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1. The founding president of NFJPIA

a. Mr. Samuel Misa
b. Enrique Caguiat
c. Santiago dela Cruz,
d. Clemente Uson
2. Current national council president of the federation
a. ASHERAH J. ENGKONG
b. RHEA ANGIELA V. MENESIS
c. AXL ROME P. FLORES
d. VICENTE L. QUIMBO, JR.
3. The following are amongst the organization’s objectives, except:
a. To promote fellowship and familiarity among accounting students from all walks of life
b. To serve as an instrument for the gradual exposure of the students to the network of
opportunities that awaits them
c. To protect the Certificate of Certified Public Accountants granted by the Republic
of the Philippines
d. To adapt necessary measures to foster academic advancement in the field of
accounting.
4. In what Federation Year did NFJPIA received a diamond year award from picpa for its
support in the fulfillment of its objectives to strengthen the bond between JPIA and PICPA?
a. 1998-1999
b. 1999-2000
c. 2000-2001
d. 1997-1998
5. Cash on hand is expressed in peso and is assumed that its purchasing power does not change.
a. Monetary unit
b. Going concern
c. Cost principle
d. Materiality
6. The company purchased 2 boxes of staples immaterial relative to its assets. The purchase is to be
recorded as a/an?
a. Asset
b. Purchases
c. Expense
d. Prepaid expense
7. The business’s payments for the owner’s personal expenses shall be reduced from the owner’s
capital contribution and shall be treated as:
a. Liability
b. Expenses
c. Drawings
d. Loss
8. A fixed asset with an estimated life of 10 yrs shall be recorded at:
a. Retail cost
b. Acquisition cost
c. Salvage value
d. Future value
9. Asses the following statements:
1. PPE must not be depreciated over their estimated useful life.
2. Stock valuation sticks to the rule of the higher of cost and net realizable value.
a. Both statements are true
b. Both statements are false
c. Statement 1-true; statement 2-false
d. Statement 1-false; statement 2-true
10. A leading company in the Philippines records its income in pesos—rounded to the nearest
1,000. Which accounting principle justifies the rounding off of its income?
a. Monetary unit
b. Materiality
c. Going concern
d. Cost principle
11. When a corporation records less profit, less asset amount, or a greater liability amount it
follows what principle?
a. Materiality
b. Conservatism
c. Cost principle
d. Matching
12. An accounting transaction shall at least affect how many accounts?
a. 1
b. 2
c. 3
d. 4
13. NFJPIA has over how many accredited local chapters?
a. 275
b. 257
c. 370
d. 730
14. The retail value of an equipment purchased by jean is 50,000. How should the equipment be
recorded upon purchase?
a. Retail value
b. 50,000
c. Purchase cost
d. Future cost
15. Which represents the FIFO method?
a. First units purchased are the first units sold
b. Last units purchased are the last units sold
c. Last units purchased are the first units sold
d. Both a and b
16. Beginning Inventory, 1,000 units at P4/unit: Purchases, 600 units at P5/unit: Units
sold, 700: Ending Inventory, 900 units: Average cost per, P4.375 per unit. Using the
given information, how should the Cost of goods sold be calculated?
a. Multiply the average cost per unit by the number of units sold.
b. Multiple the average cost per unit by the ending inventory.
c. Multiply the number of units sold by the ending inventory
d. Multiply the number of units sold by the beginning inventory
17. Trent runs a business as an engineering consultant. He proposed a new system for
constructing bridges to deal with extreme weather conditions. He spends P30,000
securing a 14-year patent for his invention. To record the amortization expense each
year, what account should be credited?
a. Amortization expense
b. Patent
c. Accumulated amortization
d. Cash
18. Liliana spends P20,000 (cash) on a piece of equipment for use in her restaurant. She
plans to use the straight-line method to depreciate the equipment over 5 years. She
expects it to have no value at the end of the 5 years. If Liliana sells the equipment for
P6,000, she will record P2,000 as?
a. A loss—following the conservatism principle
b. A gain
c. Depreciation expense
d. Net profit
19. How many executive officers are there in NFJPIA?
a. 10
b. 11
c. 12
d. 13
20. I. Machinery
II. Owner’s Equity
III. Land
IV. Cash
V. Debtor
Which of the following items fall under the definition of an asset?
a. I, II, III, & IV
b. I, III, & IV
c. IV only
d. I, III, IV, & V
