1) The analytical component of accounting.
17) It is a global phenomenon intended to bring about
2) The technical component of accounting.
3) The formal component of accounting.
4) Economic events involving one entity and another entity.
5) Events which have an effect on assets, liabilities, and
owner’s equity.
6) Group of accounts which are systematically categorized
into assets, liabilities, equity, income and expenses.
7) The law regulating the practice of accountancy in the
Philippines.
8) The body authorized by law to promulgate rules and
regulations affecting the practice of accountancy in the
Philippines.
9) Issues Certificates of Registration to CPAs to practice
public accountancy profession.
10) Book of original entry.
11) Field of accounting that includes the preparation of
annual ITRs and determination of tax consequences of
business proposals.
12) This is primarily concerned with the recording of
business transactions and the eventual preparation of
financial statements.
13) Accumulation and preparation of financial reports for
internal users only.
14) The rules, procedures, practices and standards followed
in the preparation and presentation of financial
statements.
15) The accounting standard-setting body created by the
PRC upon the recommendation of the BOA to assist the
BOA in carrying out its powers and functions under RA
9298.
16) An independent private sector body, with the objective
of achieving uniformity in the accounting principles
which are used by business and other organizations for
financial reporting around the world.
greater transparency and a higher degree of
comparability in financial reporting.
18) Promulgated the Conceptual Framework.
19) Basic notions or fundamental premises on which the
accounting process is based.
20) The only accounting assumption mentioned in the
Conceptual Framework.
21) Users of financial information to whom general-purpose
financial reports are primarily directed.
22) Information about the entity’s economic resources and
the claims against the reporting entity.
23) The availability of cash over the long term to meet
financial commitments as they fall due.
24) Also known as results of operations, this is portrayed
from the entity’s net income or net loss for a period.
25) Qualities and attributes that make financial accounting
information useful to users.
26) Other term for materiality.
27) They provide narrative description about significant
items that do not qualify for recognition of accountable
transactions.
28) This means that when alternatives exist, that which has
the least impact to equity must be chosen.
29) The first Filipino CPA.
30) Building blocks from which financial statements are
made.
31) Represents other items that meet the definition of
income but do not arise in the ordinary course of
business.
32) Identifiable nonmonetary asset without physical
substance.
33) Correcting entry for error discovered when the income
summary account is already closed to the capital
account.
34) Economic activities of the business enterprise which
affect any of the accounting elements.
35) A debit balance in the income summary represents a
________.
36) A credit balance in the income summary represents a
________.
37) The amount due on the note at the date of maturity.
38) It is the field of professional practice of accounting
where CPAs are considered as independent entities
vested with freedom to exercise his own judgment and
impartiality of the reports he prepared.
39) This accounting concept justifies the usage of accruals
and deferrals.
40) Income summary is ____ when a net loss is closed.
41) Income summary is ____ when a net income is closed.
42) T/F, Modify if F: The objectives of financial reporting for
entities are determined by GAAP.
43) A 12-month period that ends on any month when the
business is at the lowest or experiencing slack season.
44) These are made with the intention of permanently
decreasing the capital.
45) This is the most liquid of all assets.
46) The father of accounting; an Italian Renaissance
mathematician
47) Where can you find withdrawals in the Statement of
Cash Flows?
48) Inventor of double-entry bookkeeping from Giovanno
Farolfi and Company.
49) The methods an organization uses to obtain financial
resources from financial markets and how it manages
these resources.
50) These involve the selection and management including
disposal and replacement of long-term resources that
will be used to develop, produce, and sell goods and
services.
51) These involve the use of resources to design, produce,
distribute, and market goods and services.
52) Luca Pacioli’s book
53) PICPA created the ____ to establish and improve
accounting standards that will be generally accepted in
the Philippines.
54) The integrated national professional organization of
CPAs in the Philippines accredited by BOA and the PRC.
55) Precursor of the FRSC
56) Means that different knowledgeable and independent
observers could reach consensus that a particular
depiction is a faithful representation.
57) Basic summary device of accounting.
58) A detailed record of the increases, decreases and
balance, of each element that appears in an entity’s
financial statements.
59) Most basic tool of accounting.
60) These are short-term, highly liquid investments that are
readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value.
61) Largest single expense in merchandising businesses
62) The adjusted trial balance is prepared by combining
horizontally the amount of each account in the
unadjusted trial balance columns with the corresponding
amounts in the adjustments columns. This procedure is
called _____.
63) Making and collecting loans can be found in this section
of the Statement of Cash Flows.
64) Receipts from collections on notes receivable can be
found in this section of the Statement of Cash Flows.
65) Payments to acquire debt or equity securities can be
found in this section of the Statement of Cash Flows.
66) Receipts from issuance of notes payable can be found in
this section of the Statement of Cash Flows.
67) Payments to settle notes payable can be found in this
section of the Statement of Cash Flows.
68) Source document that is prepared by the seller of goods
and sent to the buyer.
69) Source document that is issued by the carrier that
specifies contractual conditions and terms of delivery.
