This quiz works best with JavaScript enabled. Home > Accounting > Financial Reporting > Financial Reporting – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Reporting Quiz 10 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The impairment of intangible assets with finite lives affects: A) The balance sheet but not the income statement. B) The income statement but not the balance sheet. C) Both the balance sheet and the income statement. D) None of above. Show Answer Correct Answer: C) Both the balance sheet and the income statement. 2. Another term for Creative Accounting is..... A) Aggressive accounting. B) Earning management. C) Impression management. D) Profit smoothing. E) Bank robbery. Show Answer Correct Answer: A) Aggressive accounting. 3. ..... is a regulatory body that is responsible to develop and regulate capital market in Malaysia. A) Malaysian National Bank. B) Malaysian Accounting Standards Board. C) Securities Commission. D) Registrar of Companies. Show Answer Correct Answer: C) Securities Commission. 4. The three major classifications of activities in a cash flow statement are: A) Inflows, outflows, and net flows. B) Operating, investing and financing. C) Revenues, expenses, and net income. D) None of above. Show Answer Correct Answer: B) Operating, investing and financing. 5. If tested more than once by different parties, the results show conclusions that are not much different A) Relevant. B) Reliable. C) Can be compared. D) Understandable. Show Answer Correct Answer: B) Reliable. 6. Which of the following disclosures regarding new accounting standards provides the most meaningful information to an analyst? A) The impact of adoption is discussed. B) The standard will have no material impact. C) Management is still evaluating the impact. D) None of above. Show Answer Correct Answer: A) The impact of adoption is discussed. 7. The most likely company to use a liquidity-based balance sheet presentation is a: A) Bank. B) Computer manufacturer holding inventories. C) Software company with trade receivables and payables. D) None of above. Show Answer Correct Answer: A) Bank. 8. How does financial reporting contribute to transparency in a company? A) By keeping all financial information confidential. B) By disclosing only favorable financial data. C) By providing accurate and comprehensive financial information to stakeholders. D) By sharing misleading information about the company's performance. Show Answer Correct Answer: C) By providing accurate and comprehensive financial information to stakeholders. 9. Which statements is false concerning users and their information needs? A) Lenders are interested in information that enables them to determine whether their loans and the interest on these loans will be paid when due. B) The providers of risk capital and their advisers are concerned with the risk inherent in, and return provided by their investment. C) Government and its agencies have an interest in information about the continuance of an enterprise especially when they have long-term involvement or are dependent on the enterprise. D) Employees and their representative groups are interested in information about the stability and profitability of the entity. Show Answer Correct Answer: C) Government and its agencies have an interest in information about the continuance of an enterprise especially when they have long-term involvement or are dependent on the enterprise. 10. Financial reports must be presented on time A) Relevant. B) Reliable. C) Can be compared. D) Understandable. Show Answer Correct Answer: A) Relevant. 11. William and Benjamin are studying for their business exam. Ava, their tutor, asks them, 'Which financial statement would you look at to find information about a company's assets and liabilities?' A) Balance Sheet. B) Statement of Financial Position. C) Cash Flow Statement. D) Statement of Income. Show Answer Correct Answer: A) Balance Sheet. 12. Accounting information is considered to be relevant when it A) Is capable of making a difference in a decision. B) Is verifiable and neutral. C) Can be depended on to represent the economic conditions and events that it is intended to represent. D) Is understandable by reasonably informed users of accounting information. Show Answer Correct Answer: A) Is capable of making a difference in a decision. 13. Jabroni's Meat Market recorded dividends of $ 30, 000. The correct journal entry to record the closing entry for the Dividends account is: A) Debit Retained Earnings, $ 30, 000; credit Dividends Payable, $ 30, 000. B) Debit Dividends Payable, $ 30, 000; credit Retained Earnings, $ 30, 000. C) Debit Dividends, $ 30, 000; credit Retained Earnings, $ 30, 000. D) Debit Retained Earnings, $ 30, 000; credit Dividends, $ 30, 000. Show Answer Correct Answer: D) Debit Retained Earnings, $ 30, 000; credit Dividends, $ 30, 000. 14. Which of the following is most likely to appear in the operating section of a cash flow statement under the indirect method? A) Net income. B) Cash paid to suppliers. C) Cash received from customers. D) None of above. Show Answer Correct Answer: A) Net income. 15. Harmonization A) Is different from standardization. B) Harmonization allows for different standards in different countries as long as there are not logical conflicts. C) Standardization involves using the same standards in different countries. D) C, B, A true. Show Answer Correct Answer: D) C, B, A true. 16. Which groups of people are most likely to be interested in the financial statements of a sole trader?1. Shareholders of the company2.The business's bank manager3. The tax authorities4. Financial analysts A) 1 and 2 only. B) 2 and 3 only. C) 2, 3 and 4 only. D) 1, 2 and 3 only. Show Answer Correct Answer: B) 2 and 3 only. 17. Bank overdraft is generally presented as A) Current assets. B) Non-current assets'. C) Short term liabilities. D) Long-term obligation. Show Answer Correct Answer: C) Short term liabilities. 18. It identifies the sources of cash inflows, the items on which cash was expended during the reporting period, and the cash balance as at reporting date A) Statement of Cash Flows. B) Statement of Cash Inflows. C) Statement of Cash Inflows. D) Statement of Cash Balance. Show Answer Correct Answer: A) Statement of Cash Flows. 19. In case of first time implementation of Ind AS, there is an option to record PPE at: A) Fair value. B) Cost. C) Both of the above. D) None of above. Show Answer Correct Answer: C) Both of the above. 20. An entity may decide to include income or expenses in other comprehensive income when doing so would result in the statement of profit or loss providing more relevant information, or providing a more faithful representation of the entity's performance for the period A) True. B) False. Show Answer Correct Answer: B) False. ← PreviousNext →Related QuizzesAccounting QuizzesFinancial Reporting Quiz 1Financial Reporting Quiz 2Financial Reporting Quiz 3Financial Reporting Quiz 4Financial Reporting Quiz 5Financial Reporting Quiz 6Financial Reporting Quiz 7Financial Reporting Quiz 8Financial Reporting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books