This quiz works best with JavaScript enabled. Home > Accounting > Financial Reporting > Financial Reporting – Quiz 23 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Reporting Quiz 23 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A report of the revenue, expenses, and net income or loss for the accounting period A) General Journal. B) General Ledger. C) Income Statement. D) Balance Sheet. E) Statement of Cash Flows. Show Answer Correct Answer: C) Income Statement. 2. Financial reports are prepared not to accommodate the needs of certain parties = cost constraints A) Correct. B) Salah. Show Answer Correct Answer: B) Salah. 3. Isla started a small business and Samuel is helping her with the financial aspects. They are trying to understand the total amount of cash that has been generated and used during a particular period of time. Which financial statement should they refer to? A) Balance Sheet. B) Statement of Financial Position. C) Cash Flow Statement. D) Statement of Income. Show Answer Correct Answer: C) Cash Flow Statement. 4. Identify which of the following statements are true or false.1. The directors of a company are ultimately responsible for the preparation of financial statements, even if the majority of the work on them is performed by the finance department.2. If financial statements are audited, then the responsibility for those financial statements insteadfalls on the auditors instead of the directors.3. There are generally no laws surrounding the duties of directors in managing the affairs of acompany. A) 1 only. B) 2 only. C) 2 and 3 only. D) 1 and 3 only. Show Answer Correct Answer: A) 1 only. 5. ..... is a regulatory body that is responsible to promote monetary and financial stability. A) Malaysian National Bank. B) Maybank Malaysia. C) Securities Commission. D) Registrar of Companies. Show Answer Correct Answer: A) Malaysian National Bank. 6. Cost accounting provides A) Significant cost classification. B) Relevant cost for decision making. C) Acsertains costs of production. D) Cost objects. Show Answer Correct Answer: C) Acsertains costs of production. 7. When a company buys shares of its own stock to be held in treasury, it recordsa reduction in: A) Both assets and liabilities. B) Both assets and shareholders' equity. C) Assets and an increase in shareholders' equity. D) None of above. Show Answer Correct Answer: B) Both assets and shareholders' equity. 8. The two main statute governing financial reporting by companies are Financial Reporting Act 1997 and Companies Act 2016. A) True. B) False. Show Answer Correct Answer: A) True. 9. Bank Negara undertook a review of the original BNM/GP3 in 1989 and made some modifications and refinements to the original provisions. the main provisions of BNM/GP3 were as follows except: A) Where a loan is classified as non-performing, interest accrued should be suspended and credited to interest-in-suspense account. B) A specific provision is required for doubtful or bad loan account when there is a shortfall in security value over the amount of loan outstanding. C) Financial institutions are required to build up and maintain a general provision for bad and doubtful debts of at least 1.5% of total outstanding loans, net of interest-in-suspense and specific provision for bad and doubtful debts. D) Conduct such public consultation as may be necessary in order to determine the contents of accounting concepts, principles and standards. Show Answer Correct Answer: D) Conduct such public consultation as may be necessary in order to determine the contents of accounting concepts, principles and standards. 10. It is a separate additional financial statement for comparison of budget and actual amounts which shall be prepared since the financial statements and budget of NGAs are not on the same accounting basis. A) Statement of Comparison of Budgetary and Actual Amounts. B) Statement of Comparison of Budgeted and Actual Amounts. C) Statement of Comparison of Budget and Actual Amounts. D) None of above. Show Answer Correct Answer: C) Statement of Comparison of Budget and Actual Amounts. 11. Micro entities has no option to use as their financial reporting framework either the income tax basis or PFRS for SEs. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 12. This means an unintentional mistake in the financial statements which reduces or increases the related accounts by ten per cent (10%) or more. A) Entity. B) Error. C) Fraud. D) Issuer. Show Answer Correct Answer: B) Error. 13. 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 debit entry on January 1, 2025? A) Accrued Salaries Payable 800, 000. B) Salaries Expense 1, 000, 000. C) Accrued Salaries Payable 1, 000, 000. D) Salaries Expense 800, 000. Show Answer Correct Answer: B) Salaries Expense 1, 000, 000. 14. What is the most notable specific difference between GAAP and IFRS? A) Related to accounts payable treatment. B) Related to treatment of accounts receivable. C) Related to the treatment of inventories. D) Related to treatment of intangible assets. Show Answer Correct Answer: C) Related to the treatment of inventories. 15. In DA transaction, financial asset is created by crediting/creating: A) Liability. B) Other Comprehensive Income. C) Retained Earnings. D) Profit and Loss Account. Show Answer Correct Answer: D) Profit and Loss Account. 16. Purple Fleur S.A., a retailer of floral products, reported cost of goods sold forthe year of $ 75 million. Total assets increased by $ 55 million, but inventorydeclined by $ 6 million. Total liabilities increased by $ 45 million, and accountspayable increased by $ 2 million. The cash paid by the company to its suppliersis most likely closest to: A) $ 67 million. B) $ 79 million. C) $ 83 million. D) None of above. Show Answer Correct Answer: A) $ 67 million. 17. Interim financial reports may be prepared using either PAS 1 Presentation of Financial Statements or PAS 34 Interim Financial Reporting. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 18. The following are accounts that must be eliminated in the financial statements A) Third Party Receivables. B) Related party debt. C) Investment. D) Fixed assets. Show Answer Correct Answer: C) Investment. 19. What will the balance on the suspense account be after making the necessary entries to correct the errors affecting the suspense account? A) $ 2, 440 debit. B) $ 15, 560 Credit. C) $ 13, 640 Debit. D) $ 3, 440 Debit. Show Answer Correct Answer: A) $ 2, 440 debit. 20. What is the role of Financial Reporting Foundation? A) To issue new accounting standards. B) To review, revise or adopt standards as existing accounting standards. C) To develop conceptual framework. D) To supervise the activities of MASB. Show Answer Correct Answer: D) To supervise the activities of MASB. ← 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