10 Questions
What is the primary purpose of accounting?
Recording, classifying, and summarizing economic events
What is the basic summary device of accounting?
An account
Which subject is NOT included in the scope of the Certified Public Accountant Examinations?
Economics
What is a requirement for applicants taking the Certified Public Accountant Examinations?
Being a Filipino Citizen
What is a qualification for applicants taking the Certified Public Accountant Examinations?
Holder of the degree of Bachelor of Science in Accountancy
Which business organization has unlimited liabilities and one-man control?
Sole Proprietorship
What type of business operation involves buying processed goods and selling them at a mark-up price?
Merchandising
In which business organization are the owners' liabilities limited?
Corporation
What type of business operation provides intangible services in exchange for money?
Service
Which business organization is characterized by a contractual relationship and sharing of profit/loss?
Partnership
Study Notes
Accounting Basics
- The primary purpose of accounting is to provide financial information to stakeholders for decision-making.
- The basic summary device of accounting is the Balance Sheet, which presents the financial position of a business at a specific point in time.
Professional Certifications
- The Certified Public Accountant (CPA) Examinations do not cover the subject of Engineering.
- To take the CPA Examinations, applicants must meet the educational requirement of 120-150 semester hours of college credit.
- A qualification for applicants taking the CPA Examinations is to meet the age requirement, which varies by state.
Business Organizations
- A sole proprietorship is a business organization characterized by unlimited liabilities and one-man control.
- A retail business operation involves buying processed goods and selling them at a mark-up price.
- In a limited liability company (LLC), the owners' liabilities are limited.
- A service business operation provides intangible services in exchange for money.
- A partnership is a business organization characterized by a contractual relationship and sharing of profit/loss.
Test your knowledge of accounting basics with this quiz. Explore concepts such as recording economic events, classifying transactions, and summarizing financial information. Challenge yourself with questions about accounts and the role of Certified Public Accountants.
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