This quiz works best with JavaScript enabled. Home > Accounting > Financial Reporting > Financial Reporting – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Reporting Quiz 22 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An entity may rely on estimates to a less extent during interim reporting compared to annual reporting. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 2. Income tax expense reported on a company's income statement equals taxespayable, plus the net increase in: A) Deferred tax assets and deferred tax liabilities. B) Deferred tax assets, less the net increase in deferred tax liabilities. C) Deferred tax liabilities, less the net increase in deferred tax assets. D) None of above. Show Answer Correct Answer: C) Deferred tax liabilities, less the net increase in deferred tax assets. 3. The two "levels" of harmonization A) Harmonization in accounting standards, which is increased agreement in accounting rules. B) Harmonization in practice, which is increased agreement in actual accounting practices. C) Harmonization in standards may or may not result in harmonization in practice. D) A, B, C True. Show Answer Correct Answer: D) A, B, C True. 4. Which of the following the accounting standard that can be accepted i. International Accounting Standard Board ii. Financial Accounting Standards Board USA iii. Accounting Standards Board United State iv. Australian Accounting Standards Board Australia A) Iii only. B) I, ii, and iii. C) I, ii, and iv. D) All above. Show Answer Correct Answer: C) I, ii, and iv. 5. The signatories in the Statement of Management Responsibility is/are the: A) Head of Finance/Accounting Office only. B) Head of Agency/Authorized Representative only. C) Both the Head of Finance/Accounting Office and the Head of Agency/Authorized Representative. D) None of above. Show Answer Correct Answer: C) Both the Head of Finance/Accounting Office and the Head of Agency/Authorized Representative. 6. Under IFRS, a loss from the destruction of property in a fire would most likelybe classified as: A) Continuing operations. B) Discontinued operations. C) Other comprehensive income. D) None of above. Show Answer Correct Answer: A) Continuing operations. 7. The definition of accounting as an art was put forward by: A) AAA. B) AICPA. C) IBRA. D) IAI. E) THING. Show Answer Correct Answer: B) AICPA. 8. It should be understandable to people with general financial knowledge. A) Comparability. B) Understandability. C) Relevance. D) Reliability. Show Answer Correct Answer: B) Understandability. 9. The responsibility for the fair presentation and reliability of financial statements rests with the ..... of the reporting entity. A) Accountants. B) Employees. C) Management. D) None of above. Show Answer Correct Answer: C) Management. 10. Fresh Market's gross profit margin is unchanged, but the net profit margin (return on sales) declined over the same period. What is a possible reason for this? A) Dividends were decreased. B) Sales increased relative to expenses. C) The U.S. Congress increased the tax rate. D) The cost of goods sold increased relative to sales. Show Answer Correct Answer: C) The U.S. Congress increased the tax rate. 11. Which of the following is not considered as an Inflow in Income statement (Profit and Loss)? A) Premium. B) Segregated Fund. C) Investment Income. D) None of the above. Show Answer Correct Answer: B) Segregated Fund. 12. An entity owns a number of farms that harvest produce seasonally. Approximately 80% of the entity's sales are in the period August to October. Because the entity's business is seasonal, PAS 34 suggests A) Additional notes be written in the interim reports about the seasonal nature of the business. B) Disclosure of financial information for the latest and comparative 12-month period in addition to the interim report. C) Additional disclosure in the accounting policy note. D) No additional disclosure. Show Answer Correct Answer: B) Disclosure of financial information for the latest and comparative 12-month period in addition to the interim report. 13. PAS 34 encourages publicly traded entities to provide at least quarterly interim financial report and publish them not later than 45 days after the end of the interim period. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 14. Assuming no changes in other variables, which of the following would decreaseROA? A) A decrease in the effective tax rate. B) A decrease in interest expense. C) An increase in average assets. D) None of above. Show Answer Correct Answer: C) An increase in average assets. 15. The financial report covers all the important things = materiality A) Correct. B) Salah. Show Answer Correct Answer: B) Salah. 16. Which of the following is false about keeping accounting records? A) To sufficiently explain the transactions of the company. B) Records need to be retained for five years. C) Records are to be kept at the registered office. D) Audit can be carried out conveniently and properly. Show Answer Correct Answer: B) Records need to be retained for five years. 17. The conceptual framework set out the concepts that underlie the preparation and presentation of financial statements A) True. B) False. Show Answer Correct Answer: A) True. 18. In the event of a conflict between the Conceptual Framework and Accounting Policy, according to the Purworejo Accounting Policy Regulation A) A conceptual framework is featured. B) The conceptual framework is given relative prominence. C) Accounting policies are favored. D) Accounting policies are favored relatively. Show Answer Correct Answer: B) The conceptual framework is given relative prominence. 19. Cash flows from taxes on income must be separately disclosed under: A) IFRS only. B) US GAAP only. C) Both IFRS and US GAAP. D) None of above. Show Answer Correct Answer: C) Both IFRS and US GAAP. 20. Use of paranthetical information (brackets) in financial reports = verifiability A) Correct. B) Salah. Show Answer Correct Answer: B) Salah. ← 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