CHAPTER 1

1. What is the main difference between commercial banks and universal banks in the
Philippines?
a. Commercial banks invest in non-allied enterprises, while universal banks do not.
b. Commercial banks offer all kinds of services of commercial banking, while
universal banks do not.
c. Universal banks provide all kinds of services of commercial banking and
invest in non-allied enterprises.
d. Universal banks only provide investment services, while commercial banks provide
all other types of banking services.

2. RA No. 11469 requires all lenders under BSP supervision to grant how many days of
grace period or extension for the payment of loans due within the ECQ?
a. 30 days
b. 60 days
c. 90 days
d. 180 days

3. lt refers to the economic, social, and political conditions and events in a foreign country
that may adversely affect a financial institution's operations.
a. Reputational Risk
b. Credit Risk
c. Country Risk
d. Settlement Risk

4. It is the independent central monetary authority of the Philippines that supervises and
regulates all banks and non-bank financial institutions.
a. Securities and Exchange Commission (SEC)
b. Insurance Commission (IC)
c. Bangko Sentral ng Pilipinas (BSP)
d. Bureau of Internal Revenue (BIR)

5. This refers to the act of releasing financial products or securities of organizations to the
public which can offer potential returns or financial benefits to those investors who will
purchase it.
a. Recent Archives
b. Recent Issuance
c. Digital Currency Offerings
 d. Loan Securitization
6. Which of the following is not a source of funds for non-bank financial institutions in
financing their lending or investment operation?
a. Premium payments for term insurance policies
b. Regular contributions to pension funds
c. Investment into mutual funds
d. Deposit collection from customers

7. The following are types of Philippines’ bank, except one:

a. Thrift Banking
b. Incorporation Banking
c. Universal Banking
d. Rural Banking

8. Which of the following statements about the importance of auditing banking and financial
institutions incorrect?
a. Financial institutions deal with different types of risks,
including operational, strategic, and credit risks.
b. Financial institutions must adhere to various financial reporting standards and
regulatory frameworks, such as the International Financial Reporting Standards
(IFRS), General Data Privacy Regulation (GDPR), and so on.
c. Auditing is essential for financial institutions to comply with legal and regulatory
standards.
d. Financial institutions deal with large sums of money every day and need to ensure
that their records are accurate and reliable.

9. What risk is a banking term describing the level of risk in a bank's portfolio arising from
concentration to a single counterparty, sector or country.
a. concentration risk
b. foreign risk
c. audit risk
d. country risk

10. The following are examples of banking institutions, except:

a. Thrift Banks
b. Investment banks
c. Universal and Commercial Banks
d. Rural and Cooperative Banks

11. It is a law governing the establishment, operation and regulation of Investment Houses.
a. R.A. 7653
 b. P.D 1034
c. P.D 114
d. R.A 9160
12. Non-bank financial institutions are composed of the following except:
a. Financing companies
b. Investment banks
c. Mutual fund institutions
d. Cooperative banks

13. It is a statement issued by the Philippine Auditing Standards and Practices Council that
provides guidance to auditors particularly for auditing financial statements of banks in the
Philippines.
a. PAPS 1004
b. PAPS 1006
c. IAPS 1004
d. IAPS 1006

14. It is an audit trend within the banking industry that is concerned with implementing security
measures and enforcing actions to prevent the risks of data breach and theft.
a. Risk Management Framework
b. Fraud, Bribery, & Corruption
c. Business Strategy
d. Cyber-Security, Emerging Technology, & Data Theft

15. In paragraph 101 on the audits of financial statements of banks, it is stated that in
expressing an opinion on the bank’s financial statements, the auditor should adhere to
any specific formats and terms specified by the following except:
a. audit experts
b. industry practice
c. professional bodies
d. the law

16. This is all part of key audit considerations that explains why audit of banks is considered
as more difficult or different than usual, except:
a. Acceptance
b. Peculiar FS
 c. Extensive Use of PFRS 9
d. Remote Auditing and Covid-19 Limitation
17. The following are the functions of Anti-Money Laundering Council (AMLC), as defined in
RA No. 9160, except:
a. To require, receive, analyze, and investigate covered or suspicious transactions
b. To maintain price stability conducive to a balanced and sustainable growth
of the economy and employment
c. To cause the filing of complaints with the Department
of Justice or the
Ombudsman for the prosecution of money laundering offenses;
d. To apply before the Court of Appeals, ex parte, for the freezing of any monetary
instrument or property alleged to be the proceeds of any unlawful activity

18. The following are examples of Thrift Banks, Except:

a. Investment Banks
b. Savings and Mortgages Banks
c. Private Development Banks
d. Microfinance Thrift Banks

19. A non-bank financial institution such as the Insurance Companies are being overseen by?
a. Insurance Commission
b. Securities and Exchange Commission
c. Department of Trade and Industry
d. Banko Sentral ng Pilipinas

20. Which of the following is not incorrect?

a. The Bangko Sentral ng Pilipinas (BSP) is the dependent central monetary authority
of the Philippines that has regulatory and supervisory power over banks and non-
bank financial institutions
b. Non-bank financial institutions such as insurance companies are overseen by the
Securities and Exchange Commission.
c. The main services of commercial banks in the Philippines are accepting
deposits and offer checking account services.
d. Investment houses are overseen by the Insurance Commission.
 Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Bachelor of Science in Accountancy 3-11

COLLEGE OF ACCOUNTANCY AND FINANCE

AASI: CHAPTER 2 | Auditing Business Process Outsourcing Industry

1. Statement I: Special Economic Zone Act is a form of government support for the Philippine BPO
industry.
Statement II: Special Economic Zone Act provides tax increase, exemptions, and other privileges to
foreign investors.
Only statement I is true
Both statements are true
Statement I is false
Both statements are false

2. Statement I: Offshore vendors are located outside of the company’s own country.
Statement II: Onshore vendors are located in countries that neighbor the contracting company’s country.
Only statement I is true
Both statements are true
Statement I is false
Both statements are false

3. Statement I: Philippine government is always quick to pass key legislative changes which favor global
organizations looking to outsource to the Philippines and it contributed to the growth of BPO industry
in the country.
Statement II: ePLDT is the first call center founded in the Philippines.
Only statement I is true
Both statements are true
Statement I is false
Both statements are false

4. Statement I: During the Covid-19 pandemic, the government ordered BPO companies to provide
accommodation, shuttle, and meals to employees who work on-site.
Statement II: Globally, the travel, hospitality, and tourism industries got the heaviest hit of the pandemic
due to travel restrictions and community quarantines.
Only statement I is true
Both statements are true
Statement I is false
Both statements are false
 Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Bachelor of Science in Accountancy 3-11

