Question 1

When might borrowing costs not appear in a statement of profit or loss and other comprehensive income?

Accepted Answer

A) If they result from a negatively geared project. 
B) If they are less than five percent of total expenses. 
C) If borrowing costs are directly attributable to the acquisition,construction or production of a qualifying asset. 
D) If they are not incurred in the ordinary course of business. 
A) If they result from a negatively geared project. 
B) If they are less than five percent of total expenses. 
C) If borrowing costs are directly attributable to the acquisition,construction or production of a qualifying asset. 
D) If they are not incurred in the ordinary course of business. C

Question 2

Under the Corporations Act a 'disclosing entity' must prepare a half-yearly financial report in addition to an annual report.How many of these are 'disclosing entities'?
A company listed on the stock exchange
A borrowing corporation
A company raising funds through a prospectus

Accepted Answer

A) 0 
B) 1 
C) 2 
D) 3 
A) 0 
B) 1 
C) 2 
D) 3 D

Question 3

Under AASB 1039 and the Corporations Act which of these does not have to be included in a concise financial report?

Accepted Answer

A) Statement of cash flows 
B) Statement of changes in equity 
C) Notes to the financial statements 
D) Directors' report 
A) Statement of cash flows 
B) Statement of changes in equity 
C) Notes to the financial statements 
D) Directors' report C

Question 4

The term that is currently the most commonly preferred for owner's equity in a company balance sheet is:

Accepted Answer

A) equity. 
B) shareholder's funds. 
C) share capital and reserves. 
D) shareholder's equity. 
A) equity. 
B) shareholder's funds. 
C) share capital and reserves. 
D) shareholder's equity.

Question 5

Under the Corporations Act 2001 a set of financial statements to be included in the annual report are specified as:

Accepted Answer

A) those required by the accounting standards. 
B) a balance sheet,profit and loss statement and statement of cash flows. 
C) a balance sheet,profit and loss statement,statement of cash flows and a director's report. 
D) a balance sheet,profit and loss statement,statement of cash flows,director's report and an audit report. 
A) those required by the accounting standards. 
B) a balance sheet,profit and loss statement and statement of cash flows. 
C) a balance sheet,profit and loss statement,statement of cash flows and a director's report. 
D) a balance sheet,profit and loss statement,statement of cash flows,director's report and an audit report.

Question 6

It is true under IAS 1/AASB 101 that:

Accepted Answer

A) for the balance sheet all assets and liabilities must be classified as current or non-current (unless a liquidity presentation is more appropriate). 
B) there is a prescribed format set out for the balance sheet. 
C) movements in reserves must be shown on the face of the balance sheet. 
D) the balance sheet must begin with the assets section. 
A) for the balance sheet all assets and liabilities must be classified as current or non-current (unless a liquidity presentation is more appropriate). 
B) there is a prescribed format set out for the balance sheet. 
C) movements in reserves must be shown on the face of the balance sheet. 
D) the balance sheet must begin with the assets section.

Question 7

Which category of revenue listed does not require separate disclosure under IAS 18/ AASB 118?

Accepted Answer

A) Revenue from the rendering of services 
B) Royalties 
C) Dividends received 
D) Rents received 
A) Revenue from the rendering of services 
B) Royalties 
C) Dividends received 
D) Rents received

Question 8

A concise financial report is for:

Accepted Answer

A) three months. 
B) six months. 
C) nine months. 
D) twelve months. 
A) three months. 
B) six months. 
C) nine months. 
D) twelve months.

Question 9

What is the correct heading on a statement of financial position made up to 30 June 2016?

Accepted Answer

A) As at 30 June 2016 
B) For the year ended 30 June 2016 
C) For the period ended 30 June 2016 
D) 30th June 2016 
A) As at 30 June 2016 
B) For the year ended 30 June 2016 
C) For the period ended 30 June 2016 
D) 30th June 2016

Question 10

How many of these expenses that would normally appear in an internally prepared income statement are required to be separately disclosed in an external statement prepared to conform to the requirements of the accounting standards?
-Freight outwards
-Printing and stationery expenses
-Utilities expenses

Accepted Answer

A) 0 
B) 1 
C) 2 
D) 3 
A) 0 
B) 1 
C) 2 
D) 3

Question 11

Under the Corporations Act which of these is not necessarily a disclosing entity?

