1. What is the meaning of PAS?

(Certificate of registration (3 years validation))

(Professional Accounting Standards)
14. What are the 3 main areas of public practice?
2. What is the meaning of PFRS? (Public Accounting, Private Accounting, Government
(Philippine Financial Reporting Standards) accounting)

3. What is the meaning of IFRIC? 15. What are areas under Public accounting?
(International Financial Reporting Interpretations (Auditing, Taxation, and Management Advisory
Committee) Services)

4. What is the definition of accounting according to 16. What are departments under Government
accounting standards council? Accounting?
(Accounting is a service activity) (BIR, CoA, Dept. of Budget and Management, SEC, BSP)

5. It provides quantitative information, primarily 17. What is the law that mandates the continuing
financial in nature. professional development program for all regulated
(Accounting) professions including the accountancy profession?
(Republic Act 10912)
6. What are the 3 components of accounting?
(Identifying analytical component, Measuring, 18. It enhances the technical skill and competence of
Communicating) the CPA.
(Continuing Professional Development)
7. What are the 2 types of transactions?
(External and Internal) 19. It represents the rules, procedures, practice and
standards followed in the preparation and
8. What are the 2 measures of value? presentation of financial statements.
(Historical cost and Current Value) (Generally Accepted Accounting Principles)

9. What are the other terms for current value? 20. It replaced ASC and works to establish and improve
(Fair value, value in use, fulfilment value, and current accounting standards that will be generally accepted in
cost) the Philippines.
(Financial Reporting Standards Council)
10. What is the Philippine Accountancy Act of 2004?
(Republic Act 9298) 21. It is a complete, comprehensive, and single
document promulgated by the International
11. It is the body authorized by law to promulgate rules Accounting Standards Boards.
and regulations affecting the practice of the (Conceptual Framework for Financial Reporting)
accountancy profession in the Philippines.
(Board of Accountancy) 22. Who are the 2 Primary Users of Financial
Information?
12. They shall be registered certified public (Existing and potential investors, and Lenders and
accountants in the Philippines. other creditors)
(Single practitioners and partnerships)
23. Who are the other users of Financial Information?
13. It is issued by PRC with the recommendation of (Employees, Customers, Government and their
BOA to practice public accountancy. agencies, Public)
 (Understandability)
24. It means that income is recognized when earned
regardless of when received and expense is recognized 36. It means that the financial statement is supported
when incurred regardless when paid. by evidence that will allow accountants to arrive to the
(Accrual Accounting) same conclusion.
25. These are the qualities or attributes that makes (Verifiability)
financial accounting information useful to users.
(Qualitative Characteristics) 37. The financial Information is available and
communicated early enough to be useful to decision
26. These are the Fundamental Qualitative makers.
Characteristics. (Timeliness)
(Relevance and Faithful Representation)
38. Benefit derived from the useful information should
27. It is the capacity of the information to influence a not exceed the cost of providing it.
decision. (Cost constraint to useful Information)
(Relevance)
39. Parent and subsidiary financial statements.
28. It is the likelihood of predicting outcome of events (Consolidated Financial Statements)
based on financial information.
(Predictive Value) 40. Parent only financial statements.
(Unconsolidated financial statements)
29. It provides feedback about previous evaluations.
(Confirmatory Value) 41. Two or more entities not linked by a parent and
subsidiary relationship.
30. It is the quantitative threshold which states if the (Combined Financial Statements)
item is significant enough to affect the evaluation,
decision, and fairness of financial statements. 42. It is an entity that is required or chooses to prepare
(Materiality) financial statements.
(Reporting Entity)
31. It means that financial reports represent economic
phenomena or transactions in words and numbers. 43. It is the period when the financial statements are
(Faithful Representation) prepared for general purpose financial reporting.
(Reporting Period)
32. Attributes included in faithful representation.
(Completeness, Neutrality, Free from error) 44. Reports that are prepared for period less than one
year and is optional.
33. It allows users to identify and understand (Interim financial reports)
similarities or dissimilarities in information.
(Comparability) 45. These are the basic notions or fundamental a
premise on which accounting is based.
34. It is the uniform application of accounting method (Accounting assumptions)
from period to period.
(Consistency) 46. It is the assumption that the entity will continue its
operations indefinitely.
35. It is readily understandable to a wide range of (Going concern)
users.
47. An assumption that the entity is separate and 59. It is defined as increase in assets or decrease in
distinct from its owners. liabilities that result in increases in equity.
(Accounting Entity) (Income)

48. An assumption that the indefinite life of an entity is 60. It refers to the profit or loss and other item
divided into equal lengths. showing other comprehensive income.
(Time period) (Statement of financial Performance)

49. This states that the element of the financial 61. It is defined as decreases in assets or increases in
statement should be stated in a unit of measure. liabilities.
(Quantifiability) (Expenses)

50. This states that the purchasing power of peso is

constant. 62. The adding together of assets, liabilities, equity,
(Stability) income or expenses that have shared characteristics
and are included in the same classification.
51. Elements related to financial position.
(Asset, Liability and Equity) (Aggregation)

52. Elements related to financial performance.

(Income and Expenses) 63. A present economic resource controlled by the
entity as a result of past events.
53. It is a present economic resource controlled by the
entity as a result of past events. (Asset)
(Asset)

54. It is a right that has the potential to produce 64. The amount at which an asset, a liability or equity is
economic benefits and is controlled by the entity. recognised in the statement of financial position.
(Economic resource)
(carrying amount)
55. It is defined as a present obligation of an entity to
transfer economic resource as a result of past events.
(Liability) 65. The sorting of assets, liabilities, equity, income or
expenses on the basis of shared characteristics for
56. It is a duty or responsibility that an entity has no presentation and disclosure purposes.
practical ability to avoid.
(Classification)
(Obligation)

57. A consequence of contract or statutory 66. Financial statements of a reporting entity that
requirement. comprises two or more entities that are not all linked
(Legal Obligations) by a parent-subsidiary relationship.

