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CFAS > Q1 > Flashcards

Q1 Flashcards

1
Q

What is the basic purpose of accounting?

A

The basic purpose of accounting is to provide information that is beneficial for making economic decisions

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2
Q

Separately identifiable combination of persons and property that uses economic resources

A

Economic entity

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3
Q

What are economic activities?

A

Activities that affect the assets, liabilities and equity of the economic entity

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4
Q

Designed to meet the common needs of most statement users

A

General purpose

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5
Q

Designed to meet the specific needs of particular statement user

A

Special purpose

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6
Q

Why is accounting the language of the business?

A

It is fundamental to communication of financial information

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7
Q

General purpose of accounting process

A

To provide information that can help the users in terms of making economic decision

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8
Q

Communication of financial statements and other financial information

A

Financial reporting

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9
Q

Who are the internal users of financial statements?

A

Active owners and the management

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10
Q

What does management accounting do?

A

Management accounting is a specialization wherein they cater the special needs of the management in terms financial information to aid in making economic decisions

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11
Q

Who are the external users?

A

Inactive owners, creditors, lenders, suppliers, potential and existing investors, taxing authorities, regulatory bodies, employees, and more

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12
Q

Why do the indirect users use financial statements? Who are the indirect users?

A

To protect their own interest. Owners, investors, suppliers, creditors, employees, etc

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13
Q

What is the purpose of Indirect users in using financial statements?

A

To protect the direct users, these are the regulatory bodies, etc

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14
Q

Focus of financial accounting

A

Recognition, measurement , and communication of economic resource, economic obligations, and changes in economic resource and economic obligations

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15
Q

How do financial accounting communicate its information to the users?

A

By using financial statements

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16
Q

What are the common information needs in a general purpose financial statement?

A

To evaluate the business’ profitability , liquidity, and stability.

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17
Q

What is the main purpose of accounting standards in external users?

A

To ensure relevance and reliability of information given to users

18
Q

What is the main purpose of financial statements in internal users?

A

To evaluate an entity’s performance and financial condition

19
Q

Who served the information needs of the internal users?

A

Management accounting

20
Q

This is concerned with the measurement and recognition of cost of service provided or products manufactured

A

Cost accounting

21
Q

Concerned with the computation of of taxes and preparation of tax returns submitted to a taxing authority

A

Tax accounting

22
Q

What phase is the bookkeeping

A

Recording

23
Q

Independent examination of the financial statements conducted by a CPA for the purpose of rendering an opinion as to the fairness of presentation of the FS.

A

Auditing

24
Q

What is the purpose of IFRS?

A

To develop a single set of high quality, understandable, enforceable, and globally accepted accounting standards

25
Q

What is the overall objective of financial reporting?

A

To communicate financial information that achieves transparency, accountability, and efficiency to financial markets around the world.

26
Q

How does IFRS bring transparency?

A

By enhancing the international comparability and quality of financial information

27
Q

How does IFRS strengthen accountability?

A

To reduce information gap between the investors and the management

28
Q

How does IFRS contribute to economic efficiency

A

By helping the investors know the opportunities and risks, thus improving capital allocation

29
Q

What is the major function for ASC?

A

To improve generally accepted accounting standards in the Philippines

30
Q

What is the accounting standard developed by the ASC?

A

Statement of financial accounting standards

31
Q

How many members does ASC have?

A

8

32
Q

ASC is composed of 8 members which represents what organizations?

A

PICPA, SEC, BSP, BOA, and Financial executives of the Philippines

33
Q

The body that regulates the practice of accountancy in the Philippines

A

Board of Accountancy

34
Q

How many members are in FRSC?

A

1 chairman and 14 members

35
Q

FRSC has 14 members, what organizations those it represent?

A

BSP, BOA,SEC, BIR, Financial executives of the Philippines, COA,

36
Q

What did the FRSC form in November 2006?

A

Philippine Interpretations Commitee

37
Q

Who monitors the implementation of the PFRS?

A

Board of Accountancy

38
Q

Who monitors the revision of and the amendments to the IFRS?

A

FRSC

39
Q

This is a service activity that provides quantitative information, financial in nature. It is done to prepare information that is beneficial in economic decision making

A

Accounting

40
Q

When was the Accounting Standard Council established?

A

1981

41
Q

What is the original accounting standard body in the Philippines?

A

Accounting Standard Council

42
Q

What is the currently functioning accounting standards setting body in the Philippines?

A

Financial Reporting Standard Council

CFAS (1 decks)

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