COLLEGE OF ACCOUNTANCY AND FINANCE

5. Statement I: Finance and accounting services include check, credit, and debit card processing;
collection; receivables; direct and indirect procurement; transportation administration; logistics and
dispatch; and warehouse management.
Statement II: Back-office transactions include billing, accounts payable, receivables, general
accounting, auditing, and regulatory compliance.
Only statement I is true
Both statements are true
Statement I is false
Both statements are false

6. Statement I: A company can incur extraneous costs and increase productivity when the vendor
encounters problems or lapses in its work.
Statement II: Language barriers can limit activities when your company hires individual service
providers spread across the globe.
Only statement I is true
Both statements are true
Statement I is false
Both statements are false

7. Statement I. Investors in the Philippine BPO industry being offered a sizeable number of incentives is
one key factor that contributed to the growth of the BPO industry.
Statement II: According to PEZA, as of 2020 there are 788 BPO companies operating in the Philippines.
Only statement I is true
Both statements are true
Statement I is false
Both statements are false

8. Statement I: When outsourcing your processes and parts of your business, you face significant risks,
depending on the type and structure of your company.
Statement II: Other possible risks associated with outsourcing include Data breaches, Quality control,
and Political stability.
Only statement I is true
Both statements are true
Statement I is false
Both statements are false
 Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Bachelor of Science in Accountancy 3-11

COLLEGE OF ACCOUNTANCY AND FINANCE

9. Statement I: Executives should identify the key objectives for outsourcing a function — whether it's
cost savings, increased quality, quicker turnaround or some other objective — and then use that criteria
to determine which provider would be best suited to handle the work.
Statement II: The key objectives for outsourcing a functions should not be refrained as the basis for
contractual obligations that can be used to help assess the performance of the outsourced provider and
success of the function once it is outsourced.
Only statement I is true
Both statements are true
Statement I is false
Both statements are false

10. Statement I: Security is more difficult to maintain when the business taking care of your IS is in the
same country.
Statement II: The internet, which makes BFO for IT feasible, also may offer a portal through which
hackers enter.
Only statement I is true
Both statements are true
Statement I is false
Both statements are false

11. Statement I: Management experts should identify the workflows and processes impacted by the work
shifting from in-house staff to the external partner and adjust, if necessary, those workflows and
processes to accommodate the outsourcing of the work.
Statement II. Management experts advise enterprise executives to identify functions that can be
outsourced and then evaluate that function against the pros and cons of outsourcing to determine if
shifting that task to an outsourced provider makes strategic sense for the organization.
Only statement I is true
Both statements are true
Statement I is false
Both statements are false

12. Statement I: Front -office services include internal business processes, such as billing or purchasing.
Statement II: Back-office services pertain to the contracting company’s customers, such as marketing
and tech support.
Only statement I is true
Both statements are true
Statement I is false
Both statements are false
 Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Bachelor of Science in Accountancy 3-11

COLLEGE OF ACCOUNTANCY AND FINANCE

13. Statement I: Under Communication issues, companies that employ BPO vendors often underestimate
the running costs, especially in upgrades and contract renegotiation.
Statement II: Under Overdependence on service providers, once a company designates a vendor for
specific processes, the vendor becomes a part of the workflow
Only statement I is true
Both statements are true
Statement I is false
Both statements are false

14. Statement I: One of the key factors that contributed to the growth of BPO industry in the Philippines is
that it focuses on low-risk industries instead of those growing but volatile industries.
Statement II: Sharp drop in revenues of businesses during the height of the pandemic did not necessarily
affect the BPO industry in the Philippines.
Only statement I is true
Both statements are true
Statement I is false
Both statements are false

15. Statement I: BPO can be an alternative to labor migration, allowing the labor force to remain in their
home country while contributing their skills abroad.
Statement II: BPO usually fills supplementary — as opposed to core — business functions, with services
that could be either technical or nontechnical.
Only statement I is true
Both statements are true
Statement I is false
Both statements are false

16. The following are the industries that are most negatively hit by the pandemic due to travel restrictions
and community quarantines, except:
Tourism
E-commerce
Food service
Travel
 Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Bachelor of Science in Accountancy 3-11

COLLEGE OF ACCOUNTANCY AND FINANCE

17. ___________ operate within the same country as the contractor, although they may be located in a
different city or state.
Offshore vendors
Nearshore vendors
Onshore vendors
None of the above

18. These technical support functions include application development and testing, implementation
services, and IT helpdesk.
Human Resource Services
Knowledge Services
IT and Software Operations
Back-office Transactions

19. Enforced community quarantines boost the growth of some industries including:
Food service industry
Logistics industry
Hospitality industry
Airlines industry

20. What are the three categories of BPO that are based on the location of the vendor?
Back Office, Admin Office, and Front Office
Offshore, Nearshore, and Onshore
Finance and Accounting, Human Resource and Knowledge Service
None of the above

21. These higher-level processes may include data analytics, data mining, data and knowledge management,
and internet and web research, as well as developing an information governance program and providing
the voice of customer feedback.
Human Resource Services
Knowledge Services
IT and Software Operations
Back-office Transactions

22. The following are Filipino skills/traits that contributed to the growth of BPO industry in the Philippines,
except:
Fluency in western-accented English
High problem-solving capabilities
Multi-tasking skills
More patient, especially when facing irate customers
 Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Bachelor of Science in Accountancy 3-11

COLLEGE OF ACCOUNTANCY AND FINANCE

23. BPOs can help address workforce challenges. They can also cover payroll services, healthcare
administration, hiring and recruitment, workforce training, insurance processing, and retirement
benefits. Human Resource Services
Knowledge Services
IT and Software Operations
Back-office Transactions

24. It is the practice of contracting a specific work process or processes to an external service provider. IT
Outsourcing
Operational Outsourcing
Manufacturing Outsourcing
Business Process Outsourcing

25. The organization may also have to invest in a ________ solution to enable the smooth flow of work
from the organization itself to the outsource provider.
Human Resource
Technology
Knowledge Services
Business Process Outsourcing

26. The first multinational corporation to set up a BPO center in the Philippines Convergys Corp. Sykes
Asia eTelecare
ePLDT ventus

27. Which of the following is not an element that must work together in harmony to enable success? Data
People
Process
All of the choices are correct

28. One of the key reasons behind the growth of BPO in the Philippines is the extended support of the
government to incentivize local and international investments and other tax benefits. What was the act
passed by the congress in 1995 promising tax incentives to foreign investors?
Foreign investment act
Public service act
Special Economic Zone Act
PEZA act
 Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Bachelor of Science in Accountancy 3-11

