This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Reporting > Financial Reporting – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Reporting Quiz 6 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The source of data for preparing closing entries is the: A) Trial balance. B) Worksheet. C) Worksheet plus general journal. D) All of the above are possible. Show Answer Correct Answer: B) Worksheet. 2. What is the Return on Investments for 9M 2022 on Total 9M 2021?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, 6%. B) 1, 3%. C) 1, 7%. D) 3%. Show Answer Correct Answer: D) 3%. 3. Which of the following stakeholders relies on financial reports to make investment decisions? A) Customers. B) Competitors. C) Suppliers. D) Shareholders. Show Answer Correct Answer: D) Shareholders. 4. Under PAS 34, interim financial reports should be published A) On a quarterly basis. B) Once a year at any time in that year. C) Within a month of the half year end. D) Whenever the entity wishes. Show Answer Correct Answer: D) Whenever the entity wishes. 5. What is the Return on Investments for 9M 2022 on Corporate Solutions?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, 9%. B) 1, 3%. C) 1, 4%. D) 3%. Show Answer Correct Answer: B) 1, 3%. 6. Qualitative characteristic that financial information must possess to be useful to the primary users of general purpose financial reports include A) Timeliness. B) Verifiability. C) Understandability. D) Faithful representation. Show Answer Correct Answer: D) Faithful representation. 7. Who shall mandatorily appoint Independent Directors? A) Listed Public Company. B) Public Company having:PUC $\geq$ Rs. 10 Cr.; or Turnover $\geq$ Rs. 100 Cr.; or Outstanding Loans, Debentures & Deposits $\geq$ Rs. 50 Cr. C) (a) and (b). D) None of the above. Show Answer Correct Answer: C) (a) and (b). 8. Income statement or Profit and Loss account = Inflow minus Outflow. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 9. Which of the following is a category, classification, or element of the balance sheet? A) Losses. B) Gains. C) Expenses. D) Liabilities. Show Answer Correct Answer: D) Liabilities. 10. What does the balance sheet in financial reporting show? A) A company's revenues and expenses over a specific period. B) A company's debts and liabilities at a specific point in time. C) The number of employees in the organization. D) The company's social media followers and engagement. Show Answer Correct Answer: B) A company's debts and liabilities at a specific point in time. 11. The adjusting entry to record an accrued expense results in which of the following types of accounts being debited and credited? A) Expense/Liability. B) Asset/Liability. C) Asset/Revenue. D) Expense/Asset. Show Answer Correct Answer: A) Expense/Liability. 12. Brown Corporation had average days of sales outstanding of 19 days in themost recent fiscal year. Brown wants to improve its credit policies and collectionpractices and decrease its collection period in the next fiscal year to matchthe industry average of 15 days. Credit sales in the most recent fiscal year were$ 300 million, and Brown expects credit sales to increase to $ 390 million in thenext fiscal year. To achieve Brown's goal of decreasing the collection period, thechange in the average accounts receivable balance that must occur is closest to: A) +$ 0.41 million. B) -$ 0.41 million. C) -$ 1.22 million. D) None of above. Show Answer Correct Answer: A) +$ 0.41 million. 13. What is not a type of company is: A) Private company. B) Industrial company. C) Service Company. D) Trading Company. Show Answer Correct Answer: A) Private company. 14. Which of the following is any reporting period shorter than a full year (fiscal or calendar) and can encompass monthly, quarterly, or half-year statements? A) Interim period. B) Calendar year. C) Fiscal year. D) Fixed year. Show Answer Correct Answer: A) Interim period. 15. The following is not a function of the financial reporting conceptual framework A) Serves as a guide for standard setters in preparing new standards. B) As a guide for companies in preparing accounting policies in the event that there are no applicable standards. C) As a source of additional explanation of a standard. D) As a guide in preparing accounting policies in terms of standards that conflict with the conceptual framework. Show Answer Correct Answer: D) As a guide in preparing accounting policies in terms of standards that conflict with the conceptual framework. 