Question 1

All of the following are reasons that the amount of disclosure provisions issued by the IASB has increased in the last 10 years except?

Accepted Answer

A) There has been greater complexity of the business environment. 
B) There has greater necessity for timely information. 
C) Accounting has become more important as a control and monitoring device. 
D) More disclosure mean lower costs for companies. 
A) There has been greater complexity of the business environment. 
B) There has greater necessity for timely information. 
C) Accounting has become more important as a control and monitoring device. 
D) More disclosure mean lower costs for companies.

Question 2

A financial projection is a set of prospective financial statements that present a company's expected financial position, results of operations, and cash flows.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following subsequent events (events after the reporting date) would require adjustment of the accounts before issuance of the financial statements?

Accepted Answer

A) Loss of plant as a result of fire 
B) Changes in the quoted market prices of securities held as an investment 
C) Loss on an uncollectible account receivable resulting from a customer's major flood loss 
D) Loss on a lawsuit, the outcome of which was deemed uncertain at year end. 
A) Loss of plant as a result of fire 
B) Changes in the quoted market prices of securities held as an investment 
C) Loss on an uncollectible account receivable resulting from a customer's major flood loss 
D) Loss on a lawsuit, the outcome of which was deemed uncertain at year end.

Question 4

On January 15, 2011, Vancey Company paid property taxes on its factory building for the calendar year 2011 in the amount of $560,000.In the first week of April 2011, Vancey made unanticipated major repairs to its plant equipment at a cost of $1,400,000.These repairs will benefit operations for the remainder of the calendar year.How should these expenses be reflected in Vancey's quarterly income statements?

Accepted Answer

The answer of On January 15, 2011, Vancey Company paid...

Question 5

The times interest earned ratio during 2011 was

Accepted Answer

A) 350 ÷ 62.5. 
B) 500 ÷ 62.5. 
C) 562 ÷ 62.5. 
D) 437 ÷ 62.5. 
A) 350 ÷ 62.5. 
B) 500 ÷ 62.5. 
C) 562 ÷ 62.5. 
D) 437 ÷ 62.5.

Question 6

Theoretically, in computing the receivables turnover, the numerator should include

Accepted Answer

A) net sales. 
B) net credit sales. 
C) sales. 
D) credit sales. 
A) net sales. 
B) net credit sales. 
C) sales. 
D) credit sales.

Question 7

The basic limitations associated with ratio analysis include

Accepted Answer

A) the lack of comparability among firms in a given industry. 
B) the use of estimated items in accounting. 
C) the use of historical costs in accounting. 
D) all of these. 
A) the lack of comparability among firms in a given industry. 
B) the use of estimated items in accounting. 
C) the use of historical costs in accounting. 
D) all of these.

Question 8

Management commentary helps in the interpretation of the financial position, financial performance, and cash flows of a company.

Accepted Answer

A) True 
 B)False

Question 9

IFRS requires that general-purpose financial statements include selected information on a single basis of segmentation.

Accepted Answer

A) True 
 B)False

Question 10

In considering interim financial reporting, how does IFRS conclude that such reporting should be viewed?

Accepted Answer

A) As a "special" type of reporting that need not follow international financial reporting standards 
B) As useful only if activity is evenly spread throughout the year so that estimates are unnecessary. 
C) As reporting for an integral part of an annual period. 
D) As reporting for a separate accounting period 
A) As a "special" type of reporting that need not follow international financial reporting standards 
B) As useful only if activity is evenly spread throughout the year so that estimates are unnecessary. 
C) As reporting for an integral part of an annual period. 
D) As reporting for a separate accounting period

Question 11

Which of the following ratios is(are) useful in assessing a company's ability to meet current maturing or short-term obligations?

Accepted Answer

The answer of Which of the following ratios is(are) useful...

Question 12

Accounting policies are modified for the following at interim dates.

Accepted Answer

The answer of Accounting policies are modified for the following...

Question 13

Companies should report accounting transactions as they occur, and expense recognition should not change with the period of time covered under the integral approach.

Accepted Answer

A) True 
 B)False

Question 14

The full disclosure principle, as adopted by the accounting profession, is best described by which of the following?

Accepted Answer

A) All information related to an entity's business and operating objectives is required to be disclosed in the financial statements. 
B) Information about each account balance appearing in the financial statements is to be included in the notes to the financial statements. 
C) Enough information should be disclosed in the financial statements so a person wishing to invest in the shares of the company can make a profitable decision. 
D) Disclosure of any financial facts significant enough to influence the judgment of an informed reader. 
A) All information related to an entity's business and operating objectives is required to be disclosed in the financial statements. 
B) Information about each account balance appearing in the financial statements is to be included in the notes to the financial statements. 
C) Enough information should be disclosed in the financial statements so a person wishing to invest in the shares of the company can make a profitable decision. 
D) Disclosure of any financial facts significant enough to influence the judgment of an informed reader.

