Exam 6: Financial Reporting Principles, Accounting Standards and Auditing

Identify the accounting concept or principle that relates to the statement in the following question: The financial statements need to contain information that is useful to decision-makers.

If the market is efficient with respect to accounting information, which of the following statements is true?

The agency empowered to prepare and issue accounting standards for the purposes of the Corporations Act 2001 is the:

The practice by Woolworths Ltd of presenting their financial statements in millions of dollars is an application of the concept of:

Identify the accounting concept or principle that relates to the statement in the following question: Information should have predictive value and/or feedback value.

Which of the following is a liability?

Which of the following items would be recognised as a liability?

Which of the following statements about agency theory is true?

Systemic effects arise when:

A security's price may NOT vary because:

Which of the following opinions is NOT included in the directors' statement accompanying the financial statements?

A liability should only be recognised in the financial statements when:

Systemic effects on the share prices of companies are:

The return you earn by owning a share is:

Which of the following is an essential requirement for an asset to exist for accounting purposes?

Identify the accounting concept or principle that relates to the statement in the following question: If a particular item is, by reason of its nature or its size, significant to a proper understanding of the situation, it should be separately stated.

In reporting on its liability for long service leave to employees, a company is obliged to trade off:

The agency charged with the administration and enforcement of the Corporations Act 2001 is the:

An asset should be recognised in the financial statements when:

Which of the following statements about agency theory is NOT true?