This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Reporting > Financial Reporting – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Reporting Quiz 11 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The personal assets of the owner of a company will not appear on the company's balance sheet because of which principle/guideline? A) Monetary unit. B) Economic entity. C) Cost. D) None of above. Show Answer Correct Answer: B) Economic entity. 2. Leo, Oliver, and Oscar are studying for their business exam. They are discussing the financial statements of a company. They are trying to identify the financial statement that contains the information about the company's expenses and revenues. Can you help them? A) Cash Flow Statement. B) Balance Sheet. C) Statement of Income. D) Statement of Financial Position. Show Answer Correct Answer: C) Statement of Income. 3. On a monthly basis, prior to C+5 Bravo Submission, the GL Tie Out Reconciliation between the GL and Bravo submission is performed, reviewed and approved via signature (either written or electronic) and dated by management. A) False. B) True. Show Answer Correct Answer: A) False. 4. Which of the following is not an objective of The Conceptual Framework? A) Addresses the common needs of users of financial reports. B) Enables consistency of qualitative characteristics in financial reports. C) Enables implementation of one universal set of accounting standards. D) Provides guidance for transactions not addressed in existing accounting standards. Show Answer Correct Answer: C) Enables implementation of one universal set of accounting standards. 5. What is an entity-specific aspect of relevance? A) Timeliness. B) Materiality. C) Predictive value. D) Confirmatory value. Show Answer Correct Answer: B) Materiality. 6. To meet the financial information needs of users, the elements of financial reports are..... A) Notes to financial reports. B) Income. C) Income. D) Income statement. Show Answer Correct Answer: B) Income. 7. What is the Return on Investments for 9M 2022 on L&H 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, 9%. C) 1, 3%. D) 3%. Show Answer Correct Answer: D) 3%. 8. The following are the functions of accounting in the business world, except A) Communicate financial information to various parties. B) As one of the requirements for fulfilling legal standards for business activities. C) Maintain records systematically. D) Guarantee that financial reports are prepared honestly and without manipulation. Show Answer Correct Answer: D) Guarantee that financial reports are prepared honestly and without manipulation. 9. Which of the following is not APL's operating income..... A) Logistics. B) Consultant. C) Regulated Agent. D) Terminal Kargo. Show Answer Correct Answer: B) Consultant. 10. Appointment of woman Directors is mandatory for following companies: A) Listed Companies. B) Public Companies with PUC $\geq$ 100 Cr. or Turnover $\geq$ 300 Cr. C) (a) or (c). D) Public Companies with PUC $\geq$ 10 Cr. or Turnover $\geq$ 300 Cr. Show Answer Correct Answer: C) (a) or (c). 11. Which of the following is not a component of the Income Statement (Profit and Loss)? A) Service Fees. B) Accounts Receivable. C) Interest earned. D) Dividend payout. Show Answer Correct Answer: B) Accounts Receivable. 12. The accountant of Scrub and Shine Ltd identified an aggregate charge of $ 500 000 (comprising 126 various supplier invoices) of advertising expense for a new microfibre cloth within the entity's financial records. Should the accountant present this item separately in the financial statements? A) Yes, the aggregate value of this advertising expenditure is material. B) Yes, details of all transactions should be disclosed to assist users make fully informed decisions. C) Possibly. This would depend on the size and nature of the advertising expenditure relative to other items disclosed in the financial report. D) No, the individual values of the invoices comprising this amount are immaterial. The disclosure requirements do not apply to immaterial items. Show Answer Correct Answer: C) Possibly. This would depend on the size and nature of the advertising expenditure relative to other items disclosed in the financial report. 13. Three of the following are related to faithful representation. Which one is not a characteristic of faithful representation? A) Freedom from error. B) Neutrality. C) Completeness. D) Materiality. Show Answer Correct Answer: D) Materiality. 14. The same accounting policies should be consistently used to prevent misleading profit that may arise from different accounting policies. A) True. B) False. Show Answer Correct Answer: A) True. 15. Which of the following statements is/are true?1. Directors of companies have a duty of care to show reasonable competence in their managementof the affairs of a company.2. Directors of companies must act honestly in what they consider to be the best interest of thecompany.3. A Director's main aim should be to create wealth for the shareholders of the company. A) 1 and 2 only. B) 2 only. C) 1, 2 and 3. D) 1 and 3 only. Show Answer Correct Answer: C) 1, 2 and 3. 