This quiz works best with JavaScript enabled. Home > Accounting > Financial Reporting > Financial Reporting – Quiz 25 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Reporting Quiz 25 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The financial statement that presents a shareholder's residual claim on assets is the: A) Balance sheet. B) Income statement. C) Cash flow statement. D) None of above. Show Answer Correct Answer: A) Balance sheet. 2. Which of the following statements about enhancing qualitative characteristics of financial statements is not correct? A) Fair values of assets that cannot be verified in an active market should not be disclosed in the financialstatements. B) The financial statements of similar entities adopting different asset measurement bases can be adequately compared. C) The value of invoices not yet received from suppliers for services should be estimated at financial year end for reporting purposes. D) Financial statements should be presented with the assumption that a reasonable and informed third person will know how to analyse financial information. Show Answer Correct Answer: A) Fair values of assets that cannot be verified in an active market should not be disclosed in the financialstatements. 3. The IASB's Conceptual Framework for Financial Reporting gives six qualitative characteristics offinancial information. What are these six characteristics? A) Relevance, Faithful representation, Comparability, Verifiability, Timeliness and Understandability. B) Accuracy, Faithful representation, Comparability, Verifiability, Timeliness and Understandability. C) Relevance, Faithful representation, Consistency, Verifiability, Timeliness and Understandability. D) Relevance, Comparability, Consistency, Verifiability, Timeliness and Understandability. Show Answer Correct Answer: A) Relevance, Faithful representation, Comparability, Verifiability, Timeliness and Understandability. 4. Which of the following is not a basic assumption underlying the financial accounting structure? A) Economic entity assumption. B) Going concern assumption. C) Periodicity assumption. D) Historical cost assumption. Show Answer Correct Answer: D) Historical cost assumption. 5. Which of the following is the current value measurement bases? A) Fair value. B) Current cost. C) All of the above. D) None of the above. Show Answer Correct Answer: C) All of the above. 6. Interpretations committee was established when? A) 2004. B) 2000. C) 1982. D) 1973. Show Answer Correct Answer: B) 2000. 7. Unearned revenue is a(n) ..... account. A) Revenue. B) Expense. C) Asset. D) Liability. Show Answer Correct Answer: D) Liability. 8. Which statement tells you about the assets, liabilities and equity of the business? A) Balance sheet. B) Income statement. C) Cash flow statement. D) None of them. Show Answer Correct Answer: A) Balance sheet. 9. An activity that aims to group a company's financial transactions in general ledger estimates is called..... A) Reporting. B) Summarizing. C) Classifying. D) Recording. E) Accounting. Show Answer Correct Answer: C) Classifying. 10. Accounting is concerned with those facts which be measured in monetary terms.Based on the above statement, which concept should be best applied for? A) Accrual concept. B) Prudence concept. C) Historical cost concept. D) Monetary concept. Show Answer Correct Answer: D) Monetary concept. 11. Which of the following is not included in Tier II capital: A) Preference shares other than those which are compulsorily convertible into equity. B) Revaluation reserves at discounted rate of fifty five percent. C) Debentures. D) Hybrid debt capital instruments. Show Answer Correct Answer: C) Debentures. 12. In the interest of timeliness and cost considerations, less information may be provided at interim dates. This is most likely an application of the concept of A) Materiality. B) Consistency. C) Relevance over reliability. D) Faithful representation. Show Answer Correct Answer: C) Relevance over reliability. 13. The company prepares an interim report = going concern A) Correct. B) Salah. Show Answer Correct Answer: B) Salah. 14. Under IFRS, income includes increases in economic benefits from: A) Increases in liabilities not related to owners' contributions. B) Enhancements of assets not related to owners' contributions. C) Increases in owners' equity related to owners' contributions. D) None of above. Show Answer Correct Answer: B) Enhancements of assets not related to owners' contributions. 15. Green Glory Corp., a garden supply wholesaler, reported cost of goods sold for the year of $ 80 million. Total assets increased by $ 55 million, including an increase of $ 5 million in inventory. Total liabilities increased by $ 45 million, including an increase of $ 2 million in accounts payable. The cash paid by the company to its suppliers is most likely closest to: A) $ 73 million. B) $ 77 million. C) $ 83 million. D) None of above. Show Answer Correct Answer: C) $ 83 million. 16. When preparing interim financial reports in accordance with PAS 34, financial statement users are presumed to have access to the most recent annual financial report of the entity. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 17. What is the first document financing reporting Malaysia before independence? A) Companies Ordinances (and amendments) 1940, 1946. 1956. B) Companies Act 1965. C) Companies Bill 2015. D) None of above. Show Answer Correct Answer: A) Companies Ordinances (and amendments) 1940, 1946. 1956. 18. Deferred credits will appear on the balance sheet under which heading/classification? A) Assets. B) Owner's/Stockholders' Equity. C) Liabilities. D) None of above. Show Answer Correct Answer: C) Liabilities. 19. Companies Act 2016 creates two independent bodies which are Financial Reporting Foundation and Malaysian Accounting Standards Board. A) True. B) False. Show Answer Correct Answer: B) False. 20. The framework attempts to develop a set of interrelated concepts, which serve to structure and explain existing financial reporting practices. A) Thinking Framework. B) Conceptual framework. C) Descriptive Framework. D) Shadow Framework. Show Answer Correct Answer: C) Descriptive Framework. ← 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