Financial-Accounting-and-Reporting Free Exam Questions and Answers PDF Updated on Aug-2022
Latest Financial-Accounting-and-Reporting Exam Dumps Recently Updated 100 Questions
NEW QUESTION 36
In a stock market that displays strong efficiency, share prices reflect all available
- A. public information.
- B. information about future expansion plans.
- C. information about past changes in share prices.
- D. public and inside information.
Answer: D
NEW QUESTION 37
According to IASB's Conceptual Framework, an expense is a decrease in economic benefits in the form of
I.
outflows.
II.
decreases of assets.
III.
incurrences of liabilities.
IV.
contributions to equity holders.
- A. II, III and IV only
- B. I, II and IV only
- C. I, III and IV only
- D. I, II and III only
Answer: D
NEW QUESTION 38
Which one of the following would be included in a statement of financial position?
- A. cost of sales
- B. retained earnings
- C. proceeds from long term borrowings
- D. finance costs
Answer: B
NEW QUESTION 39
An element is recognised in the statement of financial position or statement of comprehensive income if
I.
the value of the item can be measured reliably.
II.
the value of the item can be measured accurately.
III.
it is certain that there will be future economic benefits associated with the item.
IV.
it is probable that there will be future economic benefits associated with the item.
Which of the above options are correct?
- A. III and IV only
- B. II and III only
- C. I and IV only
- D. I and III only
Answer: C
NEW QUESTION 40
An agent is answerable under the contract to the agent's principal and must account for the resources of the agent's principal and the money the agent has gained working on the principal's behalf. In the context of agency, this definition describes an agent's
- A. accountability.
- B. fiduciary duty.
- C. relationship.
- D. contract.
Answer: A
NEW QUESTION 41
Liquidity of a company is based on its ability to
- A. buy back shares.
- B. pay dividends to shareholders.
- C. meet short term commitments.
- D. meet long term commitments.
Answer: C
NEW QUESTION 42
Which one of the following best describes the objective of the International Financial Reporting Standards (IFRS) Foundation?
- A. to co-ordinate the accounting profession on a global scale by issuing and establishing international standards
- B. to guide investors who compare the financial statements of one entity in one country with those of another entity located elsewhere
- C. to promote the application, convergence and use of International Financial Reporting Standards (IFRS) as a high quality reporting solution
- D. to develop an International regulatory framework in the national jurisdictions of countries that produce accountants
Answer: C
NEW QUESTION 43
Which one of the following bodies makes accounting standards in Australia?
- A. IASB
- B. FRC
- C. ASIC
- D. AASB
Answer: D
NEW QUESTION 44
Which one of the following reports sets out how directors have run a company and if they implemented proper procedures to deal with matters like accountability, audits, directors' roles and responsibilities, internal controls and relations with shareholders?
- A. chairman's statement
- B. corporate social responsibility report
- C. director's report
- D. corporate governance statement
Answer: D
NEW QUESTION 45
Which one of the following methods is not used for 'creative accounting'?
- A. profit smoothing
- B. off balance sheet financing
- C. aggressive debt management
- D. window dressing
Answer: C
NEW QUESTION 46
The concept of transparency in corporate governance means that listed companies should disclose
- A. only mandatory information by management.
- B. their future strategy.
- C. confidential issues relating to competitors.
- D. material information that affects decisions.
Answer: D
NEW QUESTION 47
The International Federation of Accountants (IFAC) was established by
- A. the Organization for Economic Co-operation & Development.
- B. the International Accounting Standards Board.
- C. various professional accounting bodies.
- D. the United Nations.
Answer: C
NEW QUESTION 48
According to the IASB's Conceptual Framework, the key reason general purpose financial statements are produced is to satisfy the information needs of
- A. employees.
- B. internal users.
- C. management.
- D. capital providers.
Answer: D
NEW QUESTION 49
You assumed the role as the Chairperson of the Board of Directors of Daylight Ltd. As you start to write your first directors' report, which one of the following areas are you not required to include in your report?
- A. Details of any dividends paid or proposed.
- B. Details regarding accounting policies pursued by Daylight in preparation of its financial statements.
- C. Review of operations of Daylight during the year just ended and any likely developments in the future that may impact Daylight.
- D. Details regarding any significant changes to Daylight's state of affairs for the year that just ended.
Answer: B
NEW QUESTION 50
Venturer Ltd has received fees from venture capital activities and has engaged you as the accountant to prepare the financial report for 31 December 20X0. Unable to find a specific reference to venture capital fees in either the conceptual framework or the accounting standards, you establish the appropriate accounting treatment by
- A. referring to the fundamental accounting assumptions and conventions.
- B. using your professional judgment and referring to the conceptual framework's definitions and recognition criteria.
- C. consulting with the International Accounting Standards Board.
- D. using your professional judgment and referring to generally accepted accounting principles and practice.
Answer: B
NEW QUESTION 51
Which one of the following contributes to an efficient capital market?
- A. having stock markets in every country
- B. stock markets being managed by directors of companies that are listed on the stock market
- C. information about the stock market can be obtained cheaply
- D. stock markets ensuring that companies do not overcharge for their products
Answer: C
NEW QUESTION 52
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