COLLEGE OF ACCOUNTANCY AND FINANCE

29. All of the following are main types of BPO service, except:
Back office
Front office
Admin office
All of the choices are correct

30. Which of the following is a possible risk associated with outsourcing? Political instability
Maintenance of strategic alignment
Changes in technology and exposure to hacking
All of the choices are correct
and Mining Industry QUIZ (Answer Key)
 and Mining Industry QUIZ (Answer Key)
Module 3 – Auditing and Mining Industry QUIZ

1. Opposing the use of explosive mines; acting as a defense against explosive

mines.
a. Small-scale mining
b. Large-scale mining
c. Anti-mining sentiment
d. Anti-explosive mines sentiment

2. This country is the leading producer of mineral commodities such as nickel,

gold, and copper.
a. Philippines
b. China
c. Korea
d. Japan

3. Philippines is the second-largest producer of nickel in the world, just after

Thailand.
a. True
b. False

4. It is the mining of minerals by individuals, groups of people, or small businesses

using a lot of manual work and little to no capital investment.
a. Small-scale Mining
b. Anti-mining Sentiment
c. Extractive Industries
d. None of the above

5. All of these are the challenges in the mining industry, except:

a. Impact of COVID-19
b. Circumvention of permits
c. Interfacing with LGUs
d. Delays in the declaration of people
 and Mining Industry QUIZ (Answer Key)

6. It takes place at the end of a mine’s life.

a. Royalties
b. Reclamation Costs
c. Operating Costs
d. Taxes

7. It can often be complicated with mining companies operating in several

countries.
a. Taxes
b. Depreciation
c. Revenue
d. None of the above

8. It is the major backbone in the Philippine economy.

a. Business Industry Sector
b. Mining Industry Sector
c. Agriculture
d. Maritime Industry Sector

9. Choose the correct mining life cycle:

a. I. Exploration, Project Development, Mining and Milling, Abandoned Mine,
Mine Closure, Smelting & Refining
b. II. Exploration, Project Development, Mining and Milling, Smelting &
Refining, Mine Closure, Abandoned Mine
c. III. Exploration, Project Development, Smelting and Refining, Mining and
Milling, Mine Closure, Abandoned Mine
d. IV. Exploration, Project Development, Mine Closure, Mining and Milling,
Smelting and Refining, Abandoned Mine
 and Mining Industry QUIZ (Answer Key)

10. This is awarded through direct negotiation.

a. Oil and Gas Service Contracts (PSCs)
b. Mining Permits
c. Beneficial Ownership Disclosure
d. SEC Memorandum Circular No. 15

11. Which of these development phases of mining is not included?

a. Overburden Stripping and Placing
b. Drilling and Trenching
c. Burrowing and Climbing
d. Erecting Treatment Plants

12. They collect sector levies for coal, oil, and gas.
a. Mines and Geosciences Bureau
b. Local Government Unit
c. Department of Environment and Natural Resources
d. Department of Energy

13. An oil and gas exploration and production contract given to private companies.
a. Proposed Sharing Contract
b. Production Sharing Contract
c. Petroleum Service Contract
d. Product Service Contract

14. “Are there mechanisms for regular monitoring of sites and monitoring of
associated securities?”, “Are these mechanisms implemented?”, and “What is
the frequency of site visits?” are high-level questions about?
a. Financial Assurance for Site Remediation
b. Revenues from the Extraction of Minerals
c. Both Financial Assurances for Site Remediation and
Extraction of Materials
d. None of the above
 and Mining Industry QUIZ (Answer Key)

15. “Has new relevant legislation or regulation been introduced or have significant
changes been made to existing legislation and regulation recently?” is a high-
level question about?
a. Financial Assurances for Site Remediation
b. Revenues from the Extraction of Minerals
c. Both Financial Assurances for Site Remediation and Revenues from the
Extraction of Materials
d. None of the above

16. Which of the following is not under the trend of Rethinking external talent
pathways?
a. Circumventing the skills shortage
b. Revisiting talent pathways with a fresh lens
c. From upskilling to DEI
d. Filling in the gaps

17. It is a method used to understand and characterize a whole system, including

its smaller systems, by examining the linkages and interactions between its
different elements.
a. Systems Design
b. Systems Thinking
c. Systems Modeling
d. Systems Approach

18. According to 2023 Mining Trends from Deloitte, these are actions that use
nature to help address societal challenges through the conservation and
protection, sustainable management and/or restoration of natural or modified
ecosystems.
a. Culture-based performance
b. Nature-based solutions
c. Society-based restorations
d. Sustainability-based conservation
19. Early Circulation Economy adopter companies have the
opportunity toinfluence the downstream of mining industries
leading them to .
a. Disarray the system of circular economy.
b. Increase the number of product waste.
c. Accelerate growth of a wider circular economy.
d. Pollute the natural resources severely.

20. To achieve greater value in collaborative innovations, companies

are advisedto do the following, except:
a. Maximize the available resources in the environment
b. Share appropriate data
c. Sequence their relationships
d. Build professional trust
 Auditing Construction and Real Estate Industry
Questionnaire

1. Republic Act No. 6552 or the _____________________________, popularly known as

the Maceda Law, provides remedies should the buyer default from payment based on the
payment schedule initially agreed with the developer.
a. Reality Installment Buyer Act
b. Realty Installment Lending Act
c. Realty Installment Buyer Act
d. Reality Installment Lending Act
2. It is a rapid increase in housing prices or housing market caused by demand, speculation,
and reckless spending that eventually leads to crash.
a. Inflation
b. Property Bubble
c. Anti-dilution
d. Socialized Housing
3. According to NEDA, average and low-income Filipino earners cannot afford housing
priced at ____ of the gross family income.
a. 50%
b. 10%
c. 20%
d. 30%
4. Statement 1: To maximize potential returns on real estate developments, measures to
optimize cash flow are essential.
Statement 2: Financing and sales opportunities are maximized by a strong focus on quality
and compliance.
a. Both statements are true
b. Statement 1 is true
c. Statement 2 is true
d. Both statements are false
5. Statement 1: Topic 842 provides guidance on the
recognition, measurement, presentation, and disclosure of leases
Statement 2: Auditors shall evaluate cash flow projections and other relevant forecasts
made by the management to determine if the entity has the ability to continue operating
in the foreseeable future.
a. Both statements are false
b. Only statement 1 is true
c. Both statements are true
d. Only statement 1 is false
 6. The following are events that may raise significant doubt on the entity to continue as a
going concern, except
a. Loss of a major tenant
b. Negative operating cash flow
c. Ongoing negotiations
d. Non-compliance with loan terms and agreements

7. Which of the following is a responsibility of management to facilitate a successful audit

season?

a. Verifying the listing of accounts to be confirmed after year-end.

b. Conducting an audit of financial statements prepared by an external party.
c. Providing incomplete financial reporting packages to auditors.
d. Maintaining internal controls relevant to the preparation of financial statements.

