100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
Previously searched by you
Test Bank for Financial Reporting 2nd Edition By Janice Loftus, Ken Leo, Sorin Daniliuc, Noel Boys, Belinda Luke, Hong Nee Ang, Karyn Byrnes (All Chapters, 100% Original Verified, A+ Grade)£19.95
Add to cart
Test Bank for Financial Reporting 2nd Edition By Janice Loftus, Ken Leo, Sorin Daniliuc, Noel Boys, Belinda Luke, Hong Nee Ang, Karyn Byrnes (All Chapters, 100% Original Verified, A+ Grade)
5 views 0 purchase
Module
Financial Reporting 2nd Edition By J
Institution
Financial Reporting 2nd Edition By J
This Is Original 2nd Edition of Test Bank From Original Author. All Other Files in the market are fake/old Edition. Other Sellers Have changed old Edition Number to new But Test Bank is old Edition.
Test Bank for Financial Reporting 2nd Edition By Janice Loftus, Ken Leo, Sorin Daniliuc, Noel ...
, Chapter 1: Accounting regulation and the conceptual framework
Chapter 1: Accounting regulation and the conceptual framework
Multiple choice questions
1. With regards to the Australian accounting standards, IASB stands for:
a. International Auditing Standards Board.
b. International Accounting Securities Body.
*c. International Accounting Standards Board.
d. International Accounting Statements Body.
Answer: c
Learning objective 1.3: explain the structure, role and processes of the International
Accounting Standards Board (IASB) and the IFRS Interpretations Committee (IFRIC).
2. Which of the following statements is false?
*a. The IFRS Advisory Council is directly accountable to the Monitoring Board.
b. Australia adopted international accounting standards issued on or after 1 January 2005.
c. The IASB and IFRS Interpretations Committee are appointed and overseen by a
geographically and professionally diverse group called the IFRS Foundation Trustees.
d. The IASB is an independent standard-setting board that develops and approves
International Financial Reporting Standards.
Answer: a
Learning objective 1.3: explain the structure, role and processes of the International
Accounting Standards Board (IASB) and the IFRS Interpretations Committee (IFRIC).
3. Which of the following is not a chapter in the IASB’s conceptual framework?
a. the Framework.
b. qualitative characteristics of useful financial reporting.
c. the objective of general purpose financial reporting.
*d. the issues with financial reporting.
Answer: d
Learning objective 1.4: explain the key components of the conceptual framework.
,Testbank to accompany Financial reporting 2e by Loftus et al.
4. Which of the following statements about the conceptual framework is true?
a. The conceptual framework deals only with the objective of special purpose financial
statements.
b. The Conceptual Framework for Financial Reporting provides guidelines intended to meet
the information needs of a range of users who are able to command that reports be prepared
to their own particular needs.
*c. The conceptual framework deals only with the objective of general purpose financial
statements.
d. the Conceptual Framework for Financial Reporting, SAC 1, and SAC 2 provides
guidelines on the preparation of financial statements for a specific group of users.
Answer: c
Learning objective 1.4: explain the key components of the conceptual framework.
5. The two fundamental qualitative characteristics of useful information are:
a. materiality and timeliness.
b. understandability and verifiability.
c. faithful representation and comparability.
*d. relevance and faithful representation.
Answer: d
Learning objective 1.5: explain the qualitative characteristics that make information in
financial statements useful.
6. For information to be considered material:
a. it must be complete.
b. it must not include any bias.
*c. its omission or misstatement could influence users’ decision-making.
d. it has a predictive or confirmatory value.
Answer: c
Learning objective 1.5: explain the qualitative characteristics that make information in
financial statements useful.
, Chapter 1: Accounting regulation and the conceptual framework
7. Costs of providing useful information include:
a. collection and processing costs.
b. dissemination costs.
c. verification costs.
*d. All of these options are costs of providing useful information.
Answer: d
Learning objective 1.5: explain the qualitative characteristics that make information in
financial statements useful.
8. If different independent observers could reach the same general conclusions that the
information represents then the quality of the information has achieved:
a. neutrality.
b. understandability.
*c. verifiability.
d. comparability.
Answer: c
Learning objective 1.5: explain the qualitative characteristics that make information in
financial statements useful.
9. Which of the following statements about the going concern assumption is not true?
a. it can justify the use of historical costs when measuring non-current assets.
b. it supports the use of assets such as Prepaid Expenses.
c. it supports the systematic allocation of depreciation over an asset’s useful life.
*d. it is used when an entity goes into liquidation.
Answer: d
Learning objective 1.6: discuss the going concern assumption underlying the preparation of
financial statements.
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller studentsupport96. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £19.95. You're not tied to anything after your purchase.
