Department of Accountancy: Page - 1
Department of Accountancy: Page - 1
Chapter 2
The Accountancy Profession
2. Which of the following is not an objective of the Philippine Accountancy Act of 2004?
A. The standardization and regulation of accounting education
B. The examination for registration of certified public accountants
C. The supervision, control, and regulation of the practice of accountancy in the
Philippines
D. The development and improvement of accounting standards that will be generally
accepted in the Philippines
A. I and II only
B. II and III only
C. I and III only
D. I, II, and III
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A. Members of the Integrated Bar of the Philippines are prohibited from teaching
business law and taxation subjects
B. Members of the Integrated Bar of the Philippines may be allowed to teach
business law and taxation subjects
C. The position of either the Dean or the Department Chairman or its equivalent that
supervises the Bachelor of Science in Accountancy program of an educational
institution is deemed to be in practice of accountancy in the academe/education
D. The position of either the Dean or the Department Chairman or its equivalent that
supervises the Bachelor of Science in Accountancy program of an educational
institution must be occupied only by a duly registered CPA.
7. A CPA is in the practice of accountancy in commerce and industry when he/she
A B C D
1. Is involved in decision making requiring
Professional knowledge in the science
Of accounting Yes No No Yes
2.Represents his/her employer before
Government agencies on tax and other matters
Related to accounting Yes No Yes No
3. Renders professional services as a CPA
To more than one client on a fee basis No Yes No Yes
8. Section 5 of the Accountancy Act of 2004 states that the Board of Accountancy shall
be composed of a chairman and
A. 2 members
B. 4 members
C. 6 members
D. 8 members
10. If the PICPA fails to submit to the PRC its own nominees within 60 days prior to the
expiry of the term of an incumbent chairman or member of the Board of Accountancy
(BOA), the PRC in consultation with the BOA shall submit to the President a list how
many nominees for each vacant position?
A. 2
B. 3
C. 4
D. 5
11. A member of the BOA shall, at the time of his/her appointment, possess which of the
following qualifications?
A. Must be a natural-born citizen of the Philippines
B. Must be a Filipino citizen
C. Must be a Filipino citizen and a resident of the Philippines
D. Must be a natural-born citizen and a resident of the Philippines
12. The Chairman and members of the Board of Accountancy shall hold office for a term
of
A. 2 years
B. 3 years
C. 4 years
D. 5 years
13. According to Section 7 of the IRR, no person who has served two successive complete
terms as chairman or member of the Board of Accountancy shall be eligible for
reappointment as chairman or member until the lapse of
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A. 1 year
B. 2 year
C. 3 year
D. 4 year
14. According to section 7 of the IRR, no person shall serve in the Board of Accountancy
for more than
A. 3 year
B. 5 year
C. 10 year
D. 12 year
17. According to section 9(A) of the IRR, the Commission, upon the recommendation of
the Board, shall create an accounting standard setting body to be known as the
A. Accounting Standards Council
B. Financial Reporting Standards Council
C. Accounting Standards Board
D. Financial Reporting standards Board
18. According to Section 9(A) of the IRR, the Commission, upon the recommendation of
the Board, shall create an auditing standard setting body to be known as the
A. Auditing and Assurance Standards Council (AASC)
B. Auditing Standards and Practices Council (ASPC)
C. Auditing Standards Board
D. Auditing Standards Council
19. This standard setting body shall have a chairman who had been or presently a senior
accounting practitioner in any of the scope of accounting practice
A. FRSC
B. AASC
C. PICPA
D. ACPAPP
20. This standard setting body shall have a chairman who had been or presently a senior
accounting practitioner in public accountancy
A. AASC
B. FRSC
C. ACPAE
D. BOA
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21. The Chairman and the members of the FRSC and AASC shall have a term of
A. 3 years
B. 5 years
C. 6 years
D. 7 years
23. Who has the power to suspend or remove any member of the Board of Accountancy?
A. The Chairman of the FRSC
B. The Chairman of the PRC
C. The Chairman of the AASC
D. The President of the Philippines
A. I and II only
B. I and III only
C. II and III only
D. I, II and III
25. The following documents shall be submitted by applicants for the CPA licensure
examination, except?