Accepted Answer

A) A public company 
B) A corporation that raises funds via a prospectus 
C) A borrowing corporation 
D) A stock exchange listed company 
A) A public company 
B) A corporation that raises funds via a prospectus 
C) A borrowing corporation 
D) A stock exchange listed company

Question 12

Accounting standard AASB 1053 Application of Tiers of Australian Accounting Standards will become mandatory from:

Accepted Answer

A) 2011. 
B) 2012. 
C) 2013. 
D) 2014. 
A) 2011. 
B) 2012. 
C) 2013. 
D) 2014.

Question 13

An interim report required to be prepared by a disclosing entity under IAS 34/AASB 134 Interim Financial Reporting is defined as a report for:

Accepted Answer

A) each three months. 
B) each half-year. 
C) a period shorter than a full reporting period. 
D) nine months. 
A) each three months. 
B) each half-year. 
C) a period shorter than a full reporting period. 
D) nine months.

Question 14

Which of these is not one of the general reporting requirements of IAS 1/AASB 101 as it applies to Australia?

Accepted Answer

A) The reports must be in English. 
B) Comparative figures must be provided. 
C) The name of the ultimate parent entity must be disclosed. 
D) The name and address of each shareholder must be disclosed. 
A) The reports must be in English. 
B) Comparative figures must be provided. 
C) The name of the ultimate parent entity must be disclosed. 
D) The name and address of each shareholder must be disclosed.

Question 15

Under the accounting standards,which of these is not included in the calculation of a company's profit or loss (not including other comprehensive income in the definition of profit)?

Accepted Answer

A) Gain on the sale of fixed assets 
B) Dividends received 
C) Adjustments from translation of the financial statements of a foreign operation 
D) Expense on the impairment of assets held 
A) Gain on the sale of fixed assets 
B) Dividends received 
C) Adjustments from translation of the financial statements of a foreign operation 
D) Expense on the impairment of assets held

Question 16

Which statement is not true?

Accepted Answer

A) AASB 1039 Concise Financial Reports has an equivalent international standard. 
B) Shareholders who receive a concise report can request a full report. 
C) The concise report must comply with the accounting standards. 
D) Except for concise reports prepared for listed companies each financial statement must be accompanied by some discussion and analysis. 
A) AASB 1039 Concise Financial Reports has an equivalent international standard. 
B) Shareholders who receive a concise report can request a full report. 
C) The concise report must comply with the accounting standards. 
D) Except for concise reports prepared for listed companies each financial statement must be accompanied by some discussion and analysis.

Question 17

It is proposed that how many of the following entities would be classed as belonging to Tier 2 under AASB 1053 Application of Tiers of Australian Accounting Standards,and thus be given relief from some reporting requirements?
-Not-for-profit private sector entities
-Most public sector entities
-Small proprietary companies

Accepted Answer

A) 0 
B) 1 
C) 2 
D) 3 
A) 0 
B) 1 
C) 2 
D) 3

Question 18

The term that is currently most commonly preferred for owner's equity in a company balance sheet is:

Accepted Answer

A) shareholder's equity. 
B) shareholder's funds. 
C) equity. 
D) share capital and reserves. 
A) shareholder's equity. 
B) shareholder's funds. 
C) equity. 
D) share capital and reserves.

Question 19

The overall criteria for financial reporting contained in the Corporations Act is:

Accepted Answer

A) beyond a reasonable doubt. 
B) true and fair. 
C) materiality. 
D) the balance of probabilities. 
A) beyond a reasonable doubt. 
B) true and fair. 
C) materiality. 
D) the balance of probabilities.

Question 20

An entity defined as a 'disclosing entity' under the Corporations Act must prepare interim financial reports.The content of an interim financial report,under IAS 34/ AASB 134,must include,as a minimum:

Accepted Answer

A) a condensed statement of financial position,a condensed statement of comprehensive income and selected notes. 
B) a condensed statement of financial position,a condensed statement of profit or loss and other comprehensive income,and a condensed statement of changes in equity. 
C) a condensed statement of financial position,a condensed statement of profit or loss and other comprehensive income,a condensed statement of changes in equity,a condensed statement of cash flows and selected notes. 
D) a condensed statement of financial position,a condensed statement of profit or loss,a condensed statement of cash flows and selected notes. 
A) a condensed statement of financial position,a condensed statement of comprehensive income and selected notes. 
B) a condensed statement of financial position,a condensed statement of profit or loss and other comprehensive income,and a condensed statement of changes in equity. 
C) a condensed statement of financial position,a condensed statement of profit or loss and other comprehensive income,a condensed statement of changes in equity,a condensed statement of cash flows and selected notes. 
D) a condensed statement of financial position,a condensed statement of profit or loss,a condensed statement of cash flows and selected notes.

