Which of the following fundamental principles of accounting information system (AIS) requires an allowance for
change?
-FLEXIBILITY PRINCIPLE
Which of the following association is made up of accounting educators tasked to ensure that training programs are
conducted to update them not only on academic matters but on developing teaching skills and strategies?
-NACPAE
Which of the following characteristics of the accountant/ practitioner that requires one to be honest and
trustworthy?
INTEGRITY
Which of the following statements is NOT true?
A: The accountant must disclose confidential information he has obtained in the course of his professional
engagement.
Which of the following is NOT considered as a general purpose financial statement?
BUDGET
Which of the following is true?
Normally partners are personally liable for the liabilities of the partnership if the partnership is unable to pay.
Which users/stakeholders need financial information to enable them to determine whether the company can
provide good working conditions and grant security of tenure?
EMPLOYEE
Which of the following statements describing a corporation is NOT true?
Stockholders own the business and are liable up to the extent of their personal properties.
Which of the following professional ethics was violated by the accountant in a situation where he accepted an
audit engagement in a company where he holds a sizeable number of shares?
INDEPENCE
Company ABC ensures that products are properly labeled to show expiration date. Which performance level is
achieved by the firm?
SOCIAL
Identify which statement does NOT correctly describe a partnership.
It has limited liability
Which knowledge enables you to interact with people, appreciate their behavior as well as their social and cultural
beliefs?
GEN KNOWLEDGE
Which of the following regulatory bodies is in charge in licensing the practice of profession like accounting,
medicine, engineering, nursing and the like?
Professional Regulation Commission
Which of the following statement is correct?
Statement 1- Financial accounting information is for the exclusive benefit of the owners of an entity.
Statement 2 - The basic financial position of the company is shown in the income statement.
Both statements 1 & 2 are incorrect
Which of the following is considered as the procedural aspect of accounting involving repetitive process of
recording, classifying and summarizing transactions?
Bookkeeping
Which of the following is NOT a component of an accounting information system?
INTERNAL CONTROL
It is a career field where one is employed by a business to serve as an accountant, budget officer controller or
internal auditor.
Industry accounting
Which of the following refers to set of moral principles and values which guides one to distinguish between right
and wrong?
Ethics
The validity of the financial reports are questionable when the preparer of the reports is not credible. Which of the
following personal characteristics of the preparer that would somehow contribute to the credibility and validity of
the reports?
Integrity, Competency, Objectivity, Independence, Confidentiality
Which of the following stakeholder would be concerned on the ability of the company to earn profit and in turn
earn a satisfactory return on investment?
OWNER
Which of the following accounting areas that deals on assurance principles necessary for one to know how to
examine records and reports and give opinion regarding the fairness of presentation of financial reports?
AUDITING
Which of the following statements is correct?
Statement 1- Internal auditor is an accountant who assists in the maintenance of the organization’s internal
control.
Statement 2 – External auditor is employed by a private firm and receives salary as payment for his/her services.
Only statement 1 is correct
Which of the following report shows the wealth/properties accumulated by the business by listing what it owns
and what it owes?
Statement of Financial Position
Which of the following statements is correct?
Statement 1- One of the significant points in the Rules & Regulations Implementing Republic Act 9298 is for an
accountant to obtained continuing professional education units as a prerequisite for renewal of license.
Statement 2- One of the objectives of the Accountancy Act of 2004 is the standardization and regularization of
bookkeeping education.
Only statement 1 is correct
It is a global phenomenon intended to bring about transparency and a higher degree of comparability in financial
reporting in order to achieve the goal of one uniform and globally accepted financial reporting standards.
IFRS
It is the body authorized by law to promulgate set of professional standards and ethics in the practice of the
accountancy profession in the Phil.
Board of Accountancy
The continuing professional development is required for:
Both renewal of CPA license and accreditation to practice the accountancy profession
Sutherland Call center is an example of this type of operations.
SERVICE
Statements users need accounting to be able to____.
make sound decisions