26. Section 16 of the IRR states that to be qualified as having passed the licensure
examination for accountants, a candidate must obtain
A. General average of seventy-five percent (75%), with no grades lower than sixty
percent (60%) in any given subject
B. General average of seventy-five percent (75%), with no grades lower than sixty-
five percent (65%) in any given subject
C. General average of seventy-five percent (70%), with no grades lower than sixty
percent (60%)
D. General average of seventy-five percent (70%), with no grades lower than sixty
percent (65%) in any given subject
27. A candidate who obtains the rating of seventy-five percent (75%) in at least a
majority of the subjects shall receive a conditional credit for the subjects passed.
He/she shall take an examination in the remaining subjects within how many years
from the preceding examination?
A. 1
B. 2
C. 3
D. 5
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28. A candidate who fails in two (2) complete CPA board examinations shall be
disqualified from taking another set of examinations unless he/she has completed at
least how many units of subjects given in the licensure examination?
A. 4
B. 8
C. 16
D. 24
29. The Board of Accountancy shall submit to the PRC the ratings obtained by each
candidate within how many calendar days after the examination?
A. 1
B. 2
C. 5
D. 10
32. The Board of Accountancy may reinstate the validity of a revoked Certificate of
Registration after the expiration of how many years from the date of revocation?
A. 1
B. 2
C. 3
D. 5
33. The following statements relate to the practice of public accountancy. Which is
incorrect?
A. Single practitioners and partners of partnerships organized for the practice of
public accountancy shall be registered CPAs in the Philippines
B. A partnership engaged in the practice of public accountancy may be carried on in
the form of a general partnership (GP) but not a limited liability partnership (LLP)
C. A CPA is in public accounting practice when he/she represents his/her clients
before government agencies on tax and other matters related to accounting
D. The Securities and Exchange Commission shall not register any corporation
organized for the practice of public accountancy
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subpoena issued by any court, tribunal, or government regulatory or
administrative body
35. All registered CPAs shall obtain and use a seal which shall be circular in form with
bearing the registrant’s name, registration number and title. Which of the following is
correct?
A. Engraved in the lower portion of the space between the circles is the CPA’s name
B. Engraved in the upper portion of the space between the circles is the CPA
registration number
C. Engraved in the middle of the smaller circle are the CPA’s name and registration
number
D. Engraved in the middle of the smaller circle is the CPA’s name
36. Section 36 (penal provision) of RA 9298 states that any person who shall violate any
of the provisions of the Act or any of its implementing rules and regulations shall,
upon conviction, be punished by
A. A fine not less than P50,000
B. Imprisonment for a period not exceeding two (2) years.
C. A fine of not less than P50,000 or by imprisonment for a period not exceeding two
(2) years
D. A fine of not less than P50,000 or by imprisonment for a period not exceeding two
(2) years, or both
37. Which of the following is the accredited national professional organization of CPAs
(APO)?
A. PICPA C. AASB
B. ASC D. FRSC
38. Tanya, Sam, and Jervi, CPAs, a newly formed partnership, applied for a registration
with the Commission and the Board which was approved on June 30, 2012. The
partnership should apply for renewal of its registration on or before
A. September 30, 2014
B. September 30, 2015
C. December 31, 2016
D. June 30, 2015
39. Which of the following statements concerning the use of firm or partnership name is
incorrect?
A. In the case of an individual CPA, he/she shall do business under his/her registered
name with the BOA and the PRC and as printed in his/her CPA certificate (for
example, Juan puruntong, CPA).
