This quiz works best with JavaScript enabled. Home > Accounting > Financial Reporting > Financial Reporting – Quiz 28 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Reporting Quiz 28 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. According to the Conceptual Framework for Financial Reporting, which of the following is not an enhancing qualitative characteristic of information in financial statements? A) Accuracy. B) Timeliness. C) Comparability. D) None of above. Show Answer Correct Answer: A) Accuracy. 2. The initial measurement of goodwill is most likely affected by: A) An acquisition's purchase price. B) The acquired company's book value. C) The fair value of the acquirer's assets and liabilities. D) None of above. Show Answer Correct Answer: A) An acquisition's purchase price. 3. The non-controlling (minority) interest in consolidated subsidiaries is presentedon the balance sheet: A) As a long-term liability. B) Separately, but as a part of shareholders' equity. C) As a mezzanine item between liabilities and shareholders' equity. D) None of above. Show Answer Correct Answer: B) Separately, but as a part of shareholders' equity. 4. Accounting policies, methods, and estimates used in preparing financial statements are most likely to be found in the: A) Auditor's report. B) Management commentary. C) Notes to the financial statements. D) None of above. Show Answer Correct Answer: C) Notes to the financial statements. 5. Which accounting concept should be considered if the owner of a business takes goods from inventory for their own personal use? A) The materiality concept. B) The accruals concept. C) The going concern concept. D) The business entity concept. Show Answer Correct Answer: D) The business entity concept. 6. Accounting is considered to provide an overview of the company's current economic situation. This is the nature of accounting as..... A) Catata historis. B) Economic reality. C) Information Systems. D) Accountability. E) Activity procedures. Show Answer Correct Answer: B) Economic reality. 7. Which of the following is a fundamental quality of useful accounting information? A) Conservatism. B) Comparability. C) Faithful representation. D) Consistency. Show Answer Correct Answer: C) Faithful representation. 8. On December 1, ABC Co. hired Marko Smith to begin working on January 2 at a monthly salary of $ 4, 000. ABC's balance sheet of December 31 will show a liability of what amount? A) No liability. B) $ 48, 000. C) $ 4, 000. D) None of above. Show Answer Correct Answer: A) No liability. 9. Which principle states that one must "report enough information for outsiders to make informed decisions about the company?" A) Revenue. B) Matching. C) Disclosure. D) Consistency. Show Answer Correct Answer: C) Disclosure. 10. During periods of rising inventory unit costs, a company using the FIFOmethod rather than the LIFO method will report a lower: A) Current ratio. B) Inventory turnover. C) Gross profit margin. D) None of above. Show Answer Correct Answer: B) Inventory turnover. 11. The final basis change will cause a 50 M USD decrease in reserve. Which lines in Balance Sheet will be affected? A) Asset. B) Liability. C) Owner's Equity. D) Asset and Liability. E) Liability and Owner's Equity. Show Answer Correct Answer: E) Liability and Owner's Equity. 12. A company's taxable income is the basis for its: A) Income tax payable (an assets). B) Income tax payable (a liability). C) Income tax payable (a stockholders equity). D) None of above. Show Answer Correct Answer: B) Income tax payable (a liability). 13. The conceptual framework is not a template for A) Financial Report Preparer. B) Inspector. C) Financial Report Users. D) Auditor APIP. Show Answer Correct Answer: D) Auditor APIP. 14. Audited financial reports are usually published in March = timeliness A) Correct. B) Salah. Show Answer Correct Answer: A) Correct. 15. Where there is a conflict between the requirement of the conceptual framework and the requirement of any specific standards, the requirement of the conceptual framework should be followed A) True. B) False. Show Answer Correct Answer: B) False. 16. NBFC shall not be allowed to voluntarily adopt Ind AS. A) True. B) False. Show Answer Correct Answer: A) True. 17. Which template consists all versions & transaction types of a Policy for a business partner. E.g:New Business, MTA, Cancelled A) Policy Report (including version). B) Policy Report (excluding version). Show Answer Correct Answer: A) Policy Report (including version). 18. A legal position of a director includes ..... A) As a trustee. B) As a managing partner. C) As an employee. D) As an officer. E) All of the above. Show Answer Correct Answer: E) All of the above. 19. Under PFRS for Small Entities, MSMEs must only adopt Taxes Payable Method A) True. B) False. Show Answer Correct Answer: B) False. 20. Deferred tax liabilities should be treated as equity when: A) They are not expected to reverse. B) The timing of tax payments is uncertain. C) The amount of tax payments is uncertain. D) None of above. Show Answer Correct Answer: A) They are not expected to reverse. ← 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