Answer by kuya joemer lucero……

FABM 112 Weak 1-9

Which of the following statement is not true?

To be a good accountant, one must have mastery of mathematics.

Private accounting, as a sub-discipline of accounting, includes:

Management Accounting

The chief accounting officer of a medium-sized or large business enterprise.

Controller

Accounting deals with quantifiable information

True

This branch involves the preparation of tax returns and the rendering of tax advice to
clients, such as determination and verification of tax consequences, the effect of taxes in
the business operations, tax minimization through legal means, and the like.
Tax Accounting

Accounting is the language of business. TRUE

Which of the following is the most appropriate definition for Accountancy?

Accountancy refers to the art of classifying the recorded transactions under their
respective accounts

Which of the following statements is false?

Owner's equity can be bigger than the total assets.

Deals with independent verification and examination of the accounting records for the
purpose of giving an opinion on the fairness of its presentation.
Auditing

Which of the following is not a component of the complete set of financial statements?
Bank reconciliation statement

The basic function of financial accounting is to

Interpret financial data

Accounting deals with quantifiable information TRUE

The area of accounting that relates to providing audit, tax, and consulting services to clients.
Public Accounting

The external user of accounting information is the: Customer

The steps in the process of accounting take place in the following order:
Identifying, measuring, communicating, decision making

Which of the following is an internal data-user?

Bank representative

The chief accounting officer of a medium-sized or large business enterprise.

Chief Operating Officer

A person who is responsible for the formation and molding the mind of competitive
accountants and consultants.
Accounting professor

Information is material if:

Its omission or misstatement could influence the economic decisions of users taken on the
basis of the financial statements.

Although accounting information is used by a wide variety of external parties, financial

reporting is primarily directed toward the information needs of:
Investors and creditors

Which of the following is a mechanical aspect of accounting?

Analyzing the transactions preparatory to the recording process.

Which of the following statement is not correct?

Being a bookkeeper requires the same kind of training and preparation as that of
being an accountant.

A sole proprietorship is taxed only once.

True

Sole proprietors are personally liable for all debts and obligations of their businesses.
True
Accounting deals with quantifiable information.
True

Accounting aims to communicate financial information to investors only.

False
Accounting involves communication.
True

It deals with recording, classifying and summarizing the details of materials, labor and
overhead necessary to produce and sell product or service.
Cost Accounting

Principals can be held liable for the actions of their agents.

True
In an agency relationship, a principal acts on behalf of an agent.
True

The major input used by service company is

LABOR

Which of the following is an unincorporated origination?

Public limited company

Sole proprietors are personally liable for all debts and obligations of their businesses.
True
Which of the following statements regarding service companies is correct?
. Service companies basically provide almost the same services to their customers.

A partner who is not actually involved in the partnership but lends his name for public
relations purposes is a:
Nominal partner

PSY Co., an accounting firm, earns P120,000 from its audit engagement with San Miguel
Corporation. the P120,000 is considered as PSY Co.'s
Service revenues
Mariane wants to buy a building for her business today. Which of the following is the
relevant data for her decision?

Which of the following is an advantage of sole proprietorship?

All of the answer is correct

Licensing requirements allow states and counties to regulate business.

TRUE

Which of the following probability the most reason for incorporating?

Increased flexibility

The operating cycle of a service company involves which of the following?

All of the answer is correct

The maximum number of persons who are legally allowed to operate in a partnership is: 2

Services performed by service companies may include all of the following , EXCEP
No correct answer

A corporation that is organized under Philippine Laws.

No correct answer

The most effective form of business organization for raising capital is the:
Corporation

A partner who is entitles to a share of the profits from a partnership is known is:
A salaried partner

The main difference of a merchandising company over a service company is:

a. It provides tangible products
b. It has production facilities
c. It does not need employees.
d. It has no inventory

The form of business organization that has the largest sales volume is the:
Cooperative

A business ownership capitalization divided into hundreds or thousands of transferable

shares of stock and must have at least five owners or investors.
Corporation
The set of accounting standards followed in the Philippines
PFRS

A merchandising company that sells goods directly to customers is called

Retailer

Accounting principles include rigid and definite rules that an accountant has to use under all
circumstances.
TRUE

Also known as conservatism Prudence

The major input used by service company is:
All of the answer is correct

The owner invests personal cash in the business, assets will

Increase

The main difference of a merchandising company over a service company is:

It has no inventory

This assumption states that a business is an entity separate and distinct from its owners.
Accounting entity assumption

The main advantage of a general partnership is:

The liability of the partners.

