This quiz works best with JavaScript enabled. Home > Accounting > Financial Reporting > Financial Reporting – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Reporting Quiz 19 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Financial Accounting Framework means a set of accounting principles, standards, interpretations, and pronouncements that must be adopted in the preparation and submission of the annual financial statements of a particular class of entities. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 2. Adjusting entries are necessary to A) Update and correct the accounts at the end of the period. B) Balance the books at the end of the period. C) Record the sales of the period. D) Ensure the equality of the debits and credits. Show Answer Correct Answer: A) Update and correct the accounts at the end of the period. 3. William's trial balance at 30 September 20X5includes the following balances:Trade receivable $ 75, 943Receivables allowances $ 4, 751 How should these balances be reported in william'sstatements of financial position as at 30 September 20X5? A) An asset of $ 71, 192. B) An asset of $ 75, 943 an a liability of $ 4, 751. C) A liability of $ 71, 192. D) A liability of $ 75, 943 and an asset of $ 4, 751. Show Answer Correct Answer: A) An asset of $ 71, 192. 4. Samuel is studying for his accounting exam. He comes across a term that describes the financial statement that reports the financial position of a company at a specific date. Can you help him identify the term? 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. 5. The accounting concept which states that income is recognized when earned regardless of when collected and expense is recognized when incurred regardless of when paid. A) Matching Principle. B) Time Period. C) Accrual. D) Deferral. Show Answer Correct Answer: C) Accrual. 6. When producing information for external parties, you must be guided by financial accounting standards. The relevant areas of accounting science in this case are: A) Cost accounting. B) Financial Accounting. C) Tax accounting. D) Management accounting. Show Answer Correct Answer: B) Financial Accounting. 7. In the current Covid pandemic conditions, financial reports must reflect a healthy financial condition. Which of the following do you think can be said to be a healthy financial reporting condition? A) Pend Rp. 10 billion, Profit Rp. 2 Billion, Receivables Rp. 6 Billion and Cash Flow Rp. 4 billion. B) Pend Rp. 10 billion, Loss Rp.-2 Billion, Receivables Rp. 4 Billion and Cash Flow Rp. 6 billion. C) Pend Rp. 10 billion, Profit Rp. 100 Million, Receivables Rp. 2 Billion and Cash Flow Rp. 8 billion. D) Pend Rp. 10 billion, Loss Rp.-100 million, Receivables Rp. 8 Billion and Cash Flow Rp. 2 billion. Show Answer Correct Answer: C) Pend Rp. 10 billion, Profit Rp. 100 Million, Receivables Rp. 2 Billion and Cash Flow Rp. 8 billion. 8. Under PFRS for Small Entities, Biological Assets are recognized using which model: A) Cost or Fair Value Model. B) Fair Value or Current Market Price Model. C) Cost or Current Market Price Model. D) Cost or Market Value Model. Show Answer Correct Answer: C) Cost or Current Market Price Model. 9. The Chart of Accounts is the list of accounts a business uses in its operation A) True. B) False. Show Answer Correct Answer: A) True. 10. Accountants who work as independent auditors are: A) Management accountant. B) Government accountant. C) Public accountant. D) BPK Accountant. E) Educator Accountant. Show Answer Correct Answer: C) Public accountant. 11. Has full discretion in developing and pursuing the technical agenda for setting accounting standards in the Philippines. A) IASB. B) IAS. C) IFRS. D) FRSC. Show Answer Correct Answer: D) FRSC. 12. Neutrality of information in the financial statements most closely contributes to which qualitative characteristic? A) Relevance. B) Understandability. C) Faithful representation. D) None of above. Show Answer Correct Answer: C) Faithful representation. 13. What is Mydeco's market-to-book ratio at the end of 2019? A) 1.92. B) 2.19. C) 0.46. D) 1.12. Show Answer Correct Answer: B) 2.19. 14. In case of ..... Loans, interest income is booked on Net Carrying amount, i.e., Gross Carrying amount less Loss allowance: A) Stage I. B) Stage II. C) Stage III. D) None of above. Show Answer Correct Answer: C) Stage III. 15. SCOPE(Basic Framework discusses) A) 1. Objectives of financial reports. B) 2. Qualitative characteristics that determine the usefulness of information in financial reports. C) 3. Definition, recognition and measurement of the elements that make up financial reports. D) 4. The concept of capital and capital preservation. E) All statements are True. Show Answer Correct Answer: E) All statements are True. 16. In which part of the structure's ISA is the explanation of the purpose and scope of the ISA? A) Objectives. B) Definition. C) Introduction. D) Requirements. E) Application and other explanatory material. Show Answer Correct Answer: C) Introduction. 17. Journal entry of Cash purchase would be A) Debit purchase, credit sales. B) Debit purchase, credit cash. C) Debit cash, credit purchase. D) Debit purchase, credit bank. Show Answer Correct Answer: B) Debit purchase, credit cash. 18. That a business may only report activities on financial statements that are specifically related to company operations, not those activities that affect the owner personally, is known as which of the following? A) Monetary measurement concept. B) Separate entity concept. C) Time period assumption. D) Going concern assumption. Show Answer Correct Answer: B) Separate entity concept. 19. Which of the following best describes the purpose of disclosure notes in the financial statements? A) To provide more detail for the users of financial statements about the information in the balance sheet and statement of profit or loss. B) To allow companies to present their financial results in a more favourable way by only disclosingsome things in the notes and not on the main financial statements. C) To give all the detail of all the transactions that occurred during the period because the mainfinancial statements only present a summary. D) To explain the accounting treatment adopted where management have chosen not to apply accounting standards. Show Answer Correct Answer: A) To provide more detail for the users of financial statements about the information in the balance sheet and statement of profit or loss. 20. An activity that aims to summarize the company's financial transactions which have been classified in general ledger estimates into the Trial Balance is called..... A) Reporting. B) Summarizing. C) Classifying. D) Recording. E) Accounting. Show Answer Correct Answer: B) Summarizing. ← 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