58. It arises from normal business practice, custom, (combined financial statements)
and policy.
(Constructive Obligations)
67. Financial statements of a reporting entity that obligations, or both parties have partially fulfilled their
comprises both the parent and its subsidiaries. obligations to an equal extent.

(Consolidated financial statements) (executory contract)

68. The present ability to direct the use of the 75. Uncertainty about whether an asset or liability
economic resource and obtain the economic benefits exists.
that may flow from it.
(Existence uncertainty)
(control of an economic resource)

76. Decreases in assets, or increases in liabilities, that

69. The removal of all or part of a recognised asset or result in decreases in equity, other than those relating
liability from an entity’s statement of financial position. to distributions to holders of equity claims.

(Derecognition) (Expenses)

70. A right that has the potential to produce economic 77. A qualitative characteristic that financial
benefits. information must possess to be useful to the primary
users of general purpose financial reports. The
(economic resource) fundamental qualitative characteristics are relevance
and faithful representation.

71. A qualitative characteristic that makes useful (Fundamental qualitative characteristic)

information more useful. The enhancing qualitative
characteristics are comparability, verifiability,
timeliness and understandability. 78. A report that provides financial information about
the reporting entity’s economic resources, claims
(Enhancing qualitative characteristic) against the entity and changes in those economic
resources and claims that is useful to primary users in
making decisions relating to providing resources to the
72. The residual interest in the assets of the entity after entity.
deducting all its liabilities.
(general purpose financial report)
(Equity)

79. A particular form of general purpose financial

73. A claim on the residual interest in the assets of the reports that provide information about the reporting
entity after deducting all its liabilities. entity’s assets, liabilities, equity, income and expenses.
(equity claim) (general purpose financial statements)

80. Increases in assets, or decreases in liabilities, that

result in increases in equity, other than those relating
74. A contract, or a portion of a contract, that is equally
to contributions from holders of equity claims.
unperformed—neither party has fulfilled any of its
(Income) 87. Uncertainty about the amount or timing of any
inflow or outflow of economic benefits that will result
from an asset or liability.
81. A present obligation of the entity to transfer an
(Outcome uncertainty)
economic resource as a result of past events.

(Liability)
88. Within an economic resource, a feature that already
exists and that, in at least one circumstance, would
82. Information is material if omitting, misstating, or produce for the entity economic benefits beyond those
obscuring it could reasonably be expected to influence available to all other parties.
decisions that the primary users of general purpose
(potential to produce economic benefits)
financial reports make on the basis of those reports,
which provide financial information about a specific
reporting entity.
89. Existing and potential investors, lenders and other
(Material information) creditors.

(primary users (of general purpose financial reports))

83. The result of applying a measurement basis to an

asset or liability and related income and expenses.
90. The exercise of caution when making judgements
(Measure) under conditions of uncertainty. The exercise of
prudence means that assets and income are not
overstated and liabilities and expenses are not
84. An identified feature—for example, historical cost, understated. Equally, the exercise of prudence does not
fair value or fulfilment value—of an item being allow for the understatement of assets or income or
measured. the overstatement of liabilities or expenses.

(measurement basis) (Prudence)

85. Uncertainty that arises when monetary amounts in 91. The process of capturing for inclusion in the
financial reports cannot be observed directly and must statement of financial position or the statement(s) of
instead be estimated. financial performance an item that meets the definition
of one of the elements of financial statements—an
(Measurement uncertainty) asset, a liability, equity, income or expenses.
Recognition involves depicting the item in one of those
statements—either aloneor in aggregation with other
86. Grouping an asset and liability that are recognized items—in words and by a monetary amount, and
and measured as separate units of account into a single including that amount in one or more totals in that
net amount in the statement of financial position. statement.

(Offsetting) (Recognition)
92. An entity that is required, or chooses, to prepare (Notes to Financial Statement)
general purpose financial statements.

(reporting entity)
99. Where does a cash receipt from sale of long term
assets qualify under the cash flows?

93. Financial statements of a reporting entity that is the (Investing Activities)

parent alone.

(Unconsolidated financial statements)

100. Gain or loss from translating financial statements
of a foreign operation can be classified as other
comprehensive income that can be reclassified to _?
94. The right or the group of rights, the obligation or
the group of obligations, or the group of rights and (Profit or loss)
obligations, to which recognition criteria and
measurement concepts are applied.
101. This is a resource controlled by the entity as a
(unit of account)
result of past events and from which future economic
benefits are expected to flow to the entity

95. Financial information that is useful to primary (Asset)

users of general purpose financial reports in making
decisions relating to providing resources to the
reporting entity. To be useful, financial information 102. Under this concept, a profit is earned only if the
must be relevant and faithfully represent what it financial (money) amount of the net assets at the end
purports to represent. of the period exceeds the financial (money) amount of
the net assets at the beginning of the period, after
(useful financial information)
excluding any distributions to, and contributions from,
owners during the period.

96. See primary users (of general purpose financial (Financial Capital)
reports).

(users (of general purpose financial reports))

103. This is the activity where cash being arrived by
the entity from creditors

97. If dividends received will be recognized in (Cash Flows)

parallel with the related activity, it will recognized in
the cashflows under
104. This refers to a liability of uncertain timing and
(Operating cash flow)
amount

(Provision)
98. These are the narrative description of items
presented in the financial statement essential for
completeness
105. They are attributes that make the information
provided in financial statements useful to users

(Qualitative Characteristics)

106. This is an expense not allowed to be resented on

the face of income statement and OCI

(Extraordinary Items)