Financial Accounting Principles

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What is the overall goal of the Financial Reporting Standards Council (FRSC) in the Philippines?

To establish a separate set of accounting standards for the Philippines

To improve the quality and comparability of financial reporting in the Philippines (correct)

To solely focus on the accounting standards of publicly-listed companies

To replace the Philippine Interpretations Committee with the FRSC

Which of the following is NOT a member of the FRSC?

Securities and Exchange Commission (SEC)

Financial Executives Institute of the Philippines (FINEX)

Bangko Sentral ng Pilipinas (BSP)

Department of Education (correct)

What is the primary role of the Philippine Interpretations Committee (PIC) replaced by the FRSC?

To issue new accounting standards

To provide training on financial reporting

To interpret existing accounting standards (correct)

To enforce compliance with accounting standards

What is the highest hierarchy of generally accepted accounting principles (GAAP) in the Philippines?

Philippine Financial Reporting Standards (PFRS) Signup and view all the answers

What is the primary objective of the Financial Reporting Standards Council (FRSC) in developing accounting standards?

To improve the comparability of financial reports Signup and view all the answers

What is the composition of the Financial Reporting Standards Council (FRSC)?

15 members, including 5 representatives from professional organizations Signup and view all the answers

What is the primary objective of accounting according to the American Institute of Certified Public Accountants (AICPA)?

Recording, classifying, and summarizing financial information Signup and view all the answers

What is the main difference between financial accounting and cost accounting?

Financial accounting focuses on external reporting, while cost accounting focuses on internal decision-making Signup and view all the answers

What is the conceptual framework of accounting?

A framework for identifying, measuring, and communicating financial information Signup and view all the answers

What is the main purpose of the Securities and Exchange Commission (SEC)?

To regulate the stock market and protect investors Signup and view all the answers

What is the term for the process of identifying, measuring, and communicating financial information?

Accounting process Signup and view all the answers

What is the term for the certification issued to accountants who have completed the required education and experience?

Certified Public Accountant (CPA) Signup and view all the answers

What is one of the implicit communication processes in accounting?

Classifying and grouping of similar economic transactions Signup and view all the answers

What is the primary objective of budgeting in accounting?

To forecast future financial performance Signup and view all the answers

What is the purpose of auditing in financial accounting?

To examine and report on financial records Signup and view all the answers

What is the main goal of financial statement analysis?

To analyze and interpret financial data Signup and view all the answers

What is the Philippines' primary accounting law?

Republic Act No. 9298 Signup and view all the answers

What is the term for the process of allocating costs to specific business transactions?

Classifying and grouping Signup and view all the answers