematically maintaining a record of
all economic business transactions after they have
been identified and measured. Classifying is the
sorting or grouping of similar interrelated
economic transactions into their respective classes.
It is accomplished by posting to the ledger.
Summarizing is the preparation of financial
statements.
7. What is overall objective of accounting?
The overall objective of accounting is to provide
quantitative financial information about a business
useful to statement users, particularly owners, and
creditors in making economic decisions.
8. Describe accountancy profession.
An accountant’s primary task is to supply financial
information so that the statement users could make
informed judgments and better decisions.
Accountants are professionals who are in charge of
maintaining and interpreting financial records.
9. What is R.A. No. 9298?
Republic Act No. 9298 is the law regulating the
practice of accountancy in the Philippines. This
Act shall provide for and govern:
(a) The standardization and regulation of
accounting education;
(b) The examination for registration of
certified public accountants; and
(c) The supervision, control, and
regulation of the practice of accountancy
in the Philippines.
10. What do you understand by the Board
of Accountancy?
The Board of Accountancy is the body empowered
by law to issue rules and regulations governing the
practice of accounting in the Philippines. It is in
charge of preparing and grading the Philippine
CPA exam.
 11. Explain the limitation of the practice of 21. What is the purpose of the required
public accountancy. CPD credit units?
Single practitioners and partnerships engaged in
the practice of public accounting in the Philippines
must be registered certified public accountants. 22. What is the exemption from the CPD
Furthermore, a certificate of accreditation shall be requirements?
issued to certified public accountants in public
practice only after such registrant has
demonstrated, in accordance with the rules and 23. Distinguish accounting and auditing.
regulations promulgated by the Board of
Accountancy and approved by the Professional
Regulation Commission, that such registrant has 24. Distinguish accounting and
acquired a minimum of three years of meaningful bookkeeping.
experience in any of the areas of public practice,
including taxation. In addition, the SEC shall not 25. Distinguish accounting and
register any corporation organized for the practice accountancy.
of public accounting.

12. 26. Distinguish financial and manageriual

accounting.

13. What are the three main areas in the

practive of the accountancy profession? 27. Explain generally accepted accounting
principles or GAAP.

14. Explain public accounting,

28. What constitutes GAAP in the
Philippines?
15. Explain auditing, taxation, and
management advisory services.
29. Explain the purpose of accounting
standards.
16. Explain private accounting.

17. Explain government accounting. 30. What do you understand about the
Financial Reporoting Standards
Council?
18. What do you understand by the
Continuing Professional Development of
CPAs?
31. What is the composition of FRSC?

19. What is the meaning of CPD credit

units?
32. What do you understand about the
International Accounting Standards
20. How many CPD units are required. Committee?
33. What do you understand by the
International Accounting Standards
Board?

34. What do you understand by the

International Financial Reporting
Standards?

35. What are collectivelyincluded in

Philippine Financial Reporting
Standards?