B. In the case of a firm, it shall do business under its duly registered and authorized
firm name appearing in the registration documents issued by the Department of
Trade and Industry (DTI) and other government offices and such firm name shall
include the real name of the sole proprietor as printed in his/her CPA certificate
(for example, Arnulfo Gumamela and Associates)
C. In the case of a registered partnership, it shall do business under its name as
indicated in its current Articles of partnership and Certificate of Registration
issued by the Securities and Exchange Commission (SEC) (for example, Tanya,
Sam, and Jervi, CPAs)
D. A CPA shall practice only under an individual, firm, or partnership name in
accordance with the Philippine laws and shall not include any fictitious name but
may indicate specialization.
40. A partner surviving the death or withdrawal of all the other partners in a partnership
may continue to practice under the partnership name for a period of not more than
________ years after becoming a sole proprietor.
A. 1 C. 3
B. 2 D. 4
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41. The death or disability of an individual CPA and/or the dissolution and liquidation of a
firm or partnership of CPAs shall be reported to the BOA not later than _____ days
from the date of such death, dissolution or liquidation.
A. 15 C. 60
B. 30 D. 90
42. As defined in the Annex “C” of the IRR, this refers to the inculcation, assimilation and
acquisition of knowledge, skills, proficiency and ethical and moral values, after the
initial registration of a professional that raise and enhance the professional’s
technical skills and competence.
A. Professional Development
B. Continuing Professional Education
C. Continuing Professional Development
D. Professional Growth and Development
43. The PRC CPE council shall assist the BOA in implementing its CPE program. Which of
the following statements is incorrect concerning the council’s composition?
A. The PRC CPE Council shall be composed of a chairperson and two (2) members
B. The Chairperson shall be chosen from among the members of the BOA by the PRC
C. The first member shall be the President or, in his/her absence or incapacity, any
officer chosen by the Board of Directors of PICPA
D. The second member shall be the President or, in his/her absence or incapacity,
any officer of the organization of Deans or Department Heads of schools, colleges
or universities offering the degree requiring licensure examination.
44. The following statements relate to CPE credit units. Which is incorrect?
A. The total CPE credit units for registered accounting professionals shall be sixty
(60) credit units for three (3) years, provided that a minimum of fifteen (15)
credit units shall be earned in each year.
B. Any excess credit units in one year may be carried over to the succeeding
years within the three-year period.
C. Excess credit units in earned may be carried over to the next three-year
period except credit units earned for doctoral and master’s degrees
D. One credit hour of CPE program, activity or source shall be equivalent to one
(1) credit unit
45. The following statements relate to the exemption from CPE requirements. Which is
false?
A. A registered professional shall be permanently exempted from CPE requirements
upon reaching the age of 60 years old.
B. A registered professional applying for permanent CPE exemption is required to
submit an authentic or authenticated copy of his/her birth certificate or, if not
available, his/her voter’s ID or driver’s license
C. A registered professional who is working or practicing his/her profession abroad
shall be temporarily exempted from compliance with CPE requirements during the
period of his/her stay abroad provided that he/she has been out of the country for
at least two years immediately prior to the date of renewal.
D. A registered professional who is furthering his/her studies abroad shall be
temporarily exempted from compliance with CPE requirements during the period
of his/her stay abroad provided that he/she has been out of the country for at
least two years immediately prior to the date of renewal.
46. Which of the following statements concerning a CPA’s disclosure of confidential client
information is ordinarily correct?
A. Disclosure may be made to any party on consent of the client
B. Disclosure should not be made even if such disclosure will protect the CPA’s
professional interests in legal proceedings
C. Disclosure should be made only if there is a legal or professional duty to make the
disclosure
D. Disclosure may be made to any government agency without subpoena
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47. Listed below are names of four CPA firms and pertinent facts relative to each firm.
Unless otherwise indicated, the individuals named are CPAs and partners, and there
are no other partners. Which is a violation of the Implementing Rules and Regulations
of RA 9298?
A. Tin, Ton and Tan, CPAs (Tin died about five years ago; Ton and Tan are continuing
the firm.)