Question 15

For interim financial reporting, a company's income tax expense for the second quarter should be computed by using the:

Accepted Answer

A) statutory tax rate for the year. 
B) effective tax rate expected to be applicable for the second quarter. 
C) effective tax rate expected to be applicable for the full year as estimated at the end of the first.quarter. 
D) effective tax rate expected to be applicable for the full year as estimated at the end of the second .quarter. 
A) statutory tax rate for the year. 
B) effective tax rate expected to be applicable for the second quarter. 
C) effective tax rate expected to be applicable for the full year as estimated at the end of the first.quarter. 
D) effective tax rate expected to be applicable for the full year as estimated at the end of the second .quarter.

Question 16

Use the following information for questions.
The following data are provided:
   
Additional information:
Depreciation included in cost of goods sold and operating expenses is $305,000.On May 1, 2011, 15,000 ordinary shares were issued.The preference share are cumulative.The preference dividends were not declared during 2011.
-The profit margin on sales for 2011 is

Accepted Answer

A) 1,100 ÷ 3,200. 
B) 375 ÷ 3,200. 
C) 1,100 ÷ 2,100. 
D) 375 ÷ 2,100. 
A) 1,100 ÷ 3,200. 
B) 375 ÷ 3,200. 
C) 1,100 ÷ 2,100. 
D) 375 ÷ 2,100.

Question 17

All of the following information about each operating segment must be reported except

Accepted Answer

A) unusual items. 
B) interest revenue. 
C) cost of goods sold. 
D) depreciation and amortization expense. 
A) unusual items. 
B) interest revenue. 
C) cost of goods sold. 
D) depreciation and amortization expense.

Question 18

Other types of information found in the annual report, such as management commentary and the letter to shareholders, are subject to IASB rules.

Accepted Answer

A) True 
 B)False

Question 19

IFRS requires that a company report all to the following except

Accepted Answer

A) segment profits and loss and related information. 
B) segment assets and liabilities. 
C) major customers. 
D) liquidity ratios. 
A) segment profits and loss and related information. 
B) segment assets and liabilities. 
C) major customers. 
D) liquidity ratios.

Question 20

The IASB and FASB require companies to provide expanded about their contractual obligations.

Accepted Answer

A) True 
 B)False

Exam 24: Presentation and Disclosure in Financial Reporting

All of the following are reasons that the amount of disclosure provisions issued by the IASB has increased in the last 10 years except?

A financial projection is a set of prospective financial statements that present a company's expected financial position, results of operations, and cash flows.

Which of the following subsequent events (events after the reporting date) would require adjustment of the accounts before issuance of the financial statements?

The times interest earned ratio during 2011 was

Theoretically, in computing the receivables turnover, the numerator should include

The basic limitations associated with ratio analysis include

Management commentary helps in the interpretation of the financial position, financial performance, and cash flows of a company.

IFRS requires that general-purpose financial statements include selected information on a single basis of segmentation.

In considering interim financial reporting, how does IFRS conclude that such reporting should be viewed?

Which of the following ratios is(are) useful in assessing a company's ability to meet current maturing or short-term obligations?

Accounting policies are modified for the following at interim dates.

Companies should report accounting transactions as they occur, and expense recognition should not change with the period of time covered under the integral approach.

The full disclosure principle, as adopted by the accounting profession, is best described by which of the following?

For interim financial reporting, a company's income tax expense for the second quarter should be computed by using the:

All of the following information about each operating segment must be reported except

Other types of information found in the annual report, such as management commentary and the letter to shareholders, are subject to IASB rules.

IFRS requires that a company report all to the following except

The IASB and FASB require companies to provide expanded about their contractual obligations.

Financial Accounting and Accounting Standards

Conceptual Framework Underlying Financial Accounting

The Accounting Information System

Income Statement and Related Information

Statement of Financial Position and Statement of Cash Flows

Accounting and the Time Value of Money

Cash and Receivables

Valuation of Inventories: a Cost-Basis Approach

Inventories: Additional Valuation Issues

Acquisition and Disposition of Property, Plant, and Equipment

Depreciation, Impairments, and Depletion

Intangible Assets

Current Liabilities, Provisions, and Contingencies

Non-Current Liabilities

Equity

Dilutive Securities and Earnings Per Share

Investments

Revenue

Accounting for Income Taxes

Accounting for Pensions and Postretirement Benefits

Accounting for Leases

Accounting Changes and Error Analysis

Statement of Cash Flows

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