Brainscape's Knowledge GenomeTM

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


See full index

CPAREV > OSCARS > Flashcards

OSCARS Flashcards

1
Q

International Financial Reporting Standards(IFRS) are issued by the

A

International Accounting Standards Board (IASB)

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

Which of the following statements are correct about IASB and IASC?

A

The IASB was formed to replace the IASC

The accounting standards issued by the IASC were adopted by the IASB

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

The committee that develops authoritative interpretations of existing IAS and IFRS and provides guidance on financial reporting issues not specifically addressed IAS and IFRS is the

A

International Financial Reporting Standards Interpretation committee (IFRS IC)

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

The current accounting standard-setting body in the Philippines is the

A

Financial Reporting Standards Council (FRSC)

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

Which of the following is correct about FRSC

A

The FRSC replaced the Accounting Standard Council (ASC)

The FRSC function is to establish generally accepted accounting principles in the Philippines

The FRSC was established to assist the Board of Accountancy in carrying out its power and function in promulgating standards in the Philippines

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

Which of the following is correct about the PIC?

A

The PIC was established to develop authoritative interpretations of existing PAS and PFRS and provide guidance on financial reporting issued not to specifically addressed in PAS and PFRS

A PIC interpretation becomes part of PFRS once they are approved by the FRSC

IFRIC and SIC are the international counterpart of PIC

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

The law regulating the practice of accountancy in the Philippines is the

A

R.A No. 9298; Philippine Accountancy Act of 2004

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

The accredited professional organization of CPAs in the Philippines is the

A

Professional regulation Commission (PRC)

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

The primary service offered by CPAs in the public practice is

A

Auditing Services

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

This field of practice involved teaching of accounting, auditing, management advisory services, finance, business law etc.

A

Academe

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

A certificate of accreditation shall be issued to CPAs in public practice only when the CPA has acquired a minimum of how many years of meaningful experience in any of the areas of Public practice

A

Three years

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

A CPA must accumulate at least how many PCS units in order to be accredited to practice the Accountancy Profession

A

120 units

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

A CPA shall be permanently exempted from CPD requirements on the renewal of the COA license upon reaching the age of

A

65 Years old

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

On march 25, 2022. Dirk company ordered and paid the goods in advance of P10,000. The said orders will be delivered on the 5th day following the month. During the quarter ended March 31,2022 which of the following is true

A

Current asset section will reflect P10,000 advances to suppliers

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

On November 1,2022 Doncic corporation loaned from the bank amounting to P60,000 evidenced by a note with 12% interest per annum, how much would be the interest expense for 2022?

A

60,000 x 12% x 2months(November and December) / 12months = P1,200

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

On May 1, 2021. Dallas company received cash amounting to P50,000 from a customer to services that is yet to be rendered. The said transaction was recorded by crediting to service income. The services were rendered the following month, if until the end of the year, no adjusting entry made. Which is true?

A

Income is correctly stated

The method used in recording the cash received in advance was income method. Therefor when the services were already rendered there is no need to recognize an income account because it is already recorded and recognize.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

On October 1, 2021. Chandler company settled an amount of P24,000 for the renewal of its insurance policy for the two years. How much would be the prepaid insurance balance on December 21, 2021?

A

24,000 x 21months/ 24months = P21,000

Adjusting entry
Insurance expense 3,000
Prepaid insurance 3,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Arrange the following steps in the accounting process

A

Identifying and analyzing
Journalizing
Posting journal entries to ledger
Preparation of unadjusted trial balance
Preparation of adjusting entries
Preparation of worksheet
Preparation of financial statements
Preparation of closing entries
Post closing trial balance
Reversing entries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Which of the following business transactions is/ are recordable
- an inquiry from a customer
- a purchase order sent to supplier
- A sales order sent to customer
- An approved purchase order from a customer

A

A sales order sent to customer
An approved purchase order from a customer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Which of the following statements is false concerning the rules of debits and credits

A

The term “debit” means to increase and the term “credit” means to decrease

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

The debit and credit analysis of a transaction normally takes place at what point in the accounting process?

