Oct-2021 Latest ExamsReviews Financial-Accounting-and-Reporting Exam Dumps with PDF and Exam Engine Free Updated Today!
Following are some new Financial-Accounting-and-Reporting Real Exam Questions!
NEW QUESTION 10
Which one of these concepts suggests that stock prices react to new information almost instantly?
- A. incentive substitution
- B. market power
- C. efficient market
- D. bargaining power
Answer: C
NEW QUESTION 11
Which one of the following best describes the objective of the International Financial Reporting Standards (IFRS) Foundation?
- A. to co-ordinate the accounting profession on a global scale by issuing and establishing international standards
- B. to guide investors who compare the financial statements of one entity in one country with those of another entity located elsewhere
- C. to promote the application, convergence and use of International Financial Reporting Standards (IFRS) as a high quality reporting solution
- D. to develop an International regulatory framework in the national jurisdictions of countries that produce accountants
Answer: C
NEW QUESTION 12
The amount of cash or cash equivalents that could currently be obtained by selling an asset in an orderly disposal, refers to which basis of measurement?
- A. historical cost
- B. present value
- C. realisable value
- D. current cost
Answer: C
NEW QUESTION 13
A rules-based approach to standard setting
- A. ensures there are no conflicts within accounting standards as each issue is handled just once.
- B. helps a standard-setting body to prioritise matters.
- C. prescribes standards that attempt to cover all eventualities a business may face.
- D. provides a broad framework for standard setting.
Answer: C
NEW QUESTION 14
Variations in the regulatory regime over financial reporting in different countries is attributable to a range of differences including
- A. the needs of investors, creditors, employees, lending institutions and taxation authorities.
- B. consumer laws, taxation requirements and the extent to which the country has adopted international financial reporting standards.
- C. company structures, ownership, local culture and the level of development of the country.
- D. the extent to which the country has adopted international financial reporting standards and the requirements of local securities exchange.
Answer: C
NEW QUESTION 15
The two fundamental qualitative characteristics of the financial information are
- A. relevance and comparability.
- B. faithful representation and comparability.
- C. verifiability and relevance.
- D. relevance and faithful representation.
Answer: D
NEW QUESTION 16
The accounting policies used by companies must result in financial reports that are
- A. signed by the CEO or equivalent.
- B. comparable with previous years' reports.
- C. independently audited.
- D. easy to read.
Answer: B
NEW QUESTION 17
Which one of the following shows whether the financial statements of a company show a true and fair presentation of the financial performance of the company?
- A. Statement of cash flows
- B. Corporate Governance Statement
- C. Auditor's Report
- D. Director's Report
Answer: C
NEW QUESTION 18
LMN Ltd recently changed the measurement base for their assets. They should I)treat this like a change in an estimate.
II)treat this like a change in the accounting policy.
III)disclose this in the notes to financial statements.
- A. I and III only
- B. III only
- C. I only
- D. II and III only
Answer: D
NEW QUESTION 19
In relation to financial statements, the 'true and fair override' indicates that
- A. departure is allowed from accounting standards under specific instances to show a fair presentation.
- B. the true and fair requirement need not be complied with by certain industries.
- C. statements need not always be true and accurate.
- D. accounting standards must be complied with under all circumstances.
Answer: A
NEW QUESTION 20
In a stock market that displays strong efficiency, share prices reflect all available
- A. public information.
- B. information about past changes in share prices.
- C. information about future expansion plans.
- D. public and inside information.
Answer: D
NEW QUESTION 21
The chairperson of XYZ Company is concerned about the readability of the annual financial report that is about to be published on its website. XYZ Company is obliged to comply with International Financial Reporting Standards, and the report contains all of the required financial statements, the auditor's report, corporate governance statements, declarations of accounting policy, explanatory notes and a section that addresses the company's corporate social responsibility program.
The chairperson is wondering whether the report can be condensed. The issue that is concerning the chairperson is known as
- A. the cost of compliance.
- B. the costs of social responsibility reporting.
- C. the agency costs of monitoring.
- D. information overload.
Answer: D
NEW QUESTION 22
Financial information is reliable if it
I)prefers substance over legal form.
II)is neutral and without any material error.
III)is complete and has been made with prudence.
IV)is understandable to those with no knowledge of accounting.
- A. II, III and IV only
- B. I, II and III only
- C. I, III and IV only
- D. I, II and IV only
Answer: B
NEW QUESTION 23
A company's financial report is compliant with International Financial Reporting Standards. Where in the report would an investor find the amount of money received by the company for investment activities?
- A. statement of financial position
- B. statement of comprehensive income
- C. statement of changes in equity
- D. statement of cash flows
Answer: D
NEW QUESTION 24
Which one of the following contributes to an efficient capital market?
- A. having stock markets in every country
- B. stock markets ensuring that companies do not overcharge for their products
- C. stock markets being managed by directors of companies that are listed on the stock market
- D. information about the stock market can be obtained cheaply
Answer: D
NEW QUESTION 25
PLO Advertising Ltd (PLO) buys a new stretch limousine for $40 000. A number of individuals have expressed an interest in buying the limousine from PLO for $60 000. The board members decide that the limousine is worth between $65 000 and $70 000. What is the fair value of the limousine?
- A. $40 000
- B. $70 000
- C. $60 000
- D. $65 000
Answer: C
NEW QUESTION 26
Which one of the following includes social reporting guidelines?
- A. International Accounting Standards (IAS)
- B. Global Reporting Initiative (GRI)
- C. Generally Accepted Accounting Principles (GAAP)
- D. International Financial Reporting Standards (IFRS)
Answer: B
NEW QUESTION 27
An element is recognised in the statement of financial position or statement of comprehensive income if
I.
the value of the item can be measured reliably.
II.
the value of the item can be measured accurately.
III.
it is certain that there will be future economic benefits associated with the item.
IV.
it is probable that there will be future economic benefits associated with the item.
Which of the above options are correct?
- A. I and III only
- B. III and IV only
- C. I and IV only
- D. II and III only
Answer: C
NEW QUESTION 28
Generally accepted accounting practice recognises revenue when
- A. cash is received for the goods.
- B. goods are dispatched to the customer.
- C. customers order goods.
- D. goods are produced.
Answer: B
NEW QUESTION 29
......
Resources From:
- 2021 Latest ExamsReviews Financial-Accounting-and-Reporting Exam Dumps (PDF & Exam Engine) Free Share: https://www.examsreviews.com/Financial-Accounting-and-Reporting-pass4sure-exam-review.html
- 2021 Latest ExamsReviews Financial-Accounting-and-Reporting PDF and Financial-Accounting-and-Reporting Exam Dumps Free Share: https://drive.google.com/open?id=1chNvJQtR87t26yh7SOM-PvWwEJTeB1Ne
Free Resources from ExamsReviews, We Devoted to Helping You 100% Pass All Exams!