This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Reporting > Financial Reporting – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Reporting Quiz 19 (23 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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. 2. Which accounting concept should be considered if the owner of a business takes goods from inventory for their own personal use? A) The business entity concept. B) The going concern concept. C) The materiality concept. D) The accruals concept. Show Answer Correct Answer: A) The business entity concept. 3. Accounting is considered to provide an overview of the company's current economic situation. This is the nature of accounting as..... A) Accountability. B) Information Systems. C) Catata historis. D) Activity procedures. E) Economic reality. Show Answer Correct Answer: E) Economic reality. 4. Which of the following is a fundamental quality of useful accounting information? A) Conservatism. B) Faithful representation. C) Consistency. D) Comparability. Show Answer Correct Answer: B) Faithful representation. 5. 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. 6. Which principle states that one must "report enough information for outsiders to make informed decisions about the company?" A) Consistency. B) Disclosure. C) Revenue. D) Matching. Show Answer Correct Answer: B) Disclosure. 7. 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. 8. 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. 9. 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). 10. The conceptual framework is not a template for A) Inspector. B) Auditor APIP. C) Financial Report Users. D) Financial Report Preparer. Show Answer Correct Answer: B) Auditor APIP. 11. Audited financial reports are usually published in March = timeliness A) Correct. B) Salah. Show Answer Correct Answer: A) Correct. 12. 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. 13. NBFC shall not be allowed to voluntarily adopt Ind AS. A) False. B) True. Show Answer Correct Answer: B) True. 14. Which template consists all versions & transaction types of a Policy for a business partner. E.g:New Business, MTA, Cancelled A) Policy Report (excluding version). B) Policy Report (including version). Show Answer Correct Answer: B) Policy Report (including version). 15. 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. 16. Under PFRS for Small Entities, MSMEs must only adopt Taxes Payable Method A) False. B) True. Show Answer Correct Answer: A) False. 17. 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. 18. Which ONE of the following is NOT an objective of the IFRS Foundation? A) Through the IASB, develop a single set of globally accepted International Financial ReportingStandards (IFRSs). B) Promote the use and rigorous application of International Financial Reporting Standards (IFRSs). C) Ensure International Financial Reporting Standards (IFRSs) focus primarily on the needs of global, multi-national organisation. D) Bring about the convergence of national accounting standards and IFRSs. Show Answer Correct Answer: C) Ensure International Financial Reporting Standards (IFRSs) focus primarily on the needs of global, multi-national organisation. 19. Under PFRS for Small Entities, Retirement Benefit Obligation is computed under A) Defined Benefit Plan. B) Accrual Approach. C) Defined Contribution Plan. D) Any of Defined Benefit Plan or Accrual Approach. Show Answer Correct Answer: B) Accrual Approach. 20. The debit side of a trial balance totals $ 50 more than the credit side. Which one of the following could this be due to? A) A purchase of goods for $ 50 being omitted from the payables control account. B) A sale of goods for $ 50 being omitted from the receivables control account. C) An invoice of $ 25 for electricity being credited to the electricity account. D) A receipt for $ 50 from a customer being omitted from the cash book. Show Answer Correct Answer: A) A purchase of goods for $ 50 being omitted from the payables control account. 21. An auditor determines that a company's financial statements are prepared in accordance with applicable accounting standards except with respect to inventory reporting. This exception is most likely to result in an audit opinion that is: A) Adverse. B) Qualified. C) Unqualified. D) None of above. Show Answer Correct Answer: B) Qualified. 22. Financial reports are prepared in rupiah = monetary units A) Salah. B) Correct. Show Answer Correct Answer: B) Correct. 23. Accounting information is prepared based on standards = comparability A) Correct. B) Salah. Show Answer Correct Answer: A) Correct. ← PreviousRelated 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