70) Source document that notifies the debtor of the
accounts already due.
71) Source document that evidences the receipt of cash by
the seller.
72) Source document that is an authorization made by the
buyer to the seller to deliver the merchandise as detailed
in the form.
73) A formal acknowledgment that the seller has reduced
the amount owed by the customer.
74) This inventory system is used most commonly by
companies that sell low-priced, high-volume
merchandise.
75) This inventory system is used most commonly by
companies that sell high-priced, low-volume
merchandise.
76) Two ways of presenting expenses in merchandising
business income statement
77) This means that the entity discounting the note
guarantees payment if the maker of the note defaults or
dishonors payments.
78) The credit of NR Discounted account signifies that the
note was sold _____.
79) If the note is sold ______, the credit should be to NR.
80) Discounting with recourse creates a _____ liability for
the endorser.
81) A potential liability that will become an actual liability
only if a potential event does occur.
82) All tangible assets with an estimated useful life beyond
one year, and are used in the conduct of the business,
and are not intended for sale in the ordinary course of
business.
83) Two fundamental qualitative characteristics
84) The capacity of the information to influence a decision
85) The desire to exercise care and caution when dealing
with the uncertainties in the measurement process such
that assets or income are not overstated and liabilities or
expenses are not understated.
86) Qualitative characteristics that relate to the content or
substance of financial information.
87) Qualitative characteristics that relate to the presentation
or form of the financial information.
88) It is intended to increase the usefulness of the financial
information that is relevant and faithfully represented.
89) A pervasive constraint on the information that can be
provided by financial reporting.
90) Resources controlled by the entity as a result of past
transactions or events and from which future economic
benefits are expected to flow to the entity.
91) Three applications of the matching principle
92) The two underlying assumptions mentioned in the ASC
conceptual framework.
93) Another term for equity
94) Reversing entries are done to all _____ and ______.
95) A device used in storing the details of certain general
ledger accounts.
96) Activities that include the cash flows derived primarily
from transactions involving nontrade liabilities and
equity of an entity.
97) An accounting device used in summarizing the effects of
transactions on each asset, liability, equity, revenue and
expense.
98) The means by which the information accumulated and
processed in financial accounting is periodically
communicated to users.
99) It is this section where the accounts debited and credited
are to be recorded.
100) This column would show the ledger page in which the
accounts are transferred.
101) It is a written promise to pay a certain amount of money
on a specified or determinable future date.
102) Receivables that represent claims arising from sources
other than the sale of merchandise or services in the
ordinary course of business.
103) Historical cost has been the valuation basis most
commonly used in accounting because of its ___.
104) The ADA account which appears as a deduction from AR
on a balance sheet is an application of ___.
105) It is the most basic model of accounting that presents
the resources controlled by the enterprise, the present
obligations of the enterprise, and the residual interest in
the assets.
106) An accounting system which means that the dual effects
of a business transaction is recorded.
107) The process of reporting an item in the financial
statements of an entity.
108) An external user that relies on the company’s financial
statements in negotiating for higher wages and better
benefits.
109) Assets which are permanent in nature and their useful
life to the business exceeds one year.
110) List of general ledger accounts with open balances.
111) These are debts or obligations that are secured by a
specific asset or assets of the business.
112) A check drawn, recorded and already given to the payee
but it bears a date subsequent to the balance sheet date.
113) Goods on consignment should be included in the
inventory of the (consignor/consignee)
114) A system of control of cash which requires that all cash
receipts should be deposited intact and all cash
disbursements should be made by means of check.
115) Money set aside to pay small expenses which cannot be
paid conveniently by means of check.
116) A statement which brings into agreement the cash
balance per book and the cash balance per bank.
117) A monthly report of the bank to the depositor showing
the cash balance per bank at the beginning, the deposits
acknowledged, the checks paid, other charges and
credits and the daily cash balance per bank during the
month.
118) Under this method, the book balance and the bank
balance are brought to a correct cash balance that must
appear on the balance sheet.
119) Under this method, the book balance is reconciled with
the bank balance.
120) Under this method, the bank balance is reconciled with
the book balance.
121) The sale of the note receivable is absolute and therefore
is no contingent liability.
122) The amount appearing on the face of the note.
123) The amount of interest deducted by the bank in advance
to a notes receivable.
124) A method of marketing goods in which the owner called
the consignor transfers physical possession of certain
goods to an agent called the consignee who sells them
on the owner’s behalf.
125) The cost of inventories that are not ordinarily
interchangeable and inventories that are segregated for
specific projects shall be determined by using this
inventory method.
126) Deductions from the list or catalog price in order to
arrive at the invoice rice which is the amount actually
charged to the buyer.
127) Deductions from the invoice price when payment is
made within the discount period.
128) In computing net sales, the sales allowance and sales
discount are ____.
129) Defines accounting as an art.
130) Defines accounting as a service activity.
131) Defines accounting as a process.

