[Jul-2021] Dumps Brief Outline Of The Financial-Accounting-and-Reporting Exam - SurePassExams
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NEW QUESTION 16
According to the IASB's Conceptual Framework, the key reason general purpose financial statements are produced is to satisfy the information needs of
- A. internal users.
- B. management.
- C. employees.
- D. capital providers.
Answer: D
NEW QUESTION 17
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. I and III only
- B. III and IV only
- C. I and IV only
- D. II and III only
Answer: C
NEW QUESTION 18
The chairperson of XYZ Company is concerned about the readability of the annual financial report that is about to be published on its website. XYZ Company is obliged to comply with International Financial Reporting Standards, and the report contains all of the required financial statements, the auditor's report, corporate governance statements, declarations of accounting policy, explanatory notes and a section that addresses the company's corporate social responsibility program.
The chairperson is wondering whether the report can be condensed. The issue that is concerning the chairperson is known as
- A. the cost of compliance.
- B. the costs of social responsibility reporting.
- C. the agency costs of monitoring.
- D. information overload.
Answer: D
NEW QUESTION 19
The use of the principle of substance over form is found in which one of the following accounting treatments?
- A. accounting for non-current assets
- B. accounting for finance leases
- C. accounting for property, plant and equipment
- D. accounting for inventories
Answer: B
NEW QUESTION 20
In a stock market that displays strong efficiency, share prices reflect all available
- A. public information.
- B. information about past changes in share prices.
- C. information about future expansion plans.
- D. public and inside information.
Answer: D
NEW QUESTION 21
Which one of the following would be included in the statement of financial position?
- A. depreciation
- B. distribution costs
- C. gains on property valuations
- D. deferred tax
Answer: D
NEW QUESTION 22
In applying accounting standards, an entity develops accounting policies that ensure that the financial statements present
- A. comparable and accurate financial information to all shareholders.
- B. relevant and reliable financial information.
- C. relevant and correct financial information to all interested shareholders.
- D. understandable and clear financial information to all interested shareholders.
Answer: B
NEW QUESTION 23
A statement of generally accepted theoretical principles which form the frame of reference for financial reporting refers to the
- A. Regulatory Framework.
- B. Generally Accepted Accounting Principles.
- C. International Financial Reporting Standards.
- D. Conceptual Framework.
Answer: D
NEW QUESTION 24
A company's financial report is compliant with International Financial Reporting Standards. Where in the report would an investor find the amount of money received by the company for investment activities?
- A. statement of financial position
- B. statement of comprehensive income
- C. statement of changes in equity
- D. statement of cash flows
Answer: D
NEW QUESTION 25
LMN Ltd recently changed the measurement base for their assets. They should I)treat this like a change in an estimate.
II)treat this like a change in the accounting policy.
III)disclose this in the notes to financial statements.
- A. I and III only
- B. III only
- C. I only
- D. II and III only
Answer: D
NEW QUESTION 26
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 27
Which one of the following situations would result in either a new liability being recognised or an existing liability being increased?
- A. A company establishes an asset revaluation reserve.
- B. A company pays only half of an overdue invoice.
- C. A company recognises the depreciation expense for the current period.
- D. At the end of the reporting period, there are unpaid wages.
Answer: D
NEW QUESTION 28
In relation to financial statements, the 'true and fair override' indicates that
- A. departure is allowed from accounting standards under specific instances to show a fair presentation.
- B. the true and fair requirement need not be complied with by certain industries.
- C. statements need not always be true and accurate.
- D. accounting standards must be complied with under all circumstances.
Answer: A
NEW QUESTION 29
Which one of the following describes the key advantage of the manual system of accounting?
- A. A thorough understanding of the business can be gained through it.
- B. Processing is maintained at a reasonable speed even while dealing with large volumes of data.
- C. The quality of output is not necessarily an issue.
- D. Corrections are easily managed as updating or recreating the whole document is not difficult.
Answer: A
NEW QUESTION 30
The body that is part of the international standard-setting framework reporting to the International Financial Reporting Standards Foundation (IFRS Foundation) is the
- A. International Accounting Standards Board.
- B. International Accounting Board.
- C. International Accounting Standards Committee.
- D. Centre on Transnational Corporations.
Answer: A
NEW QUESTION 31
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