Quiz 1 - conceptual FW questions

School: Divine Word College of Calapan - Course: ACC FINANCIAL - Subject: Accounting

QUIZ 1-Conceptual Framework Jan 24, 2023 1.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 decisions.This accounting definition is given by a.Accounting Standards Council b.AICPA Committee on Accounting Terminology c.American Accounting Association d.Board of Accountancy 2.One of the basic features of financial accounting is a.Direct measurement of economic resources and obligations and changes in them in terms of money and sociological and psychological impact. b.Directmeasurementofeconomicresourcesandobligationsandchangesinthemin terms of money. c.Direct measurement of economic resources and obligations and changes in them in terms of money and sociological impact. d.Direct measurement of economic resources and obligations and changes in them in terms of money and psychological impact. 3.Which of the following is not an implication of the going concern assumption? a.The historical cost principle is credible b.Depreciation and amortization policies are justifiable and appropriate. c.Thecurrentandnoncurrentclassificationofassetsandliabilitiesisjustifiableand significant. d.Amortizing research and development costs over several periods is justifiable and appropriate. 4.The relatively stable economic, political and social environment supports a.Conservatism b.Materiality c.Timeliness d.Going Concern 5.Which of the following is not an important characteristic of the financial statements that accountants currently prepare? a.Theinformationinfinancialstatementsisexpressedinunitsofmoneyadjustedfor changing purchasing power. b.Financialstatementsarticulatewithoneanotherbecausemeasuringfinancialpositionis related to measuring changes in financial position. c.The information in financial statements is summarized and classified to help meet users' needs. d.Financial statements can be justified only if the benefits they provide exceeds costs. 6.Which is not a basic purpose of the Conceptual Framework? a.To assist the Financial Reporting Standards Sustainability Council in developing accounting standards. b.To assist preparers of financial statements in applying accounting standards. c.To assist the Financial Reporting Standards Council in reviewing and adopting International Accounting Standards. d.To assist the Board of Accountancy in promulgating rules and regulations affecting the practice of accountancy in the Philippines. 7.What is the authoritative status of the Conceptual Framework? a.The Conceptual Framework has the highest level of authority. b.In the absence of a standard or an interpretation that specifically applies to a transaction, the Conceptual Framework shall be followed c.Intheabsenceofastandardoraninterpretationthatspecificallyappliestoa transaction, management shall consider the applicability of the Conceptual Framework indevelopingand applyinganaccountingpolicythatresultsininformationthatis relevant and reliable. d.TheConceptualFrameworkappliesonlywhentheFinancialReportingStandardCouncil develops new or revised standardsName: ___________________ Score: ______ Rating: _____

QUIZ 1-Conceptual Framework Jan 24, 2023 8.Which is not included in the scope of the Conceptual Framework? a.Qualitative characteristics of useful financial accounting information b.Definitions, recognition and measurement of the elements of financial statements c. c.Objective of financial reporting d.Supplementary information