This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Reporting > Financial Reporting – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Reporting Quiz 9 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following statements about the application of IFRS in accordance with The Conceptual Framework is the most correct? A) Entities that are not expected to continue in the foreseeable future are to prepare their accounts onthenetrealisablevalue assumption. B) Entities may change the valuation and measurement of assets provided they disclose the change and its effects in the financial report. C) Entities within the scope of the Corporations Act can choose to apply Australian or International accounting standards when preparing their financial reports. D) Entities may prepare financial statements on a cash flow basis provided that they meet the characteristics of comparability, understandability, timeliness and verifiability. Show Answer Correct Answer: B) Entities may change the valuation and measurement of assets provided they disclose the change and its effects in the financial report. 2. As per Ind AS 12 Defered Tax is created on: A) Temporary Differences. B) Timing Differences. C) Permanent Differences. D) None of the above. Show Answer Correct Answer: A) Temporary Differences. 3. Which statement tells you about the financial position of the company? A) Cash Flow Statement. B) Income statement. C) Balance sheet. D) Notes to financial statement. Show Answer Correct Answer: C) Balance sheet. 4. An independent audit report is most likely to provide: A) Absolute assurance about the accuracy of the financial statements. B) Reasonable assurance that the financial statements are fairly presented. C) A qualified opinion with respect to the transparency of the financial statements. D) None of above. Show Answer Correct Answer: B) Reasonable assurance that the financial statements are fairly presented. 5. .....is the process of determining the amount of money to recognize and include each element of the financial statements in the balance sheet and income statement. This process concerns the selection of a particular measurement basis. A) Financial Report Measurement. B) Profit and Loss Measurement. C) Ratio Measurement. D) Estimation measurements. Show Answer Correct Answer: A) Financial Report Measurement. 6. Why might the growth rates of revenues and net income differ?Net Income growth rate can differ from revenue growth rate because the cost of goods sold and other expenses can move at different rates than revenues. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 7. Which of the following accounts' balance would be a different number on the Balance Sheet than it is on the adjusted trial balance? A) Retained earnings. B) Accumulated depreciation. C) Dividing. D) Unearned service revenue. Show Answer Correct Answer: A) Retained earnings. 8. Oliver, Mia, and Ava are studying for their finance exam. They are discussing a financial statement that provides a snapshot of a company's financial position at a specific point in time. Can you tell them which statement it is? A) Statement of Income. B) Balance Sheet. C) Cash Flow Statement. D) Statement of Financial Position. Show Answer Correct Answer: B) Balance Sheet. 9. What is the Return on Investments for 9M 2022 on Total 9M 2022?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, 7%. C) 3%. D) 1, 3%. Show Answer Correct Answer: A) 1, 6%. 10. Which of the following accounts is not a current asset? A) Land. B) Accounts Receivable. C) Supplies. D) Prepaid Insurance. Show Answer Correct Answer: A) Land. 11. For financial assets classified as available for sale, how are unrealized gains andlosses reflected in shareholders' equity? A) They are not recognized. B) They flow through retained earnings. C) They are a component of accumulated other comprehensive income. D) None of above. Show Answer Correct Answer: C) They are a component of accumulated other comprehensive income. 12. Benefits of harmonization: A) Accelerate global capital market integration and facilitate cross-border stock markets and facilitate international mergers and acquisitions. B) Reduce investor uncertainty and capital costs and Reduce financial reporting costs. C) It is easier and more cost effective in the adoption of high quality standards by developing countries and It is easier to transfer accounting staff internationally. D) A, B, C All are true. Show Answer Correct Answer: D) A, B, C All are true. 13. PT Galaxy, when recording merchandise inventory used the LIFO method, then the following year it changed to FIFO and the following year used LIFO again. PT Galaxy violates the principle..... A) Consistency. B) Full Disclosure. C) Income Recognition. D) Meet. Show Answer Correct Answer: A) Consistency. 14. 10 year bonds issued and maturing in the next 8 months will be presented at..... A) Non-current assets. B) Short-term liabilities. C) Current assets. D) Long term liabilities. Show Answer Correct Answer: B) Short-term liabilities. 15. Red Road Company, a consulting company, reported total revenues of $ 100 million, total expenses of $ 80 million, and net income of $ 20 million in the mostrecent year. If accounts receivable increased by $ 10 million, how much cash didthe company receive from customers? A) $ 90 million. B) $ 100 million. C) $ 110 million. D) None of above. Show Answer Correct Answer: A) $ 90 million. 