8. Why is it important to discuss business activities and planning with auditors in a year where
nothing has been ordinary in the real estate industry?

a. It will help to make the year-end audit process more efficient.

b. It will help to keep business activities and planning confidential from auditors.
c. It is not important to discuss business activities and planning with auditors.
d. It will help to ensure that auditors do not find any issues during the audit.

9. All are example of residential real estate except:

a. Condos
b. Townhouses
c. Duplexes
d. Apartment Complexes

10. This investment is regarded as one of the best investment opportunities globally due to its
large scale and size which renders it a compelling and profitable market for numerous
investors. a. Insurance
b. Mining
c. Real Estate
d. Construction
11. A ________ is a firm with a team of real estate agents or realtors as employees.

a. Brokerage
b. Property Owners
c. Lender
d. Sales and Marketing

12. They refer to the alterations, adjustments, or improvements that a tenant makes to a leased
asset so that it meets specific needs or preferences.

a. Accounts Receivable
b. Deferred Financing Costs
c. Tenant Improvements
d. Deferred Leasing Costs

13. Statement I: Rent deferrals may be handled differently under the income tax basis of
accounting than they would be under the accrual basis. In some circumstances, the rent
deferral could be recorded as income when it is received rather than when it is generated as
per the accrual basis of accounting.

Statement II: In the event that it is determined that the rent deferral defines a lease modification,
the tenant must determine whether it is a new lease or a modification of the existing one.

a. Only statement I is true

b. Only statement II is true
c. Both statements are true.
d. Both statements are false.

14. The following are the major drivers for the real estate sector in the Philippines, except:

a. Growth in the number of multinational companies and BPO’s

b. Expansion in the real estate construction projects
c. Income potential in the real estate business
d. Increasing urbanization

15. The majority of infrastructure developments would be enforced by:

a. Department of Public Works and Highways

b. Department of Transportation
c. Both a and b
d. None of the above
16. The following are common types of real estate, except:

a. Residential
b. Industrial
c. Commercial
d. Departmental

17. Under Republic Act No. 6552, in the event of buyer’s default, the buyer should be given grace
period and refund of ______ to ______ of what has been paid, provided that the buyer has
paid installments for at least 2 years.

a. 40 percent to 80 percent
b. 40 percent to 90 percent
c. 50 percent to 90 percent
d. 50 percent to 80 percent
18. Complete the combination.

Industrial : Manufacturing Factories

Commercial : _______________

a. Condominiums
b. Hospitals
c. Subdivisions
d. Warehouse

19. The following are possible events or conditions that may cast significant doubt on the entity’s
ability to continue as a going concern in the real estate industry, except:

a. Loss of a major tenant

b. Ongoing negotiations
c. Negative operating cash flow
d. Non-compliance with loan terms and agreements

20. An industrial building is a type of real estate that involves manufacturing facilities and
properties, as well as warehouses. The following aspects pertain to the various uses of an
industrial real estate, except:

a. Storage of Goods
b. Product Manufacturing
c. Selling and Distribution of Goods
d. Research and Development
 CHAPTER 5 - Auditing Logistics and Transportation Industry
1. Which of the following is not an appropriate mode of transport?

A.) Marine : Underground

B.) Road : Truck Freight

C.) Air : Plane

D.) Rail : Train

2. It is the science of obtaining, producing and distributing material and products to the correct
place and in the correct quantities.

A.) Transport

B.) Delivery

C.) Logistics

D.) Implementing

3. The term for a Logistics manager is al known as:

A.) Statistician

B.) Logistician

C.) Top Management

D.) Courier Manager

4. Statement 1: Transportation requires planning

Statement 2: Logistics is the mode to execute the planning when freighting goods from point A
to B.

A.) TT

B.) FF

C.) TF

D.) FT

5. Besides transportation, Logisticians consider the following EXCEPT:

 A.) Packaging

B.) Related Party Transactions

C.) Documentation

D.) Storage

6. In the logistics industry, three main directions play a crucial role, EXCEPT:

A.) Inbound Logistics

B.) Outbound Logistics

C.) Reverse Logistics

D.) One-way Logistics

7. Provides specialized services for export packaging, ensuring goods are appropriately packed for
international shipment and compliance with packaging standards.

A.) Ship Brokers

B.) Ship Agents

C.) Export Packers

D.) Port Authorities

8. Ownership and operation of ports, providing terminal facilities, wharves, docks, and other
infrastructure at port locations.

A.) Ship Brokers

B.) Ship Agents

C.) Export Packers

D.) Port Authorities

9. It serves as sales representatives for ship owners and purchasing representatives for shippers.

A.) Ship Brokers

B.) Ship Agents

 C.) Export Packers

D.) Port Authorities

10. They act as the local representative of the ship operator, managing the ship's arrival, berthing,
clearance, loading, and unloading operations.

A.) Ship Brokers

B.) Ship Agents

C.) Export Packers

D.) Port Authorities

11. Moving items or goods from the end users back through the supply chain to the appropriate
party concerned

A.) Logistics Structure

B.) Inbound Logistics

C.) Outbound Logistics

D.) Reverse Logistics

12. The movement of goods from suppliers to production

A.) Logistics Structure

B.) Inbound Logistics

C.) Outbound Logistics

D.) Reverse Logistics

13. The movement of finished products from production facilities to the next supply chain link A.)
Logistics Structure

B.) Inbound Logistics

C.) Outbound Logistics

D.) Reverse Logistics

14. Which of the following are not to be considered when auditing logistics transactions.

A.) Valuation of Inventories

B.) Revenue Recognition

C.) Depletion of resources

D.) Payroll

15. They Enable businesses to navigate the complexities of international trade and expand their
global reach.

A.) Foreign Freight Forwarder

B.) Export Management Companies

C.) Export Trading Companies

D.) Customs House Brokers

16. Oversees the movement of goods through customs, ensuring accurate and complete
documentation, and compliance with customs regulations.

A.) Foreign Freight Forwarder

B.) Export Management Companies

C.) Export Trading Companies

D.) Customs House Brokers

17. Locating overseas buyers for products and handling export documentation, transportation, and
compliance with foreign government requirements.

