CFAS REVIEWER
Involves assigning numbers, normally in
CHAPTER ONE - Overview
1. The process of identifying, measuring, and
communicating economic information to permit
informed judgments and decisions by the user of
information.
- ACCOUNTING
2. The process of analyzing events and
transactions to determine whether or not they
would be recognized.
- IDENTIFYING
3. The process of including the accounting event in
the statement of financial position.
- RECOGNITION
4. It affects assets, liabilities, equity, income or
expenses of an entity.
- ACCOUNTABLE EVENT
5. Where do we disclosed Non-Accountable events
if they have accounting relevance?
- NOTES
6. If the non-accountable event has accounting
relevance where will you record it?
- MEMORANDUM ENTRY
7. Events that involve an entity and other parties.
- EXTERNAL EVENT
8. Event wherein parties/entities are giving as well
as receiving economic resources.
- EXCHANGE/RECIPROCAL TRANSFER
9. Event wherein a party/entity gave something
didn’t received anything.
- NON-RECIPROCAL TRANSFER
10. Involves changes in economic resources or
obligations but does not involve transfers of
economic resources or obligations.
- EXTERNAL EVENT OTHER THAN
TRANSFER
11. Event that does not involve external parties.
- INTERNAL EVENT
12. Resources are transformed to finished goods.
- PRODUCTION
13. An unanticipated loss from disasters and similar
events.
- CASUALTY
14.
monetary terms, to economic transactions and
events.
- MEASURING
15. The most commonly used measurement bases.
- HISTORICAL COST
16. Financial Statements are prepared using…
- MIXTURE OF COST AND VALUES
17. Includes historical cost and current cost.
- COSTS
18. Includes other measurement vases.
- VALUES
19. When measurement is affected by ______, the
items measured is said to be valued by opinion.
- ESTIMATES
20. When measurement is unaffected by estimates,
the items measured is said to be valued by _____.
- FACT
21. Process of transforming economic data into
useful accounting information.
- COMMUNICATING
22. Writing the identified and measured accountable
events in the journal.
- RECORDING
23. Involves the grouping of similar and interrelated
items into their respective classes through posting in
the ledger.
- CLASSIFYING
24. Putting together the recorded and classified
transactions and events.
- SUMMARIZING
25. Some regulatory bodies such as _____ requires
a certain financial ratio to be disclosed in the notes
to financial statements.
- BANGKO SENTRAL NG PILIPINAS (BSP)
26. ______ the financial information involves the
computation of ______.
- INTERPRETING, FINANCIAL
STATEMENT RATIOS
27. What is the basic purpose of accounting?
- to provide information that is useful in
making economic decisions
28. A separately identifiable combination of persons 42. Designed to meet the specific needs of particular
and property that uses or controls economic statements users. It is also provided by other types
resources to achieve certain goals or objectives. of accounting (i.e., managerial accounting)
- ECONOMIC ENTITY - SPECIAL PURPOSE
29. Entity whose activities re not directed towards 43. The principles which the process of accounting
making profit. is based.
- NOT-FOR-PROFIT ENTITY - ACCOUNTING CONCEPTS
30. Entity that operates primarily for profit. 44. Fundamental concepts or principles and basic
notions that provide the foundation of the
- BUSINESS ENTITY
accounting process.
31. Activities that affects economic
-ACCOUNTING
resources(assets) and obligations(liabilities).
ASSUMPTIONS/ACCOUNTING
- ECONOMIC ACTIVITIES POSTULATES

32. Trading resources and obligations for another. 45. Organized set of concepts and related principles
that explain and guide the accountant’s action in
- EXCHANGE identifying, measuring, communicating accounting
33. Process of using current inputs to increase the information.
stock of resources available for o0utput. - ACCOUNTING THEORY
- INVESTMENT 46. Each accountable event is recorded in two parts
34. Process of allocating rights to the use of outputs -debit and credit.
among individuals and groups in society. - DOUBLE-ENTRY SYSTEM
- INCOME DISTRIBUTION 47. Entity is assumed to carry on its operation for an
35. Process of converting economic resources into indefinite period of time.
outputs of goods and services. - GOING-CONCERN ASSUMPTION
- PRODUCTION 48. The measurement basis involving ________ is
36. Setting aside rights to present consumption in appropriate only when the entity is going concern.
exchange for rights to future consumption. - MIXTURE OF COST AND VALUES
- SAVINGS 49. If the entity is liquidating concern the
37. Process of using the final output of the appropriate measurement basis is _____.
production process. - REALIZABLE VALUE
- CONSUMPTION 50. Entity is viewed separately from its owners.
