XFUNAC QUIZ1 (PRELIMS- CHAPTER 1&2) TEST I MULTIPLE CHOICE 1. Which of the following is NOT an objective of internal control? a. To protect assets against fraud, inefficiency and waste. b. To ensure accurate and reliable accounting records and reports. c. To ensure strict compliance of company’s policies d. To encourage inefficient operations. 2. Which of the following fundamental principles of accounting information system (AIS) requires an allowance for change? a. Relevance principle c. Compatibility principle b. Flexibility principle d. Cost-Benefit principle 3. Which of the following association is made 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? a. AIA b. ACPAE c. GACPA d. ACPACI 4. Which of the following characteristics of the accountant/ practitioner that requires one to be honest and trustworthy? a. Integrity b. Independence c. Competency d. Objectivity 5. Which of the following statements is NOT true? a. The accountant at present is not simply expected to keep records and produce financial reports, he is considered as part of the management team and make decisions. b. The accountant must be an analytical thinker, problem solver and decision maker. c. The accountant must disclose confidential information he has obtained in the course of his professional engagement. d. The accountant should not engage in activities that will be hazardous to the environment and to the welfare of the citizens. 6. Which of the following area in accounting that deals with cost determination, cost analysis and control? a. Cost accounting c. Managerial accounting b. Financial accounting d. Auditing 7. Which of the following is NOT considered as a general purpose financial statement? a. Statement of cash flow b. Budget c. Income Statement d. Statement of financial position or balance sheet. 8. Which of the following transactions bring about decrease in proprietorship I. Net Income III. Investment II. Net loss IV. Withdrawal a. I, III c. I, II, III b. II, IV d II, III, IV 9. Which one refers to the rights and claims of the creditors in the business? a. Asset b. Owner’s equity c. Capital d. Liability 10. Which is NOT a service? a. Car dealer c. Recruitment agency b. Law firm d. Airline company 11. Which of the following is true? a. Partners are personally liable for the liabilities of the partnership if the partnership is unable to pay. b. Partners can normally transfer their partnership interests with ease. c. Normally, shareholders can only sell their ownership interests when the corporation terminates. d. Shareholders are personally liable for the liabilities of the corporation if the company is unable to pay. 12. Which users/stakeholders need financial information to enable them to determine whether the company can provide good working conditions and grant security of tenure? a. Suppliers c. Employees b. Lenders d. Customers 13. Which of the following statements describing a corporation is NOT true? a. Stockholders are the owners of the corporation b. When stockholder’s interest is transferred to another investor, the corporation will continue its existence. c. It is subject to a grater government control and regulations than a sole proprietorship or partnership. d. Stockholders own the business and are liable up to the extend of their personal properties. 14. This report explains the activities over a period of time that changed the owner’s interest over the assets f the business. a. Statement of financial position b. Statement of cash flow c. Statement of changes in owner’s equity d. Income statement 15. Which knowledge enables you to interact with people, appreciate their behavior as well as their social and cultural beliefs? a. General knowledge c. Information Technology b. Business knowledge d. Accounting Knowledge 16. 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? a. Independence c. Objectivity b. Integrity d. Confidentiality 17. Company ABC ensures that products are properly labeled to show expiration date. Which performance level is achieved by the firm? a. Financial c. Social b. Environmental d. Transparency 18. Identify which statement does not correctly describe a partnership. a. It is owned by 2 or more individuals who agreed to contribute money, property & industry b. The individuals agreed to share the profits among themselves. c. It is organized by at least 5 individuals d. It has unlimited liability and the death, withdrawal of a partner dissolves the partnership. 19. An accounting area which deals with the administration or use of public funds to bring about service to the community. a. Financial c. Managerial b. Government d. Auditing 20. This is a business where ownership is divided into several number of shares of stock giving the big investors as well as the small investors the opportunity to buy and become owners. a. Single Partnership c. Corporation b. Partnership d. Non-profit organization 21. 