B. Poe and Que, CPAs (The name of Cua, a third partner, is omitted from the
partnership name)
C. Joni and Jona, CPAs (Joni died about three years ago; Jona is continuing the firm as
a sole proprietor.)
D. Elias and Co., CPAs (The firm has ten other partners who are all CPAs)
48. Which of the following has the power to conduct an oversight into the quality of
audits of financial statements through the review of the quality control measures
instituted bu auditors?
A. Bureau of Internal Revenue
B. Securities and Exchange Commission
C. Board of Accountancy
D. Insurance Commission
49. In the exercise of its power to conduct an oversight into the quality of audits, the BOA
organized the ________ Department of the Philippine Institute of Certified Public
Accountants (PICPA) to conduct an independent study, appraisal or review of the
quality of audit of financial statements.
A. Quality Assurance Review
B. Quality Control Review
C. Independent Quality Assurance Review
D. Independent Quality Control Review
50. The operation of the Quality Assurance Review Department (QARD) of the PICPA shall
be supervised by a/an
A. Executive Committee
B. Supervisory Board
C. Oversight Committee
D. Accountability Board
52. Which of the following is an incorrect statement concerning the term of office of the
Executive Committee members?
A. The term of office of the Chairman and members shall be co-terminus with their
respective term in the BOA or PICPA unless replaced earlier by the board of PICPA
B. The term of office of the Chairman and members in no case shall be more than 3
years
C. The Chairman and members may continue to be in active practice of public
accountancy during their term, subject to certain restrictions imposed by the
Board
D. The Chairman of the Executive Committee shall be from the Board’s appointees
53. The Head of the QARD who will be appointed by the Executive Committee is the
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A. Chief Inspector
B. Chief of Administration
C. Chief Auditor
D. Chief Quality Assurance Reviewer
54. Which of the following is incorrect qualification of the Chief Inspector of the QARD?
A. Must have at least 5 year experience in the practice of public accountancy
B. Must be of good moral character
C. Must not have been found guilty of violating any professional, ethical and
regulatory auditing standards
D. Must have reached the level of senior manager or partner of an accounting firm
that has among its clients, publicly listed entities
55. Who is responsible for the non-technical aspect of the QAR program?
A. Chief Inspector
B. Chief of Administration
C. Assistant to the Chief Inspector
D. Chairman of the Executive Committee
57. Which of the following statements concerning enrolment in QAR program is/are
correct?
I. Enrolment in the QAR program under the prescribed category is a pre-
requisite for accreditation or renewal of accreditation as a CPA in public
practice by the Board of Accountancy
II. The CPA practitioner’s registration category should be stated in the BOA
certificate of accreditation
A. I only
B. II only
C. Both I and II
D. Neither I nor II
58. CPAs in public practice are required to register with the QAR program under the
prescribed category. Those whose clients are public-interest entities (listed and not-
listed but with public accountability) should register under
A. Category A
B. Category B
C. Category C
D. Category D
59. Public-interest entities include publicly-listed entities and not-listed entities but with
public accountability. The following are example of not-listed public-interest entities,
except
A. Entities which have sold a class of their securities pursuant to a registration under
section 12 of the Securities Regulation Code
B. Entities with asset of at least P50 million and having 200 or more holders each
holding at least 100 shares of a class of its equity securities as the first day of the
issuer’s fiscal year
C. Entities which are in the process of filing their financial statements for the
purpose of issuing any class of instruments in a public market
D. Entities not in the process of filing their financial statements for the purpose of
issuing any class of instruments in a public market
60. There are rules to observe in connection with the registration of CPA practitioners
with the QAR program. Which is incorrect?
A. A CPA practitioner will register in only one category division
B. Change in registration category is not allowed
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C. Change in registration sub-category due to the change in the number of clients
should be done upon renewal of registration within the first two months of each
calendar year
D. All applications for registration must include information as to the number of
clients classified as to public-interest entities using full IFRS and small and
medium-sized entities using IFRS for SMEs
62. Which of the following requirements for the accreditation of accounting teachers shall
not apply to those CPAs already engaged in teaching as of the effectivity date of the
Rules and Regulations?
