Question 1

In a statement of financial position,subclassifications such as reserves,provisions and inventories are generally reported:

Accepted Answer

A)  in the financial statement itself. 
B)  in the director's report. 
C)  as notes to the main financial statements. 
D)  These items do not have to be reported at all. 
A)  in the financial statement itself. 
B)  in the director's report. 
C)  as notes to the main financial statements. 
D)  These items do not have to be reported at all.

Question 2

Financial reports for a reporting entity should fairly reflect each of the following except:

Accepted Answer

A)  capital budget. 
B)  liquidity of the firm. 
C)  financial performance. 
D)  financial position. 
A)  capital budget. 
B)  liquidity of the firm. 
C)  financial performance. 
D)  financial position.

Question 3

Under AASB 101,in the statement of financial position,companies are normally required to distinguish between:

Accepted Answer

A)  cash on hand and cash at bank. 
B)  property and plant. 
C)  current and non-current liabilities. 
D)  current profit and retained profits. 
A)  cash on hand and cash at bank. 
B)  property and plant. 
C)  current and non-current liabilities. 
D)  current profit and retained profits.

Question 4

The global set of standards established for financial reporting cover each of the following aspects except:

Accepted Answer

A)  information disclosure. 
B)  asset valuation. 
C)  valuation of shares. 
D)  measurement of profit. 
A)  information disclosure. 
B)  asset valuation. 
C)  valuation of shares. 
D)  measurement of profit.

Question 5

Which of the following is not a reason for acquiring a controlling interest in another company?

Accepted Answer

A)  Possible economies of scale. 
B)  Reducing business risk. 
C)  Increasing competition. 
D)  Safeguarding supply resources. 
A)  Possible economies of scale. 
B)  Reducing business risk. 
C)  Increasing competition. 
D)  Safeguarding supply resources.

Question 6

The main difference between a subsidiary and an associate company is the:

Accepted Answer

A)  number of investors. 
B)  level of control the parent company has. 
C)  annual turnover. 
D)  size of the company. 
A)  number of investors. 
B)  level of control the parent company has. 
C)  annual turnover. 
D)  size of the company.

Question 7

Why might a subsidiary company retain their own identity?

Accepted Answer

A)  Maintain their market identity. 
B)  Enable the parent company to retain a limited liability status. 
C)  Allow their staff to remain autonomous. 
D)  All of the above. 
A)  Maintain their market identity. 
B)  Enable the parent company to retain a limited liability status. 
C)  Allow their staff to remain autonomous. 
D)  All of the above.

Question 8

CBD Ltd recently paid $4,000,000 for 60% of LKJ Ltd's equity.LKJ Ltd had total assets of $6,500,000 and liabilities of $1,300,000.What amount of goodwill on consolidation will CBD Ltd record?

Accepted Answer

A)  $2,700,000 
B)  $880,000 
C)  $1,200,000. 
D)  $100,000. 
A)  $2,700,000 
B)  $880,000 
C)  $1,200,000. 
D)  $100,000.

Question 9

Additional regulations set down for companies by the ASX,include the provision of:

Accepted Answer

A)  interim reports. 
B)  takeover information. 
C)  changes to staff. 
D)  Both A and B. 
A)  interim reports. 
B)  takeover information. 
C)  changes to staff. 
D)  Both A and B.

Question 10

Which of the following are sources of regulation applicable to publicly listed companies in Australia?

Accepted Answer

A)  ASX rules. 
B)  Company law. 
C)  International accounting standards. 
D)  All of the above. 
A)  ASX rules. 
B)  Company law. 
C)  International accounting standards. 
D)  All of the above.

Question 11

Which of the following would be regarded as 'other comprehensive income'?

Accepted Answer

A)  Foreign exchange gains. 
B)  Cash flow hedges. 
C)  Revaluation of property. 
D)  All of the above. 
A)  Foreign exchange gains. 
B)  Cash flow hedges. 
C)  Revaluation of property. 
D)  All of the above.

Question 12

The directors' report in the annual report contains each of the following except:

Accepted Answer

A)  a summary of all share issues. 
B)  a listing of all directors. 
C)  a review of the current operations. 
D)  details of any significant changes in the company's affairs. 
A)  a summary of all share issues. 
B)  a listing of all directors. 
C)  a review of the current operations. 
D)  details of any significant changes in the company's affairs.

Question 13

GAAP,in an accounting context,stands for:

Accepted Answer

A)  General Assumptions and Attitudes of Professionals. 
B)  Good Auditing and Accounting Practices. 
C)  General Accepted Accounting Principles. 
D)  none of the above. 
A)  General Assumptions and Attitudes of Professionals. 
B)  Good Auditing and Accounting Practices. 
C)  General Accepted Accounting Principles. 
D)  none of the above.

Question 14

Goodwill on consolidation is classified in the statement of financial position as a/an:

Accepted Answer

A)  current asset. 
B)  tangible asset. 
C)  intangible asset. 
D)  non-current liability. 
A)  current asset. 
B)  tangible asset. 
C)  intangible asset. 
D)  non-current liability.

Question 15

Notes to the financial statements typically include each of the following except:

Accepted Answer

A)  all insignificant disclosures. 
B)  explanations of measuring bases used. 
C)  details of asset subclassifications. 
D)  confirmation that accounting standards have been adhered to. 
A)  all insignificant disclosures. 
B)  explanations of measuring bases used. 
C)  details of asset subclassifications. 
D)  confirmation that accounting standards have been adhered to.

