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ACCT 1A&B: Fundamentals of Accounting BCSV
ACCT 1A&B: Fundamentals of Accounting BCSV
BCSV
1. Accounting is the 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.
5. The important points made in the definition of accounting include all of the following, except
A. Accounting information is both quantitative and qualitative.
B. Accounting information is quantitative.
C. Accounting information is financial in nature.
D. Accounting information is useful in decision making.
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ACCT 1A&B: Fundamentals of Accounting
BCSV
D. R.A. 9982
8. It is the body authorized by law to promulgate rules and regulations affecting the practice of the
accountancy profession in the Philippines.
A. Board of Accountancy (BOA)
B. Philippine Institute of Certified Public Accountants (PICPA)
C. Securities and Exchange Commission (SEC)
D. Financial Reporting Standards Council (FRSC)
9. What are the three main areas in the practice of the accountancy profession?
A. Public accounting, private accounting and government accounting
B. Public accounting, private accounting and managerial accounting
C. Auditing, taxation and managerial accounting
D. Financial accounting, managerial accounting and corporate accounting
11. Accountants employed in entities in various capacity as accounting staff, chief accountant or
controller are said to be engaged in
A. Public accounting
B. Private accounting
C. Government accounting
D. Financial accounting
12. It is the area of the accountancy profession that encompasses the process of analyzing,
classifying, summarizing and communicating all transactions involving the receipt and disposition
of government funds and property and interpreting the results thereof.
A. Internal auditing
B. External auditing
C. Government accounting
D. Private accounting
14. Financial accounting can be broadly defined as the area of accounting that prepares
A. General purpose financial statements to be used by parties internal to the entity.
B. Financial statements to be used by investors.
C. General purpose financial statements to be used by parties both internal and external to the
entity.
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ACCT 1A&B: Fundamentals of Accounting
BCSV
16. The following information is provided by the basic accounting reports, except
A. Profitability
B. Liquidity
C. Stability
D. Feasibility
17. Statement 1: The primary function of accounting is to prepare the financial reports and provide
them for the economic decision makers.
Statement 2: The purpose of accounting is to help financial users see the true picture of the
business in social and psychological terms.
A. Only statement 1 is correct.
B. Only statement 2 is correct.
C. Both statements are correct.
D. Both statements are not correct.
18. This work in accounting is performed after the work of accountant is complete.
A. Bookkeeping
B. Recording
C. Reporting
D. Auditing
19. The field of accounting which is directly involved in the preparation of financial statement is
A. Cost accounting
B. Managerial accounting
C. Internal auditing
D. General accounting
20. The field of accounting which deals on ensuring adherence to prescribed management policies is
A. General accounting
B. Cost accounting
C. Managerial accounting
D. Internal auditing
“Don't limit yourself. Many people limit themselves to what they think they
can do. You can go as far as your mind lets you. What you believe, remember,
you can achieve.”
~Mary Kay Ash
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ACCT 1A&B: Fundamentals of Accounting
BCSV
Suggested Key
1. B 11. B
2. A 12. C
3. D 13. A
4. C 14. C
5. A 15. D
6. D 16. D
7. B 17. A
8. A 18. D
9. A 19. D
10. A 20. C
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