CFAS MIDTERM EXAM

CFAS MIDTERM EXAM "I shall be straightforward and honest in all my professional and business relationships."Which ethical principle am I referring to in this statement? a. Integrity b. Objectivity c. Confidentia ...

CFAS MIDTERM EXAM "I shall be straightforward and honest in all my professional and business relationships."Which ethical principle am I referring to in this statement? a. Integrity b. Objectivity c. Confidentiality d. Professional Behavior e. Professional Competence and Due Care - ✔✔a General-purpose financial reports are not designed to show the value of a reporting entity. True False - ✔✔TRUE Which of the following is not included in the scope of the IASB conceptual framework? a. Qualitative characteristics that determine usefulness of financial accounting information. b. Definition, recognition & measurement of the elements of financial statements. c. Concepts of capital and capital maintenance d. Generally accepted accounting principles - ✔✔d The IASB conceptual framework is intended to establish a. Generally accepted accounting principles in financial reporting by business enterprises. b. The meaning of "present fairly in accordance with generally accepted accounting principles". c. The objectives and concepts for use in developing standards of financial accounting and reporting. d. The hierarchy of sources of generally accepted accounting principles. - ✔✔c Each project begins with research to explore issues, identify possible solutions, and decide whether there is a need for standard-setting. These ideas are expressed in the form of a (an) _________ for public comment. a. Exposure draft b. Discussion paper c. Research paper d. Accounting standard - ✔✔b In the conceptual framework for financial reporting, what provides the "why" —the goals and purposes of accounting? a. Measurement and recognition concepts such as assumptions principles and constraints. b. Qualitative characteristics of accounting information. c. Elements of financial accounting. d. Objective of financial reporting. - ✔✔d The underlying theme of the conceptual framework is a. decision usefulness b. understandability c. comparability d. reliability - ✔✔a Accountants are the primary users of financial statements. True False - ✔✔FALSE The general objective of financial statements is a. To provide financial information in order to assist users make economic decisions b. To disclose the market value of the firm's assets and liabilities c. To determine compliance with tax laws d. To make forecasts about the economy. - ✔✔a Rogelio prepares the financial statements of his clients which include a number of small and medium-sized enterprises. He belongs to the _________ sector of Accountancy. a. Public Practice b. Commerce and Industry c. Government d. Education - ✔✔a "I shall actively lead, participate, and promote the programs and activities of my professional organization; I shall comply with relevant laws and regulations; and, I shall avoid any action that will discredit the profession of Accountancy in the Philippines. "Which ethical principle am I referring to in these statements? a. Integrity b. Objectivity c. Confidentiality d. Professional Behavior e. Professional Competence and Due Care - ✔✔d General-purpose financial reports do not and cannot provide all of the information that the primary users need. True False - ✔✔TRUE A conceptual framework is a. A statement of Financial Accounting Standard. b. An underlying accounting assumption. c. A theoretical foundation which guides the accounting standard-setters, the preparers and users of financial accounting information in the preparation and presentation of financial statements. d. A financial statement. - ✔✔c This assumption states that the determination of periodic income and financial position depends on the measurement of economic resources and obligations and changes in them as the changes occur rather than simply on receipt or/and payments of cash. a. Accrual b. Going concern c. Monetary Unit d. Time period - ✔✔a Bookkeeping involves the interpretation of the results and making decisions for clients. True False - ✔✔FALSE Christine works as the auditor of a local government unit. a. Public Practice b. Commerce and Industry c. Government d. Education - ✔✔c What is due process in the context of standard-setting at the IASB? a. IASB operates in full view of the public. b. Public hearings are held on proposed accounting standards. c. Interested parties can make their views known. d. All of these. - ✔✔d A CPA is prohibited from being a member of two professional organizations. True False - ✔✔FALSE The main function of this body is to establish and improve accounting standards that will be generally accepted in the Philippines a. Philippine Institute of CPAS b. Professional Regulation Commission c. Financial Reporting Standards Council d. Board of Accountancy - ✔✔c General-purpose financial reports do not include estimates, judgments, and models. True False - ✔✔FALSE An example of an item which is not a liability is a. The portion of long-term debt due within one year. b. Accrued expenses. c. Unearned revenues. d. Dividends. - ✔✔d Which of the following can be best described as "residual equity"? a. Unsecured loans payable b. Ordinary shares c. Bonds payable d. Accrued expenses - ✔✔b Assets, liabilities, and equity are found in the statement of financial performance.