132) The primary purpose of a balance sheet.
133) The primary purpose of an income statement.
134) The law that governs the practice of Accountancy in the
Philippines.
135) This provides the overall theoretical foundation of
accounting and was promulgated by the IASB.
136) Sources of financing for a business enterprise
137) In an accounting process, it is the recognition or non-
recognition of business activities as “accountable”
events.
138) Economic events involving the entity only.
139) Economic events involving one entity and another entity.
140) As an accounting process, it is the assigning of peso
amounts to the accountable economic transactions and
events.
141) The preparation of financial statements which include
the SFP, IS, SCI, SCE and SCF.
142) This group of individuals keep an eye on the operation of
all kinds of corporation.
143) CPAs are required to register with ___ and ___ for the
practice of public accountancy.
144) The field of ____ is composed of individual practitioners,
small accounting firms and large multinational
organizations that render independent and expert
financial services to the public.
145) The highest accounting officer in an entity is known as
the _____.
146) Accountants in the field of _______ assist management
in planning and controlling the entity’s operations.
147) This field of accounting encompasses the process of
analysing, classifying, summarizing and communicating
all transactions involving the receipt and disposition of
government funds and property and interpreting the
results thereof.
148) This is primarily concerned with the recording of
business transactions and the eventual preparation of
financial statements.
149) In the Philippines, the development of GAAP is
formalized initially through the creation of the ___.
150) The accounting standards promulgated by the ____
constitute the “highest hierarchy” of generally accepted
accounting principles in the Philippines.
151) The approved statements of the FRSC.
152) FRSC is composed of ___ members.
153) The _____ was formed by the FRSC in August 2006 and
has replaced the Interpretations Committee (IC) formed
by the ASC in May 2000.
154) The role of the ___ is to prepare interpretations of PFRS
for approval by the FRSC and in the context of the
Conceptual Framework, to provide timely guidance on
financial reporting issues not specifically addressed in
current PFRS.
155) Which is true? IASC now replaces IASB, or IASB now
replaces IASC?
156) It has the objective of working generally for the
improvement and harmonization of regulations,
accounting standards and procedures relating to the
presentation of financial statements.
157) IASB publishes its standards in a series of
pronouncements called ____.
158) PFRS collectively include all of the following except:
A. PFRS which correspond to IFRS.
B. PAS which correspond to IAS.
C. Philippine Interpretations which correspond to
interpretations of the IFRIC and the Standing
Interpretations Committee, and interpretations
developed by the PIC.
D. All of the above.
E. None of the above.
159) Accounting assumptions are also known as ____.
160) This serves as the foundation or bedrock of accounting in
order to avoid misunderstanding but rather enhance the
understanding and usefulness of the financial
statements.

