KORBEL FOUNDATION COLLEGE, INC.

Purok Spring, Brgy. Morales

Koronadal City, Philippines, 9506
Telephone No. 228-1996 JUNE 2020
ACCOUNTING REVIEW LECTURER: IPRIL JOY R. NAQUITA, CPA, MBM

MULTIPLE CHOICE
1. The primary motive of a person engaged in business.
a. profit c. to help government in terms of taxes
b. to render services d. Personal reasons

2. Nowadays, business establishments are obliged by law to keep business records for:
a. accounting purpose c. General purpose
b. taxation purpose d. Decision-making process

3. What is considered as the “life-blood” of a nation?

a. taxes c. Projects
b. government d. Society

4. Are uniform sets of accounting rules, procedures, practices and standards that are followed in preparing
financial statements.
a. accounting assumptions c. Accounting theories
b. accounting fundamentals d. Generally accepted accounting principles

5. The new standard-setting body that replaces the accounting standards council
a. International accounting standards council
b. Philippine Financial reporting standards council
c. Financial accounting standards council
d. None of these

6. Pronouncements that are contained in the old Statement of Financial Accounting Standards (SFAS) are now called-
a. Philippine Accounting Standards c. General Accounting standards
b. Financial Accounting Standards d. International Accounting Standard

7. Under business entity concept, when a person starts w/ a business for the first time, his borrowed capital will be
treated-
a. capital investment
b. liability of the business to bank
c. both capital and liability
d. personal assets

8. A principle that calls for the proper matching of revenue and expenses for fair reporting of financial statements-
a. Matching
b. consistency
c. materiality
d. objectivity

9. What principles in accounting that require financial statements should be free from any material misstatement-?
a. adequate disclosure
b. consistency
c. neutrality
d. objectivity
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 KORBEL FOUNDATION COLLEGE, INC.
Purok Spring, Brgy. Morales
Koronadal City, Philippines, 9506
Telephone No. 228-1996 JUNE 2020
ACCOUNTING REVIEW LECTURER: IPRIL JOY R. NAQUITA, CPA, MBM

10. When a P200 waste basket with an estimated life of 1 year was charge to expense at the time of purchase, this is
an application of-
a. matching principle
b. cost principle
c. objectivity principle
d. consistency principle

11. A financial statement w/c directly relates to the measurements of financial position of an enterprise as a given date-
a. Balance sheet
b. income statement
c. statement of changes in equity
d. all of these

12. Are resources controlled by the enterprise as a result of past transactions and events and from w/ future economic
benefits are expected to flow the enterprise-
a. Liabilities b. Assets c. Expenses d. Owners’ equity

13. Profit will result during a time period when-

a. assets exceed liabilities c. Expenses exceed revenues
b. assets exceed revenues d. Revenue exceed expenses

14. An accounting period will begin on Jan. 1 and will end on Dec. 31 of the same year
a. fiscal year b. calendar year c. leap year d. natural business year

15. This is performed by its own employee or staff of the company who is concerned in determining strict adherence
to management policies and measure the sufficiency of operations-
a. internal auditing b. external auditing c. tax accounting d. financial accounting

ENUMERATION ON RA 9298
1. What are the three objectives of RA 9298
2. The title for the RA 9298 is known as_________________
3. Four scope of Accountancy Profession
4. State the four qualifications stated in RA 9298
5. Term of office may hold by the Chairman and members of the Board
6. Give alteast 3 functions of the board
7. Give atleast 2 grounds for suspension or removal of members of the board
8. Atleast two qualifications for applicants of board examination

*See RA 9298 for Answer key

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