This quiz works best with JavaScript enabled. Home > Accounting > Financial Reporting > Financial Reporting – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Reporting Quiz 16 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. IFRS stands for: A) Internal Financial reporting standards. B) Interim Finance & reporting standards. C) International Financial Reporting Standards. D) None of above. Show Answer Correct Answer: C) International Financial Reporting Standards. 2. Cell Services Inc. (CSI) had 1, 000, 000 average shares outstanding during allof 2009. During 2009, CSI also had 10, 000 options outstanding with exerciseprices of $ 10 each. The average stock price of CSI during 2009 was $ 15. For purposes of computing diluted earnings per share, how many shares would be used in the denominator? A) 1, 003, 333. B) 1, 006, 667. C) 1, 010, 000. D) None of above. Show Answer Correct Answer: A) 1, 003, 333. 3. Which of the following most likely signals that a manufacturing companyexpects demand for its product to increase? A) Finished goods inventory growth rate higher than the sales growth rate. B) Higher unit volumes of work in progress and raw material inventories. C) Substantially higher finished goods, with lower raw materials and work-in-process. D) None of above. Show Answer Correct Answer: B) Higher unit volumes of work in progress and raw material inventories. 4. The personal assets of the owner of a company will not appear on the company's balance sheet because of which principle/guideline? A) Monetary unit. B) Economic entity. C) Cost. D) None of above. Show Answer Correct Answer: B) Economic entity. 5. Leo, Oliver, and Oscar are studying for their business exam. They are discussing the financial statements of a company. They are trying to identify the financial statement that contains the information about the company's expenses and revenues. Can you help them? A) Balance Sheet. B) Statement of Financial Position. C) Cash Flow Statement. D) Statement of Income. Show Answer Correct Answer: D) Statement of Income. 6. On a monthly basis, prior to C+5 Bravo Submission, the GL Tie Out Reconciliation between the GL and Bravo submission is performed, reviewed and approved via signature (either written or electronic) and dated by management. A) True. B) False. Show Answer Correct Answer: B) False. 7. Which of the following is not an objective of The Conceptual Framework? A) Addresses the common needs of users of financial reports. B) Enables consistency of qualitative characteristics in financial reports. C) Enables implementation of one universal set of accounting standards. D) Provides guidance for transactions not addressed in existing accounting standards. Show Answer Correct Answer: C) Enables implementation of one universal set of accounting standards. 8. What is an entity-specific aspect of relevance? A) Predictive value. B) Confirmatory value. C) Timeliness. D) Materiality. Show Answer Correct Answer: D) Materiality. 9. To meet the financial information needs of users, the elements of financial reports are..... A) Income statement. B) Notes to financial reports. C) Income. D) Income. Show Answer Correct Answer: C) Income. 10. What is the Return on Investments for 9M 2022 on L&H Re?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, 4%. B) 1, 3%. C) 3%. D) 1, 9%. Show Answer Correct Answer: C) 3%. 11. The following are the functions of accounting in the business world, except A) Communicate financial information to various parties. B) As one of the requirements for fulfilling legal standards for business activities. C) Maintain records systematically. D) Guarantee that financial reports are prepared honestly and without manipulation. Show Answer Correct Answer: D) Guarantee that financial reports are prepared honestly and without manipulation. 12. Which of the following is not APL's operating income..... A) Terminal Kargo. B) Regulated Agent. C) Consultant. D) Logistics. Show Answer Correct Answer: C) Consultant. 13. Appointment of woman Directors is mandatory for following companies: A) Listed Companies. B) Public Companies with PUC $\geq$ 10 Cr. or Turnover $\geq$ 300 Cr. C) Public Companies with PUC $\geq$ 100 Cr. or Turnover $\geq$ 300 Cr. D) (a) or (c). Show Answer Correct Answer: D) (a) or (c). 14. Which of the following is not a component of the Income Statement (Profit and Loss)? A) Dividend payout. B) Interest earned. C) Accounts Receivable. D) Service Fees. Show Answer Correct Answer: C) Accounts Receivable. 15. The accountant of Scrub and Shine Ltd identified an aggregate charge of $ 500 000 (comprising 126 various supplier invoices) of advertising expense for a new microfibre cloth within the entity's financial records. Should the accountant present this item separately in the financial statements? A) Yes, the aggregate value of this advertising expenditure is material. B) Yes, details of all transactions should be disclosed to assist users make fully informed decisions. C) Possibly. This would depend on the size and nature of the advertising expenditure relative to other items disclosed in the financial report. D) No, the individual values of the invoices comprising this amount are immaterial. The disclosure requirements do not apply to immaterial items. Show Answer Correct Answer: C) Possibly. This would depend on the size and nature of the advertising expenditure relative to other items disclosed in the financial report. 16. Three of the following are related to faithful representation. Which one is not a characteristic of faithful representation? A) Materiality. B) Completeness. C) Neutrality. D) Freedom from error. Show Answer Correct Answer: A) Materiality. 17. The same accounting policies should be consistently used to prevent misleading profit that may arise from different accounting policies. A) True. B) False. Show Answer Correct Answer: A) True. 18. Which of the following statements is/are true?1. Directors of companies have a duty of care to show reasonable competence in their managementof the affairs of a company.2. Directors of companies must act honestly in what they consider to be the best interest of thecompany.3. A Director's main aim should be to create wealth for the shareholders of the company. A) 1 and 2 only. B) 2 only. C) 1, 2 and 3. D) 1 and 3 only. Show Answer Correct Answer: C) 1, 2 and 3. 19. Which term refers to the amount by which the carrying amount of an asset exceeds its recoverable amount? A) Residual value. B) Depreciable amount. C) Impairment loss. D) Recoverable amount. Show Answer Correct Answer: C) Impairment loss. 20. Casual Vacancy of a woman director shall be filled by ..... A) GM-OR. B) EGM. C) GM-SR. D) BM-OR. Show Answer Correct Answer: D) BM-OR. ← 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