161) With regards to the going concern assumption, assets
are normally recorded at ___ and ____ are ignored.
162) Measuring certain assets at fair value is the very
foundation of the ___ principle, which is also known as
the ____.
163) If there is evidence that the entity would experience
large and persistent losses or that the entity’s operations
are to be terminated, the ____ is abandoned.
164) This aspect of the monetary unit assumption means that
the assets, liabilities, equity, income and expenses
should be stated in terms of a unit of measure, which is
the peso in the Philippines.
165) The stable peso postulate is actually an amplification of
the ____ so much so that adjustments are unnecessary
to reflect any changes in purchasing power.
166) The underlying theory for the development of
accounting standards and revision of previously issued
accounting standards.
167) It assists the FRSC in developing accounting standards
that will represent Philippine GAAP.
168) The Conceptual Framework is NOT a ___, and hence
does not define standards for any particular
measurement or disclosure issue. Nothing in the
Conceptual Framework overrides and specific ___.
169) The qualitative characteristics of useful financial
information is determined by ____.
170) Which of the following is not included in the scope of the
Conceptual Framework?
A. Objectives of financial reporting.
B. Qualitative characteristics of useful financial
information.
C. Quantitative characteristics of useful financial
information.
D. Definition, recognition and measurement of the
elements from which financial statements are
constructed.
E. Concepts of capital and capital maintenance.
F. Both A and E.
G. None of the above.
171) The provision of financial information about an entity to
external users that is useful to them in making economic
decisions and for assessing the effectiveness of the
entity’s management.
172) The objective of ___ is the “why” purpose or goal of
accounting.
173) This is the information about the entity’s economic
resources and the claims against the reporting entity,
which can help users to assess the entity’s liquidity,
solvency and the need for additional financing.
174) The ___ of an entity comprises its revenue, expenses,
and net income or loss for a period of time.
175) This is also known as the results of operations.
176) He said that historical cost should be the basis of
valuation.
177) He proposed the fair value method of accounting.
178) He utilized price level accounting.
179) The memorandum book, journal book and the ledger
book are all part of ____.
180) The method shown in journal entries.
181) This method is now used in ledger postings.
182) The first Accountancy Law.
183) The difference of debits and credits.
184) Second most liquid of assets.
185) Also known as the “reference book,” this is used to
classify and summarize transactions.
186) These are journals of original entry designed for
recording specific types of transactions of a similar
nature.
187) These are unrecorded decreases in inventory resulting
from such factors as breakage, spoilage, employee theft
and shoplifting.
188) Current assets over current liabilities
189) Current ratio is used to test the ___ of an entity.
190) Suggests that the benefits of accounting for and
reporting information should outweigh the costs.
191) An intentional misstatement in the financial statements,
which is viewed as unethical.
192) Expenses=Revenues
193) An entry accompanied by one debit and one credit.
194) Number of weeks in a year
195) Months which have 31 days
196) These are expenses and losses from peripheral or
incidental transactions of the enterprise; for example,
loss on sale of investments or loss on sale of property
and equipment.
197) According to the conceptual framework, the objectives
of financial reporting for business enterprises are based
on ______.
198) According to the Statements of Financial Accounting
Concepts, neutrality is an ingredient of ____.
199) According to the conceptual framework, ____ is an
enhancing quality that relates to both relevance and
faithful representation.
200) An account title synonymous to “networth.”
201) Any item that a bank will accept as a deposit and that is
immediately available and acceptable as a means of
payment.
202) A performance measure concerned primarily with cash-
to-cash cycles.
203) An account with a dual nature – as an asset and as a
reduction of cost.
204) An account representing a reduction for damaged or
unacceptable goods not returned to the supplier.
205) The point where transfer of ownership is determined
206) A control account is found in the ____.
207) An account used for the recognition of losses arising
from valueless receivables.
208) These are accounts which are not closed because their
amounts pertain not only to the present period but are
carried over to the next period.
209) It is a temporary owner’s equity account in which the
cost of all merchandise purchased during the accounting
period is recorded.
210) It is a form issued by the seller acknowledging the
returns or allowances requested by the buyer. Issuance
of this form means that the account of the buyer in the
books of the seller is reduced.
211) PAS 2, paragraph 9, provides that “inventories shall be
measured at the _______.” Here, the cost of inventories
shall comprise all costs of purchase, costs of conversion
and other costs incurred in bringing the inventories to
their present location and condition.
212) PAS 2, paragraph 25, expressly provides that the cost of
inventories shall be determined by using either ____ or
_____.
213) In a period of rising prices, the ____ method would result
to the highest net income.
214) When used in conjunction with the perpetual system,
the weighted average method is popularly known as the
____.
215) In a period of rising prices, the ____ method would result
to the lowest net income.

