Accounting Process: Chapter 2

Question 1

_______ Accounting is a career field where the accountants are employed because of the huge number of merchandising, manufacturing or service firms.

Answer 1

Industry or Private Accounting

Question 2

The routine activity of recording, classifying and summarizing business transactions in a systematic manner.

Answer 2

Basic Accounting or Bookkeeping

Question 3

_________ Accounting involves the preparation and interpretation of financial statements primarily intended for external users.

Answer 3

Financial Accounting

Question 4

It deals with recording, classifying and summarizing the details of materials, labor and overhead necessary to produce and sell a product or service.

Answer 4

Cost Accounting

Question 5

It deals with financial and non-financial information primarily for managers and other internal users.

Answer 5

Management Accounting

Question 6

It deals with the independent verification and examination of the accounting records for the purpose of giving credibility to the financial statements.

Answer 6

Auditing

Question 7

It deals with the administration or use of public or community funds to bring the service to the people.

Answer 7

Fund Accounting

Question 8

It deals with tax matters affecting firms, individuals, trusts, and estates.

Answer 8

Tax Accounting

Question 9

It integrates accounting, auditing and investigative skills.

Answer 9

Forensic Accounting

Question 10

A government body in charge of regulation and licensing the practice of a profession.

Answer 10

Professional Regulation Commission

Question 11

PRC

Answer 11

Professional Regulation Commission

Question 12

_______ Accounting is a career field open to firms and individual CPAs who offers expert services to the public

Answer 12

Public Accounting

Question 13

BOA

Answer 13

Board of Accountancy

Question 14

PICPA

Answer 14

Philippine Institute of Certified Public Accountants

Question 15

PFRS

Answer 15

Philippine Financial Reporting Standards

Question 16

SEC

Answer 16

Securities and Exchange Commission

Question 17

BSP

Answer 17

Bangko Sentral ng Pilipinas

Question 18

BIR

Answer 18

Bureau of Internal Revenue

Question 19

IASC

Answer 19

International Accounting Standards Committee

Question 20

IASB

Answer 20

International Accounting Standards Board

Question 21

IFRS

Answer 21

International Financial Reporting Standards

Question 22

IAS

Answer 22

International Accounting Standards

Question 23

Republic Act 9298

Answer 23

Accountancy Act of 2004

Question 24

Only general information are provided by the financial statements to all statement users hence the reports are called _________.

Answer 24

General Purpose Financial Statements

Question 25

\_\_\_\_\_\_\_\_\_\_ is the process of giving overall directions by overseeing and steering the activities of the business to ensure that the interests of all stakeholders are protected.

Answer 25

Good Governance

Question 26

\_\_\_\_\_\_ is a set of rules designed to produce professional conduct and behavior consistent with the high ethical standards expected by the public.

Answer 26

Code of Professional Conduct

Question 27

\_\_\_\_\_\_ is a set of moral principles and values which guides one to distinguish between right and wrong and to conduct oneself accordingly.

Answer 27

Ethics

Question 28

\_\_\_\_\_\_\_ requires you to be honest, sound, sincere and trustworthy.

Answer 28

Integrity

Question 29

\_\_\_\_\_\_\_ requires you to avoid bias and prejudice and always to maintain a. Impartial attitude in all matters.

Answer 29

Objectivity

Question 30

\_\_\_\_\_ requires you to have adequate knowledge, skills and experience in the practice of your profession.

Answer 30

Competence

Question 31

\_\_\_\_\_\_\_ requires a practitioner to be free of personal interest and to avoid compromising relationships that will impair judgment.

Answer 31

Independence

Question 32

\_\_\_\_\_\_\_\_ requires you to keep information obtained in the course of the professional engagement from leaking out.

Answer 32

Confidentiality