38. Information are expressed in numbers, - SEPARATE ENTITY CONCEPT
quantities, or units.
51. The purchasing power of peso is regarded as
- QUANTITATIVE INFORMATION stable.
39. Information expressed in words or descriptive - STABLE MONETARY UNIT
form.
52. The life of the entity is divided into series of
- QUALITATIVE INFORMATION reporting periods.
40. Information expressed in money. - TIME PERIOD
- FINANCIAL INFORMATION 53. A ______ starts on January 1 and ends on
41. Designed to meet the common needs of most December 31 of the same year.
statement users. It is also provided under financial - CALENDAR YEAR PERIOD
accounting.
54. A _____ also covers 12 months but start on a
- GENERAL PURPOSE ACCOUNTING date other than January 1.
INFORMATION
- FISCAL YEAR PERIOD
55. Information is material if its omission or
misstatement could influence economic decisions.
- MATERIALITY CONCEPT
56. The cost of processing and communicating
information should not exceed the benefits to be
derived from it.
- COST-BENEFIT/COST-CONSTRAINT
57. Expenses are recognized when incurred rather
than when cash is paid.
- ACCRUAL BASIS OF ACCOUNTING
58. Value of an asset is determined on the basis of
acquisition cost.
- HISTORICAL COST CONCEPT
59. All of the components of complete set of
financial statements are interrelated.
- CONCEPT OF ARTICULATION
60. A principle that recognizes that the nature and
the amount of information included in the financial
statements reflect a series of judgmental trade-offs.
- FULL-DISCLOSURE PRINCIPLE
61. Financial Statements are prepared on the basis
of accounting principles that are applied
consistently from one period to the next.
- CONSISTENCY CONCEPT
62. Costs are recognized as expenses when the
related revenue is recognized.
- MATCHING
63. This theory emphasizes the income statement
and is exemplified by the equation
“Assets=Liabilities + Capital”
- ENTITY THEORY
64. Entity Theory is the accounting objective that is
geared towards _________.
- PROPER INCOME DETERMINATION
65. This theory emphasizes the importance of the
balance sheet and is exemplified by the equation
“Assets-Liabilities=Capital”
- PROPRIETARY THEORY
66. Proprietary Theory is the accounting objective
that is geared towards _________.
- PROPER VALUATION OF ASSETS
67. This theory is applicable when there are two
classes of shares issued.
- RESIDUAL EQUITY THEORY
68. This concept is used in government accounting
and fiduciary accounting.
- FUND THEORY
69. The process of converting non-cash assets into
cash or claims for cash. (Revenue can only be
recognized once the underlying goods or services
associated with the revenue have been delivered or
rendered)
- REALIZATION
70. It is the use of caution when making estimates
under conditions of uncertainty.
- PRUDENCE/CONSERVATISM
71. In Prudence, which are not overstated?
- ASSETS OR INCOME
72. In Prudence, which are not understated?
- LIABILITIES OR EXPENSES
73. When exercising Prudence, the one which has
the ______ on equity is chosen.
- LEAST EFFECT
74. Costs that are directly related to the earning of
revenue are recognize as expenses in the same
period the related revenue is recognized.
- MATCHING CONCEPT
75. Cost that are not directly related to the earning
of revenue are initially recognized as assets and
recognized as expense over the periods their
economic benefits are consumed.
- SYSTEMATIC AND RATIONAL
ALLOCATION
76. Costs that do not meet the definition of an asset,
or ceases to meet the definition of an asset are
expensed immediately.
- IMMEDIATE RECOGNITION
77. Branch of accounting that focuses on general
purpose financial statements.
- FINANCIAL ACCOUNTING
78. Structured representation of an entity’s financial
position and result of its operation.
- FINANCIAL STATEMENTS
79. Includes financial statements plus other
information provided outside the financial
statements.
- FINANCIAL REPORT
80. Primary objective of financial reporting.
 - to provide information about an entity’s
economic resources, claims to those resources,
and changes in those resources.
81. Secondary objective of financial reporting.
- to provide information useful in assessing the
entity’s management stewardship.
82. A branch of accounting that refers to the
accumulation and communication of information for
use by internal users or management.
- MANAGEMENT ACCOUNTING
83. It is the systematic recording and analysis of the
cost of materials, labor, and overhead incident to
production.