A.) Foreign Freight Forwarder

B.) Export Management Companies

C.) Export Trading Companies

D.) Customs House Brokers

18. Facilitating smooth and efficient transportation and logistics processes across international
borders.

A.) Foreign Freight Forwarder

B.) Export Management Companies

C.) Export Trading Companies

D.) Customs House Brokers

19. Statement 1: Development of manufacturing businesses in regions of Metro Manila where large
tracts of land are still available and priced affordably will most likely to be detrimental to the
warehousing industry in the Philippines.

Statement 2: The Covid-19 pandemic had an overall positive effect to the logistics industry.

A.) TT

B.) FF

C.) TF

D.) FT

20. Statement 1: Auditing in the transportation industry should focus in revenue recognition, payroll
records, safety policies, equipment maintenance, and legal compliance.

Statement 2: Payroll audit is concerned with ensuring that all equipment on the books is present
and accounted for safety, repair, and usage records.

A.) TT

B.) FF

C.) TF

D.) FT
 Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Bachelor of Science in Accountancy 3-9

COLLEGE OF ACCOUNTANCY AND FINANCE

CHAPTER 6 - Auditing Power, Water, and Telecommunications Industry

1. Which of the following is not a type of generating plant?

a. Electric generating plants intending to sell their production to the grids
b. Electric generating plants intended primarily for the internal use of the owner
c. Electric generating plants outside NPC grids
d. Co-generation units or the simultaneous generation of water and heat from the same
fuel

2. It regulates the power generation, who must issue a certificate of compliance to interested
parties to ensure that the standards set forth in the Electric Power Industry Reform Act of
2001 (EPIRA) are followed.
a. ERIPA
b. ERC
c. DOE
d. NEA

3. S1: NPC is responsible for determining in any power abuse or anti-competitive behavior S2:
Under the EPIRA, any person or entity engaged in generation and supply shall not be required
to apply for a national franchise
a. S1 is true and S2 is false
b. S1 is false and S2 is true
c. Both S1 and S2 are true
d. Both S1 and S2 are false

4. The Philippines transmission system is composed of three grids, the Luzon Grid, Visayas
Grid, and Mindanao Grid. What is the transmission operator for these three grids? a. DOE
b. NEA
c. NGCP
d. ERC

5. The power to grant national franchise is exclusively vested to the

a. Congress of the Philippines
b. Senate Majority Leader
c. President of the Philippines
d. Secretary of Department of Energy
 Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Bachelor of Science in Accountancy 3-9

COLLEGE OF ACCOUNTANCY AND FINANCE

6. S1: Power generation in the Philippines is considered as a public utility operation
S2: Interested parties to enter as a power generation company do not need to secure a
congressional franchise
a. S1 is true and S2 is false
b. S1 is false and S2 is true
c. Both S1 and S2 are true
d. Both S1 and S2 are false

7. Under the administration of President Corazon Aquino, it reverted Meralco to private

ownership. They also decided not to operate a power plant for the reason of safety and
economy. What type of power plant is it?
a. Hydrothermal
b. Geothermal
c. Wind power plants
d. Nuclear power plants

8. This law provided a framework for accelerated electrification through not-for-profit

cooperatives and laid the groundwork for accelerated electrification in the countryside. a.
R.A. 7394
b. R.A. 6038
c. R.A. 10909
d. R.A. 10173

9. S1: Conventional source of energy includes solar, wind, biogas (from organic wastes), and
bagasse (byproduct of sugarcane)
S2: Non-conventional source of energy includes coal, gas, oil, hydropower, and nuclear power a.
S1 is true and S2 is false
b. S1 is false and S2 is true
c. Both S1 and S2 are true
d. Both S1 and S2 are false

10. It has the task to provide distribution services and connections to its systems for any
enduser within its franchise area.
a. Power Barges
b. Power Sector Assets and Liabilities Management (PSALM)
c. Distribution Utility
d. Independent Owner Producers

11. The following agencies are involved in water supply and distribution. Which is not?
a. Metropolitan Waterworks and Sewage Services (MWSS)
b. Department of Interior and Local Government (DILG)
c. Department of Public Works and Highways (DPWH)
d. Department of Environment and Natural Resources (DENR)
 Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Bachelor of Science in Accountancy 3-9

COLLEGE OF ACCOUNTANCY AND FINANCE

12. S1: Piped water with a communal water point serving an average 4-6 household within a
25meter distance is a Level II Water Infrastructure
S2: Stand-alone water points serving an average of 15 households within a 250-meter distance is
a Level I Water Infrastructure
a. S1 is true and S2 is false
b. S1 is false and S2 is true
c. Both S1 and S2 are true
d. Both S1 and S2 are false

13. Which of the following statements is false?

a. Conventional water treatment consists of the following processes:
coagulation/flocculation, sedimentation, filtration and disinfection/chlorination
b. Angat Dam, Ipo Dam, and La Mesa Dam are common water sources
c. Balara treatment plant, East-West La Mesa treatment plant, and Cardona treatment plant
are examples of Water Treatment Plants
d. Water Treatment Plants is when raw water undergoes several treatment processes before
it passes the standards for potable water

14. For water utilities industries, it is defined as the difference between the amount of water
put into the distribution system and the amount of water billed to consumers. a. Physical
Losses
b. Non-revenue water
c. Commercial Losses
d. Unbilled Authorized Transaction

15. Which president signed the Republic Act 7925 or The Public Telecommunications Policy
Act of the Philippines which opened the sector to more private players and improved the
provision of telecom services?
a. Fidel Ramos
b. Corazon Aquino
c. Ramon Magsaysay
d. Gloria Macapagal – Arroyo

16. S1: Republic Act No. 3846, An act creating the Department of Information and Communications
Technology (DICT), defining its powers and functions appropriating funds thereof, and for
other purposes.
S2: Republic Act No. 6849, An act providing for the installation, operation, and maintenance of
public telephones in each and every municipality in the Philippines, appropriating funds therefor
and for other purposes.
a. S1 is true and S2 is false
b. S1 is false and S2 is true
c. Both S1 and S2 are true
d. Both S1 and S2 are false
 Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Bachelor of Science in Accountancy 3-9

COLLEGE OF ACCOUNTANCY AND FINANCE

17. S1: PLDT is formerly known as Philippine Long-Distance Telephone Company
S2: The Philippine telecommunications industry has been dominated by legacy players PLDT and
Globe
a. S1 is true and S2 is false
b. S1 is false and S2 is true
c. Both S1 and S2 are true
d. Both S1 and S2 are false

18. The following are alternative sources of energy, except:

a. The technology available in telecoms can be adapted to match specific serial numbers to
smart meters for seamless ‘topping up’.
b. The upcoming and ongoing projects of power plants are likely to drive the power EPC
generation market in the Philippines, during the forecast period.
c. The conventional thermal power segment held a significant market share in 2018, and it
is likely to dominate the market in the forecast perio
 Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Bachelor of Science in Accountancy 3-9

COLLEGE OF ACCOUNTANCY AND FINANCE

d. The Philippines government has planned to phase out its coal usage by 2040 and focus
more on energy production from natural gas and renewable. This, in turn, is expected
to create several opportunities for the power generation EPC companies in the near
future.

