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Post-test 01
Instructions: Read each question carefully. Choose the BEST answer for each of the following items/Compute for the correct answers. W
NAME:
STUDENT NO:
SECTION:
1) Which is the accounting standard setting body in the Philippines at the present time?
A. Accounting Standard Council C. Philippine Accounting Standards
Board
B. Auditing and Assurance Standard D. Financial Reporting Standards
Council Council
2) Which of the following terms best describes the removal of an asset from an entity’s
statement of financial position?
A. Derecognition B. Impairment C. Write-of D. Depreciatio
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3) Which of the following is not within the scope of the Conceptual Framework?
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A. the objective of financial reporting
B. the quantitative characteristics of useful financial information
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C. the definition, recognition and measurement of the elements from which financial statements are
constructed
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D. concepts of capital and capital maintenance.
A. Accounting assumptions are the basic notions or fundamental premises on which the
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depictions.
B. General purpose financial reports are not designed to show the value of an entity.
C. The target users of general purpose financial reports are investors, creditors and lenders.
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D. General purpose financial reports all the information needed by existing and potential
investors, lenders and other creditors needed.
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6) Historical cost
A. The amount of cash or cash equivalent paid or the consideration to acquire an asset.
B. The amount of cash or cash equivalent that would have to be paid of the same or
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7) Under this concept, capital is regarded as the net assets or equity of the enterprise
A. Financial concept C. All-financial resources
concept
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B. Physical concept D. All-inclusive concept
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8) “Recognition” is defined in the Conceptual Framework as
A. The grouping, into broad classes, of the financial efects of transactions and other
events according to economic characteristics.
B. The process of determining the monetary amounts at which the elements of the
financial statements are to be recognized and carried in the balance sheet and income
statement.
C. The removal of a previously recognized asset or liability from an entity’s statement of financial
position.
D. The process of incorporation in the balance sheet or income statement an item that
meets the definition of an elements and satisfies the criteria for recognition.
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D. Employees and their representative groups are interest in information about the stability
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and profitability of the entity.
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10)Which of the following statement(s) regarding the conceptual framework is (are) incorrect?
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A. The framework applies to financial statements of business reporting enterprises both in
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the private sector and in the public sector.
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B. In cases where there is conflict between the framework and PFRS, the requirement of the
framework will prevail.
C. Both A and B
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D. Neither A nor B
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statements.
D. To assist the Board of Accountancy in promulgating rules and regulations afecting the
practice of accountancy in the Philippines.
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13)To meet the probability criterion, in relation to recognition of assets and liabilities, the
expectation that future economic benefits will flow to or from an entity must be
A. Certain B. Virtually certain C. Sufficiently D. Not certain
certain
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14)General purpose financial statements are
A. Those statements that cater to the common and specific needs of an wide range of external users.
B. Those statements that cater to the common needs of a wide range of external users and internal
users.
C. Those statements that cater to the common needs of a limited range of external users.
D. Those statements that cater to the common needs of a wide range of external users.
15)Accounting has been given various definition, which of the following is not one of those definitions?
A. Accounting is a service activity. Its function is to provide quantitative information,
primarily financial in nature, about economic entities that is intended to be useful in
making economic decisions.
B. Accounting is an art of recording, classifying, and summarizing in a significant manner
and in terms of money, transactions and events which are, in part of at least, of a
financial character and interpreting the result thereof
C. Accounting is a systematic process of objectively obtaining and evaluating events to
ascertain the degree of correspondence between these assertions and established
criteria and communicating the results to interested users.
D. Accounting is the process of identifying, measuring, and communicating economic
information to permit informed judgment and decisions by users of information.
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16)The users of financial statements who are interest in information that enables them to
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determine whether the amounts owing to them will be paid when due
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A. Lenders C. Investors
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B. Customers D. Suppliers and other trade
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17)The Conceptual Framework includes all of the following except:
A. Objective of financial reporting C. Elements of financial
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statements
B. Qualitative characteristics of accounting D. Supplementary information
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information
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A. Enables users to identify and understand similarities in, and diference among, items.
B. Information is available to decision-makers in time to be capable of influencing their decisions.
C. Diferent knowledgeable and independent observers could reach consensus, although not
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20)It is the accounting process of assigning numbers, commonly in monetary terms, to the
economic transactions and events.
A. Analyzing B. Measuring C. Classifying D. interpreting
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21)When should an item that meets the definition of an element be recognized, according to the
Framework?
A. When it is probable that any future economic benefit associated with the item will flow to or from
the entity.
B. When the element has a cost or value that can be measured with reliability.
C. When the entity obtains control of the right or obligations associated with the item.
D. When it is probable that any future economic benefits associated with the item will flow
to or from the entity and the item has ac sot or value that can be measured with
reliability.
22)What is the only underlying assumption mentioned in the new Conceptual Framework for Financial
Reporting?
A. Going concern B. Time period C. Accounting entity D. Monetary
unit
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C. Financial reports are prepared for users who have a reasonable knowledge of business
and economic activities and who review and analyze the information with diligence.
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D. Enable users to identify and understand similarities in, and diferences amount items.
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24)The enhancing qualitative characteristics of financial information are
A. Comparability and understandability rs e
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B. Verifiability and timeliness
C. Comparability, understandability and verifiability
D. Comparability, understandability, verifiability and timeliness
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A. Can be depended on to represent the economic conditions and events that it is intended to
represent.
B. Is capable of making a diference in a decision.
C. In understandable by reasonably informed users of accounting information,
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29)Physical concept of capital required the use of
A. Historical cost B. Realizable value C. Current cost D. Present
value
30)Which of the following does not interact with both relevance and faithful representation to
contribute to the usefulness of information?
A. Neutrality B. Timeliness C. Understandability D. Comparabilit
y
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