- COST ACCOUNTING
84. The process of evaluating the correspondence of
certain assertions with established criteria and
expressing an opinion thereon.
- AUDITING
85. The preparation of tax return and rendering of
tax advice.
- TAX ACCOUNTING
86. Refers to the accounting for the government and
its instrumentalities.
- GOVERNMENT ACCOUNTING
87. Refers to the handling of accounts managed by a
person entrusted with a custody and management of
property for the benefit of another.
- FIDUCIARY ACCOUNTING
88. refers to the handling of account for fiduciaries
who wind up the affairs of a deceased person.
- ESTATE ACCOUNTING
89. The process of communicating the social and
environmental effects of an entity’s economic
actions to the society.
- SOCIAL ACCOUNTING
90. Accounting for non-profit entities other than the
government.
- INSTITUTIONAL ACCOUNTING
91. The installation of accounting procedures for the
accumulation of financial data and designing of
accounting forms to be used in data gathering
- ACCOUNTING SYSTEMS
92. Pertains to the careful analysis of economic
events and other variables to understand their
impact on decisions.
- ACCOUNTING RESEARCH
93. Refers to the process of recording the accounts
or transactions of an entity.
- BOOKKEEPING
94. What is R.A. 9298 also called?
- PHILIPPINE ACCOUNTANCY ACT. OF
2004
95. Represents the Philippines’ generally accepted
accounting principle.
- PHILIPPINE FINANCIAL REPORTING
STANDARDS (PFRSs)
96. The official accounting standard setting body of
the Philippines.
- FINANCIAL REPORTING STANDARDS
COUNCIL (FRSC)
97. FRSC is created under _____
- PHILIPPINE ACCOUNTANCY ACT OF
2004/R.A. 9298
98. Reviews the interpretations of the International
Financial Reporting Interpretations Committee
(IFRIC) for approval and adoption by FRSC.
- PHILIPPINE INTERPRETATIONS
COMMITTEE
99. Professional regulatory board that supervise the
registration, licensure, and practice of accountancy
in the Philippines.
- BOARD OF ACCOUNTANCY (BOA)
100. Government agency that is tasked in regulating
corporations and partnerships.
- SECURITIES AND EXCHANGE
COMMISSION
101. Administers the provisions of National Internal
Revenue Code.
- BUREAU OF INTERNAL REVENUE (BIR)
102. Influences the selection and application of
accounting policies by banks.
- BANKO SENTRAL NG PILIPINAS (BSP)
103. Influences the selection and application of
accounting policies by cooperations.
- COOPERATIVE DEVELOPMENT
AUTHORITY
104. The standard-setting body of the IFRS
foundation.
- INTERNATIONAL ACCOUNTING
STANDARDS BOARD (IASB)
CHAPTER TWO-Conceptual Framework 9. The following are the primary users’ decisions
for Financial Reporting about providing resources to the entity except;
1. Prescribes the concept for general purpose a. buying, selling,
financial reporting.
- CONCEPTUAL FRAMEWORK
2. All of these are the purpose of Conceptual
Framework, except;
a. assists the International Accounting Standards
Board (IASB) in developing standards that are
based on consistent concepts
b. assists preparers in developing consistent
accounting policies when no standard applies to a
particular transaction or when a Standard allows a
choice of accounting policy.
c. provides information to general users that is
useful in making economic decision
d. assists all parties in understanding and
interpreting the standards.
- C. provides information to general users that
is useful in making economic decision
3. What will happen if there is a conflict between a
Standard and Conceptual Framework?
- STANDARD WILL PREVAIL
4. The authoritative status of Conceptual
Framework is depicted in ______
- HIERARCHY OF GUIDANCE
5. General Purpose Financial Reporting involves the
preparation of _____
- GENERAL PURPOSE FINANCIAL
STATEMENTS
6. Objective of Financial Reporting that is the
foundation of Conceptual Framework
- TO PROVIDE FINANCIAL
INFORMATION ABOUT THE REPORTING
ENTITY THAT IS USEFUL TO EXISTING
AND POTENTIAL INVESTORS, LENDERS,
AND OTHER CREDITORS IN MAKING
DECISIONS ABOUT PROVIDING
RESOURCES TO THE ENTITY.
7. These users cannot demand information directly
from reporting entities and must rely on general
purpose financial reports for their financial
information needs.
- PRIMARY USERS
8. General Purpose Financial Reporting provide all
the information needs of the primary users.
- FALSE