Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

CFAS > LESSON 1 > Flashcards

LESSON 1 Flashcards

1
Q

is to provide
quantitative information to be useful in making economic decisions

A

ACCOUNTING

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

is an art of recording, classifying and summarizing in a
significant manner and in terms of money, transactions and events
which are in part at least of a financial character and interpreting the
results thereof

A

Accounting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

OVERALL OBJECTIVES OF
ACCOUNTING

A

 Provide quantitative financial information about a business that is
useful to statement users particularly its owners and creditors in
making economic decisions
 The accountant’s primarily tasks is to supply financial information so that the users of the financial statements could make informed
judgments and better decision
 The essence of accounting is decision usefulness
 Investors and other users of the financial statements are interested
in accounting information necessary to make important and significant economic decisions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Public accounting professions consists of accounting theoryfinancial accounting and reporting standards, practices and auditing
standards which is considered as a science of validation

A

SYSTEMATIC THEORY

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The field of public accounting or public accountancy is composed of
individual practitioners , small accounting firms and large
multinational organizations that render independent and expert
financial services to the public

A

SCOPE OF PRACTICE – PUBLIC ACCOUNTANCY

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

SCOPE OF PRACTICE – PUBLIC ACCOUNTANCY

A

Public accountants usually offer three kinds of services:
i.e. Auditing, Taxation and Managerial Advisory Services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Many CPAs are employed in business entities in various capacity as
accounting staff, chief accountant, internal auditor and controller
o The highest position of an accounting officer is Controller, Chief
Financial Officer, Vice-President for Finance, Treasurer

A

SCOPE OF PRACTICE – PRIVATE ACCOUNTING

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

This includes maintaining of records, producing financial reports,
preparing the budgets, controlling and allocating the resources of
the entity

A

PRIVATE ACCOUNTING

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Shall constitute person in an educational institution which involves
teaching of accounting, auditing, management advisory services ,
finance, law taxation and other technical subjects

A

SCOPE OF PRACTICE – EDUCATION AND ACADEME

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

encompasses the process of analyzing, classifying, summarizing
and communicating all transactions involving the receipt and
disbursement of government funds and property and interpreting
the results thereof

A

GOVERNMENT ACCOUNTING

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

focus of government accounting is the custody and administration
of public funds

A

GOVERNMENT ACCOUNTING

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Proprietary functions where decision making requires professional
knowledge in accounting or where a civil service eligibility as a
certified public accountant is a prerequisite

A

SCOPE OF PRACTICE – PRACTICE IN GOVERNMENT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q
  • is the body authorized by law to
    promulgate rules and regulations affecting the practice of
    accountancy profession in the Philippines
  • is responsible for preparing the grading of the Philippine CPA
    examination
A

The Board of Accountancy (BOA) `

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

is the law regulating the practice of Accountancy in the
Philippines

A

RA 9298

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

LIMITATIONS OF THE PRACTICE OF PUBLIC ACCOUNTANCY

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

A certificate of accreditation shall be issued to CPAs in the public
practice upon showing with rules and regulations promulgated by
the Board of Accountancy and approved by the Professional
Regulation Commission that the registrant has acquired minimum
_____ _____ meaningful experience in any areas of public practice
including taxation

A

Three years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

shall not register any
corporation organized for practice of public accountancy in the
Philippines

A

The Securities and Exchange Commission (SEC)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

RATINGS IN THE CPA LICENSURE EXAMINATION

A

o A candidate must obtain a general average of 75% with no grades
lower than 65% in any given subject
o In the event that the candidate obtains a rating of 75% and above in
at least majority of the subjects as provided in this act, he or she shall receive a conditional credit for the subjects passed
o Provided, that a candidate shall take an examination in the remaining subjects within two (2) years from the preceding examination
o Provided further, that if the candidate fails to obtain at least a general average of 75% and a rating of at least 26% in each of the subjects reexamined, he/she shall be determined failed in the entire
examination

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

upon favorable recommendation of BOA shall issue a Certificate
of Registration to practice public accountancy which shall be valid for
3 years and renewable every 3 years upon payment of required fees

A

PRC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

REQUIREMENTS TO ENTER THE ACCOUNTANCY PROFESSION

A

Graduate of Bachelor of Science in Accountancy conferred by a school, college or university duly recognized by the Commissioner on Higher Education (CHED) Qualify as professional accountant by passing the CPA Licensure
Examination administered by the Professional Regulatory Board of
Accountancy
`Satisfy all other legal and regulatory requirements before the
individual takes on the role of a professional accountant

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Qualifications of Applicant for Licensure Examination (CPALE)

A

o Filipino citizen
o Has good moral character
o Holder of a degree of Bachelor of Science in Accountancy
o Has not been convicted of any criminal offense involving moral
turpitude

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

o A successful candidate in the examination shall be required to take an ____ of profession before any member of the Board or before any
government official authorized by the Commission or any person
authorized by law
o To administer oaths upon presentation of proof of his/her
qualification prior to entering upon the practice of the profession

A

oath

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

will be issued to the examinees who pass
the CPA Licensure examination subject to the payment of prescribed fees to the Commission

A

A certificate of registration

17
Q

A professional identification card bearing the registration number,
date of issuance, expiry date, duly signed by the chairperson of the
Commission shall likewise be issued to every registrant renewable for _____ _____

A

three years

18
Q

Under the new BOA Resolution , all CPAs regardless of area or sector
of practice shall be required to comply with ___ ___ ______ _____ in
compliance period of three years

A

120 CPD credit units

18
Q

shall be required to indicate his/her
certificate of registration number and date of issuance, the duration
of validity, including professional tax receipt number on the
documents he/she signs, uses or issues in connection with the
practice of her/his profession