16. Which term refers to the amount by which the carrying amount of an asset exceeds its recoverable amount? A) Recoverable amount. B) Impairment loss. C) Residual value. D) Depreciable amount. Show Answer Correct Answer: B) Impairment loss. 17. Casual Vacancy of a woman director shall be filled by ..... A) GM-SR. B) GM-OR. C) BM-OR. D) EGM. Show Answer Correct Answer: C) BM-OR. 18. If a reliable measure of fair value is no longer available without undue cost or effort, an item of Investment Property will be A) Transferred to PPE under PFRS for Small Entities. B) Transferred to Inventories under PFRS for SMEs. C) Converted from Cost Model to Fair Value Model under PFRS for SMEs. D) Converted from Fair Model to Cost Model under PFRS for Small Entities. Show Answer Correct Answer: D) Converted from Fair Model to Cost Model under PFRS for Small Entities. 19. In which year does the phase of institution contribution of the creation and increasing role of institution in the development of accounting principles was? A) 1933-1959. B) 1959-1973. C) 1900-1933. D) 1973. Show Answer Correct Answer: A) 1933-1959. 20. Amelia, Thomas, and Matilda are studying for their accounting exam. They come across a question asking, 'Which financial statement reports the financial position of a company at a specific date?' A) Statement of Income. B) Balance Sheet. C) Statement of Financial Position. D) Cash Flow Statement. Show Answer Correct Answer: C) Statement of Financial Position. 21. The principle of expense recognition states that debits must equal credits in every transaction A) Salah. B) Correct. Show Answer Correct Answer: A) Salah. 22. The bank statement on 31 October 20X7 showed an overdraft of $ 800. On reconciling the bank statements, it was discovered that a cheque drawn by your company for $ 80 had not been presented for payment, and that a cheque for $ 130 from a customer had been dishonoured on 30 October 20X7, but that this had not yet been notified to you by the bank. What is the correct bank balance to be shown in the statement of financial position at 31 October 20X7? A) $ 1, 010 overdrawn. B) $ 750 overdrawn. C) $ 880 overdrawn. D) $ 720 overdrawn. Show Answer Correct Answer: C) $ 880 overdrawn. 23. The amount customers owe your business A) Fixed Assets. B) Assets. C) Current Assets. D) Accounts Receivable. Show Answer Correct Answer: D) Accounts Receivable. 24. Replaced the interpretations committee. A) PFRS. B) NOT. C) IFRIC. D) PIC. Show Answer Correct Answer: D) PIC. 25. The accounting principle that requires every good or service obtained to be recorded based on all costs incurred in obtaining it is..... A) Full Disclosure Principle. B) The Principle of Meeting. C) Historical Cost Principle. D) Consistency Principle. Show Answer Correct Answer: C) Historical Cost Principle. 26. Which of the following statements about a departure from IFRS is correct? A) Departure is never permitted. B) Departure is permitted when the financial statement would be unfairly presented because of compliance with IFRS. C) Departure is permitted when management and the external auditor agree on the departure. D) Departure is permitted when the disclosure of the adopted accounting policy is detailed in the notes. Show Answer Correct Answer: B) Departure is permitted when the financial statement would be unfairly presented because of compliance with IFRS. 27. The Daisy Company wants to determine the gross profit for the past quarter. Per the general ledger, sales are equal to $ 152, 000, beginning inventory is equal to $ 67, 330, net purchases are equal to $ 87, 800, and estimated ending inventory has been calculated to be $ 83, 650. Based on this information, what is the gross profit for the Daisy Company? A) $ 71, 480. B) $ 88, 820. C) $ 80, 520. D) $ 63, 180. Show Answer Correct Answer: C) $ 80, 520. 28. PAS 34 states a presumption that anyone reading interim financial reports will A) Understand all International Financial Reporting Standards. B) Have access to the records of the entity. C) Have access to the most recent annual report. D) Not make decisions based on the report. Show Answer Correct Answer: C) Have access to the most recent annual report. 29. Unrelaised gain/loss in case of which of the following is not transferred to Other Comprehensive Income A) Amortised cost. B) Fair Value through Other Comprehensive Income (Debt). C) Fair Value through Other Comprehensive Income (Equity). D) None of the above. Show Answer Correct Answer: A) Amortised cost. 30. You record your income when it is received and your expenses when they are paid A) Accrual Basis. B) Cash Basis. Show Answer Correct Answer: B) Cash Basis. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesFinancial Reporting Quiz 1Financial Reporting Quiz 2Financial Reporting Quiz 3Financial Reporting Quiz 4Financial Reporting Quiz 5Financial Reporting Quiz 6Financial Reporting Quiz 7Financial Reporting Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books