Question 1

Which of the following is not typically included in the notes to the financial statements?

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 2

Which of the following statements is true about the order of repayment for a company in liquidation?

Accepted Answer

A) Creditors rank before ordinary shareholders. 
B) Ordinary shareholders rank before preference shareholders. 
C) Wages owing to employees rank last. 
D) All of the statements are true. 
A) Creditors rank before ordinary shareholders. 
B) Ordinary shareholders rank before preference shareholders. 
C) Wages owing to employees rank last. 
D) All of the statements are true.

Question 3

Which of the following financial statements does not have to be prepared by a publicly listed company?

Accepted Answer

A) Statement of comprehensive income 
B) Statement of changes in equity 
C) Statement of cash flows 
D) All of the above must be prepared 
A) Statement of comprehensive income 
B) Statement of changes in equity 
C) Statement of cash flows 
D) All of the above must be prepared

Question 4

Calculate the total comprehensive income for the year if operating profit is $556 000, the tax rate is 30%, finance charges are $88 700 and other comprehensive income for the year (net of tax)is $195 000.

Accepted Answer

A) $452 460 
B) $522 110 
C) $426 000 
D) $562 800 
A) $452 460 
B) $522 110 
C) $426 000 
D) $562 800

Question 5

Information if by its omission, misstatement or non-disclosure has the potential to influence economic decision-making, is regarded as:

Accepted Answer

A) reliable. 
B) true and fair. 
C) material. 
D) objective. 
A) reliable. 
B) true and fair. 
C) material. 
D) objective.

Question 6

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 7

Which of the following may be voluntarily disclosed in the annual report?

Accepted Answer

A) Human resource strategies 
B) Environmental initiatives 
C) Community contributions 
D) All of the above 
A) Human resource strategies 
B) Environmental initiatives 
C) Community contributions 
D) All of the above

Question 8

Assume the opening balance of equity (01/07/2017)is $1 500 000. During 2017/18, there was a share issue of $540 000, dividends declared of $280 000 and a profit for the year of $75 000, What is the equity balance on the 30/06/2018?

Accepted Answer

A) $2 650 000 
B) $2 370 000 
C) $1 835 000 
D) Not enough data to calculate the closing balance 
A) $2 650 000 
B) $2 370 000 
C) $1 835 000 
D) Not enough data to calculate the closing balance

Question 9

To whom do auditors report?

Accepted Answer

A) Shareholders 
B) Directors 
C) Both A and B 
D) Australian Tax Office 
A) Shareholders 
B) Directors 
C) Both A and B 
D) Australian Tax Office

Question 10

Accounting that takes advantage of loopholes in accounting principles is:

Accepted Answer

A) creative accounting. 
B) accrual-based accounting. 
C) cash-based accounting. 
D) international accounting. 
A) creative accounting. 
B) accrual-based accounting. 
C) cash-based accounting. 
D) international accounting.

Question 11

Which of the following comments in relation to the statement of cash flows is incorrect? The statement of cash flows:

Accepted Answer

A) allows the user of the report to determine where cash has been generated. 
B) is essentially a formal statement of all transactions affecting the cash account. 
C) highlights where cash has been spent. 
D) is a duplication of information already provided in the other financial statements. 
A) allows the user of the report to determine where cash has been generated. 
B) is essentially a formal statement of all transactions affecting the cash account. 
C) highlights where cash has been spent. 
D) is a duplication of information already provided in the other financial statements.

Question 12

Which of the following is not included in an audit report?

Accepted Answer

A) An audit opinion on whether or not the financial statements are 'true and fair' 
B) Identification of the financial reports audited 
C) A statement on the sustainable strategies of the reporting entity 
D) A statement that the financial reports were prepared in accordance with accounting standards 
A) An audit opinion on whether or not the financial statements are 'true and fair' 
B) Identification of the financial reports audited 
C) A statement on the sustainable strategies of the reporting entity 
D) A statement that the financial reports were prepared in accordance with accounting standards

Question 13

Which of the following is included in the statement of changes in equity?

Accepted Answer

A) Share issues 
B) Changes to reserves 
C) Changes to retained profits 
D) All of the above 
A) Share issues 
B) Changes to reserves 
C) Changes to retained profits 
D) All of the above

Question 14

A study by the International Federation of Accountants argued that companies must balance:

Accepted Answer

A) conformance and performance. 
B) conformance and consistency. 
C) performance and integrity. 
D) integrity and consistency. 
A) conformance and performance. 
B) conformance and consistency. 
C) performance and integrity. 
D) integrity and consistency.