I. Possession of relevant Master’s degree
II. Completion of 12 units of relevant education subjects from the CHED
recognized schools
III. A total of 3 years meaningful experience in actual accounting work either in
Public Practice, Commerce and Industry or Government Sector
IV. Proof that the CPA has undergone Continuing Professional Education (CPE)
A. I and II only
B. II and III only
C. I and IV only
D. II only
63. The following statements relate to the requirement to complete 12 units of relevant
education subjects for the accreditation of accounting teachers. Which is incorrect?
A. For purposes of compliance, the 12 units may be earned from the undergraduate
education program or from a graduate degree program of any Higher Education
Institution (HEI) duly recognized by CHED
B. The 12 units may be earned from in-service or in-house trainings on relevant
education subjects offered by schools or training centers.
C. The 12 units may be a combination of in-service trainings and units earned in an
undergraduate or graduate education programs
D. CPAs who have passed the Teachers Board Exam and are licensed Professional
Teachers should earn the 12 units through in-service or in-house trainings.
64. Which of the following shall be considered proof of compliance with the CPE
requirement for accreditation of accounting teachers?
I. Certification of CPE units from accredited CPE providers issued by the PICPA
II. Certificate of attendance or other proofs of meaningful participation in other CPE
programs as approved by the PRC/CPE Council upon recommendation of the
PICPA of the individual CPA of a minimum of sixty (60) credit units earned for the
past immediate 3 years
A. I only
B. II only
C. Either I or II
D. Neither I nor II
65. What is the required minimum number of CPE credit units that an accounting teacher
shall earn in each year prior to renewal of accreditation?
A. 15 units
B. 20 units
C. 10 Units
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D. No minimum number of credit units required
66. The Certificate of Accreditation issued by the PRC to an accounting teacher shall
A. Be valid for 2 years and renewable every 2 years
B. Be valid initially for 3 years and renewable annually
C. Remain in full force and effect unless revoked, cancelled or withdrawn
D. Be valid for 3 years and renewable every 3 years
67. According to the Transitory Provisions of the BOA Resolution No. 88,any tenured/full
time/full load faculty member who does not meet the accreditation requirements as
of the effectivity date of the Rules and Regulations may be issued a Provisional
Accreditation. Choose the correct statement.
I. The Provisional Accreditation will be valid for a period not exceeding 3 years
unless earlier withdrawn, revoked, or cancelled for cause by the BOA.
II. The Provisional Accreditation may be issued only once and is not renewable
III. The transitory provision shall also apply to returning teachers who have not
been teaching for the last 5 years.
A. I only
B. I and II only
C. II and III only
D. I, II, and III
69. Which of the following laws/regulations govern the registration of corporations and
partnerships with the SEC?
A. Civil Code
B. Corporation Code of the Philippines
C. Securities Regulation Code
D. A, B, and C
70. Which of the following entities need not be registered with the SEC?
A. Sole proprietorships
B. General and limited partnerships
C. Stock corporations
D. Non-stock corporations
71. The SEC is composed of a chairperson and four (4) commissioners appointed by the
President of the Philippines for a term of
A. 3 years C. 7 years
B. 6 years D. 8 years
72. The following statements relate to the qualifications of the SEC commissioners.
Which is incorrect?
A. The commissioner must be a natural-born citizens of the Philippines
B. The commissioners must be of good moral character, of unquestionable integrity,
of known probity and patriotism, and with recognized competence in social and
economic disciplines.
C. The majority of the commissioners, including the Chairperson, shall be members
of the Philippine Bar
D. The Chairperson and the commissioners must be at least thirty-five (35) years of
age.
