Question 1

Sustainability is concerned with the following areas except for:

Accepted Answer

A)  social. 
B)  financial. 
C)  economic. 
D)  environmental. 
A)  social. 
B)  financial. 
C)  economic. 
D)  environmental. B

Question 2

Please complete the following statementS :
-If the ____________________ is not assumed, then plant and equipment should be stated at their liquidation value (selling price less costs of disposal), not at their cost.

Accepted Answer

going concern principle

Question 3

The purpose of full disclosure principle is to report all:

Accepted Answer

A)  timely information. 
B)  reliable information. 
C)  relevant information. 
D)  comparable information. 
A)  timely information. 
B)  reliable information. 
C)  relevant information. 
D)  comparable information. C

Question 4

The cost principle states that all assets are initially recorded in the accounts at:

Accepted Answer

A)  current cost. 
B)  present value. 
C)  historical cost. 
D)  realisable value. 
A)  current cost. 
B)  present value. 
C)  historical cost. 
D)  realisable value.

Question 5

Timeliness refers to providing information in a timely manner such that it will not lose its:

Accepted Answer

A)  reliability. 
B)  relevance. 
C)  comparability. 
D)  understandability. 
A)  reliability. 
B)  relevance. 
C)  comparability. 
D)  understandability.

Question 6

The Financial Accounting Standards Board (FASB) is the accounting body of which country?

Accepted Answer

A)  UK. 
B)  USA. 
C)  Australia. 
D)  New Zealand. 
A)  UK. 
B)  USA. 
C)  Australia. 
D)  New Zealand.

Question 7

a. Briefly explain the essential characteristics in the definition of a liability.
b. What are the criteria that must be satisfied for liabilities to be recognised in the statement of financial position?
c. Using the definition and recognition criteria, explain why the following items are liabilities:
• bank loan
• revenue earned in advance (unearned revenue)
• provision for employees' annual leave

Accepted Answer

a. A liability is defined in the Concept

Question 8

Which is the correct order for preparers of financial reports in applying various aspects of GAAP?

Accepted Answer

A)  conceptual framework, accounting standards, concepts and principles 
B)  accounting standards, concepts and principles, conceptual framework 
C)  accounting standards, conceptual framework, concepts and principles 
D)  there is no particular order 
A)  conceptual framework, accounting standards, concepts and principles 
B)  accounting standards, concepts and principles, conceptual framework 
C)  accounting standards, conceptual framework, concepts and principles 
D)  there is no particular order

Question 9

Timeliness refers to reporting information in a timely manner so that it still retains its:

Accepted Answer

A)  reliability. 
B)  relevance. 
C)  materiality. 
D)  comparability. 
A)  reliability. 
B)  relevance. 
C)  materiality. 
D)  comparability.

Question 10

A conceptual framework for financial reporting will not include discussion on:

Accepted Answer

A)  the elements of financial reports. 
B)  the objective of financial reporting. 
C)  how to prepare financial ratio analysis. 
D)  the qualitative characteristics of financial reports. 
A)  the elements of financial reports. 
B)  the objective of financial reporting. 
C)  how to prepare financial ratio analysis. 
D)  the qualitative characteristics of financial reports.

Question 11

Match the descriptions with their terms :
-The primary users of general purpose financial reports.

Accepted Answer

A)  Resource providers 
B)  Materiality 
C)  Assets 
D)  SAC 7 
E)  Full disclosure principle 
F) Cost
G) A conceptual framework
H) Verifiability
I) The Conceptual Framework
J) The Framework
K) Losses
L) Contingent liabilities 
A)  Resource providers 
B)  Materiality 
C)  Assets 
D)  SAC 7 
E)  Full disclosure principle 
F) Cost
G) A conceptual framework
H) Verifiability
I) The Conceptual Framework
J) The Framework
K) Losses
L) Contingent liabilities

Question 12

Which of the following is a constraint on financial reporting?