Question 16

The annual report of a public company must contain:

Accepted Answer

A)  an audit report. 
B)  a directors' declaration. 
C)  a directors' report. 
D)  All of the above. 
A)  an audit report. 
B)  a directors' declaration. 
C)  a directors' report. 
D)  All of the above.

Question 17

A public company is a:

Accepted Answer

A)  reporting entity. 
B)  disclosing entity 
C)  Both A and B. 
D)  Neither A nor B. 
A)  reporting entity. 
B)  disclosing entity 
C)  Both A and B. 
D)  Neither A nor B.

Question 18

If the management of a company believes that in complying with the accounting standards,the financial reports would not show a true and fair representation,they:

Accepted Answer

A)  are not legally required to comply with the standards. 
B)  just have to disclose that they have not used the standard. 
C)  do not have to adhere to the standards in this situation. 
D)  must comply with the standards and have the option of including a note in the report. 
A)  are not legally required to comply with the standards. 
B)  just have to disclose that they have not used the standard. 
C)  do not have to adhere to the standards in this situation. 
D)  must comply with the standards and have the option of including a note in the report.

Question 19

A company partly owned and controlled by another is known as a:

Accepted Answer

A)  parent company. 
B)  subsidiary company. 
C)  a limited company. 
D)  a private company. 
A)  parent company. 
B)  subsidiary company. 
C)  a limited company. 
D)  a private company.

Question 20

In relation to associate companies,which of the following investor's share does not have to be recorded in the consolidated accounts?

Accepted Answer

A)  Fixed assets. 
B)  Attributable tax. 
C)  Retained profits. 
D)  Profit or loss. 
A)  Fixed assets. 
B)  Attributable tax. 
C)  Retained profits. 
D)  Profit or loss.

In a statement of financial position,subclassifications such as reserves,provisions and inventories are generally reported:

Financial reports for a reporting entity should fairly reflect each of the following except:

Under AASB 101,in the statement of financial position,companies are normally required to distinguish between:

The global set of standards established for financial reporting cover each of the following aspects except:

Which of the following is not a reason for acquiring a controlling interest in another company?

The main difference between a subsidiary and an associate company is the:

Why might a subsidiary company retain their own identity?

CBD Ltd recently paid $4,000,000 for 60% of LKJ Ltd's equity.LKJ Ltd had total assets of $6,500,000 and liabilities of $1,300,000.What amount of goodwill on consolidation will CBD Ltd record?

Additional regulations set down for companies by the ASX,include the provision of:

Which of the following are sources of regulation applicable to publicly listed companies in Australia?

Which of the following would be regarded as 'other comprehensive income'?

The directors' report in the annual report contains each of the following except:

GAAP,in an accounting context,stands for:

Goodwill on consolidation is classified in the statement of financial position as a/an:

Notes to the financial statements typically include each of the following except:

The annual report of a public company must contain:

A public company is a:

If the management of a company believes that in complying with the accounting standards,the financial reports would not show a true and fair representation,they:

A company partly owned and controlled by another is known as a:

In relation to associate companies,which of the following investor's share does not have to be recorded in the consolidated accounts?

Introduction to Accounting

Measuring and Reporting Financial Position

Measuring and Reporting Financial Performance

Introduction to Limited Companies

Measuring and Reporting Cash Flows

Corporate Social Responsibility and Sustainability Accounting

Analysis and Interpretation of Financial Statements

Costvolumeprofit Analysis and Relevant Costing

Full Costing

Budgeting

Capital Investment Decisions

The Management of Working Capital

Financing the Business

Filters

Exam 5: Regulatory Framework for Companies

In a statement of financial position,subclassifications such as reserves,provisions and inventories are generally reported:

Financial reports for a reporting entity should fairly reflect each of the following except:

Under AASB 101,in the statement of financial position,companies are normally required to distinguish between:

The global set of standards established for financial reporting cover each of the following aspects except:

Which of the following is not a reason for acquiring a controlling interest in another company?

The main difference between a subsidiary and an associate company is the:

Why might a subsidiary company retain their own identity?

CBD Ltd recently paid $4,000,000 for 60% of LKJ Ltd's equity.LKJ Ltd had total assets of $6,500,000 and liabilities of $1,300,000.What amount of goodwill on consolidation will CBD Ltd record?

Additional regulations set down for companies by the ASX,include the provision of:

Which of the following are sources of regulation applicable to publicly listed companies in Australia?

Which of the following would be regarded as 'other comprehensive income'?

The directors' report in the annual report contains each of the following except:

GAAP,in an accounting context,stands for:

Goodwill on consolidation is classified in the statement of financial position as a/an:

Notes to the financial statements typically include each of the following except:

The annual report of a public company must contain:

A public company is a:

If the management of a company believes that in complying with the accounting standards,the financial reports would not show a true and fair representation,they:

A company partly owned and controlled by another is known as a:

In relation to associate companies,which of the following investor's share does not have to be recorded in the consolidated accounts?

Introduction to Accounting

Measuring and Reporting Financial Position

Measuring and Reporting Financial Performance

Introduction to Limited Companies

Measuring and Reporting Cash Flows

Corporate Social Responsibility and Sustainability Accounting

Analysis and Interpretation of Financial Statements

Costvolumeprofit Analysis and Relevant Costing

Full Costing

Budgeting

Capital Investment Decisions

The Management of Working Capital

Financing the Business

Filters