16. Which statement tells you about the financial performance of the company? A) Notes to financial statement. B) Balance sheet. C) Cash Flow Statement. D) Income statement. Show Answer Correct Answer: D) Income statement. 17. Why is financial reporting important for businesses? A) To showcase their marketing strategies. B) To promote social media presence. C) To entertain stakeholders. D) To comply with legal requirements. Show Answer Correct Answer: D) To comply with legal requirements. 18. The accounting equation is Assets = Liabilities + Owners Equity A) False. B) True. Show Answer Correct Answer: B) True. 19. Which of the following basic accounting assumptions is threatened by the existence of severe inflation in the economy? A) Economic entity assumption. B) Periodicity assumption. C) Monetary unit assumption. D) Going-concern assumption. Show Answer Correct Answer: C) Monetary unit assumption. 20. Merchandise Inventory is listed on the Income Statement as: A) A component in the calculation of the owner's equity. B) A current liability. C) A current asset. D) A component in the calculation of Cost of Goods Sold. Show Answer Correct Answer: A) A component in the calculation of the owner's equity. 21. Which of the following best describes corporate governance? A) Corporate governance is the system of rules and regulations surrounding financial reporting. B) Corporate governance is the system by which companies and other entities are directed andcontrolled. C) Corporate governance is carried out by the finance department in preparing the financialstatements. D) Corporate governance is the system by which an entity monitors its impact on the naturalenvironment. Show Answer Correct Answer: B) Corporate governance is the system by which companies and other entities are directed andcontrolled. 22. FR ..... 01 control category is detective. A) False. B) True. Show Answer Correct Answer: B) True. 23. James, George, and Noah started a company together. They are trying to understand their company's sources of financing and how the money is being used. Which financial statement should they refer to? A) Statement of Financial Position. B) Balance Sheet. C) Statement of Income. D) Cash Flow Statement. Show Answer Correct Answer: A) Statement of Financial Position. 24. Which one of the following asets may be classified as a non-current asset in the financial statements of a business? A) Cleaning products used to clean the office floors. B) A computer used in the office. C) A tax refund due next year. D) A motor vehicle held for resale. Show Answer Correct Answer: B) A computer used in the office. 25. What is Mydeco's market capitalization at the end of 2019? A) $ 601 million. B) $ 599 million. C) $ 650 million. D) $ 550 million. Show Answer Correct Answer: B) $ 599 million. 26. Which factors may indicate that recognition of an item meeting the definition of an asset or a liability may not provide useful information? A) Uncertainty about whether an asset or liability exists. B) Low probability of an inflow or outflow of economic benefits. C) Other factors. D) All of the above. E) None of the above. Show Answer Correct Answer: D) All of the above. 27. Which of the following remained unchanged in the 2018 Conceptual Framework? A) The reporting entity. B) Derecognition. C) Presentation and disclosure. D) Concepts of capital and capital maintenance. Show Answer Correct Answer: D) Concepts of capital and capital maintenance. 28. Which of the following are advantages of trading as a limited liability company?1. Operating as a limited liability company makes raising finance easier because additional sharescan be issued to raise additional cash.2. Operating as a limited liability company is more risky than operating as a sole trader because theshareholders of a business are liable for all the debts of the business whereas the sole trader isonly liable for the debts up to the amount he has invested. A) 1 only. B) 2 only. C) Both 1 and 2. D) Neither 1 or 2. Show Answer Correct Answer: A) 1 only. 29. Which of the following is the meaning of EQUITY? A) Resources owned as a result of past events and provide economic benefits to the Company in the future. B) Entity capital used in carrying out company operations or activities. C) Present obligations of the Company arising from past events whose settlement is expected to result in an outflow. D) Company financial reports that reflect company profits and losses. Show Answer Correct Answer: C) Present obligations of the Company arising from past events whose settlement is expected to result in an outflow. 30. The Peterson's Piano Company would like to determine Cost of Goods Sold for the past quarter. Per the general ledger, sales are equal to $ 2, 312, 350, beginning inventory is equal to $ 952, 000, net purchases are equal to $ 875, 200, and estimated ending inventory has been calculated to be $ 783, 650. Based on this information, what is the Peterson's Piano Company's Cost of Goods Sold? A) $ 706, 850. B) $ 863, 650. C) $ 860, 450. D) $ 1, 043, 550. Show Answer Correct Answer: D) $ 1, 043, 550. ← 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