Accepted Answer

A)  cost 
B)  timeliness 
C)  allocation of scarce resources 
D)  financial reports are not the only source of information 
A)  cost 
B)  timeliness 
C)  allocation of scarce resources 
D)  financial reports are not the only source of information

Question 13

The following statements are associated with the qualitative characteristics of relevance, except:

Accepted Answer

A)  confirms or corrects previous expectations. 
B)  relevance is affected by materiality. 
C)  provides a basis for predictions. 
D)  free from material error. 
A)  confirms or corrects previous expectations. 
B)  relevance is affected by materiality. 
C)  provides a basis for predictions. 
D)  free from material error.

Question 14

Match the descriptions with their terms :
-A resource controlled by the entity as a result of past events and from which the future economic benefits are expected to flow to the entity.

Accepted Answer

A)  Resource providers 
B)  Materiality 
C)  Assets 
D)  SAC 9 
E)  Full disclosure principle 
F) Cost
G) A conceptual framework
H) Verifiability
I) The Conceptual Framework
J) The Framework
K) Losses
L) Contingent liabilities 
A)  Resource providers 
B)  Materiality 
C)  Assets 
D)  SAC 9 
E)  Full disclosure principle 
F) Cost
G) A conceptual framework
H) Verifiability
I) The Conceptual Framework
J) The Framework
K) Losses
L) Contingent liabilities

Question 15

Which of the following statements about generally accepted accounting principles (GAAP) and conceptual framework is correct?

Accepted Answer

A)  Conceptual framework is part of GAAP. 
B)  GAAP is part of the conceptual framework. 
C)  Australian GAAP only consists of the developed accounting standards. 
D)  Since 2005, SAC 1 is no longer a part of Australian conceptual framework. 
A)  Conceptual framework is part of GAAP. 
B)  GAAP is part of the conceptual framework. 
C)  Australian GAAP only consists of the developed accounting standards. 
D)  Since 2005, SAC 1 is no longer a part of Australian conceptual framework.

Question 16

Please complete the following statementS :
-The Conceptual Framework classifies relevance and faithful representation as _______________ qualitative characteristics.

Accepted Answer

The answer of Please complete the following statementS :
-The Conceptual...

Question 17

Under AASB 15 Revenue from Contracts with Customers, a service entity will recognise revenue:

Accepted Answer

A)  at the time the service is performed. 
B)  when the entity collects cash from the customer for services provided. 
C)  if both parties agree the services will be performed over a period of time, at the completion of the service contract. 
D)  if both parties agree the services will be performed over a period of time, at the commencement of the service contract. 
A)  at the time the service is performed. 
B)  when the entity collects cash from the customer for services provided. 
C)  if both parties agree the services will be performed over a period of time, at the completion of the service contract. 
D)  if both parties agree the services will be performed over a period of time, at the commencement of the service contract.

Question 18

Match the descriptions with their terms :
-Liabilities that do not satisfy the recognition criteria.

Accepted Answer

A)  Resource providers 
B)  Materiality 
C)  Assets 
D)  SAC 3 
E)  Full disclosure principle 
F) Cost
G) A conceptual framework
H) Verifiability
I) The Conceptual Framework
J) The Framework
K) Losses
L) Contingent liabilities 
A)  Resource providers 
B)  Materiality 
C)  Assets 
D)  SAC 3 
E)  Full disclosure principle 
F) Cost
G) A conceptual framework
H) Verifiability
I) The Conceptual Framework
J) The Framework
K) Losses
L) Contingent liabilities

Question 19

The purpose of full disclosure principle is to report:

Accepted Answer

A)  reliable information. 
B)  comparable information. 
C)  all information in a timely manner. 
D)  information that could affect the decisions of users. 
A)  reliable information. 
B)  comparable information. 
C)  all information in a timely manner. 
D)  information that could affect the decisions of users.

Question 20

Which of the following is not an indicator of a reporting entity under SAC 1?

Accepted Answer

A)  The entity receives government grants. 
B)  The entity is politically or economically important. 
C)  The entity is managed by individuals who are not owners of the entity. 
D)  The entity is considered large in terms of sales, assets, borrowings, employees and customers. 
A)  The entity receives government grants. 
B)  The entity is politically or economically important. 
C)  The entity is managed by individuals who are not owners of the entity. 
D)  The entity is considered large in terms of sales, assets, borrowings, employees and customers.

