USM BUSAD 123 - Financial Accounting and Reporting QUIZ 1

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Financial Accounting and Reporting Quiz 1 1. Who is the father of accounting? Luca Pacioli 2. What month and year did the Franciscan monk had published a book which contained the primary principles of Mathematics and incidentally a set of accounting procedures. Nov. 1494 3. What is the title of the book that was published? Summa de Arithmatica, Geometria, Proportioni et Proportionalita 4. It is the process of identifying, measuring and communicating economic information to permit informed judgements and decisions by users of the information. This definition is authored by: a. ASC b. AAA c. AICPA d. SEC e. PICPA 5. This is the phase of accounting which involves sorting or grouping of similar and interrelated transactions and events into their respective kind and classes. a. Recording b. Classifying c. Summarizing d. Interpreting 6. Accounting requires complete and accurate bookkeeping records necessary in the performance of its responsibility which is the analysis and interpretation of the financial reports. 7. It is usually used by small business enterprises. Under this system, only transactions involving cash and personal accounts are recognized. a. Single – Entry Bookkeeping System b. Double – Entry System of Bookkeeping 8. The effect of changes in Assets, Liabilities, and Owner’s Equity are being summarized in an accounting device called. Account 9. The difference between the debit total and credit total of an account is called an Account Balance. 10. What is the basic accounting equation? 11. What is the expanded accounting equation?12. The reduction of an Owner’s Equity account arising from cash of property withdrawal of an owner is not debited to Owner’s Equity account to effect the decrease but instead debited to Drawing or Personal Account. 13. Received cash of P50,000 for auditing services rendered to clients. What is the credit? Income/Service Income 14. Paid salaries to audit staff. What is the debit? Salaries Expenses 15. Partial payment of accounts payable on supplies. What is the debit? Accounts Payable 16. Under this assumption, peso is considered to have a stable value which means that the purchasing power of the peso is steady regardless of inflation rates. Unit Measure or Stable Monetary Unit 17. The book of original entry is called Journal. 18. It shows the number of an account in a ledger or page to the ledger to which it was transferred. a. Date Column b. Particulars c. Folio d. Debit e. Credit Columns 19. To record cash collection of whatever nature. a. Sales Journal b. Purchase Journal c. Cash Receipts Journal d. Cash Disbursements Journal 20. The first entry made in the general journal is called an __Opening Entry__. 21. The list of account titles is called ___Books of Accounts___. 22. The manager hired an accountant. What is the debit? None/No Entry 23. The bank issued a debit memo, P1,000 for interest and bank charges. What is the debit? Interest Expense 24. Purchase of laundry machine for cash. What is the debit? Laundry Equipment 25. Rendered laundry services on account. What is the debit? Accounts Receivable26. A Certified Public Accountant or a Professional Accountant is a holder of a baccalaureate degree in Bachelor of Science in Accountancy (BSA), who has taken and passed the difficult and competitive licensure examination for Certified Public Accountants and carries the title as CPA vested by the laws of the Republic to practice Public Accounting in general under the supervision of the ____PRC_____. a. BOA b. COA c. PRC d. BSP e. SEC 27. It employs strictness in the implementation of the standards and regulations of the in the accounting practice: a. BOA b. COA c. PRC d. BSP e. SEC 28. In practicing accounting it requires the registration of staff and partners of a CPA firm or we have to comply with the accreditation requirements with the following except: a. BSP b. PRC c. BOA d. SEC e. BIR f. CDA 29. Those CPAs who gain employment in private firms will become a member of: a. ACPAPP b. GACPA c. ACPACI d. ACPAE e. PICPA 30. _International Federation of Accountants (IFAC)_ is an international body representing all the major accounting bodies across the world. Its mission is to develop, adopt and implement with high quality international standards and guidance; contributing to the development of strong professional accounting organizations and accounting firms and to high quality practice of by professional accountants worldwide. 31. Being a member of an international organization, CPAs are committed to observe myriad fundamental principles. What principle is this, it should not allow bias, conflict of interest or under the influence of others to override professional or business judgments. a. Integrity b. Objectivity c. Professional Competence and Due Care d. Confidence e. Professional Behavior 32. TRUE/F. Professional accountants should be honest and truthful and should not: make exaggerated claims for the services they are able to offer, the qualifications they possess, or experience they have gained; or make disparaging reference or unsubstantiated comparisons to the work of others.33. The Philippine Accountancy Act of 2004 which repealed Presidential Decree No. 692 formerly known as the Revised Accountancy Law that was enacted on _____________ by His Excellency, the late President Ferdinand E. Marcos. a. May 5, 1974 b. May 5, 1975 c. May 5, 1976 d. May 5, 1977 34. The Board of Accountancy (BOA) shall be composed of a chairman and six members to be appointed by the President of the Philippines from a list of three recommendees for each position and ranked by the commission from a list of _____ nominees for position submitted by the accredited national professional organization of CPAs. a. 4 b. 5 c. 6 d. 7 e. 8 35. Any person applying for the examination shall establish the following requisites to the satisfaction of the Board that he/she except: a. is a Filipino Citizen b. has a good moral character c. is a holder of the degree of BSA conferred by any school. d. has not been convicted of any criminal offense involving moral turpitude. 36. TRUE/F. The purpose of this CPA Examination is to test the overall knowledge and competence of the candidates. The contents and coverage of

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