19. Which is true regarding Internet of Things (IoT)?

a. IoT, which disconnects previously ‘mute’ objects to the internet, empowers consumers
to be in control of the utilities they use.
b. Forging Partnerships - To offer subscribers convenience – and to secure new revenue
streams – mobile operators have forged innovative partnerships.
c. Mediation: Mobile operators use robust mediation solutions to manage and monitor
single devices that are online 24/7/366.
d. It allows consumers to neglect and mismanage the amount of the earth’s resources they
use.

20. This is a Key Market Trend where mobile operators have deployed real-time Online
Charging Systems (OCS) to make it easy for subscribers to pay their bills.
a. Mobile banking
b. Internet of Things (IoT)
c. New business models
d. Seamless online billing
 QUIZ NO. 7
AUDITING NOT-FOR-PROFIT ENTITIES AND HOSPITALS

1. Which of the following is NOT a component of the Philippine healthcare delivery system?
A. Department of Health (DOH)
B. Local Government Units (LGUs)
C. Private practitioners and clinics
D. Specialty hospitals and medical centers

2. Which of the following is an example of a private, non-profit provider in the Philippine healthcare
system?
A. Private practitioners
B. Commercial laboratories
C. Provincial hospitals
D. Religious organizations

3. What is/are the scope of the Department of Health's mandate?

A. Disease prevention and control
B. National policy direction and planning
C. Supplying medicines and vaccines
D. All of the above

4. According to Executive Order 119, what is the mission of the Department of Health?
A. Ensuring accessibility and quality of health care for all Filipinos
B. Providing leadership and governance in the healthcare industry
C. Developing national policy direction for health
D. Offering capacity building and advisory service
5. What is one of the known geographic disparities in the availability of public health workers in the
Philippines?
A. Lack of funding for healthcare workforce establishment
B. Limited job-related norms for healthcare workers
C. Unequal distribution of doctors, nurses, and midwives
D. Insufficient work environments for healthcare staff

6. What is the purpose of the smartphone app WeTrace?

A. Contact tracing and symptom logging
B. Patient mapping and case reporting
C. Access to COVID-19 research and services
D. Location tracking and monitoring

7. Statement I: The Bayanihan to Heal as One Act, also known as Republic Act No. 11469, has provided
critical support to healthcare workers valiantly containing the spread of the coronavirus pandemic, in
the forms of urgently needed equipment and hazard pay, as well as additional colleagues to bolster their
ranks.
Statement II: The Bayanihan to Heal as One Act grants public and private healthcare workers who
contract severe COVID-19 infection while in the line of duty to a P50,000 compensation, and one
million pesos (P1,000,000) to the family of any health worker who may die while fighting the
COVID19 pandemic.
A. Both Statements are true B. Only Statement I is true
C. Only Statement II is true
D. Both Statements are false

8. Which technology is proposed as a solution for unified clinical data management in the healthcare
system?
A. Internet of Things (IoT)
B. Artificial Intelligence (AI)
C. Blockchain Network
D. Cloud computing
9. What government agency provided funding to government hospitals for procurement of medical
devices during the pandemic? A. Department of Health (DOH)
B. Department of Science and Technology (DOST)
C. Philippines Charity Sweepstakes Office (PCSO)
D. Bayanihan to Heal as One Act

10. The following are prevalent inherent risks that we include in our objectives (or assertions), except:
A. Prevention of lost revenues
B. To protect against fraudulent claims in the billing activities
C. To guard against reimbursements deficiencies on documentations
D. To check frequencies or threats for reimbursables

11. This covers the cost of operating, maintaining, improving, and expanding the distribution network, as
well as the facilities responsible for bringing potable water to the end-user.
A. Environmental Charge
B. Sewer Charge
C. Basic Charge
D. Maintenance Sewer Charge

12. It goes beyond regulatory compliance and assesses the safety programs the organization has in place to
sustain or improve the current level of performance.
A. Operational Audits
B. Safety Management Audits
C. Regulatory Compliance Audits
D. None of the Above

13. It allows the holder to emit a specified amount of greenhouse gases.

A. Carbon Credit
B. Emission Permit
C. Both A and B
D. Neither A nor B
14. Which of the following is under generation phase?
I. Installed capacity and capacity utilization
II. Planned outage
III. Voltage management
IV. Power quantity reconciliation
A. I and II only
B. I, II, and III
C. I, II and IV
D. I, II, III, and IV

15. Statement I: PPE usually comprise the biggest asset account on the balance sheet of most plant owners
and project developers.
Statement II: Regulatory compliance audits include field verification samplings of operating centers.
A. TF
B. TT
C. FT
D. FF

16. The household spending on health has increased overall and was highest in what year?
A. 2017
B. 2018
C. 2019
D. 2020
17. Which of the following belongs to the private specialty hospitals?
I. St. Christiana Hospital
II. VT Materiality Hospital
III. Quezon Institute
IV. Urology Center of the Philippines
A. I and II
B. I, II, and III
C. II and III
D. All of the above
18. Which of the following belongs to the government specialty hospitals?
I. Lung Center of the Philippines
II. Philippine Heart Center
III. Quezon Institute
IV. Urology Center of the Philippines
A. I and II
B. I, II, and III
C. II and III
D. All of the above

19. The majority of funding for universal healthcare comes from:

I. Department of Health
II. PhilHealth
A. I only
B. II only
C. Both I and II
D. None of the above

20. Statement I: In 2020, the household final consumption expenditure for health in the Philippines was
valued at approximately 548 billion Philippine pesos.
Statement II: The household spending on health has increased overall and was highest in 2020.
A. TT
B. FF
C. TF
D. FT
 AASI: CHAPTER 8 | Auditing Academic Institutions

1. The following are the main categories of education industry, except:

a. Supplemental Education Service Providers

b. Education Support Services Sector

c. Social Welfare Services Sector

d. Educational Products & Services Sector

2. The education sector encompasses various entities and enterprises that offer goods and
services with the objective of:

a. Improving the overall quality of education within society.

b. Improving the overall quality of culture within society.

c. Improving the overall quality of tradition within society.

d. Improving the overall quality of religion within society.