21. Which among the items is/are considered a liability?
a. Cash
b. Debtors
c. Tax Owed
d. Both b & C
22. Assess the following statements:
1. The accounting equation shows how much of your assets belong to the owner,
and how much ‘belong’ to people outside the business.
2. If you cannot work out a value for an item that will bring you future benefits, then
you cannot keep this as an asset in your records.
a. Both statements are true
b. Both statements are false
c. Statement 1-true; statement 2-false
d. Statement 1-false; statement 2-true
23. Assess the following statements:
1. A liability is a debt for your business.
2. Debtors are a debt for your business.
a. Both statements are true
b. Both statements are false
c. Statement 1-true; statement 2-false
d. Statement 1-false; statement 2-true
24. Assess the following statements:
1. A business whose liabilities are greater than its assets has a bad financial position.
2. A business whose liabilities are greater than its owner’s equity has a bad financial position.
a. Both statements are true
b. Both statements are false
c. Statement 1-true; statement 2-false
d. Statement 1-false; statement 2-true
25. Assess the following statements:
1. A business whose assets exceeds its equity simply means that it has debts or liabilities, which
does not necessarily mean a bad financial position.
2. A business whose assets are greater than its owner’s equity has a bad financial position.
a. Both statements are true
b. Both statements are false
c. Statement 1-true; statement 2-false
d. Statement 1-false; statement 2-true
26. Which among the following is/are the two characteristic/s of the monetary unit principle?
a. transactions are recorded in terms of money
b. purchasing power of the dollar is stable
c. the business enterprise is considered one accounting entity
d. both a & b
27. which of the following statements is/are true?
a. Capital is increased by additional contributions and income, and decreased by expenses
and withdrawals.
b. Capital is increased by additional distributions and income, and decreased by expenses and
withdrawals
c. Both a & b
d. None of the above
28. What is obtained when cost of goods sold is subtracted from revenue?
a. Profit
b. Net profit
c. Gross profit
d. Operating profit
29. Which of the following statements is/are false?
a. Gross profit is equal to revenue less COGS
b. Operating profit is equal to gross profit less COGS
c. Both a and b
d. None of the above
30. Which financial statement is affected when a company issues stock?
a. Balance sheet
b. Income statement
 c. Both a & b
d. None of the above
31. The following are included in the accounting conventions, except:
a. Depreciation convention
b. Conservatism convention
c. Consistency convention
d. Full disclosure convention
32. Which statement/s is/are true about the realization concept?
i. The concept stresses that revenues should only be recorded if there is reasonable certainty
about their realization
ii. The concept explains that the comparison of incomes and expenses for a particular period
can give the period's net result.
iii. The concept stresses that revenues should only be recorded if there is reasonable certainty
about their realization.
a. i only
b. ii only
c. iii & ii
d. i & iii
33. Which of the following does not exemplify the materiality concept?
a. Purchase of pencil recorded as an expense instead of including in stock
b. Purchase of car for private use
c. Purchase of plant for business
d. Purchase of building to extend the business
34. Which of the following is true about the disclosure convention?
a. Full disclosure of all material facts that can affect the financial statement
b. That profit should be realized.
c. Matching of incomes and expenses for a particular period
d. The business to avoid being dissolved in the near future
35. In evaluating audit risk, the auditor is needless to investigate the
a. legal counsel
b. Boardof governance
c. Stakeholders
d. Middle-level management
36. Which among the following is not considered as cash?
a. Bank deposits
b. Checks
c. Postdated checks
d. Money orders
37. To achieve control objectives, cash sales are to be recorded when
a. cash sales are made
b. purchase order is received from a customer
c. After some period
d. Weekly
38. According to accrual concept of accounting, financial or business transaction is recorded:

when cash is received or paid

when transaction occurs
when profit is computed
when balance sheet is prepared