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Financial Reporting Quiz 16 (30 MCQs)

Quiz Instructions

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1. What is the most notable specific difference between GAAP and IFRS?
2. In DA transaction, financial asset is created by crediting/creating:
3. Purple Fleur S.A., a retailer of floral products, reported cost of goods sold forthe year of $ 75 million. Total assets increased by $ 55 million, but inventorydeclined by $ 6 million. Total liabilities increased by $ 45 million, and accountspayable increased by $ 2 million. The cash paid by the company to its suppliersis most likely closest to:
4. Interim financial reports may be prepared using either PAS 1 Presentation of Financial Statements or PAS 34 Interim Financial Reporting.
5. The following are accounts that must be eliminated in the financial statements
6. What will the balance on the suspense account be after making the necessary entries to correct the errors affecting the suspense account?
7. What is the role of Financial Reporting Foundation?
8. Revision of the Conceptual Framework will automatically lead to changes in Standards that are inconsistent with the revised concepts.
9. A supplier of goods on credit is interested only in the statement of financial position, ie an indication of the current state of affairs. The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an entity that is useful to a wide range of users in making economic decisions.Identify, by indicating the relevant box in the table below, whether each of the following statements istrue or false
10. According to the IASB Conceptual Framework which of the following is NOT an objective of financial statements?
11. Deferred tax assets, which appear on the balance sheet, arise when:
12. The sale of a building for cash would be classified as what type of activity on the cash flow statement?
13. Finance Lease is allowed under PFRS for Small Entities
14. The following types of companies are service companies except:
15. Global's EBIT in 2018 is $ 9.66 million.Given that Global's interest expenses are $ 7.7 million and the tax rate is 26%, what is Global's net income in 2019?
16. Companies should neverchange the presentation orclassification of items in their financial statements, even if there is a significant change in the nature of operations.2. Companies should create provisions in times of company growth to be utilised in more difficult times, to smoothprofits.Identify, by indicating the relevant box in the table below, whether each of the following statements iscorrect or incorrect.
17. A block of time covered by an accounting report is
18. Who is responsible for establishing IFRS?
19. Which one of the following is NOT a qualitative characteristic of financial information according to the Conceptual Framework for Financial Reporting?
20. Revenue is recognized when the work is completed = accrual
21. From 2015 to 2019, what was the total cash flow from operations that Mydeco generated?
22. What was Mydeco's gross margin in 2019?
23. The first level of the conceptual framework identifies the recognition and measurement concepts used in setting accounting standards
24. The main accounting issues that must be anticipated in upstream businesses, except
25. Which of the following payment is not included in calculation of lease liability:
26. Timeliness and neutrality are two elements of relevance
27. An analyst has calculated a ratio using as the numerator the sum of operatingcash flow, interest, and taxes and as the denominator the amount of interest.What is this ratio, what does it measure, and what does it indicate?
28. The financial statement that presents a shareholder's residual claim on assets is the:
29. Which of the following statements about enhancing qualitative characteristics of financial statements is not correct?
30. The IASB's Conceptual Framework for Financial Reporting gives six qualitative characteristics offinancial information. What are these six characteristics?
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