3. STATEMENT 1: The education industry in the Philippines has experienced remarkable

growth in the past decade, primarily due to the adoption of the enhanced basic education
model.

STATEMENT 2: The K-12 education market is the largest contributor to the overall revenues
of the Philippine education industry.

a. Statement 1 is TRUE. Statement 2 is TRUE.

b. Statement 1 is TRUE. Statement 2 is FALSE.

c. Statement 1 is FALSE. Statement 2 is TRUE.

d. Statement 1 is FALSE. Statement 2 is FALSE.

4. US Embassy in the Philippines and the Commission on Higher Education (CHED) signed a
________________ to enhance collaboration in institutional linkages, capacity building, and
government-industry-academic ties.

a. Collective Accord for Global Innovation in Education

b. Joint Statement on Higher Education Cooperation

c. Declaration of Environmental Conservation Collaboration

d. Global Pact for Academic Collaboration and Excellence

5. Despite the convenience it offered during those times, this educational model shift experienced
challenges.

a. Research and Development

b. Online Programs and Education Technology

c. Community College Programs and Boarding Schools

d. Higher Education (Undergraduate and Graduate)

6. A niche market.

a. Research and Development

b. Online Programs and Education Technology

c. Community College Programs and Boarding Schools

d. Higher Education (Undergraduate and Graduate)

7. Determining factors in where Filipino students choose to study: community and family
support networks.

a. Research and Development

b. Online Programs and Education Technology

c. Community College Programs and Boarding Schools

d. Higher Education (Undergraduate and Graduate)

8. Opportunities in this field lie in academic programs relevant to particular disciplines that the
government prioritizes.

a. Online Programs and Education Technology

b. Professional Training Services

c. Research and Development

d. Digital Marketing Strategies

9. Social media has become an effective medium for promoting events in the field of education
to Filipino students.

a. Online Programs and Education Technology

b. Professional Training Services

c. Research and Development

d. Digital Marketing Strategies

10. Several training centers are partnering with private and public sector employers who are
offering technical training and programs.

a. Online Programs and Education Technology

b. Professional Training Services

c. Research and Development

d. Digital Marketing Strategies

11. STATEMENT 1: The availability of teachers in schools has improved due to recent efforts in
teacher hiring, ensuring that more qualified teachers are recruited and appointed.

STATEMENT 2: Teacher absenteeism rates are generally high, but lower in highly urbanized
cities, which may be attributed to factors like heavy workloads or commuting challenges.

a. Statement 1 is TRUE. Statement 2 is TRUE.

b. Statement 1 is TRUE. Statement 2 is FALSE.

c. Statement 1 is FALSE. Statement 2 is TRUE.

d. Statement 1 is FALSE. Statement 2 is FALSE.

12. STATEMENT 1: Local government funding to basic education is relatively high, increasing
and equal.

STATEMENT 2: There are concerns about teacher performance and professional

development, including poor performance on content knowledge assessments and
inadequate systems for ongoing training and skill enhancement.

a. Statement 1 is TRUE. Statement 2 is TRUE.

b. Statement 1 is TRUE. Statement 2 is FALSE.

c. Statement 1 is FALSE. Statement 2 is TRUE.

d. Statement 1 is FALSE. Statement 2 is FALSE.

13. STATEMENT 1: Delays in the hiring process can cause temporary staff surplus or shorten
vacancies in schools.

STATEMENT 2: Concerns exist about the efficiency of teacher deployment, leading to

balances in teacher-student ratios and even distribution across regions or schools.

a. Statement 1 is TRUE. Statement 2 is TRUE.

b. Statement 1 is TRUE. Statement 2 is FALSE.

c. Statement 1 is FALSE. Statement 2 is TRUE.

d. Statement 1 is FALSE. Statement 2 is FALSE.

14. STATEMENT 1: Some improvements have been made in the availability of key facilities in
schools, addressing infrastructure needs.

STATEMENT 2: Despite improvements, deficits in classrooms still exist, leading to

overcrowded classrooms and inadequate learning spaces.

a. Statement 1 is TRUE. Statement 2 is TRUE.

b. Statement 1 is TRUE. Statement 2 is FALSE.

c. Statement 1 is FALSE. Statement 2 is TRUE.

d. Statement 1 is FALSE. Statement 2 is FALSE.

15. Bureaucratic inefficiencies:

a. Lead to delays and red tape in the disbursement of funds

b. Occur when there is a lack of transparency, accountability, and proper financial oversight.

c. Poses a significant challenge to funding reaching schools as intended.

d. Relatively weak, posing challenges in ensuring proper utilization of funds.

16. Transparency and Accountability:

a. Lead to delays and red tape in the disbursement of funds

b. Occur when there is a lack of transparency, accountability, and proper financial oversight.

c. Poses a significant challenge to funding reaching schools as intended.

d. Relatively weak, posing challenges in ensuring proper utilization of funds.

17. Corruption:

a. Lead to delays and red tape in the disbursement of funds

b. Occur when there is a lack of transparency, accountability, and proper financial oversight.

c. Poses a significant challenge to funding reaching schools as intended.

d. Relatively weak, posing challenges in ensuring proper utilization of funds.

18. Mismanagement Within the Funding Distribution Process:

a. Lead to delays and red tape in the disbursement of funds

b. Occur when there is a lack of transparency, accountability, and proper financial oversight.

c. Poses a significant challenge to funding reaching schools as intended.

d. Relatively weak, posing challenges in ensuring proper utilization of funds.

19. Empowering schools with more autonomy allow them to tailor their strategies and allocate
resources according to their unique needs, fostering a more responsive and effective
educational environment.

a. Address funding and quality inequalities through improved financing mechanisms and
focused interventions for schools serving disadvantaged groups.

b. Give schools greater authority in planning and resource management decisions and
simplify reporting requirements.

c. Improve allocation of education inputs through better planning.

d. Improve transparency of fund allocation and resource use across the system.

