This quiz works best with JavaScript enabled. Home > Accounting > Financial Reporting > Financial Reporting – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Reporting Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following IAS will be refer to learn about Cash flow statement: A) IAS 1. B) IAS 7. C) IAS 18. D) IAS 2. Show Answer Correct Answer: B) IAS 7. 2. Intangible assets with finite useful lives mostly differ from intangible assets withinfinite useful lives with respect to accounting treatment of: A) Revaluation. B) Impairment. C) Amortization. D) None of above. Show Answer Correct Answer: C) Amortization. 3. An entity is not prohibited from including in its condensed interim financial statements information that is more than the minimum line items or selected explanatory notes set out under PAS 34. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 4. ..... provide additional information and help clarify the items presented in the financial statements. A) Quotes to FS. B) Notes to FS. C) Words to FS. D) None of above. Show Answer Correct Answer: B) Notes to FS. 5. Financial Statements of corporation with total assets of Php 600, 000 needs to be audited by an independent certified public accountant. A) True. B) False. Show Answer Correct Answer: A) True. 6. If an entity does not prepare interim financial reports, then A) The year-end financial statements are deemed not to comply with IFRS. B) The year-end financial statements' compliance with IFRS is not affected. C) The year-end financial statements will not be acceptable under local legislation. D) Interim financial reports should be included in the year-end financial statements. Show Answer Correct Answer: B) The year-end financial statements' compliance with IFRS is not affected. 7. The decisions of the 'primary users' involve A) Buying equity and debt instruments. B) Selling or holding equity and debt instruments. C) Providing or settling loans and other forms of credit. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. Items that will be held for more than a year ex:equipment, trucks, buildings A) Assets. B) Current Assets. C) Accounts Receivable. D) Fixed Assets. Show Answer Correct Answer: D) Fixed Assets. 9. You record your income when it is earned and expenses when they are incurred A) Cash Basis. B) Accrual Basis. Show Answer Correct Answer: B) Accrual Basis. 10. If the current cost measurement basis is used, assets are measured at: A) The amount which could be obtained by selling them. B) Present value. C) Replacement cost. D) The amount paid to acquire them. Show Answer Correct Answer: C) Replacement cost. 11. This concept means not overstating assets, owner's equity, and revenues, and not understating liabilities and expenses A) Conservatism. B) Time-period. C) Entity. D) Materiality. Show Answer Correct Answer: A) Conservatism. 12. Organizations involved in Harmonization Efforts A) Association of South East Asian Nations (ASEAN). B) International Accounting Standards Committee(IASC)-dissolved in 2001. C) International Organization of Securities Commissions (IOSCO). D) A, B, C true. Show Answer Correct Answer: D) A, B, C true. 13. A warehouse fire destroyed $ 5 million worth of uninsured inventory. What is the change to Global's book value of equity? A) Decrease by $ 5 million. B) Increase by $ 5 million. C) No change. D) Increase by $ 10 million . Show Answer Correct Answer: A) Decrease by $ 5 million. 14. Accounting Standards Council was created in what year? A) 1971. B) 1981. C) 1982. D) 1961. Show Answer Correct Answer: B) 1981. 15. Accounting provides the information necessary to carry out activities efficiently and evaluate the activities of an entity. This is an understanding of accounting in terms of..... A) User. B) Activity. C) Prosedur. D) Recording. E) Classification. Show Answer Correct Answer: A) User. 16. Which of the following expenditures is a capital expenditure? A) Purchase of raw material. B) Purchase of plant. C) Rent. D) Depreciation. Show Answer Correct Answer: B) Purchase of plant. 17. Accounting that prepares reports, payments, or tax returns is called: A) Financial Accounting. B) Management accounting. C) Budget accounting. D) Government accounting. E) Tax accounting. Show Answer Correct Answer: E) Tax accounting. 18. What is matching principle? A) Record revenue when a service is provided to the customer, whether or not you collect the money due at the moment. B) You must report enough information for insiders to make an informed decision about the company. C) Accountants identify and measure all expenses incurred during the period and match the expenses against revenues earned. D) You stick with the same accounting principles and approach from one period to the next. Show Answer Correct Answer: C) Accountants identify and measure all expenses incurred during the period and match the expenses against revenues earned. 19. Which is correct? A) IAS12 income Taxes. B) IAS14 income Taxes. C) IAS10 income Taxes. D) IAS8 income Taxes. Show Answer Correct Answer: A) IAS12 income Taxes. 20. An entity granted a share appreciation right to the CEO on January 1, 2022. After a 3-year service, the employee is entitled to receive a cash equal to the appreciation in share price over the market value on January 1, 2022. The market value on January 1, 2020 is the predetermined price for the purpose of determining the compensation. The share option right has the following terms:Service period-January 1, 2022-December 31, 2024Number of shares-100, 000Exercise date-January 1, 2025The quoted prices of the entity's share are:January 1, 2022-150December 31, 2022-155December 31, 2023-152December 31, 2024-160What is the credit entry on December 31, 2024 A) Accrued Salaries Payable 800, 000. B) Salaries Expense 800, 000. C) Accrued Salaries Payable 1, 000, 000. D) Salaries Expense 1, 000, 000. Show Answer Correct Answer: A) Accrued Salaries Payable 800, 000. ← PreviousNext →Related QuizzesAccounting QuizzesFinancial Reporting Quiz 1Financial Reporting Quiz 3Financial Reporting Quiz 4Financial Reporting Quiz 5Financial Reporting Quiz 6Financial Reporting Quiz 7Financial Reporting Quiz 8Financial Reporting Quiz 9Financial Reporting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books