The financial statement that shows the financial position of an enterprise at a particular
point of time is the:
Balance Sheet

Which of the following changes would likely accompany a decrease in an asset?

Increase in equity

Under the continuity assumption it is assumed that a business will continue to operate
forever. FALSE

Registration of an assumed business name helps avoid consumers' confusion with other
business operating under similar names. TRUE

A principal may be held for the actions of an independent contractor.

TRUE
Mariane wants to buy a building for her business today. Which of the following is the
relevant data for her decision?
Building cost details of 2014

The operating cycle of a service company involves which of the following?

All of the answer is correct

One whose liability to third persons extends to his separate personal properties.
General partner

A form of business has two or more owners bind themselves to contribute money, property,
or industry into a common fund with the intention of dividing profits among themselves.
Partnership

What is the main disadvantage of being a sole proprietorship?

Unlimited liability

The period covered by the prepared financial statements:

Cannot be longer than 12 months.

Which financial statement is most useful in assessing the financial flexibility of a business
enterprise?
Statement of Cash flows

Which is the last step of accounting as a process of information?

Preparation of financial statement

public Accounting, as a sub-discipline of accounting, includes:

Managerial Advisory services

Which of the following is not true?

Accounting is not an exact science.

A person with knowledge of accounting, who does the routine work of recording, classifying,
and summarizing phases of accounting
Bookkeeper

A partnership begins simply by one or more individuals beginning business.

TRUE
Which of the following is a more appropriate definition for Accountancy?
. Interpret financial data

The four principal qualitative characteristics of useful financial statements are:

Timeliness, relevance, reliability, comparability

The information that would be of most interest to an organization's production manager is:
Continuity of orders for the factory

Government agency gives a CPA certificate to an accountant after he passes a series of

rigorous examinations administered by the Board of Accountancy PRC
A one year reporting period that begins on January 1 ends on December 31 is
Calendar year reporting period

The information about a customer that would be of most interest to a suppliers is

Ability to pay off debts as they fall due.

The financial statements prepared at the end of the period report the following:
The results of operations during the period.

Refers to the recording, presentation, and analysis of manufacturing costs.

Cost Accounting

Which of the following is a more appropriate definition for Accountancy?

Select one:
Preparation of financial statement

Creditors information needs involve makingall of the following decisions,except:

Whether or not to sell goods and serviceson accountbasis

Which of the following is not a business transaction?

Purchasing office supplies

The accounting elements in a balance sheet include:

Assets, liabilities and equity

A person with knowledge of accounting, who does the routine work of recording, classifying,
and summarizing phases of accounting.
Bookkeeper

Which of the following is not a part of the functions of the accounting system?
Preparing financial statements that are favorable to the data-users.
Which of the following items may appear in a balance sheet?
Capital, drawing and net income

Sub-area of the accounting profession that deals primarily with providing information to
external data-users, including but not limited to financial statements
Accountancy refers to the art of classifying the recorded transactions under their
respective accounts

Sub-area of the accounting profession that deals primarily with providing information to
external data-users, including but not limited to financial statements.
Financial Statements

When does an accountant record a transaction?

it is materialized by a concrete document

If you want to be your own boss, make your own decisions, and keep all of the profits to
yourself, you want to be
Sole proprietorship

Accounting provides information on

All of the correct answer are correct

A government agency in charge of regulating and licensing the practices of profession like
accounting, medicine, engineering, nursing and the like.
PRC (Professional Regulation Commission)

Which of the following statements is?incorrect?

The business enterprise must have ownership over the items reported as business
assets.

A business that is owned by one person.

Sole Proprietorship

The basic purpose of accounting is to:

Meet an organization's need for accounting information as efficiently as possible.

Financial statements are prepared:

Primarily for the benefit of persons outside of the business organizations
The business income of a partnership is taxed as the personal income of the partners.
true

What are the accounting standards issued by the IASB called?

International Financial Reporting Standards

Sole proprietorships terminate upon the death of the proprietor.

False

A partnership may be dissolved at any time by action of the partners or by operation of law.
True

Which financial statement is used to show what the firm owns?

Balance sheet

To be a proprietor: One must put up a certain capital investment for the purpose of
making profit.

Business profits are taxed as a sole proprietors personal income.

True

All of the following are characteristics of managerial accounting, except:

Information must be developed in conformity with generally accepted accounting
principles or with income tax regulations

Owners of the stock corporation.

Board members stockholders

Is a business organization owned by a group of individuals and is operated for their mutual
benefit. The persons making up the group are called members.
Cooperative