When might borrowing costs not appear in a statement of profit or loss and other comprehensive income?

Under the Corporations Act a 'disclosing entity' must prepare a half-yearly financial report in addition to an annual report.How many of these are 'disclosing entities'? A company listed on the stock exchange A borrowing corporation A company raising funds through a prospectus

Under AASB 1039 and the Corporations Act which of these does not have to be included in a concise financial report?

The term that is currently the most commonly preferred for owner's equity in a company balance sheet is:

Under the Corporations Act 2001 a set of financial statements to be included in the annual report are specified as:

It is true under IAS 1/AASB 101 that:

Which category of revenue listed does not require separate disclosure under IAS 18/ AASB 118?

A concise financial report is for:

What is the correct heading on a statement of financial position made up to 30 June 2016?

Under the Corporations Act which of these is not necessarily a disclosing entity?

Accounting standard AASB 1053 Application of Tiers of Australian Accounting Standards will become mandatory from:

An interim report required to be prepared by a disclosing entity under IAS 34/AASB 134 Interim Financial Reporting is defined as a report for:

Which of these is not one of the general reporting requirements of IAS 1/AASB 101 as it applies to Australia?

Under the accounting standards,which of these is not included in the calculation of a company's profit or loss (not including other comprehensive income in the definition of profit)?

Which statement is not true?

The term that is currently most commonly preferred for owner's equity in a company balance sheet is:

The overall criteria for financial reporting contained in the Corporations Act is:

An entity defined as a 'disclosing entity' under the Corporations Act must prepare interim financial reports.The content of an interim financial report,under IAS 34/ AASB 134,must include,as a minimum:

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Recording Transactions

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle Closing and Reversing Entries

Accounting for Retailing

Accounting for Systems

Partnerships: Formation,operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Cash Management and Control

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation,disposal and Other Aspects

Liabilities

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Filters

Exam 17: Presentation of Financial Statements

When might borrowing costs not appear in a statement of profit or loss and other comprehensive income?

Under the Corporations Act a 'disclosing entity' must prepare a half-yearly financial report in addition to an annual report.How many of these are 'disclosing entities'? A company listed on the stock exchange A borrowing corporation A company raising funds through a prospectus

Under AASB 1039 and the Corporations Act which of these does not have to be included in a concise financial report?

The term that is currently the most commonly preferred for owner's equity in a company balance sheet is:

Under the Corporations Act 2001 a set of financial statements to be included in the annual report are specified as:

It is true under IAS 1/AASB 101 that:

Which category of revenue listed does not require separate disclosure under IAS 18/ AASB 118?

A concise financial report is for:

What is the correct heading on a statement of financial position made up to 30 June 2016?

Under the Corporations Act which of these is not necessarily a disclosing entity?

Accounting standard AASB 1053 Application of Tiers of Australian Accounting Standards will become mandatory from:

An interim report required to be prepared by a disclosing entity under IAS 34/AASB 134 Interim Financial Reporting is defined as a report for:

Which of these is not one of the general reporting requirements of IAS 1/AASB 101 as it applies to Australia?

Under the accounting standards,which of these is not included in the calculation of a company's profit or loss (not including other comprehensive income in the definition of profit)?

Which statement is not true?

The term that is currently most commonly preferred for owner's equity in a company balance sheet is:

The overall criteria for financial reporting contained in the Corporations Act is:

An entity defined as a 'disclosing entity' under the Corporations Act must prepare interim financial reports.The content of an interim financial report,under IAS 34/ AASB 134,must include,as a minimum:

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Recording Transactions

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle Closing and Reversing Entries

Accounting for Retailing

Accounting for Systems

Partnerships: Formation,operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Cash Management and Control

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation,disposal and Other Aspects

Liabilities

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Filters