A

Prior to recording the transaction in a journal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Journalizing is the process of recording transactions from

A

Source document to journal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Which of the following statement is correct about chart of accounts

A

A chart of accounts is a list of all account titles in the general ledger

All account titles used by an entity are found in the chart of accounts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Journal entry that contains more than two accounts is called

A

Compound journal entry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Which of the following is true about ledger

A

Book of final entry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Posting is the process of transferring information from

A

Journal to the general ledger

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

The following are examples of real accounts except:
- retained earnings
- prepaid expense
- accrued salaries payable
- insurance expense

A

Insurance expense

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Which of the following is true regarding real and nominal accounts

A

Nominal accounts are called temporary accounts

Real accounts are called permanent accounts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

This refers to accounts that are added to the related account

A

Adjunct accounts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Which of the following is not a purpose of an unadjusted trial balance

A

It proves that debits and credits were properly entered in the ledger accounts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Adjusting entries intend to

A

Update accounts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Which of the following least resembles a usual adjusting entry

A

Debit an asset and credit liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Which of the following properly describes an accrual

A

Expense is incurred before cash is paid

Income is earned before cash is received

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

An income has been earned but not yet recorded because it is not received yet. The adjust entry involves

A

A receivable and an income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Which of the following properly describes a deferral

A

Cash is received before revenue is earned

Cash is paid before expense is incurred

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

If an advance payment was initially recorded as an expense, then the adjusting entry will involve

A

Asset account and a credit to expense in the amount of the unexpired cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

If an advance collection was initially recorded as a liability, then the adjusting entry will involve

A

A credit to an income account and debit to a liability account in the amount of the earned portion

38
Q

Megan company received an advance payment from a customer amounting to P50,000 on December 29, 2022 for goods that will be delivered on January 2, 2023. The entity credited a liability account in its book to record the said transaction. Which of the following id true if no adjustment is made at the end of 2022?

A

Balanced of accounts are correctly stated

39
Q

The ending balance in the account “deferred revenues” should report which of the following

A

The fees received in advance which are yet to be earned

40
Q

The adjustment for depreciation has the same effect as the adjustment for

A

A prepaid expense

41
Q

In the preparation of the worksheet, if the total credits are greater than total debits under the “income statement” column

A

There is net income

42
Q

In the preparation of the worksheet, if the total credits are greater than total debit under the “balance sheet” column

A

There is net loss

43
Q

If the business operations of a corporate entity resulted to a profit, the income summary account will be closed by

A

Debiting income summary and crediting retained earnings

44
Q

Which of the following statements is correct regarding the post-closing trial balance

A

All the foregoing statements are correct regarding the post-closing trial balance

45
Q

Which of the following statements are true about reversing entries

A

Income under accrual basis can be reversed

Prepaid expense recorded under expense method can be reversed

46
Q

Adjusting entries that should be reversed include those for prepaid or unearned items that

A

Were originally entered in a revenue or expense account

47
Q

which is not correct about the conceptual framework for financial reporting

A

The conceptual framework constitutes the highest level of authoritative status

48
Q

Which of the following is a purpose of the conceptual framework for financial reporting

A

All of the forgoing

49
Q

Which is correct about the conceptual framework for financial reporting

A

The applicability of the conceptual framework on a particular transaction or event shall be considered only when there is no accounting standard interpretation that specifically deals with that particular transaction or event

50
Q

What is the underlying theme of the conceptual framework

A

Decision usefulness

51
Q

The primary focus of financial reporting has been on meeting the needs of which of the following users

A

Existing investors
Potential investors
Lenders and creditors

52
Q

Which of the following is not a limitation of financial reporting

A

Financial reports can only provide all the information needed by its primary users and not of other users

53
Q

These are qualitative characteristics relate to the content or substance of financial information

A

Fundamental qualitative characteristics

54
Q

A financial information is considered relevant when it

A

Is capable of making a difference in a decision

55
Q

It is the quality of information that means the number and description match what really existed or happened

A

Faithful representation

56
Q

For an information to be faithfully represented, it must be

A

Complete

Neutral

57
Q

This concept states that transactions and events must be accounting for in accordance with their economic substance and rather than merely their legal form

