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Problems Problem 2-1 Multiple Choice (Iaa)

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Jao Flores

1. The singular unique function performed by independent certified public accountants is the attest function. 2. Once an accounting standard has been established, the standard is continually reviewed by the Philippine Institute of Certified Public Accountants to see if modification is necessary. 3. The principle of consistency requires that no revisions ever be made to the standard, and the standard is not reviewed unless the Securities and Exchange Commission makes a complaint.

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Problems Problem 2-1 Multiple Choice (Iaa)

Uploaded by

Jao Flores
128 views2 pages
1. The singular unique function performed by independent certified public accountants is the attest function. 2. Once an accounting standard has been established, the standard is continually reviewed by the Philippine Institute of Certified Public Accountants to see if modification is necessary. 3. The principle of consistency requires that no revisions ever be made to the standard, and the standard is not reviewed unless the Securities and Exchange Commission makes a complaint.

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Ch 5

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1. The singular unique function performed by independent certified public accountants is the attest function. 2. Once an accounting standard has been established, the standard is continually reviewed by the Philippine Institute of Certified Public Accountants to see if modification is necessary. 3. The principle of consistency requires that no revisions ever be made to the standard, and the standard is not reviewed unless the Securities and Exchange Commission makes a complaint.

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© All Rights Reserved
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt
128 views2 pages

Problems Problem 2-1 Multiple Choice (Iaa)

Uploaded by

Jao Flores
1. The singular unique function performed by independent certified public accountants is the attest function. 2. Once an accounting standard has been established, the standard is continually reviewed by the Philippine Institute of Certified Public Accountants to see if modification is necessary. 3. The principle of consistency requires that no revisions ever be made to the standard, and the standard is not reviewed unless the Securities and Exchange Commission makes a complaint.

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1.

Once an accounting standard has been established


a. The standard is continually reviewed to see if modification is necessary.
b. The standard is not reviewed unless the Securities and Exchange Commission makes a
complaint.
c. The task of reviewing the standard to see if modification is necessary is given to the
Philippine Institute of Certifies Public Accountants.
d. The principle of consistency requires that no revisions ever be made to the standard.
2. The singularly unique function performed by independent Certified Public Accountants is
a. Tax preparation
b. Management advisory services
c. The attest function
d. The preparation of financial statements.

PROBLEMS

PROBLEM 2-1 MULTIPLE CHOICE (IAA)


1. What is the only underlying assumption mentioned in the Conceptual Framework for
Financial Reporting?
a. Going concern
b. Accounting entity
c. Time period
d. Monetary unit
2. Which best describes the term “going concern”?
a. When current liabilities exceed current assets
b. The ability of the entity to continue in operation for the forseeable future
c. The potential to contribute to the flow of cash and cash equivalents to the entity
d. The expenses exceed income
3. Which is an implication of the going concern assumption?
a. The historical cost principle is credible.
b. Depreciation and amortization policies are justifiable and appropriate.
c. The current and noncurrent classification of assets and liabilities is justifiable and
significant.
d. All of these are an implication of going concern.
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 a basic assumption underlying financial accounting?
a. Economic entity assumption
b. Going concern assumption
c. Periodicity assumption
d. Historical cost assumption
6. Which basic assumption may not be followed when an entity in bankruptcy reports financial
results?
a. Economic entity assumption
b. Going concern assumption
c. Periodicity assumption
d. Monetary unit assumption
7. The financial statements of an entity are separate and distinct from financial statements of
the owners.
a. Going concern assumption
b. Matching principle
c. Economic entity assumption
d. Accounting period assumption

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