FAR1C1 B

Question 1

This accounting process is the assigning of peso amounts to the accountable economic transactions and events.

If accounting information is to be useful, it must be expressed in terms of a common financial denominator.

Financial statements without monetary amounts would be largely unintelligible or incomprehensible.

The Philippine peso is the unit of measuring accountable for economic transactions.

Answer 1

Measuring

Question 2

What are the four (4) measurement bases?

Answer 2

1) Historical cost
2) Current cost
3) Realizable value
4) Present value

Question 3

What is the most common measure of financial transactions?

Answer 3

Historical cost

Question 4

It is the process of preparing and distributing accounting reports to potential users of accounting information.

Identifying and measuring are pointless if the information contained in the accounting records cannot be communicated in some form to potential users.

Actually, this process is the reason why accounting has been called the “universal language of business”.

Implicit in the communicating process are the recording, classifying and summarizing aspects of accounting.

Answer 4

Communicating

Question 5

It is the process of preparing and distributing accounting reports to potential users of accounting information.

Identifying and measuring are pointless if the information contained in the accounting records cannot be communicated in some form to potential users.

Answer 5

Communicating

Question 6

Actually, this process is the reason why accounting has been called the “universal language of business”.

Implicit in the communicating process are the recording, classifying and summarizing aspects of accounting.

Answer 6

Communicating

Question 7

It is the process of systematically maintaining a record of all economic business transactions after they have been identified and measured.

Answer 7

Recording or journalizing

Question 8

It is the sorting or grouping of similar and interrelated economic transactions into their respective classes.

It is accomplished by posting to the ledger.

Answer 8

Classifying

Question 9

It is the sorting or grouping of similar and interrelated economic transactions into their respective classes.

Answer 9

Classifying

Question 10

It is accomplished by posting to the ledger.

Answer 10

Classifying

Question 11

It is a group of accounts which are systematically categorized into asset accounts, liability accounts, equity accounts, revenue accounts and expense accounts.

Answer 11

Ledger

Question 12

It is the preparation of financial statements which include the statement of financial position, income statement, statement of comprehensive income, statement of changes in equity and statement of cash flows.

Answer 12

Summarizing

Question 13

What is accounting as an information system?
It is an ** ** that ** business activities, ** information into reports and *** the reports to decision makers.

Answer 13

It is an information system that measures business activities, processes information into reports and communicates the reports to decision makers.

Question 14

It is an information system that measures business activities, processes information into reports and communicates the reports to decision makers.

Answer 14

Accounting

Question 15

What is the key product of accounting information system?

Answer 15

A key product of this information system is a set of financial statements – the documents that report financial information about an entity to decision makers.

Financial reports tell us how well an entity is performing in terms of profit and loss and where it stands in financial terms.

Question 16

What is the key product of accounting information system?

A key product of this information system is a set of — — – the documents that report — — about an — to decision makers.

Financial reports tell us how — an entity is — in terms of — and — and where it stands in — —.

Answer 16

A key product of this information system is a set of financial statements – the documents that report financial information about an entity to decision makers.

Financial reports tell us how well an entity is performing in terms of profit and loss and where it stands in financial terms.

Question 17

What is the overall objective of accounting?

Is to provide ** ** ** about a business that is ** to statement users particularly owners and creditors, in making ** **.

An accountant’s primary task is to ** ** ** so that the statement users could make ** ** and ** ***.

The essence of accounting is -.

Investors and other users are interested in financial accounting information necessary in making ** and ** ** **.

Answer 17

Is to provide quantitative financial information about a business that is useful to statement users particularly owners and creditors, in making economic decisions.

An accountant’s primary task is to supply financial information so that the statement users could make informed judgment and better decision.

The essence of accounting is decision-usefulness.

Investors and other users are interested in financial accounting information necessary in making important and significant economic decisions.

Question 18

What is the essence of accounting?

Answer 18

Decision-usefulness

Question 19

What is the law regulating the practice of accountancy in the Philippines?

Answer 19

Republic Act No. 9298 or Philippine Accountancy Act of 2004

Question 20

What is the qualification to practice accountancy profession in the Philippines?

• In the Philippines, in order to ** to practice the accountancy profession, a person must ** a degree in Bachelor of Science in ** and ** a very difficult government ** given by the Board of **.

Answer 20

• In the Philippines, in order to qualify to practice the accountancy profession, a person must finish a degree in Bachelor of Science in Accountancy and pass a very difficult government examination given by the Board of Accountancy.

Question 21

What BOA stands for?

Answer 21

Board of Accountancy

Question 22

It is the body authorized by law to promulgate rules and regulations affecting the practice of the accountancy profession in the Philippines.

It is responsible for preparing and grading the Philippine CPA examination.

This computer-based examination is offered twice a year, one in May and another one in October, in authorized testing centers around the country.

Answer 22

Board of Accountancy

Question 23

It is the body authorized by law to promulgate rules and regulations affecting the practice of the accountancy profession in the Philippines.

Answer 23

Board of Accountancy

Question 24

It is responsible for preparing and grading the Philippine CPA examination.

This computer-based examination is offered twice a year, one in May and another one in October, in authorized testing centers around the country.

Answer 24

Board of Accountancy

Question 25

Explain limitation of the practice of public accountancy.

— practitioners and — for the practice of — accountancy shall be — — — — in the Philippines.

A certificate of — shall be — to certified public accountants in — — only upon showing in accordance with — and — promulgated by the — of — and approved by the — — — that such registrant has — a minimum of — years of meaningful — in any of the — of — — including —.

The — and — — shall not register any — organized for the practice of — —.

Answer 25

Single practitioners and partnerships for the practice of public accountancy shall be registered certified public accountants in the Philippines.

A certificate of accreditation shall be issued to certified public accountants in public practice only upon showing in accordance with rules and regulations promulgated by the Board of Accountancy and approved by the Professional Regulation Commission that such registrant has acquired a minimum of three years of meaningful experience in any of the areas of public practice including taxation.

The Securities and Exchange Commission shall not register any corporation organized for the practice of public accountancy.