Which statement is true regarding the FRSC?

The FRSC is created by Professional Regulation Commission upon recommendation of the Board of Accountancy in carrying out its powers and functions under R.A. 9298.

The FRSC shall be composed of 15 with a Chairman and 14 representatives.

The chairman and members of FRSC are appointed by Professional Regulation Commission upon recommendation of the Board of Accountancy and shall have a term of three years renewable for another term.

The Philippines Financial Reporting Standards collectively include

All of these are included in Philippine Financial Reporting Standards.

Philippine Interpretations corresponding to IFRIC and SIC Interpretations and Interpretations developed by PIC.

What is the chronological order in the evaluation of a typical standard?

Discussion paper, Exposure draft and standard

Exposure draft, Standard and Discussion paper

Exposure draft, Discussion paper and Standards

Standard, Discussion paper and Exposure draft

In the development of accounting standards, the FRSC employs a "due process" system which

Enables interested parties to express their views on accounting issues under consideration

Is efficient for collecting dues from members

Identifies the accounting issues that are the most important

Requires that all CPAs must receive a copy of IFRS

Financial accounting standard-setting

is a social process which incorporates political actions of various interested user groups as well as professional research and logic

is a democratic process in that a majority of practicing accountants must agree with a standard before it becomes enforceable

is a legislative process based on rules promulgated by government agencies

The purpose of the International Financial Reporting Standard is to

Promote uniform accounting standards among countries of the world

Issue enforceable standards which regulate the financial accounting and reporting of multinational entities

Develop a uniform currency in which the financial transactions of entities throughout the world would be measured

Arbitrate accounting disputes between auditors and international studies

The international Accounting Standards Board was formed to

Develop a single set of high quality IFRS

Enforce IFRS in foreign countries

Establish accounting standards for multinational entities

Develop accounting standards for countries that do not have standard setting-body

Accounting is a service activity and its function is to provide quantitative information, primarily financial in nature, about economic entities, that is intended to be useful in making economic decision. This accounting definition is given by

AICPA Committee on Accounting Terminology

American Accounting Association

Accountancy Profession Quiz

1.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

What is the law regulating the practice of accountancy in the Philippines?

R.A. NO. 9298

R.A. NO. 9198

R.A. NO. 9928

R.A. NO. 9892

2.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

It is the body authorized by law to promulgate rules and regulations affecting the practice of the accountancy profession in the Philippines.

Board of Accountancy

Philippine Institute of Certified Public Accountancy

Securities and Exchange Commission

Financial Reporting Standards Council

3.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

The qualifications of the members of the Board of Accountancy include all of the following, except

Must be a natural-born citizen and a resident of the Philippines.

Must be duly registered CPA with at least ten years of work experience in any scope of practice of accountancy

Must be of good moral character and must not have been convicted of crime involving moral turpitude.

Must have any pecuniary interest, directly or indirectly, in any school conferring an academic degree necessary for admission to the practice of accountancy

4.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

What are the three main areas in the practice of the accountancy profession?

Public accounting, private accounting and managerial accounting

Auditing, taxation and managerial accounting

Financial accounting, managerial accounting and corporate accounting

Public accounting, private accounting and government accounting

5.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

What is the primary service of CPAs in public practice?

Auditing

Taxation

Managerial Accounting

Controllership

6.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

It is the are of the accountancy profession that encompasses the process of analyzing, classifying, summarizing and communicating all transactions involving the receipt and disposition of government funds and property and interpreting the results thereof

Internal auditing

External auditing

Private accounting

Government accounting

7.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

The Continuing Professional Development is required for

Renewal of CPA license

Accreditation to practice the accountancy profession.

Both renewal of CPA license and accreditation to practice the accountancy profession

Neither renewal of CPA license nor accreditation to practice the accountancy profession.

8.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

The Continuing Professional Development is required for

Renewal of CPA license

Accreditation to practice the accountancy profession

Both renewal of CPA license and accreditation to practice the accountancy profession.

Neither renewal of CPA license nor accreditation to practice the accountancy profession

9.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Which statement is true regarding exemptions from CPD requirements?

A CPA shall be permanently exempted from CPD requirement for renewal of CPA license at the age of 65 years but not for the accreditation to practice the accountancy profession.

A CPA who is working or practicing the profession abroad shall be temporarily exempted from CPD requirement during the period of stay abroad provided the CPA has been out of the country for at least two years prior to the date of renewal.

A CPA who is furthering studies abroad shall be temporarily exempted from CPD requirement during the period of stay abroad provided the CPA has been out of the country for at least two years prior to date of renewal.

All of the statements are true.

10.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Which statement is incorrect in relation to the practice of public accounting?

Single practitioners for the practice of public accounting shall be registered CPAs in the Philippines.

Partners of partnership formed for the practice of public accounting shall be registered CPAs in the Philippines.

The Securities and Exchange Commission can register any corporation organized for the practice of public accounting.

The Professional Regulation Commission upon favorable recommendation of the Board of Accountancy shall issue certificate of accreditation to CPAs in public practice provided the registrant has acquired a minimum of three years of meaningful experience in public practice