QUEZON CITY UNIVERSITY – BATASAN CAMPUS

CONCEPTUAL FRAMEWORK AND ACCOUNTING STANDARDS

LONG QUIZ # 1

Part I. Choose the letter of the best answer. STRICTLY NO ERASURES IN THE ANSWER SHEET. Use
Black or Blue Ballpen only.

1. The objective of the Philippine Accountancy Act of 2004 includes:

a. The standardization and regulation of accounting education
b. The examination for registration of certified public accountants
c. The supervision, control, and regulation of the practice of accountancy in the
Philippines.
d. All of the above
2. Which of the following does NOT constitute a practice of accountancy?
a. A person holding out himself as one skilled in the knowledge and practice of
accounting and as a qualified person to render professional services as a CPA
to more than one client.
b. A person representing his/her employer before government agencies on tax
and other accounting related matters.
c. A person in educational institution teaching accounting, auditing, business law,
taxation or other technically related subjects.
d. A person is appointed as marketing director of a government owned and
controlled corporation.
3. Which of the following is not one of the qualifications of the members of the Board of Accountancy?
a. Must be a natural-born CPA and a resident of the Philippines.
b. Must be a duly Certified Public Accountant with at least ten years
experience in practice of accountancy.
c. Must be of good moral character.
d. Must not have been convicted of crimes involving moral turpitude.
4. Which is the least function of the Board of Accountancy?
a. To prepare, adopt, issue or amend syllabi at the subjects for examinations
in consultation with the academe.
b. To prepare questions for the CPA licensure examination which shall strictly
within the scope of the syllabi of the subjects for examination.
c. To investigate violations of the RA 9298
d. To supervise PICPA
5. The auditing standard setting body created by the Board of Accountancy is knowns as
a. Financial Reporting Standards Council (FRSC)
b. Auditing Standards and Practices Council (ASPC)
c. Accountancy Standards Council (ASC)
d. Auditing and Assurance Standards Council (AASC)
6. The sector that is most represented in the ASC is the
a. Commerce and Industry
b. Academe
c. Government
d. Public Practice
7. The following are regarded by RA9298 as CPA services in public practice if offered or rendered on a
fee basis and to more than one client:
 Preparation and signing of audit reports.
  Professional assistance on accounting procedures.
 Representation of clients before governmental agencies on tax and other matters
regardless of its relation to accounting.
a. b. c. d.
YES YES YES YES
YES NO NO YES
YES YES NO NO
8. The following qualifications of applicants for CPA licensure examination, except
a. He/She is a Filipino Citizen
b. He/She is of good moral character
c. He/She is a holder of the degree of Bachelor of Science in Accountancy
d. He/She is at least 21 years of age
9. To be qualified as having passed the CPA licensure examination
a. The candidate must have a general weighted average of at least 75%.
b. The candidate must not have a grade lower than 65% in any given subject.
c. A and B
d. Neither A nor B
10. Which of the following shall be issued to examinees who pass the CPA licensure examination?
a. Certificate of accreditation
b. Personal identification card
c. Certificate of registration and professional identification card
d. Certificate of full compliance and PRC ID.
11. The Board of Accountancy may issue certificate of registration and professional identification card to
any successful examinee
a. Of unsound mind
b. Convicted by a court of political offense.
c. Guilty of immoral or dishonorable conduct.
d. Who has falsely represented himself/herself in his/her application for
examination.
12. As used in RA 9298, this term refers to the area of practice of accountancy:
a. Line b. Section c. Segment d. Sector
13. The constitution of the Philippines requires this office to “keep the general accounts of the
Government and for such period as may be provided by law, preserve the vouchers pertaining thereto.”
a. National Accounting Office
b. Ministry of Finance
c. Commission on Audit
d. Accounting Units
14. May a CPA give a brochure to a non-client?
a. No, because this is a violation of the revised rules on advertising.
b. Yes, since this is acceptable under revised rules on advertising.
c. No, unless the non-client becomes a client within 10 days from receipt of the brochure.
d. Yes, if the non-client has made an unsolicited request.
15. A certificate of accreditation shall be issued to CPA’s in public practice only upon showing, in
accordance with rules and regulations promulgated by the Board and approved by the PRC, that such
registration has acquired a minimum of ___ years meaningful experience in any of the areas of public
practice including taxation.
a. 2 b. 3 c. 4 d. 5
16. Which of the following organization has been recognized by the Commission on October 2, 1975 per
Accreditation No. 15, a Accredited Professional Organization?