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73. Subsection 8.1 of the Securities Regulation Code (SRC) provides that securities shall
not be sold or offered for sale or distribution within the Philippines without a
A. Registration Statement
B. Register of Securities
C. Certificate of Accreditation
D. Certificate of Registration
74. The following securities are exempted from the registration requirement under
Subsection 8.1 of the Securities Regulation Code (SRC) except
A. A bank’s own shares of stocks
B. Any security issued or guaranteed by the Government of the Philippines
C. Any security issued by the Government of any country with which the Philippines
maintains diplomatic relations on the basis of reciprocity
D. Any security or its derivatives, the sale or transfer of which, by law, is under
supervision and regulation of the Office of the Insurance Commission, Housing
and Land Use Regulatory Board, or the Bureau of Internal Revenue
75. The following transactions are exempted from the registration requirement under
Subsection 8.1 of the Securities Regulation Code (SRC), except
A. The distribution by a corporation, actively engaged in the business authorized by
its articles of incorporation, of securities to its stockholders as a stock dividend
B. The sale of securities by an issuer to more than twenty (20) persons in the
Philippines during any 12-month period.
C. The issuance of bonds and notes secured by mortgage upon real estate or
tangible personal property, where the entire mortgage together with the bonds or
notes secured thereby are sold to a single purchaser at a single sale.
D. Broker’s transactions, executed upon customer’s orders, on any registered
Exchange or other trading market
76. Rule 68 of the Securities Regulation Code (SRC) prescribes the requirements
applicable to the form and content of financial statements to be filed by stock
corporations except those whose paid-up capital is less than
A. P500,000 C. P250,000
B. P50,000 D. P400,000
77. The audited financial statements to be filed with the SEC shall be accompanied by a
A. Management Report
B. Registration Statement
C. Statement of Management’s Responsibility for Financial Statements
D. Statement of the Board of Directors’ Responsibility for Financial Statements
79. In addition to the requirements prescribed under part I of Rule 68, as amended, Part
II of the Rule prescribes special requirements on the financial statements required to
be filed with the SEC by
I. An issuer which has sold a class of its securities pursuant to a registration
under Section 12 of the SRC
II. An issuer with a class of securities listed for trading on an Exchange
III. An issuer with assets of at least P50,000,000 and has 20 or more holders,
each holding at least 100 shares of a class of its equity securities as the first
day of the issuer’s fiscal year
A. I only C. II and III only
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B. II only D. I, II, and III
80. The financial statement to be filed with the SEC shall be presented in comparative
form. The audited balance sheets or statement of financial position shall be as of the
end of each of the _____ business days from the date the report is submitted by the
independent auditor.
A. 2 C. 4
B. 3 D. 5
81. SRC Rule 68, as amended, requires a regulated entity to report to the SEC its action
on a report of its independent auditor pertaining to any material findings involving
fraud or error within ______ business days from the date the report is submitted by
the independent auditor.
A. 2 C. 4
B. 3 D. 5
82. If a regulated entity fails to submit the required report of its action concerning any of
the audit findings specified in Rule 68, as amended, the independent auditor shall,
within ______ business days from the submission of his findings to the entity, file a
report to the SEC.
A. 10 C. 20
B. 15 D. 30
83. According to Part II of Rule 68, as amended, the Rule is considered violated if the
auditor’s opinion on the financial statements of listed entities or other issuers of
