EASY

1. It constitute a person involved in decision

making requiring professional knowledge in tje
science of accounting, or when such
employment or position requires that the holder
thereof must be a certified public accountant.

a. Practice of Public Accountancy

b.Practice in Commerce and Industry
c. Practice in Education/Academe
d.Practice in Government
2. A professional accountant should comply with
relevant laws and regulations and should avoid
any action that discredits the profession.

a.Professional Behavior
b.Career Opportunities
c. Confidentiality
d.Compliance Audit
3. Which of the following fundamental
qualitative characteristics helps to assure users
that information represents faithfully the
economic phenomena it purports to present?

a. Relevance
b.Faithful Representation
c. Completeness
d.Verifiability
4. It is the residual interest in the assets of the
enterprise after deducting all its liabilities.

a. Income
b.Expenses
c. Equity
d.Gains
5. The purchase of supplies for cash will

a. decrease Cash and increase Accounts Payable

b.decrease Cash and increase Capital
c. increase Supplies and decrease Cash
d.increase Supplies Expense and decrease Cash
e.increase Supplies Expense and increase
Accounts Payable
6. Accountants do not recognize that the value
of the peso changes over time. This concept is
called the

a.Stable monetary unit concept

b.Entity concept
c. Periodicity concept
d.Answer not given
7. When a company has performed a service but
has not yet received payment, it

a.debits Accounts Receivable and credits

Service Revenues.
b.debits Service Revenues and credits Accounts
Payable.
c. debits Service Revenues and credits Accounts
Receivable.
d.makes no entry until the cash is received.
8. The National Internal Revenue Code of 1988 is

a. RA 9337
b.CA 466
c. RA 9504
d.RA 8424
9. PSA 620 stands for:

a. Related Parties
b.Auditing Fair Value Measurements and
Disclosures
c. Subsequent Events
d.Using the work of an expert
10. Which of the following transactions
decreases both assets and owner's equity?

a. Advance payment made for insurance

b.Owner withdrawal of cash
c. Payment of a liability
d.Receipt of a phone bill, to be paid at a later
time
11. The amount of profit will appear on the
debit side of the Income Statement columns on
a worksheet,

a. If profit exceeds the owner's withdrawals.

b.If total assets exceeded total liabilities for the
period.
c. If total expenses exceeded total revenue for
the period.
d.If total revenue exceeded total expenses for
the period.
e.If withdrawals have been made during the
12. Which of the following is a cash outflow
from operating activities?

a.Payment for interest expense.

b.Payment to acquire property and equipment.
c. Payment to settle notes payable.
d.Payment to owners in the form of
withdrawals.
13. What IFRS will take effect in January 1,
2019?

a. IFRS 15
b.IFRS 16
c. IFRS 17
d.IFRS 18
14. Which of the following statements is true
regarding the items of income and expenses to
be recognized in a period?
I. In a single statement of comprehensive
income, or
II. In two statements: a statement displaying
components of profit or loss and a second
statement statement beginning with profit or
loss and displaying components of other
comprehensive income.
a. I only. c. II only.
15. Under the perpetual inventory system, in
addition to making the entry to record a sale, a
company would

a.debit Cost of Goods Sold and credit

Merchandise Inventory
b.debit Cost of Goods Sold and credit Purchases
c. debit Merchandise Inventory and credit Cost
of Goods Sold
d.make no additional entry until the end of the
period
16. The amount of cost of goods available for
sale during the year depends on the amounts of

a. Beginning merchandise inventory and cost of

goods sold
b.Beginning merchandise inventory and net
purchases
c. Beginning merchandise inventory, cost of
goods sold, and ending merchandise inventory
d.Beginning merchandise inventory, net
purchases, and ending merchandise
17. An entity shall initially measure equity
instruments issued to extinguish all or part of a
financial liability at

a.Fair value of the equity instruments issued

b.Fair value of the liability extinguished
c. Par value of the equity instruments issued
d.Carrying amount of the liability extinguished