 a. Board of Accountancy (BOA)
b. Philippine Institute of CPAs (PICPA)
c. Association of CPA’s in public practice (ACPAPP)
d. Association of CPAs in Education (ACPAE)
17. The PICPA shall renew it certificate of accreditation once every
a. Two years c. Four years
b. Three years d. Five years
18. It involves a study or appraisal by the Board or its duly authorized representatives of the quality of audit
of financial statements through an evaluation of the quality control measures instituted by the CPA firm to
ascertain compliance with ethical and technical standards of the public practice.
a. Quality review c. Compliance audit
b. Peer review d. External audit
19. A PICPA director can only represent a sector in a region if he/she has been a
member in good standing in such sector in the region for at least _____ years at the
same time of his/her nomination:
a. Two years b. Three years c. Four years d. Five years
20. For every CPE seminars or conventions attended, participant CPAs shall get CPE credit equivalent to
a. one credit unit per hour. c. three credit units per hour.
b. two credit units per hour. d. five credit units per hour.
21. A registered professional shall be permanently exempted from CPE requirements upon reaching the
age of
a. 55 years old c, 60 years old
b. 65 years old d. 70 years old
22. A registered CPA who I working or practicing his profession or furthering abroad shall be temporarily
exempted from compliance with CPE requirements during the period of his stay abroad, provided that prior
to the date or renewal he has been out of the country for at least
a. Four years c. Two years
b. Three years d. One year
23. Affixing the CPA’s seal and signature on the auditor’s report is an indication of:
a. CPA’s acceptance of responsibility for the financial statements audited.
b. Compliance by the CPA of the requisite accounting and auditing standards
and rules.
c. CPA’s accreditation to practice public accountancy.
d. Fair presentation of financial statements audited.
24. A professional accountant may invite the following to attend training courses and seminars conducted
for the assistance of staff (select the exception):
a clients
b. staff of the firm
c. other professional accountants
d. potential clients
25. The following are grounds for suspension or removal of members of the Board of
Accountancy, except:
a. Neglect of duty or incompetence.
b. Violation or tolerance of any violation of RA9298 and its IRR, or the Code of
Ethics and technical and professional standards of practice for CPAs.
c. Pending case on a crime involving moral turpitude.
d. Manipulation or rigging of the CPA licensure examination results.
26. Emerald, CPA is applying for renewal of his professional license. He is exempted from the CPE
requirements
 a. If he is at least 65 years old
b. If he is working abroad and he has been out of country for at least two years
immediately prior to the date of renewal
c. Either A or B
d. Under no circumstances
27. Which of the following statements is correct?
a. The chairman and members of the Board shall receive compensation and allowances
comparable to that being received by the chairman and members of the existing regulatory
boards under the PRC as provided for in the General Appropriations Act.
b. No person shall serve in the Board for more than nine years.
c. The BOA chairman has the sole power to administer oaths in connection with the
administration of the accountancy law.
d. The Board shall be under administrative supervision of the PICPA.
28. It is the specific organization mandated by the law to promulgate rules and regulations affecting the
practice of Accountancy.
a. Professional Regulation Commission (PRC)
b. Professional Regulatory Board of Accountancy (BoA)
c. Philippine Institute of Certified Public Accountants (PICPA)
d. Accounting Standards Council (ASC)
29. It is the organization created by PICPA in 1981 to formalize the accounting
standard-setting function and establish generally accepted accounting principles
(GAAP) in the Philippines.
a. Accounting Standard Council (ASC)
b. Association of the CPAs in Education (ACPAE)
c. Association of CPAs in Public Practice (ACPAPP)
d. Professional Regulatory Board of Accountancy (BoA)
30. The Accounting Standards Council (ASC) used to be composed of the nominees from all the following
organizations, except
a. Bureau of Internal Revenue (BIR)
b. Philippine Institute of Certified Public Accountants (PICPA)
c. Securities and Exchange Commission (SEC)
d. Bangko Sentral ng Pilipinas (BSP)
31. Pursuant to the IRR of the Philippine Accountancy Act of 2004, the Accounting Standards Council (ASC)
was replaced by the
a. Auditing and Assurance Standards Council (AASC)
b. Financial Reporting Standards Council (FRSC)
c. Association of CPAs in Education (ACPAE)
d. Education Technical Council (ETC)
32. The number of members (excluding the chairman) in the Financial Reporting Standards Council.
a. 12 c. 14
b. 13 d. 15
33. The Financial Reporting Standards Council (FRSC) is composed of nominees from all of the following,
except:
a. Commission on Audit (CoA)
b. Bureau of Internal Revenue (BIR)
c. Financial Accounting Standards Board (FASB)
d. Professional Regulatory Board of Accountancy (BoA)
34. Based on IRR, how long in years is the renewable term of the chairman and
members of FRSC?
 a. 2 c. 4
b. 3 d. 5
35. The chairman of FRSC must be or must have been a senior accounting practitioner in
a. Public practice c. Government or education
b. Commerce and industry d. Any scope of accounting practice
36. It function is to assist FRSC in establishing and improving financial reporting standards in the Philippines
as it issues implementation guidance on existing PFRS.
a. Board of Accountancy c. Professional Regulations Commission
b. Education Task Force d. Philippine Interpretations Committee
37. Under PAS 1, the term “PFRS” shall be comprised of
a. PAS only c. PFRS and PAS
b. PFRS only d. PFRS, PAS and Interpretations
38. The accounting body that replaced the International Accounting Standards Committee (IASC) in 2001.
a. Standing Interpretations Committee (SIC)
b. International Accounting Standards Board (IASB)
c. Standards Advisory Council (SAC)
d. Accounting Principles Board (APB)
39. What is the branch of accounting that is most related with the accounting sector “Association of CPAs
in Commerce and Industry (ACPACI)?”
a. Public accounting c. Government accounting
b. Private accounting d. Accounting education
40. Who is not a present member of the Professional Regulatory Board of Accountancy (BoA)?
a. Samuel Padilla c. Arlyn Villanueva
b. Gervacio Piator d. Gloria Sayba
41. A CPA firm usually offers non-audit services, such as management advisory services. Its primary
purpose is to:
a. Furnish professional advice and assistance which will enable the client to improve operation
b. Keep the CPA firm competitive with other firms.
c. Establish the firm as a consultant, thus ensuring its future expansion and growth.
d. Permit the firm’s staff members to acquire expertise in other areas of practice
42. The PICPA national directors shall be apportioned according to four geographic sectors based on the
ratio of latest available number of members in good standing from those areas. Which of the following is
NOT a geographic sector?
a. Luzon b. NCR c. Mindanao d. CAR
43. The Philippine Accountancy Act of 2004—shall provide and govern:
a. The standardization and regulation of accounting education.
b. The examination for registration and Certified Public Accountants.
c. The supervision, control and regulation of the practice of accountancy in the
Philippines.
d. All of the answers.
44. Which organization(s) has/have the primary duty of effective enforcing the
provisions of RA 9298?
I. Professional Regulatory Board of Accountancy
II. Department of Justice
III. Professional Regulation Commission
IV. Philippine Institute of Certified Public Accountants
a. I and II b. II and III c. I, III and IV d. I and III
45. The following are grounds for the suspension or revocation of certificate of registration and
professional identification card, except:
 a. Possession of an unsound mind
b. Practice in more than one field of accountancy
c. Conviction of a criminal offense involving moral turpitude
d. Unprofessional or unethical conduct, malpractice, or violation of RA9298.
46. CPAs may practice public accountancy under the following forms of organization, except:
a. Sole proprietorship c. Limited liability partnership
b. General partnership d. Corporations
47. This is the traditional service provided by CPA firms.
a. Compilation. b. Audits. c. Reviews d. Tax services
48.All licensed CPAs shall obtain and use a seal of a design prescribed by the
a. Accounting Standards Council. c. Board of Accountancy
b. Philippine Institute of CPAs. d. PRC
49. This act provides that only licensed professionals may teach licensure subjects, and provides for the
triennial renewal of the Professional Identification Card:
a. RA no. 9298
b. PRC Modernization Act
c. IRR of RA 9298
d. PD 1081
50. Which of the following cannot be mentioned by an author in publicizing a book in
accounting?
a. Name
b. Qualifications
c. Membership in professional organization
d. Services that the author’s firm provides

Part II. Fill the blank with the correct answer. STRICTLY NO ERASURES IN THE ANSWER SHEET.

Accounting Standard Title

1 PAS 37 Provisions, Contingent Liabilities and Contingent Assets
2 Philippine Interpretation
Interim Financial Reporting and Impairment
IFRIC-10
3 Non-current Assets Held for Sale and Discontinued
PFRS 5
Operations
4 Accounting Policies, Changes in Accounting Estimates and
PAS 8
Errors
5 PFRS 12 Disclosure of Interests in Other Entities
6 PAS 10 Events after the Reporting Period
7 PFRS 9 Financial Instruments
8 PAS 19 Employee Benefits
9 PFRS 16 Leases
10 Philippine Interpretation
Levies
IFRIC-21
PART II. 1.___________________ 6.______________________________
2.___________________ 7.______________________________
3.___________________ 8.______________________________
4.___________________ 9.______________________________
5.___________________ 10.______________________________