16. All businesses use the same system, which follows established accounting guidelines called "generally accepted accounting principles" A) Financial Statements. B) GAAP. Show Answer Correct Answer: B) GAAP. 17. A company receives advance payments from customers that are immediatelytaxable but will not be recognized for accounting purposes until the companyfulfills its obligation. The company will most likely record: A) A deferred tax asset. B) A deferred tax liability. C) No deferred tax asset or liability. D) None of above. Show Answer Correct Answer: A) A deferred tax asset. 18. Investors study the company's ROI trends = confirmatory value A) Correct. B) Salah. Show Answer Correct Answer: B) Salah. 19. A set of interrelated concepts that determine the function, scope and objectives of accounting and financial reporting. In Australia, the SAC (Statement of Accounting Concepts) represents the constitution for financial reporting. A) Thinking Framework. B) Shadow Skeleton. C) Framework. D) Conceptual framework. Show Answer Correct Answer: D) Conceptual framework. 20. Represent advance payments made for expenses which have not yet been incurred, used, utilized or consumed. A) Unearned Expenses. B) Accrued Expenses. C) Prepaid Expenses. D) Accounts Expense. Show Answer Correct Answer: C) Prepaid Expenses. 21. What group that was created last November 1991? A) ASC. B) IASB. C) IFAC. D) None of the above. Show Answer Correct Answer: D) None of the above. 22. The obligation of the contractor to sell the contractor's share of oil for domestic needs at a price below market price, is defined as: A) DMO fee. B) FTP. C) Cost Recovery. D) DMO. Show Answer Correct Answer: D) DMO. 23. Sales revenue should be recognised when goods and services have been supplied; costs are incurred when goods and services have been received.Which accounting concept governs the above? A) The duality concept. B) The accruals concept. C) The materiality concept. D) The business entity concept. Show Answer Correct Answer: B) The accruals concept. 24. Anaya, Samuel, and Grace are studying for their business exam. They come across a question:'What financial statement provides information about a company's sources of income and expenses?' Can you help them answer this? A) Statement of Income. B) Cash Flow Statement. C) Balance Sheet. D) Statement of Financial Position. Show Answer Correct Answer: A) Statement of Income. 25. Which of the following accounts will not be closed to a profit and loss summary account? A) Accumulated Depreciation. B) Services revenue. C) Depreciation Expense. D) Dividend. Show Answer Correct Answer: A) Accumulated Depreciation. 26. The ..... of an asset is the estimated amount that an entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life. A) Carrying value. B) Residual value. C) Depreciable value. D) Value in use. Show Answer Correct Answer: B) Residual value. 27. The two accounting assumptions are:1st assumption:your business operates as a separate entity from your personal finances 2nd assumption:your financial reports always cover a specific period of time A) False. B) True. Show Answer Correct Answer: B) True. 28. Arthur, Kiara, and Thomas are studying for their finance exam. They are discussing about a financial statement that provides information about a company's cash inflows and outflows. Can you tell them which statement it is? A) Statement of Financial Position. B) Cash Flow Statement. C) Statement of Income. D) Balance Sheet. Show Answer Correct Answer: B) Cash Flow Statement. 29. Anything of value that the business owns ex:cash, equipment, buildings A) Accounts Receivable. B) Current Assets. C) Fixed Assets. D) Assets. Show Answer Correct Answer: D) Assets. 30. The impairment of intangible assets with finite lives affects: A) The balance sheet but not the income statement. B) The income statement but not the balance sheet. C) Both the balance sheet and the income statement. D) None of above. Show Answer Correct Answer: C) Both the balance sheet and the income statement. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesFinancial Reporting Quiz 1Financial Reporting Quiz 2Financial Reporting Quiz 3Financial Reporting Quiz 4Financial Reporting Quiz 5Financial Reporting Quiz 7Financial Reporting Quiz 8Financial Reporting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books