This quiz works best with JavaScript enabled. Home > Accounting > Financial Reporting > Financial Reporting – Quiz 27 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Reporting Quiz 27 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A report of the final balances of all asset, liability, and owner's equity accounts at the end of an accounting period A) General Journal. B) General Ledger. C) Income Statement. D) Balance Sheet. E) Statement of Cash Flows. Show Answer Correct Answer: D) Balance Sheet. 2. Accounting is all about A) Recording entries. B) Calculating profit. C) Providing relevant financial information for decision makers. D) Calculating asset values. Show Answer Correct Answer: C) Providing relevant financial information for decision makers. 3. Qualitative characteristics of information A) Understandability. B) Convergen Validity. C) Flexibility. D) Facility. Show Answer Correct Answer: A) Understandability. 4. Generally, company condition reports are routinely reported to the board of directors every? A) Weekly. B) Monthly. C) Daily. D) Yearly. Show Answer Correct Answer: B) Monthly. 5. Jabroni's Meat Market recorded a final net income of $ 75, 000. The correct closing entry to record net income in the Retained Earnings account is: A) Debit Retained Earnings, $ 75, 000; credit Income Summary-General, $ 75, 000. B) Debit Income Summary-General, $ 75, 000; credit Retained Earnings, $ 75, 000. C) Debit Income Summary, $ 75, 000; credit Net Income, $ 75, 000. D) Debit Net Income, $ 75, 000; credit Income Summary, $ 75, 000. Show Answer Correct Answer: B) Debit Income Summary-General, $ 75, 000; credit Retained Earnings, $ 75, 000. 6. Harmonization and Convergence A) Harmonization:The process of reduction of alternatives while maintaining a high degree of flexibility in accounting practices. B) Term is now becoming "antiquated.". C) Convergence the adoption of one set of standards internationally. This is the main objective of the IASB. D) A, B, C True. Show Answer Correct Answer: D) A, B, C True. 7. What is the Return on Investments for 9M 2022 on P&C Re?ROI=(Net Return on Investment/Cost of Investment)*100%*Time effectAnnualization1st Q (12/3 =4) 2nd Q (12/6=2) 3rd Q (12/9=1, 3333) 4th Q (12/12=1) A) 1, 4%. B) 1, 3%. C) 3%. D) 1, 9%. Show Answer Correct Answer: B) 1, 3%. 8. It involves the process of preparation, presentation and submission of General Purpose Financial Statements and other reports. A) Financial Reports. B) Financial Statements. C) Financial Reporting. D) None of above. Show Answer Correct Answer: C) Financial Reporting. 9. That a financial report must be able to produce the same results when carried out by another person using the same method is referred to as..... A) Comparability. B) Verifiability. C) Understandability. D) Neutrality. Show Answer Correct Answer: B) Verifiability. 10. Relevance and faithful representation are two fundamental qualities that make accounting information useful for decision making A) Correct. B) Salah. Show Answer Correct Answer: A) Correct. 11. The change in income tax rate under CREATE Act is an adjusting subsequent event in 2020. A) True. B) False. Show Answer Correct Answer: B) False. 12. The SEC issued the SRC Rule 68 as amended. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 13. In order to assess a company's ability to fulfill its long-term obligations, an analyst would most likely examine: A) Activity ratios. B) Liquidity ratios. C) Solvency ratios. D) None of above. Show Answer Correct Answer: C) Solvency ratios. 14. If equity equals $ 100, 000, which of the following is true? A) Liabilities exceed equity by $ 100.000. B) None of the above is true. C) Assets exceed liabilities by $ 100.000. D) Assets + liabilities equal $ 100, 000. Show Answer Correct Answer: C) Assets exceed liabilities by $ 100.000. 15. GWM Sports Complex has equity per share of $ 95 for the current year. The equity per share for the past two years was $ 128 and $ 112, respectively. Which statement would most likely explain the change in equity per share over the past three years? A) GWM has decreased its operating expenses significantly over the past three years. B) GWM has reduced notes receivable significantly over the past three years. C) GWM has consistently increased net income over the past three years. D) GWM had a significant decrease in sales over the past three years. Show Answer Correct Answer: D) GWM had a significant decrease in sales over the past three years. 16. Information is neutral if it ..... A) Provides benefits which are at least equal to the costs of its preparation. B) Can be compared with similar information about an enterprise at other points in time. C) Would have no impact on a decision maker. D) Is free from bias toward a predetermined result. Show Answer Correct Answer: D) Is free from bias toward a predetermined result. 17. Disqualification of a director is specified in section ..... A) Sec-149. B) Sec-152. C) Sec-164. D) Sec-161. Show Answer Correct Answer: C) Sec-164. 18. Significant financial reporting issues facing global financial reporting and efficient capital allocation include all of the following except A) How to provide backward-looking information. B) How to report nonfinancial measures such as customer satisfaction. C) How to provide forward-looking information. D) How to provide real-time financial statement information. Show Answer Correct Answer: A) How to provide backward-looking information. 19. Which of the following countries adapted the requirements of IFRS for SMEs? A) Costa Rica. B) Peru. C) Brazil. D) Ecuador. Show Answer Correct Answer: C) Brazil. 20. Mr Andi separates company assets and personal property. This concept is called..... A) Sustainable Concept. B) Concept of Measurement and Value of Money. C) Concept of Exchange Price. D) Business Entity Concept. Show Answer Correct Answer: D) Business Entity Concept. ← 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