A

Substance over form

58
Q

These qualitative characteristics are intended to increase the usefulness of financial information

A

Enhancing qualitative characteristics

59
Q

Which of the following characteristics is demonstrated when different accountants independently agree on the amount and method of reporting a transaction or event

A

Verifiability

60
Q

Information about different companies and about different periods of the same company can be prepared and presented in a similar manner. Comparability and consistency are related to which of these objectives

A

Companies

Periods

61
Q

Which of the following statement describes the term consistency in the context of useful financial information

A

Information is measured and reported in a similar manner across points in time

62
Q

The conceptual framework mentions one constraint on useful financial reporting. Which is it

A

Cost

63
Q

What is the objective of financial statement

A

To provide information about economic resources of an entity, claims against the entity and changes in the economic resources and claims

64
Q

Financial statements provide information about the transactions and events viewer from the perspective of the

A

Reporting entity

65
Q

Financial statements are prepared under the assumption that the reporting entity will continue in operation for the foreseeable future. Which of the following best describe this

A

Going concern assumption

66
Q

A reporting entity

A

Can be a single entity

Can be a portion of a single entity

Can compromise more than one entity

67
Q

If the reporting entity comprised of the parent company only, the financial statements are referred to ad

A

Unconsolidated financial statements

68
Q

Which of the following are considered the elements of financial position

A

Asset

Liability

Equity

69
Q

Which of the following are considered the elements of financial performance

A

Income

Expense

70
Q

It refers to the present economic resource controlled by the entity as a result of past event

A

Assets

71
Q

Which of the following is not within the definition of an asset according to the conceptual framework

A

Future economic benefit is expected to flow to the entity

72
Q

It refers to the present obligation of the entity to transfer an economic resources as a result of past event

A

Liability

73
Q

Which of the following criteria need no to be satisfied for a liability to exist

A

The settlement is expected to result in an outflow of economic benefit

74
Q

It refers to the residual interest in the assets of an entity after deducting all of the liabilities

A

Equity

75
Q

These arises in the ordinary course of activity of the entity

A

Revenue

76
Q

What is the primary distinction between revenue and gain

A

The nature of the activity that gives rise to the transaction

77
Q

Gain is

A

An increase in asset from incidental transactions resulting in increase in equity

A decrease in liability from incidental transactions resulting in increase in equity

78
Q

An outflow of asset based on an activity that represents the major operations is called

A

Expense

79
Q

It is defined as the process of capturing for inclusion in the financial statements an item that meets the definition of the elements of financial statements

A

Recognition

80
Q

Recognition of an element of financial statement is appropriate when the information results in

A

Both relevance and faithful recognition

81
Q

De recognitions normally occurs when

A

An item no longer meets the definition of an asset or a liability

The entity loses control of the asset

The entity no longer has a present obligation for the liability

82
Q

The measurement bases include which of the following

A

Historical cost

Current value

83
Q

Which of the following does not affect the historical cost of an asset over time

A

Inflation

84
Q

Fair value is the

A

Price that would be received to sell the asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date

85
Q

Fulfillment value is the

A

Present value of the cash or other economic resources that an entity expects to be obliged to transfer ad it fulfills a liability

86
Q

The current cost of a liability is equal to the

A

Amount that would be received for an equivalent liability at the measurement of date minus the transaction cost that would be incurred at that date

87
Q

The IASB requires that use of which of the following measurement bases preparing financial statements

A

Non of the foregoing

88
Q

It is the sorting of assets, liabilities, equity income and expenses on the basis of similar characteristics

A

Classification

89
Q

The new term to describe the statement containing the profit or loss items together with the other comprehensive income item is

A

Statement if financial performance

90
Q

This concept of capital is adopted by most entities in preparing their financial statements

A

Financial capital

91
Q

Under this concept of capital maintenance a profit is earned only if the amount of net assets at the end of the period exceed the amount of net assets at the beginning of the period, after excluding any affects of transactions which the owners during the period

A

Financial capital maintenance

92
Q

the financial capital maintenance concepts requires the adoption of which of the following measurement basis

A

No particular basis

CPAREV (2 decks)

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