This quiz works best with JavaScript enabled. Home > Accounting > Financial Reporting > Financial Reporting – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Reporting Quiz 13 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Based on the standards, income, expenses and other income/expenses must be reported as..... A) Income from operations. B) Earning before tax. C) Income from discontinued operations. D) Gross income. Show Answer Correct Answer: A) Income from operations. 2. IASB Framework A) A. Created to build accounting standards systematically. B) B. Created to systematically replace accounting standards. C) C Presents the basis for presenting financial statements in accordance with IFRS. D) D. A and C are true. Show Answer Correct Answer: D) D. A and C are true. 3. Technically, creative accounting provides accounting choices that allow increasing the value of the firm, namely..... A) Increase Income and Reduce Assets. B) Reducing Expenses and Increasing Debt. C) Increase Assets and Reduce Expenses. D) Lowering Debt and Raising Charges. Show Answer Correct Answer: C) Increase Assets and Reduce Expenses. 4. Which of the following statements about the application of IFRS in accordance with The Conceptual Framework is the most correct? A) Entities that are not expected to continue in the foreseeable future are to prepare their accounts onthenetrealisablevalue assumption. B) Entities may change the valuation and measurement of assets provided they disclose the change and its effects in the financial report. C) Entities within the scope of the Corporations Act can choose to apply Australian or International accounting standards when preparing their financial reports. D) Entities may prepare financial statements on a cash flow basis provided that they meet the characteristics of comparability, understandability, timeliness and verifiability. Show Answer Correct Answer: B) Entities may change the valuation and measurement of assets provided they disclose the change and its effects in the financial report. 5. As per Ind AS 12 Defered Tax is created on: A) Temporary Differences. B) Timing Differences. C) Permanent Differences. D) None of the above. Show Answer Correct Answer: A) Temporary Differences. 6. Which statement tells you about the financial position of the company? A) Income statement. B) Balance sheet. C) Cash Flow Statement. D) Notes to financial statement. Show Answer Correct Answer: B) Balance sheet. 7. An independent audit report is most likely to provide: A) Absolute assurance about the accuracy of the financial statements. B) Reasonable assurance that the financial statements are fairly presented. C) A qualified opinion with respect to the transparency of the financial statements. D) None of above. Show Answer Correct Answer: B) Reasonable assurance that the financial statements are fairly presented. 8. .....is the process of determining the amount of money to recognize and include each element of the financial statements in the balance sheet and income statement. This process concerns the selection of a particular measurement basis. A) Financial Report Measurement. B) Profit and Loss Measurement. C) Ratio Measurement. D) Estimation measurements. Show Answer Correct Answer: A) Financial Report Measurement. 9. Why might the growth rates of revenues and net income differ?Net Income growth rate can differ from revenue growth rate because the cost of goods sold and other expenses can move at different rates than revenues. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 10. Which of the following accounts' balance would be a different number on the Balance Sheet than it is on the adjusted trial balance? A) Dividing. B) Unearned service revenue. C) Accumulated depreciation. D) Retained earnings. Show Answer Correct Answer: D) Retained earnings. 11. Oliver, Mia, and Ava are studying for their finance exam. They are discussing a financial statement that provides a snapshot of a company's financial position at a specific point in time. Can you tell them which statement it is? A) Balance Sheet. B) Statement of Financial Position. C) Cash Flow Statement. D) Statement of Income. Show Answer Correct Answer: A) Balance Sheet. 12. What is the Return on Investments for 9M 2022 on Total 9M 2022?ROI=(Net Return on Investment/Cost of Investment)*100%*Time effectAnnualization1st Q (12/3 =4) 2nd Q (12/6=2) 3rd Q (12/9=1, 3333) 4th Q (12/12=1) A) 1, 7%. B) 1, 3%. C) 3%. D) 1, 6%. Show Answer Correct Answer: D) 1, 6%. 13. Which of the following accounts is not a current asset? A) Land. B) Accounts Receivable. C) Supplies. D) Prepaid Insurance. Show Answer Correct Answer: A) Land. 14. For financial assets classified as available for sale, how are unrealized gains andlosses reflected in shareholders' equity? A) They are not recognized. B) They flow through retained earnings. C) They are a component of accumulated other comprehensive income. D) None of above. Show Answer Correct Answer: C) They are a component of accumulated other comprehensive income. 15. Benefits of harmonization: A) Accelerate global capital market integration and facilitate cross-border stock markets and facilitate international mergers and acquisitions. B) Reduce investor uncertainty and capital costs and Reduce financial reporting costs. C) It is easier and more cost effective in the adoption of high quality standards by developing countries and It is easier to transfer accounting staff internationally. D) A, B, C All are true. Show Answer Correct Answer: D) A, B, C All are true. 16. PT Galaxy, when recording merchandise inventory used the LIFO method, then the following year it changed to FIFO and the following year used LIFO again. PT Galaxy violates the principle..... A) Consistency. B) Full Disclosure. C) Meet. D) Income Recognition. Show Answer Correct Answer: A) Consistency. 17. 10 year bonds issued and maturing in the next 8 months will be presented at..... A) Long term liabilities. B) Short-term liabilities. C) Current assets. D) Non-current assets. Show Answer Correct Answer: B) Short-term liabilities. 18. Red Road Company, a consulting company, reported total revenues of $ 100 million, total expenses of $ 80 million, and net income of $ 20 million in the mostrecent year. If accounts receivable increased by $ 10 million, how much cash didthe company receive from customers? A) $ 90 million. B) $ 100 million. C) $ 110 million. D) None of above. Show Answer Correct Answer: A) $ 90 million. 19. Which statement tells you about the financial performance of the company? A) Income statement. B) Balance sheet. C) Cash Flow Statement. D) Notes to financial statement. Show Answer Correct Answer: A) Income statement. 20. Why is financial reporting important for businesses? A) To showcase their marketing strategies. B) To comply with legal requirements. C) To entertain stakeholders. D) To promote social media presence. Show Answer Correct Answer: B) To comply with legal requirements. ← 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