NAME: Mark Aeron B.

Jacildo
SECTION: BSBA 2L
True or False

1. A management accounting system incorporates all types of financial and non- financial
information from a wide range of sources.
2. Cost accounting makes use of data from the cost books of account in providing information for
managerial planning and control.
3. Management accounting is concerned with the supply of information to owners of an entity while
financial accounting to managers.
4. Internal auditors perform routine tasks and undertake detailed checking of the entity's accounting
procedures.
5. Bookkeeping procedures usually start when the basic data have been entered in the books of
account and the accuracy of each entry has been tested.
6. Accounting has evolved in response to the social and economic needs of society.
7. A CPA's practice is limited to the practice of public accountancy and practice in commerce and
industry, in education/academe and in government.
8. Learning accounting is like learning a new language in the sense that words used in accounting
mean the same as they are used in everyday, non-accounting sense.
9. Double-entry bookkeeping is a discovery of science.
10. It is during the industrial revolution when corporations emerged thus spurring the development of
accounting.
11. Financial accounting information is for the exclusive benefit of the owners of an entity.
12. Accounting principles become generally accepted even with little support from relevant parties
interested in the financial statements.
13. One reason why one should study accounting is to ensure that he follows legal requirements.
14. Statements and interpretations issued by the Accounting Standards Council (ASC)/Financial
Reporting Standards Council (FRSC) represent generally accepted accounting principles in the
Philippines.
15. Some entities are required by law to publish information about their affairs.
16. Corporate external auditors are appointed by the management.
17. In the whole society, there is a need for credibility in information and information systems.
18. The Code of Ethics is equally valid for all professional accountants.
19. The abundance of accounting applications proves how information technology has revolutionized
accounting.

20. Accounting was already existent when Egypt's great pyramids were built.
Multiple Choice

1. A professional accountant should be fair and should not allow prejudice or bias, conflict of
interest or influence of others to override objectivity.
a. professional behavior b. objectivity
c. integrity d. none of the above
2. Which statement is false?
a. Accounting is the language of business.
b. Accountants are the scorekeepers of business.
c. Accounting is dispensable in the world of business.
d. None of the above.
3. Which incorporates cost accounting data and adapts them for management decisions?
a. Management accounting
b. Financial accounting
c. Cost Accounting
d. Taxation
4. A mechanical task involving the collection of basic financial data.
a. Bookkeeping
b. Accountancy
c. Auditing
d. Taxation
5. Which is not an attribute of accounting?
a. It is a service activity.
b. It provides qualitative information.
c. It is an art of recording, classifying, summarizing and interpreting.
d. none of the above.
6. A profession whose members collect and summarize financial data, and present information so
users may take effective decisions.
a. Auditing
b. Taxation
c. Bookkeeping
d. Accountancy
7. The preparation and subsequent publication of highly summarized information.
a. Auditing
b. Financial accounting
c. Financial management
d. Management accounting
8. Accountancy qualifies as a profession because
a. CPAs adhere to a Code of Ethics and are members of the PICPA.
b. CPAs have their own body of language.
c. all its members are certified public accountants (CPAs).
d. all of the above
9. Pacioli's double-entry bookkeeping has been adapted to suit modern times. It still is an effective
recording system because information extracted tells the owner/manager
a. how much the business owes.
b. how much is owed to the business.
c. what profit the business has made.
d. all of the above
10. The checking of prepared accounts and the reporting on them is called
a. Auditing
b. Taxation
c. Bookkeeping
d. Accountancy
11. A professional accountant should be straightforward and honest in performing professional
services.
a. professional behavior
b. objectivity
c. integrity
d. none of the above
12. Authoritative statements of how particular types of transaction and other events should be
reflected in financial statements
a. auditing standards c. both 'a' and 'b'
b. accounting standards d. none of the above
13. Its mandate is to supervise, control and regulate the practice of accountancy in the Philippines
a. Congress
b. Philippine Institute of Certified Public Accountants (PICPA)
c. Board of Accountancy (BOA)/Professional Regulation Commission (PRC)
d. Accounting Standards Council (ASC)/Financial Reporting Standards Council (FRSC)
14. A basic requirement to meet the objectives of the accountancy profession
a. quality of services
b. professionalism
c. confidence
d. all of the above
15. A CPA is engaged in public accountancy if he renders service to
a. prepare income tax returns.
b. design, install, and revise of accounting system.
c. audit or verify financial transactions and accounting records.
d. all of the above
16. The process of recording cost data in the books of account is
a. Costing
b. Cost accounting
c. Cost bookkeeping
d. All of the above

17. A professional accountant should act in a manner consistent with the good reputation of the
profession.
a. professional behavior
b. objectivity
c. integrity
d. none of the above

18. Setting financial objectives, making plans, obtaining finance, and safeguarding the financial
resources of the entity
a. Auditing
b. Financial accounting
c. Financial management
d. Management accounting

19. A highly complex technical branch of accounting that involves the computation of tax payable by
both business entities and individuals is
a. Taxation
b. Cost Accounting
c. Financial accounting
d. Management accounting
True or False

1. The accounting records of the sole proprietorship include the proprietor's personal financial
records.

2. Nonprofit organizations need similar financial information as businesses.

3. Classification of financial data is achieved through the preparation of financial statements.

4. Most enterprises adopt a financial concept of capital in preparing their financial statements.

5. A sole proprietorship can have more than one owner.

6. Authoritative bodies may develop standards for certain types of transaction on the basis of
logic in the absence of clearly defined practices.

7. Government agencies require financial information from enterprises as part of their

regulatory function.

8.The accounting process for all three types of business organizations is generally the same.

9. Shareholders or stockholders are personally liable for corporate debts.

10. An accounting principle has relevance to the extent that it can be implemented without
undue complexity or cost.

11. Recognition is the process of determining the monetary amounts at which the elements of
the financial statements are to be recognized.

12 The elements directly related to the measurement of financial position in the balance sheet
are assets, liabilities and equity.

13. Each partner is personally liable for any debt incurred by the partnership.

14. Manufacturing companies purchase goods that are ready for sale and then sell these to
customers.

15.If each entity made up its own accounting rules, there could be no basis for comparing the
earnings and financial position of different firms.