PREQUALI
216) This depicts the effects of transactions and other events
and circumstances on an entity’s economic resources
and claims in the periods in which they occur even if the
resulting cash receipts and payments occur in a
different period.
217) These are financial statements intended to meet the
needs of users who are not in the position to require an
entity to prepare reports tailored to their particular
information needs.
218) This kind of deposit will require the preparation of a
bank reconciliation statement.
219) This refers to the inculcation, assimilation and
acquisition of knowledge, skill, proficiency and ethical
and moral values after the initial registration of a CPA.
220) This kind of partnership may be terminated at any time
because it has not been established for a particular
undertaking and no specific time has been fixed for its
existence.
221) Under this principle, expenses are recognized only when
the associated revenues are recognized.
222) This law governs the creation of private corporations in
the Philippines.
223) This characteristic requires that descriptions and figures
must match what really happened or that effects
transactions and events shall be properly accounted for.
224) This assumption expresses all the figures appearing in
the financial statements in terms of a common unit of
measure.
225) These are the qualitative characteristics that relate to
the substance or content of the financial information
226) The role of this committee is to provide timely guidance
on financial reporting issues not specifically addressed
in the current PFRS.
227) This comprises the assets, liabilities and equity of an
entity at a particular moment in time.
228) This assumption prohibits the merging of the personal
transactions of the owners, managers and employees
who constitute the entity from the entity’s transactions.
229) This requires that information should be presented in a
way that facilitates understanding and avoids confusion.
230) This is a partnership that has complied with all the legal
requirements for its establishment.
231) This is a kind of partnership which is not a partnership
in reality but is considered as such only to those who,
by their conduct or admission, are precluded t deny or
disprove its existence.
232) This is a set of documents that report financial
information about an entity to decision-makers, and the
key product of accounting as an information system.
233) This provides information about the entity’s economic
resources and the claims against the reporting entity.
234) This area of accounting focuses on the preparation of
financial statements/reports for both internal and
external users.
235) Expenses are recognized using this principle when
economic benefits are expected to arise over several
accounting periods and their association with specific
revenues can only be broadly or directly determined.
236) This is a summary of the terms and concepts that
underlie the preparation and presentation of financial
statements for external users.
237) This is a list of all the entity’s accounts.
238) Corporations organized under the laws of the
Philippines
239) This comprises the revenues, expenses and net income
or loss of an entity for a period of time.
240) This assumption or concept requires the subdivision of
the indefinite life of an entity into equal artificial time
periods for purposes of financial reporting.
241) This assumption ignores inflation and deflation or
changes in the purchasing power of the Philippine peso
for purposes of financial reporting.
242) The focus of this branch of accounting is the custody
and administration of government funds.
243) Corporations organized for some private purpose.
244) The minimum number of incorporators of a
corporation.
245) This is the capacity of the information to influence a
decision.
246) These serve as the foundation or bedrock of accounting
in order to enhance the understanding and usefulness
of the financial statements.
247) This is any period of consecutive twelve (12) months.
248) This is the ability to bring together the financial
information for the purpose of noting points of likeness
and difference.
249) This is the examination of financial statements made by
independent CPAs for the purpose of expressing an
opinion as to the fairness with which financial
statements are prepared.
250) Accountants employed in entities in various capacity as
accounting staff, chief accountant or controller are said
to be engaged in which branch of accounting?
251) This is currently the standard-setting body of the
Philippines.
252) Corporations established for charitable purposes.
253) This is the body authorized by law to prepare and grade
the Philippine CPA examination.
254) This the only accounting assumption mentioned in the
Conceptual Framework.
255) This is a group of accounts systematically categorized
into asset accounts, liability accounts, equity accounts,
revenue accounts and expense accounts.
256) Republic Act 9298 is the law regulating the practice of
accountancy in the Philippines. Another name for which,
is ____________.
257) In discounting a note receivable, it is the amount of
interest deducted by the bank in advance.
258) This characteristic requires that financial information
must be comprehensible or intelligible if it is to be most
useful.
259) This characteristic means that different knowledgeable
and independent observers could reach consensus that a
particular depiction is a faithful representation.
260) This is a pervasive constraint on the information that can
be provided by financial reporting.
261) In this method of handling petty cash fund, formal
journal entries are made during payment of expenses out
of the fund.
262) This refers to the corporation’s right to continue to exist
despite the death, withdrawal or insolvency of its
individual members/stockholders.
263) This is a kind of partnership wherein partnership
creditors may seek satisfaction of their claims from the
personal assets of one or more but not all the partners in
case the partnership assets are insufficient to cover such
claims.
264) This generally takes the form of minimum cash checking
or demand deposit account balance that must be
maintained in connection with a borrowing arrangement
with a bank.
265) These are checks not encashed by the payee within a
relatively long period of time.
266) To arrive at the invoice price chargeable to the buyer,
this is where trade discounts are deducted from.
267) This partner takes active part in the business but is not
known to be a partner by outside parties.
268) This partner does not take active part in the business but
is known to be be a partner by outside parties.
269) This partner does not take active part in the business and
is not known to be be a partner by outside parties.
270) The partner who takes charge of the winding up of the
partnership affairs upon dissolution.
271) These are dividends declared beyond the balance of
retained earnings and therefore, accounted for as a
return of capital.
272) This doctrine/principle allows certain entities to declare
dividends beyond the balance of unappropriated
retained earnings.

273) These are events that have an effect in the assets,

liabilities, and equity of the entity.

274) This standard requires that all significant and relevant

information leading to the preparation of financial
statements shall be clearly reported.

275) This is the reporting of the different elements in the face

of the financial statements.

Continued on next word document…

Good luck guys. Remember, quality over quantity. 

- Kim Limosnero, CPA :P