securities to the public is other than unqualified because of
I. Deviation(s) from the required financial reporting framework
II. A scope limitation imposed by the company
A. I only C. Either I or II
B. II only D. Neither I nor II
85. Which of the following is not a function of the Bangko Sentral ng Pilipinas (BSP)?
A. Recommend measures to improve the efficiency and effectiveness of government
operations
B. Supervise banks and exercise regulatory powers over non-bank institutions
performing quasi-bank functions
C. Determine the exchange rate policy of the Philippines
D. Extend discounts, loans, and receivables to banking institutions for liquidity
purposes
86. The powers and functions of the BSP shall be exercised by the
A. Board of Directors
B. Monetary Board
C. Board of Trustees
D. BSP Governor
87. The BSP Monetary Board is composed of seven (7) members appointed by the
President of the Philippines for a term of
A. 6 years C. 7 years
B. 5 years D. 3 years
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88. The seven members of the Monetary Board are
A. The BSP governor, a member of the cabinet to be designated by the President of
the Philippines, and five (5) members from the private sector
B. The BSP governor and six (6) members from the private sector
C. A cabinet member and six (6) members from the private sector
D. The BSP governor, 2 members of the cabinet to be designated by the President of
the Philippines, and four (4) members from the private sector
90. In its Circular No. 245, Series of 2000, the BSP requires that only external auditors
accredited by the BSP shall be engaged by the banks for regular audit or special
engagements. Which of the following is not an accreditation requirement for external
auditors?
A. No external auditor may be engaged by a bank if he/she had or was committed to
acquire any direct or material indirect financial interest in the bank, or if his/her
independence is considered impaired under the circumstances specified in the
Code of Professional Ethics for CPAs.
B. The external auditor and the members of the audit team do not have/shall not
have outstanding loans or any credit accommodations (including credit card
obligations) with any bank to be audited / being audited at the tie of signing the
engagement and during the engagement
C. The external auditor should have at least five (5) years track record in conducting
external audit
D. The external auditor and the member of the audit team adhere to the highest
standards of professional conduct, including integrity and objectivity.
91. One of the documents that should be submitted by an auditor who is applying for BSP
accreditation is a Certificate from the Professional Regulation Commission (PRC) that
the external auditor and the members of the audit team have no derogatory
information, previous conviction or any pending investigation. However, in the event
that the certification cannot be obtained because of pendency of a case, the BSP may
dispense with this requirement if the case
A. Involves purely legal question
B. Does not, in any way, negate the auditor’s adherence to the highest standards of
professional conduct and degrade his/her integrity and objectivity
C. Either A or B
D. Neither A nor B
92. Which of the following cases that may be discovered by a Bangko Sentral ng Pilipinas
(BSP) accredited external auditor during his/her audit fieldwork must be reported to
the BSP?
I. Any material finding discovered during the period of audit involving fraud or
dishonesty (except cases that were resolved during the audit period)
II. Adjustments or potential losses, the aggregate of which amounts to at least
1% of the capital funds of the bank.
III. Any finding to the effect that the total bank assets, on a going concern basis,
are no longer adequate to cover the total claims of creditors.
A. I only C. II and III only
B. I and II only D. I, II, and III
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93. All banks are required to prepare the financial reporting Package (FRP). The FRP,
composed of the balance sheet, income statement, and supporting schedules, shall
be prepared on a solo and consolidated basis. Solo basis shall refer to the
combined financial statements of the
A. Head office and subsidiaries
B. Head office and branches/other offices
C. Parent bank, head office, and subsidiaries
D. Parent bank and subsidiaries
94. Within how many banking days after the end of the reference quarter should banks
submit their consolidated FRP to the BSP?
A. 10 C. 15
B. 20 D. 30
95. Within how many banking days after the end of the reference month or quarter
should banks submit their solo balance sheet and solo income statement to the
Bangko Sentral ng Pilipinas?
A. 10 C. 15
B. 20 D. 30
98. The COA Chairman and the two (2) commissioners shall be appointed by the
President of the Philippines with consent of the Commission on Appointments for a
term of
A. 5 years C. 7 years
B. 6 years D. 9 years
99. Which of the following is not one of the principal duties of the COA?
A. Keep the general accounts of the government and preserve the vouchers and
supporting papers pertaining thereto
B. Maintain price stability conducive to a balanced and sustainable economic growth
C. Promulgate accounting and auditing rules and regulations including those for the
prevention and disallowance of irregular, unnecessary, excessive, extravagant or
unconscionable expenditures, or uses of government funds and properties
D. Submit to the President of the Philippines and Congress, within the time fixed by
law, an annual report covering the financial condition and operation of the
government
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