Sustainability is concerned with the following areas except for:

Please complete the following statementS : -If the ____________________ is not assumed, then plant and equipment should be stated at their liquidation value (selling price less costs of disposal), not at their cost.

The purpose of full disclosure principle is to report all:

The cost principle states that all assets are initially recorded in the accounts at:

Timeliness refers to providing information in a timely manner such that it will not lose its:

The Financial Accounting Standards Board (FASB) is the accounting body of which country?

Which is the correct order for preparers of financial reports in applying various aspects of GAAP?

Timeliness refers to reporting information in a timely manner so that it still retains its:

A conceptual framework for financial reporting will not include discussion on:

Match the descriptions with their terms : -The primary users of general purpose financial reports.

Which of the following is a constraint on financial reporting?

The following statements are associated with the qualitative characteristics of relevance, except:

Match the descriptions with their terms : -A resource controlled by the entity as a result of past events and from which the future economic benefits are expected to flow to the entity.

Which of the following statements about generally accepted accounting principles (GAAP) and conceptual framework is correct?

Please complete the following statementS : -The Conceptual Framework classifies relevance and faithful representation as _______________ qualitative characteristics.

Under AASB 15 Revenue from Contracts with Customers, a service entity will recognise revenue:

Match the descriptions with their terms : -Liabilities that do not satisfy the recognition criteria.

The purpose of full disclosure principle is to report:

Which of the following is not an indicator of a reporting entity under SAC 1?

An Introduction to Accounting

The Recording Process

Accrual Accounting Concepts

Inventories

Reporting and Analysing Inventory

Accounting Information Systems

Reporting and Analysing Cash and Receivables

Reporting and Analysing Non-Current Assets

Reporting and Analysing Liabilities

Reporting and Analysing Equity

Statement of Cash Flows

Financial Statement Analysis and Decision Making

Technology Concepts

Introduction to Management Accounting

Cost Accounting Systems

Costvolumeprofit Relationships

Budgeting

Filters

Exam 13: Analysing and Integrating Gaap

Sustainability is concerned with the following areas except for:

Please complete the following statementS : -If the ____________________ is not assumed, then plant and equipment should be stated at their liquidation value (selling price less costs of disposal), not at their cost.

The purpose of full disclosure principle is to report all:

The cost principle states that all assets are initially recorded in the accounts at:

Timeliness refers to providing information in a timely manner such that it will not lose its:

The Financial Accounting Standards Board (FASB) is the accounting body of which country?

Which is the correct order for preparers of financial reports in applying various aspects of GAAP?

Timeliness refers to reporting information in a timely manner so that it still retains its:

A conceptual framework for financial reporting will not include discussion on:

Match the descriptions with their terms : -The primary users of general purpose financial reports.

Which of the following is a constraint on financial reporting?

The following statements are associated with the qualitative characteristics of relevance, except:

Match the descriptions with their terms : -A resource controlled by the entity as a result of past events and from which the future economic benefits are expected to flow to the entity.

Which of the following statements about generally accepted accounting principles (GAAP) and conceptual framework is correct?

Please complete the following statementS : -The Conceptual Framework classifies relevance and faithful representation as _______________ qualitative characteristics.

Under AASB 15 Revenue from Contracts with Customers, a service entity will recognise revenue:

Match the descriptions with their terms : -Liabilities that do not satisfy the recognition criteria.

The purpose of full disclosure principle is to report:

Which of the following is not an indicator of a reporting entity under SAC 1?

An Introduction to Accounting

The Recording Process

Accrual Accounting Concepts

Inventories

Reporting and Analysing Inventory

Accounting Information Systems

Reporting and Analysing Cash and Receivables

Reporting and Analysing Non-Current Assets

Reporting and Analysing Liabilities

Reporting and Analysing Equity

Statement of Cash Flows

Financial Statement Analysis and Decision Making

Technology Concepts

Introduction to Management Accounting

Cost Accounting Systems

Costvolumeprofit Relationships

Budgeting

Filters