17 Questions
What is the primary focus of tax planning?
Minimizing the tax burden within taxation legislation
Who typically performs internal auditing?
Employees of the company
What is the key purpose of external auditing?
Providing an opinion on the fairness of financial statements
What distinguishes government accounting from other branches of accounting?
Custody of public funds in government entities
In auditing, what does an independent professional accountant do?
Provides an opinion on the fairness of financial statements
What type of users are the owners and stockholders considered in the context of accounting information?
Internal users
Which factor is NOT considered by creditors when making lending decisions?
Profitability
Which statement is true regarding the Bureau of Internal Revenue (BIR)?
It implements policies related to tax regulations.
What type of users are potential investors in the context of accounting information?
External users
Which financial statement shows the basis for tax computation, specifically the operating income?
Statement of profit or loss
For employees, what is a factor considered when deciding whether to continue the contract for employment?
Security of remuneration
What is the primary function of the Bureau of Treasury authorized by the Department of Finance?
Receive and keep national funds
Which organization is responsible for keeping the general accounts of the government and submitting an annual report to the President of the Philippines and Congress?
Commission on Audit (COA)
In the CPA Examination, which subject covers dealing with the examination of financial statements, compliance, and operational audits?
Auditing
What is the main focus of Taxation in the field of accountancy?
Ensuring compliance with tax laws
Which area of accounting primarily deals with upgrading the quality of teaching in accounting education through Continuing Professional Development (CPD)?
Accounting Education
What is the focus of Accounting Research in the field of accountancy?
Continued research studies for professional growth
Study Notes
Tax Services
- Produces tax returns to be filed to appropriate government agencies
- Involves tax planning to minimize tax burden within the premise of taxation legislation
- Types of tax returns: Income Tax, VAT, Withholding Tax, Real Estate Tax
Auditing
- Examines an organization's financial records to determine accuracy and compliance with rules and laws
- Internal auditing examines whether accounting procedures are being followed
- External auditing examines the books of accounts and renders an opinion on the fairness of financial statements
Government Accounting
- Deals with the proper custody of public funds in national and local government offices
- Offices responsible for accounting responsibilities:
- Department of Budget and Management: formulation and implementation of the National Budget
- FABM 1 UNIT 3
- Government accounting involves the custody of public funds in cities, provinces, municipalities, and barangays
Users of Accounting Information
- Internal users: owners and stockholders, management, employees
- External users: creditors, suppliers, regulatory and tax authorities, potential investors, public
Accounting Information
- Types of accounting information:
- Information on Net Profit or Net Loss: Statement of Profit or Loss shows financial performance
- Information for Tax Management: Statement of Profit or Loss shows basis of tax computation
Government Agencies
- Bureau of Internal Revenue (BIR): taxing authority that regulates guidelines, implements policies, and monitors tax payment
- Bureau of Treasury: authorized to receive and keep national funds, manage disbursements, and maintain financial transactions
- Commission on Audit (COA): keeps general accounts of the government, promulgates accounting rules, and submits annual reports
Accounting Education
- Deals with upgrading the quality of teaching in accounting education through Continuing Professional Development (CPD)
- CPA Examination Subjects:
- Financial Accounting and Reporting
- Advanced Financial Accounting and Reporting
- Management Advisory Services
- Auditing
- Taxation
- Regulatory Framework for Business Transactions
Accounting Research
- Deals with continued research studies for professional growth and advancement in the field of accountancy
- Aims to discover new accounting procedures, principles, and standards tailored-fit to the global economy
Test your knowledge on producing tax returns for income tax, VAT, withholding tax, real estate tax, as well as auditing financial records to ensure accuracy and compliance with regulations.
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