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Financial Reporting Quiz 15 (30 MCQs)

Quiz Instructions

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1. Which of the following the accounting standard that can be accepted i. International Accounting Standard Board ii. Financial Accounting Standards Board USA iii. Accounting Standards Board United State iv. Australian Accounting Standards Board Australia
2. The signatories in the Statement of Management Responsibility is/are the:
3. Under IFRS, a loss from the destruction of property in a fire would most likelybe classified as:
4. The definition of accounting as an art was put forward by:
5. It should be understandable to people with general financial knowledge.
6. The responsibility for the fair presentation and reliability of financial statements rests with the ..... of the reporting entity.
7. Fresh Market's gross profit margin is unchanged, but the net profit margin (return on sales) declined over the same period. What is a possible reason for this?
8. Which of the following is not considered as an Inflow in Income statement (Profit and Loss)?
9. An entity owns a number of farms that harvest produce seasonally. Approximately 80% of the entity's sales are in the period August to October. Because the entity's business is seasonal, PAS 34 suggests
10. PAS 34 encourages publicly traded entities to provide at least quarterly interim financial report and publish them not later than 45 days after the end of the interim period.
11. Assuming no changes in other variables, which of the following would decreaseROA?
12. The financial report covers all the important things = materiality
13. Which of the following is false about keeping accounting records?
14. The conceptual framework set out the concepts that underlie the preparation and presentation of financial statements
15. In the event of a conflict between the Conceptual Framework and Accounting Policy, according to the Purworejo Accounting Policy Regulation
16. Cash flows from taxes on income must be separately disclosed under:
17. Use of paranthetical information (brackets) in financial reports = verifiability
18. A report of the revenue, expenses, and net income or loss for the accounting period
19. Financial reports are prepared not to accommodate the needs of certain parties = cost constraints
20. 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?
21. 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.
22. ..... is a regulatory body that is responsible to promote monetary and financial stability.
23. Cost accounting provides
24. When a company buys shares of its own stock to be held in treasury, it recordsa reduction in:
25. The two main statute governing financial reporting by companies are Financial Reporting Act 1997 and Companies Act 2016.
26. 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:
27. 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.
28. Micro entities has no option to use as their financial reporting framework either the income tax basis or PFRS for SEs.
29. This means an unintentional mistake in the financial statements which reduces or increases the related accounts by ten per cent (10%) or more.
30. 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?
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