I.

True or False

Directions: Read each statement below carefully. Write TRUE if the statement it correct and FALSE
if the statement is not correct.

1. The basic purpose of accounting is to supply financial information to users of the information.
2. The chief accounting officer and plays an important role in heading the entire accounting
department is called controller
3. The Commission on Audit is also concerned with information which can be provided by financial
statements.
4. Financial Accounting presents the plan of operation for a period and through reports and
summaries.
5. Interpreting of financial data is achieved through the preparation of financial statements or reports
6. Management is also a user of financial statements.
7. Public accountants are frequently referred to as administrative or management accountants.
8. In cash basis, income is recognized when it is earned regardless of when cash is received.
9. The Framework is a Philippine Financial Reporting Standard (PFRS.)
10. The summarization phase be interpreted or analyzed to evaluate the liquidity, profitability and
solvency of the business organization.

II. Identification

Directions: Identify the following statements. Choose your answer in the box.

1. It is special field concerned with the design and implementation of procedures.

2. They are interested in the financial statements of a business.
3. The chief accounting officer and plays an important role in heading the entire accounting
department
4. It is the newest field of accounting and is the most difficult to describe concisely.
5. The proprietor of the business who would want to be assured the safety of the investments.
6. It specializes in recording and reporting of transactions in various government units and other
non-profit organizations.
7. It is concerned with the recording of transactions for a business enterprise or other economic unit.
8. It is a field of activity involving an independent review and examination of the accounting
records.
9. It refers to the group of people to whom management of the business has been entrusted.
10. It is concerned with the information which can be quantified and express in terms of money

STABLE MONETARY UNIT OWNER FINANCIAL ACCOUNTING

CONTROLLER MANAGEMENT NOT-FOR-PROFIT ACCOUNTING

OTHERS SOCIAL ACCOUNTING BUSINESS ENTITY PRINCIPLE

AUDITING