21. To become a CPA one must pass the CPA Licensure Exam by the government through the___?
SUMMATIVE TEST IN FUNDAMENTALS OF ABM1
Encircle the best answer that corresponds to each item
21. To become a CPA one must pass the CPA Licensure Exam by the government through the___?
a. Professional Regulatory Commission c. Board of Accountancy
b. Philippine Institute of Certified Public Accountant
d. Commission on Audit
22. The present law governing practice of accounting in the philippines which is also known as the Accountancy Act of 2004?
a. Republic Act 8424 b. Republic Act 9298 c. Republic Act 9892 d. Republic Act 3104
23. It mainly focuses on the proper custody of government funds and their purposes?
a. Cost of Accounting c.
b. Government Accounting d. Financial Accounting
24.Accounting is the process of identifying, measuring, & communicating economic information to permit informed judgments & decision by users of the information.
a. American Accounting Association c. Financial Reporting Standards Council
b.American Institute of Certified Public Accountants
d. Accounting Standard Council
25. Its function is to provide qualitative information primarily financial in nature, about economic entities.
a. American Accounting Association c. Financial Reporting Standards Council
b. American Institute of Certified Public Accountants
d. Accounting Standard Council
26 . Which of the ff. best describes the attributes of a
a.limited ability to raise capital; unlimited personal liability of owners
b.limited ability to raise capital; limited personal liability of owners
c.ability to raise large capital; unlimited personal liability of owners
d.ability to raise large amounts; limited personal liability of owners
27. Which Accounting process is the recognition or non-recognition of business activities as "accountable" events?
a. identifying b. communicating c. recording d. measuring
28. They need information to help them determine whether they should buy, hold or sell?
a. Suppliers and trade creditors b. lenders c. customers d. investors
29. They are interested in information that enables them to determine whether their loans and related interest will be paid when due?
a. Suppliers and trade creditors b. lenders c. customers d. investors
30 . What are the basic Accounting Elements?
a. assets, liabilities and Owner's Equity c. both "a" and "b"
b. Income & Expense d. neither "a" nor "b"
31. Financial reporting is concerned only with information that is significant enough to affect evaluation or decision.
a. materiality b. timeliness c. comparability d. cost and benefit
32. It is the accounting standard setting body in the Philippines at the present time.
a Accounting Standards Council
b.
c. Philippine Accounting Standards Board
d. Financial Reporting Standards Council
33. The financial statements should be stated in terms of a common financial denominator.
a. accrual basis b. going concern c. time period d. stable monetary unit
34. They are interested in information about the stability andprofitabilityoftheentity.
a. customers b. employees c. public d. lenders
35. Accountants employed in entities in various capacity as accounting staff, chief accountant or controller are said to be engaged in
a. Public accounting b. Private accounting c. Govemment accounting d. Financial accounting
36. It emphasizes the preparation and analysis of accounting information within the organization. It provides timely and relevant information for those internal users of accounting information.
a. Auditing b.Financial accounting c. Tax accounting d. Management accounting
37. This type of business buys raw materials and uses them in making new products, therefore combining raw materials, labour and expenses into a product for sale later on.
a. Merchandising business b. Service business c. Manufacturing business d. Buy and sale
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