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. Statement2-One of the objectives of the accountancy Act of 2004 is the standardization and regularization of bookkeeping education. a. Only statement 1 is correct b. Only statement 2 is correct c. Both statements 1 & 2 are correct d. Both statements 1&2 are incorrect 22. Which of the following regulatory bodies is in charge in licensing the practice of profession like accounting, medicine, engineering, nursing, and the like? a. Board of accountancy b. Bangko Sentral ng Pilipinas c. Phil. Institute of certified public accountants. d. Professional regulation commission 23. Which of the following statements is correct? Statement1-Financial accounting information is for the exclusive benefit of the owners of an entity. Statement2-The basic financial position of the company is shown in the income Statement. a. Only statement 1 is correct b. Only statement 2 is correct c. Both statements 1 & 2 are correct d. Both statements 1&2 are incorrect 24. Which of the following is not an internal stakeholder? a. Employee c. Manager b. Prospective investor d. Owner 25. Procedural aspect of accounting involving repetitive process of recording, classifying and summarizing transactions. a. Financial accounting c. Auditing b. Bookkeeping d. Cost accounting 26. It refers to the ability of the business to pay its current obligations as they fall due. a. Liquidity c. Ability to stand pressure b. Profitability d. Stability 27. Which of the following is NOT a component of an accounting information system? a. Computer c. Internal control b. Documents d. Methods 28. It is a career field where one is employed by a business to serve as an accountant, budget officer controller or internal auditor. a. Research and education c. Public accounting b. Industry accounting d. Government accounting 29. A professional characteristic which requires one to be honest and trustworthy. a. Independence c. Integrity b. Objectivity d. Competency 30. Which of the following council is working with Board of Accountancy in matters involving curriculum making, teaching standards, monitoring progress of accountancy programs and evaluating performance of educational institutions offering accountancy? a. Financial Reporting Standard Council b. Auditing 7 Assurance standard council c. Education Technical Council d. Quality Review Council 31. Which of the following statements is correct? Statement 1- Creditors are the one who borrow money or buy goods or services on account. Statement 2- Fr. Pacioli is known as the “father of bookkeeping” a. Only statement 1 is correct b. Only statement 2 is correct c. Both statements 1 & 2 are correct d. Both statements 1&2 are incorrect 32. Which of the following statements is correct? Statement 1- The bookkeeper is known as Tenedor de Libro. Statement 2- Bookkeeping was introduced to the Philippines by the Spaniards a. Only statement 1 is correct b. Only statement 2 is correct c. Both statements 1 & 2 are correct d. Both statements 1&2 are incorrect 33. Which of the following refers to set of moral principles and values which guides one to distinguish between right and wrong? a. Rules c. Values b. Ethics d. Right Conduct 34. 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? a. Integrity, Competency, Objectivity, Dependence, Confidentiality b. Integrity, Competency, Objectivity, Independence, Loyalty c. Integrity, Capability, Independence, Confidentiality d. Integrity, Competency, Objectivity, Independence, Confidentiality 35. 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? a. Manager c. Creditor b. Owner d. Lender 36. Which of the following accounting areas that deals on assurance principles necessary for one to know how examine records and reports and give opinion regarding the fairness of presentation of financial reports? a. Management Accounting c. Cost accounting b. Financial Accounting d. Auditing 37. Which of the following statement 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. a. Only statement 1 is correct b. Only statement 2 is correct c. Both statements 1 & 2 are correct d. Both statements 1&2 are incorrect 38. Which of the following statement is correct? Statement 1- Respecting the rights of the employees is an example of good governance. Statement 2- Social awareness is an extension of good governance and ethics. a. Only statement 1 is correct b. Only statement 2 is correct c. Both statements 1 & 2 are correct d. Both statements 1&2 are incorrect 39. Which of the following report shows the wealth/properties accumulated by the business by listing what it owns and what it owes? a. Statement of cash flows c. Income statement b. Balance sheet d. Statement of changes in owner’s equity 40. Sutherland Call center is an example of this type of operations. a. Manufacturing c. Merchandising b. Financing d. Service
Posted on: Tue, 25 Jun 2013 08:54:41 +0000
Trending Topics
Recently Viewed Topics
© 2015