A

certified public accountant

19
Q

refers to the inculcation and acquisitions of advanced
knowledge, skill, proficiency and ethical and moral values after the
initial registration of the Certified Public Accountant for assimilation
into professional practice and lifelong learning

A

CONTINUING PROFESSIONAL
DEVELOPMENT (CPD)

20
Q

__________ is essentially constructive in nature. __________ ceases
when financial statements are already prepared

A

Accounting, Accounting

20
Q

EXEMPTION FROM CPD

A

o A CPA shall be permanently exempted from CPD requirements upon
reaching the age of 65 years
o The exemption applied only to the renewal of CPA license and not
for the purpose of accreditation to practice the accountancy
profession

21
Q

________ is analytical . The work of an ________ begins when the work
of the accountant ends

A

Auditing, Auditor

22
Q

examines the financial statements to ascertain whether
they are in conformity with generally accepted accounting principles

A

Auditor

23
Q

is used in reference only to a particular field of
accountancy such as public accounting, private accounting and
government accounting

A

Accounting

23
Q

replaces the International Accounting Standards Committee or
IASC

A

International Accounting Standards Board (IASB)

24
Q

is procedural and largely concerned with development and maintenance of accounting records is the “how” of accounting

A

Bookkeeping

24
Q

 is primarily concerned with the recording of
business transactions and the eventual preparation of financial
statements
 It focuses on general purpose financial statements intended for
internal and external users

A

Financial Accounting

24
Q

refers to the profession of accounting practice

A

Accountancy

25
Q

represent rules, procedures, practice and standards followed in the preparation and presentation of financial statements These are laws that must be followed in financial reporting

A

GENERALLY ACCEPTED
PRINCIPLES

25
Q

New types of transactions occur in trade and commerce,
accountants develop rules and procedures for recording them, Accounting rules, procedures and practices came to known as

A

GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES

25
Q

is the accumulation and preparation of financial reports for internal users only s the area of accounting that emphasizes
developing accounting information for use within an entity

A

Managerial Accounting

25
Q

In the ___________, the development of generally accepted
accounting principles is formalized initially through the creation of
the ___________ _________ _______ (____)

A

Philippines, Accounting Standards Council

25
Q

The approved statements of FRSC are known as

A

the Philippine Accounting Standards (PAS) and Philippine Financial Reporting Standards (PFRS)

26
Q

_________ _________ _________ _______ (____) now replaces the
Accounting Standards Council

A

Financial Reporting Standards Council (FRSC)

26
Q

____ is the accounting standard body created by the Professional
Regulation Commission upon recommendation of the Board of
Accountancy to assist BOA in carrying out its powers and functions
provided by RA 9298

A

FRSC

26
Q

purpose of accounting standards

A

is to identify proper accounting practices for the preparation and presentation of financial statements creates a commons understanding between preparers and users of
financial statements particularly the measurement of assets and
liabilities

26
Q

 The main function is to establish and improve accounting standards
that will be considered generally accepted in the Philippines
 The accounting standards promulgated by ____ constitute the
“highest hierarchy” of generally accepted accounting principles in
the Philippines

A

FRSC

27
Q

Interpretations are intended to give authoritative guidance on issues
that are likely to receive divergent or unacceptable treatment
because the standards do not provide specific and clear cut rules
and guidelines

A

PHILIPPINE INTERPRETATIONS
COMMITTEE (PIC)

27
Q

FRSC is composed of 15 members with a Chairman who had been or
presently a senior accounting practitioner and 14 representatives
from the following :

A

Board of Accountancy (1), Securities and Exchange Commission (1),
Bangko Sentral ng Pilipinas (1), Bureau of Internal Revenue (1)Commission on Audit (1), Major organization of preparers and users of financial statements (Financial Executive Institute of the
Philippines (FINEX), Accredited national professional organizations of
CPAs : Public Practice (2), Commerce and Industry (2), Academe or
Education (2) and Government (2)

28
Q

The Chairman and the members of FRSC shall have a term of

A

3 Years

29
Q

was formed by the FRSC in August 2006 and has replaced the
Interpretation Committee or IC formed by the Accounting Standards
Council in May 2000

A

PHILIPPINE INTERPRETATIONS
COMMITTEE (PIC)

30
Q

to prepare interpretations of PFRS for approval by
FRSC and to provide timely guidance on financial reporting issues
not specifically addressed in current PFRS

A

PHILIPPINE INTERPRETATIONS
COMMITTEE (PIC)

31
Q

is an independent private sector body which objective is to
achieve uniformity in the accounting principles which are used by
business and other organizations for financial reporting around the
world

A

INTERNATIONAL ACCOUNTING
STANDARDS COMMITTEE (IASC)

32
Q

 It was formed in June 1973 through an agreement made by
professional accountancy bodies from Australia, Canada, France,
Germany, Japan, Mexico, the Netherlands , United Kingdom, Ireland
and the United States.
 Its headquarter is in London , United Kingdom

A

INTERNATIONAL ACCOUNTING
STANDARDS COMMITTEE (IASC)

33
Q

The pronouncements of IASC continue to be designated as

A

International Accounting Standards (IAS)

33
Q

Objective of International Accounting Standarads Comittee (IASC)

A

To formulate and publish in the public interest accounting standards
to be observed in the presentation of financial statements and to
promote their worldwide acceptance and observance

33
Q

publishes standards in a series of pronouncements called
International Financial Reporting Standards (IFRS)

A

Inaternational Accounting Standards Board (IASB)

CFAS (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions