This quiz works best with JavaScript enabled. Home > Accounting > Financial Reporting > Financial Reporting – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Reporting Quiz 17 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If a reliable measure of fair value is no longer available without undue cost or effort, an item of Investment Property will be A) Transferred to PPE under PFRS for Small Entities. B) Transferred to Inventories under PFRS for SMEs. C) Converted from Cost Model to Fair Value Model under PFRS for SMEs. D) Converted from Fair Model to Cost Model under PFRS for Small Entities. Show Answer Correct Answer: D) Converted from Fair Model to Cost Model under PFRS for Small Entities. 2. In which year does the phase of institution contribution of the creation and increasing role of institution in the development of accounting principles was? A) 1900-1933. B) 1933-1959. C) 1959-1973. D) 1973. Show Answer Correct Answer: B) 1933-1959. 3. Amelia, Thomas, and Matilda are studying for their accounting exam. They come across a question asking, 'Which financial statement reports the financial position of a company at a specific date?' A) Statement of Financial Position. B) Balance Sheet. C) Statement of Income. D) Cash Flow Statement. Show Answer Correct Answer: A) Statement of Financial Position. 4. The principle of expense recognition states that debits must equal credits in every transaction A) Correct. B) Salah. Show Answer Correct Answer: B) Salah. 5. The bank statement on 31 October 20X7 showed an overdraft of $ 800. On reconciling the bank statements, it was discovered that a cheque drawn by your company for $ 80 had not been presented for payment, and that a cheque for $ 130 from a customer had been dishonoured on 30 October 20X7, but that this had not yet been notified to you by the bank. What is the correct bank balance to be shown in the statement of financial position at 31 October 20X7? A) $ 1, 010 overdrawn. B) $ 880 overdrawn. C) $ 750 overdrawn. D) $ 720 overdrawn. Show Answer Correct Answer: B) $ 880 overdrawn. 6. The amount customers owe your business A) Assets. B) Current Assets. C) Accounts Receivable. D) Fixed Assets. Show Answer Correct Answer: C) Accounts Receivable. 7. Replaced the interpretations committee. A) IFRIC. B) PIC. C) PFRS. D) NOT. Show Answer Correct Answer: B) PIC. 8. The accounting principle that requires every good or service obtained to be recorded based on all costs incurred in obtaining it is..... A) Full Disclosure Principle. B) Historical Cost Principle. C) The Principle of Meeting. D) Consistency Principle. Show Answer Correct Answer: B) Historical Cost Principle. 9. Which of the following statements about a departure from IFRS is correct? A) Departure is never permitted. B) Departure is permitted when the financial statement would be unfairly presented because of compliance with IFRS. C) Departure is permitted when management and the external auditor agree on the departure. D) Departure is permitted when the disclosure of the adopted accounting policy is detailed in the notes. Show Answer Correct Answer: B) Departure is permitted when the financial statement would be unfairly presented because of compliance with IFRS. 10. The Daisy Company wants to determine the gross profit for the past quarter. Per the general ledger, sales are equal to $ 152, 000, beginning inventory is equal to $ 67, 330, net purchases are equal to $ 87, 800, and estimated ending inventory has been calculated to be $ 83, 650. Based on this information, what is the gross profit for the Daisy Company? A) $ 63, 180. B) $ 71, 480. C) $ 80, 520. D) $ 88, 820. Show Answer Correct Answer: C) $ 80, 520. 11. PAS 34 states a presumption that anyone reading interim financial reports will A) Understand all International Financial Reporting Standards. B) Have access to the records of the entity. C) Have access to the most recent annual report. D) Not make decisions based on the report. Show Answer Correct Answer: C) Have access to the most recent annual report. 12. Unrelaised gain/loss in case of which of the following is not transferred to Other Comprehensive Income A) Amortised cost. B) Fair Value through Other Comprehensive Income (Debt). C) Fair Value through Other Comprehensive Income (Equity). D) None of the above. Show Answer Correct Answer: A) Amortised cost. 13. You record your income when it is received and your expenses when they are paid A) Cash Basis. B) Accrual Basis. Show Answer Correct Answer: A) Cash Basis. 14. PAS 34 shall be applied by A) Entities which are required by the government or other entities to provide interim financial reports. B) Those who choose to provide interim financial reports. C) A and b. D) All reporting entities who are adopting the "full" PFRSs. Show Answer Correct Answer: C) A and b. 15. A company that is about to be liquidated does not record depreciation = expense recognition A) Correct. B) Salah. Show Answer Correct Answer: B) Salah. 16. International accounting standards are used as a result of: A) International or political agreements. B) Voluntary compliance. C) Voluntary compliance. D) A, B, C Benar. Show Answer Correct Answer: D) A, B, C Benar. 17. Reports how much cash your business took in and where the cash went A) General Journal. B) General Ledger. C) Income Statement. D) Balance Sheet. E) Statement of Cash Flows. Show Answer Correct Answer: E) Statement of Cash Flows. 18. Sipadan Enterprise is allowed to change its depreciation method in order to increase its profit and still considered neutral. A) True. B) False. Show Answer Correct Answer: B) False. 19. Spare parts and servicing equipment are usually accounted for as: A) Inventory. B) Separate class of fixed assets. C) Expensed off to profit or loss. D) Always capitalised. Show Answer Correct Answer: C) Expensed off to profit or loss. 20. The final basis change will cause a 50 M USD decrease in reserve. How will the Basis Change affect Profit and Loss? A) Change in Reserve = +50 M USD. B) Change in Reserve =-50 M USD. C) Income Statement will not be affected. D) None of the above. Show Answer Correct Answer: B) Change in Reserve =-50 M USD. ← 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