Professional Documents
Culture Documents
Theories
The Accountancy Profession
1. S1: “Accounting is the process of identifying, measuring and communicating economic information
to permit informed judgement and decision by users of the information”. This definition is provided by
the American Accounting Association.
S2: The subject matter of accounting is economic activity or the measurement of economic resources
and obligations.
S3: An example of an internal transaction is a casualty loss.
S4: Implicit in the communicating process are the recording, classifying, summarizing and interpreting
aspects of accounting.
S5: The essence of accounting is decision-usefulness.
How many statements are incorrect?
a. One
b. Two
c. Three
d. Four
2. S1: At present, Republic Act No. 9298 is the law regulating the practice of accountancy in the
Philippines. This law is known as the “Philippine Accountancy Act of 2004”.
S2: The Board of Accountancy is responsible for preparing the Philippine CPA Licensure Examination
while the Professional Regulation Commission is responsible for grading the said examination.
S3: Auditing has traditionally been the secondary service offered by most public accounting
practitioners.
S4: A CPA shall be temporarily exempted from CPD requirements upon reaching the age of 65 years.
How many statements are correct?
a. One
b. Two
c. Three
d. Four
3. Financial Reporting Standards Council consists of the following, except
a. Board of Accountancy (1)
b. Financial Executives Institute of the Philippines (1)
c. Commission on Audit (1)
d. Philippine Institute of Certified Public Accountants (1)
The Revised Conceptual Framework
4. Which of the following statements is incorrect regarding the limitation of financial reporting?
a. General purpose financial reports do not and cannot provide all of the information that existing and
potential investors, lenders and other creditors need.
b. General purpose financial reports are designed to show the value of an entity.
40. S1: PAS 38, paragraph 63, explicitly provides that internally generated brand, masthead,
publishing title, customer list and other item similar in substance shall be recognized as intangible
asset.
S2: PAS 38, paragraph 48, provides that internally generated goodwill shall not be recognized as an
asset.
S3: An example of an identifiable intangible asset is a customer list.
How many statements are incorrect?
a. One
b. Two
c. Three
d. None
Investment Property
41. Which of the following would not qualify as an investment property?
a. Land held for long-term capital appreciation.
b. Land that is vacant but is held to be leased out under an operating lease.
c. Land held for currently undetermined use.
d. Property that is being constructed or developed for future use as investment property.
42. It is defined as property held for use in the production or supply of goods or services or for
administrative purposes; or sale in the ordinary course of business.
a. Owner-occupied property
b. Investment property
c. Business property
d. Rental property
Agriculture
43. Which of the following is accounted under PAS 41?
a. Chicken in a cockpit arena.
b. Processed whip cream.
c. Agricultural land.
d. Carcass of a pig.
44. A plant with dual use is reported under
a. PAS 41.
b. PAS 16.
c. PAS 2.
d. PFRS 9.