20. Collaboration fosters a supportive and inclusive school environment, enhances

communication between stakeholders, and allows for more effective implementation of school
improvement plans.

a. Strengthen the role of School Governing Councils and Parent Teacher Associations.

b. Improve transparency of fund allocation and resource use across the system.

c. Increase public spending on education.

d. Address funding and quality inequalities through improved financing mechanisms and
focused interventions for schools serving disadvantaged groups.
 Module 9: Auditing Electronic Commerce (E-commerce) Industry
Group Quiz

1. Which of the following offers services of wholesaling and distributorship of pharmaceutical

goods on behalf of their principals?
a. AsiaRX
b. Ken Research
c. Philippine Companies
d. B2B Price Now

2. _______________ refers to marketing campaigns that appear on a computer, phone, tablet,

or other device.
a. Digit Marketing
b. Digital Marketing
c. Phone Marketing
d. Tradekey Marketing

3. Statement I: Bangko Sentral ng Pilipinas (BSP) reported in its Financial Inclusion Survey (FIS)
that 44 percent of Filipinos do not own a bank account and only 8 percent used credit cards
in 2021.
Statement II: Roads, bridges, and ports are often congested making it difficult and inexpensive to
move goods around the country.
a. Only statement I is true.
b. Only statement II is true.
c. Both statements are true.
d. Both statements are false.

4. It is a logistics concern that is often complex and ever-changing, making it difficult for
businesses to keep up.
a. Location
b. Poor infrastructure
c. High costs
d. Customs regulations

5. ______ is the buying and selling of goods (or services) on the Internet.
a. E-commerce
b. Online Selling
c. Buzz Marketing
d. Internet Selling

6. Which is not an example of an e-commerce platform?

a. Lazada
b. Shopee
c. Instagram
d. Carousell
7. What is the most common type of e-commerce?
a. Business-to-Business (B2B)
b. Consumer-to-Consumer (C2C)
c. Direct-to-Consumer (D2C)
d. Business-to-Consumer (B2C)

8. This type of e-commerce refers to when an individual sells their products or provides their
services to a company entity.
a. Consumer-to-Consumer (C2C)
b. Consumer-to-Business (C2B)
c. Business-to-Business (B2B)
d. Business-to-Consumer (B2C)

9. Philippine credit card users are wary of online transactions due to hacking incidents and weak
cybersecurity protection in the country. What e-commerce challenge does this indicate?
a. Security Concerns
b. Infrastracture Gap
c. Improvement in Internet Speed
d. Logistic and Distributions Challenge

10. This agency leads the Philippines Data Privacy Law and encourages locally registered
companies to designate data privacy officers.
a. European General Data Protection Regulation
b. National Privacy Commission
c. Securities and Exchange Commission
d. Philippine Tax Bureau

11. It is a widely used open standard for exchanging financial and business information between
different software applications and systems.
a. E-commerce
b. Electronic Process Transaction
c. XBRL
d. Websites

12. The following business risks arising from E-commerce except:

a. Integrity of transactions
b. Taxation and regulatory issues
c. Identity and nature of relationships with e-commerce trading partners
d. Flexibility for customers

13. B2B stands for:

a. Back-to-business
b. Business-to-business
c. Block-to-block
d. Business-to-buyer
14. Which of the following practices will establish sustainability in a company?
a. Maintaining good customer relationships.
b. Offering discounts to loyal customers.
c. Increasing salaries of the employees.
d. Partnering with local suppliers.

15. The country’s most popular social media network has a free version for mobile phone users
in the Philippines.
a. Twitter
b. YouTube
c. Facebook
d. TikTok

16. Statement I: According to a MoneyMax survey, many Filipinos are reluctant to get credit cards
because they fear it will lead to overspending and debt.
Statement II: A universal challenge for any online merchant is gaining seller’s trust. a.
Only Statement I is true
b. Only Statement II is true
c. Both statements are true
d. Both Statements are false

17. Before the pandemic, what factor contributed to the increased demand for eCommerce in the
Philippines?
a. Younger population's preference for online shopping
b. Availability of cash-centric shopping culture
c. Decreased need for social distancing
d. Advanced digital and logistics infrastructure

18. What is one of the main challenges for enabling a digital economy in the Philippines?
a. Decreased demand for eCommerce
b. High bandwidth capacity
c. Younger population's openness to online shopping
d. Cash-centric shopping culture

19. These are downloadable items that must be purchased for use.
a. Digital products
b. Services
c. Subscriptions
d. None of the above

20. Digital products include all except?

a. Online courses
b. Templates
c. E-books
d. None of the above
21. The following are the benefits of e-commerce. EXCEPT ONE:
a. Convenience
b. Personalization and customer experience
c. Local Marketplace
d. Minimized Expense
22. The following are the disadvantages of e-commerce. EXCEPT ONE:
a. Limited customer service
b. Lack of instant gratification
c. Inability to touch products
d. Maximized Expense

23. Which of the following is not one of the key risk areas in the E-commerce Industry?
a. Vendor Management
b. Information Technology
c. Supply Chain Management
d. None of the above

24. Which key risk area in the e-commerce industry pertains to the systematic process or
movement of goods from the supplier to the customer?
a. Vendor Management
b. Sales and Marketing Strategy
c. Supply Chain Management
d. Revenue Assurance

25. What is considered the most dominant platform for e-commerce?

a. Mobile Shopping
b. Desktop Shopping
c. Physical Shopping
d. In-store Shopping

26. Which e-commerce trend promotes hands-free shopping in people’s homes?

a. Artificial Intelligence
b. Big Data
c. Voice Search
d. Augmented Reality

27. Statement I: The philippines.tradekey.com website is a trading portal with close to 8,000
members that are mostly from cooperatives.
Statement II: E-commerce business risks include those arising from taxation and regulatory
issues.
a. Only statement I is true
b. Only statement II is true
c. Both statements are true
d. Both statements are false
28. Statement I: Usually, management will identify e-commerce business risks, and address those
risks with appropriate security and control measures.
Statement II: A disadvantage of e-commerce from other industries is that purchases from e-
commerce can be unsatisfying when the products received do not match consumer expectations.
a. Only statement I is true
b. Only statement II is true
c. Both statements are true
d. Both statements are false

29. Statement I: Subscriptions are a popular B2C item, and social selling via platforms like
Instagram, Pinterest, and Facebook are popular platforms for business-to-consumer sales.
Statement II: A disadvantage of e-commerce is that companies are no longer restricted by
geography or physical barriers in reaching their customers.
a. Only statement I is true
b. Only statement II is true
c. Both statements are true
d. Both statements are false

30. Statement I: The Philippines is a fast-growing retail e-commerce market and the most popular
retail e-commerce platforms include Lazada and Shopee.
Statement II:A universal challenge for any online merchant is gaining sellers’ trust.
a. Only statement I is true
b. Only statement II is true
c. Both statements are true
d. Both statements are false