Questions and Answers
What is considered as the “life-blood of a nation”?
Taxes
What replaces the Accounting Standards Council according to the text?
Philippine Financial Reporting Standards Council
What is the primary motive of a person engaged in business according to the text?
Profit
What are uniform sets of accounting rules, procedures, practices and standards that are followed in preparing financial statements called according to the text?
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What draws controversy but is used by accountants because of its reliability according to the text?
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Study Notes
Importance of Accounting
- Money is considered the "life-blood of a nation"
Accounting Standards
- The Accounting Standards Council (ASC) has been replaced by a new authority
- Uniform sets of accounting rules, procedures, practices, and standards are called Accounting Standards
- These standards are followed in preparing financial statements
Motivation in Business
- The primary motive of a person engaged in business is to earn a profit
Accounting Practices
- Historical cost accounting is a controversial practice, but it is used by accountants due to its reliability
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Description
Test your knowledge with this multiple-choice quiz on basic accounting concepts and principles. Choose the correct capital letter of the answer for each question.
