3/14/22, 3:37 PM Quiz: Part I - True or False

Part I - True or False

Started:
Mar 14 at 3:30pm

Quiz Instructions
Instruction: Answer either True or False.

Question 1 1 pts

If an entity receives information after the reporting period about conditions that
existed at the end of the reporting period, it shall not update disclosures that relate to
those conditions as those existed at the end of the reporting period already. 

True

False

Question 2 1 pts

An entity may decide to include income or expenses in other comprehensive income

when doing so would result in the statement of profit or loss providing more relevant
information, or providing a more faithful representation of the entity’s performance for
the period.

True

False

Question 3 1 pts

 The Conceptual Framework can override the requirements in a Standard.

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3/14/22, 3:37 PM Quiz: Part I - True or False

True

False

Question 4 1 pts

The definition of control can be split in two parts: ability to direct the use of, and obtain
benefits from the asset.

True

False

Question 5 1 pts

Comprehensive income refers to all changes in equity during a period except those
from owners' investments and dividends.

True

False

Question 6 1 pts

When assessment of when control has been transferred should be made from the
perspective of the customer.

True

False

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3/14/22, 3:37 PM Quiz: Part I - True or False

Question 7 1 pts

Some items that do not meet the definition of an asset, a liability or equity may be
recognized in the statement of financial position.

True

False

Question 8 1 pts

Whenever comprehensive income is listed on the balance sheet, the statement of

comprehensive income must be included in the general purpose financial statements
to give external users details about how comprehensive income is computed.

True

False

Question 9 1 pts

Only a legal entity can be a reporting entity.

True

False

Question 10 1 pts

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3/14/22, 3:37 PM Quiz: Part I - True or False

The accounting standards and interpretations fully observed and operating in the
Philippines as issued by the Accounting Standard Council (ASC), Financial Reporting
Standard Council (FRSC), Interpretation Committee (IC), and Philippine Interpretation
Committee (PIC) are practically accounting issuances and interpretation issued by the
counterpart organizations at the international level.

True

False

Question 11 1 pts

International Accounting Standards is set of principle-based international accounting

standards stating how particular types of transactions or other business events should
be reported and presented in the financial statements.

True

False

Question 12 1 pts

Parallel to the worldwide development of accounting organization, the creation of the

IASB resulted in the formation of the Financial Reporting Standards Council in the
Philippines.

True

False

Question 13 1 pts
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3/14/22, 3:37 PM Quiz: Part I - True or False

The interpretation and guiding committee formed by the FRSC is known as the
Philippine Interpretation Committee (PIC).

True

False

Question 14 1 pts

Both the International Standards and the Philippine Standards embody the set of
theoretical concepts and terms called Conceptual Framework.

True

False

Question 15 1 pts

In the absence of a specific standard or interpretation, preparers of financial

statements use the US GAAP to develop and design accounting policies.

True

False

Question 16 1 pts

Conceptual framework is broad in terms of perspective, scope, and application, while

the PFRS / IFRS are specific.

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3/14/22, 3:37 PM Quiz: Part I - True or False

True

False

Question 17 1 pts

Conceptual Framework simply embodies different concepts or assumptions when

preparing all-purpose financial statements.

True

False

Question 18 1 pts

Conceptual Framework is concerned with general-purpose financial statements

including consolidated financial statements.

True

False

Question 19 1 pts

Special-purpose financial reports are outside the scope of the Conceptual Framework
like prospectuses and computations prepared for taxation purposes.

True

False

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3/14/22, 3:37 PM Quiz: Part I - True or False

Question 20 1 pts

The definition of a legal entity is an entity where it is reasonable to expect that there

are users dependent on a general purpose financial reports (GPFR) to gain an
understanding of the financial position and performance of the entity, and to make
decisions based on this financial information and other information contained in the
financial report.

True

False

Question 21 1 pts

Financial statements rarely show the results of management’s stewardship of the

resource entrusted to it.

True

False

Question 22 1 pts

Financial information is said to have confirmatory value if it can be used as an input to

processes employed by users to predict future outcomes.

True

False

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3/14/22, 3:37 PM Quiz: Part I - True or False

Question 23 1 pts

Financial statements must present truthfully the condition of the business. It must be
complete, neutral and free from errors. Financial statements possess the qualitative
characteristic of relevance.

True

False

Question 24 1 pts

•The cost constraint is a threshold used to determine whether business transactions

are important to the financial results of a business.

True

False

Question 25 1 pts

The materiality constraint is a GAAP constraint which stipulates that the benefits of

reporting financial information should justify and be greater than the costs imposed on
supplying it.

True

False

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