Question 15

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 16

Which of the following is not a source of external accounting rules for a company listed on the Australian Stock Exchange?

Accepted Answer

A) Stock exchange rules imposed by the Australian Stock Exchange 
B) Company law 
C) Sarbanes Oxley Act 
D) International accounting standards 
A) Stock exchange rules imposed by the Australian Stock Exchange 
B) Company law 
C) Sarbanes Oxley Act 
D) International accounting standards

Question 17

A set of principles designed to guide the development of financial statements is:

Accepted Answer

A) International Financial Reporting Standards (IFRS). 
B) the conceptual framework. 
C) generally accepted accounting principles. 
D) Australian Accounting Standards Board. 
A) International Financial Reporting Standards (IFRS). 
B) the conceptual framework. 
C) generally accepted accounting principles. 
D) Australian Accounting Standards Board.

Question 18

Which of the following groups is not an intended audience for general purpose financial reporting?

Accepted Answer

A) Lenders 
B) Investors 
C) Customers 
D) Other creditors 
A) Lenders 
B) Investors 
C) Customers 
D) Other creditors

Question 19

Each ASX Corporate Governing Principle is supported by several recommendations. If the board of a listed company decides that a recommendation is not appropriate for their company:

Accepted Answer

A) the company will immediately be suspended from listing. 
B) the company must explain why it has not adopted the recommendation. 
C) the company can just ignore the recommendation. 
D) the company board of directors will be dismissed. 
A) the company will immediately be suspended from listing. 
B) the company must explain why it has not adopted the recommendation. 
C) the company can just ignore the recommendation. 
D) the company board of directors will be dismissed.

Question 20

How does the statement of comprehensive income differ from a traditional statement of financial performance?

Accepted Answer

A) It does not show a gross profit. 
B) It only shows realised gains and losses. 
C) It shows all realised and unrealised gains and losses. 
D) It does not show financial expenses. 
A) It does not show a gross profit. 
B) It only shows realised gains and losses. 
C) It shows all realised and unrealised gains and losses. 
D) It does not show financial expenses.

Which of the following is not typically included in the notes to the financial statements?

Which of the following statements is true about the order of repayment for a company in liquidation?

Which of the following financial statements does not have to be prepared by a publicly listed company?

Calculate the total comprehensive income for the year if operating profit is $556 000, the tax rate is 30%, finance charges are $88 700 and other comprehensive income for the year (net of tax)is $195 000.

Information if by its omission, misstatement or non-disclosure has the potential to influence economic decision-making, is regarded as:

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

Which of the following may be voluntarily disclosed in the annual report?

Assume the opening balance of equity (01/07/2017)is $1 500 000. During 2017/18, there was a share issue of $540 000, dividends declared of $280 000 and a profit for the year of $75 000, What is the equity balance on the 30/06/2018?

To whom do auditors report?

Accounting that takes advantage of loopholes in accounting principles is:

Which of the following comments in relation to the statement of cash flows is incorrect? The statement of cash flows:

Which of the following is not included in an audit report?

Which of the following is included in the statement of changes in equity?

A study by the International Federation of Accountants argued that companies must balance:

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

Which of the following is not a source of external accounting rules for a company listed on the Australian Stock Exchange?

A set of principles designed to guide the development of financial statements is:

Which of the following groups is not an intended audience for general purpose financial reporting?

Each ASX Corporate Governing Principle is supported by several recommendations. If the board of a listed company decides that a recommendation is not appropriate for their company:

How does the statement of comprehensive income differ from a traditional statement of financial performance?

Introduction to Accounting

Measuring and Reporting Financial Position

Measuring and Reporting Financial Performance

Recording Transactionsthe Journal and Ledger Accounts

Accounting Systems and Internal Control

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

Planning and Budgeting

Capital Investment Decisions

Filters

Exam 7: Regulatory Framework for Companies

Which of the following is not typically included in the notes to the financial statements?

Which of the following statements is true about the order of repayment for a company in liquidation?

Which of the following financial statements does not have to be prepared by a publicly listed company?

Calculate the total comprehensive income for the year if operating profit is $556 000, the tax rate is 30%, finance charges are $88 700 and other comprehensive income for the year (net of tax)is $195 000.

Information if by its omission, misstatement or non-disclosure has the potential to influence economic decision-making, is regarded as:

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

Which of the following may be voluntarily disclosed in the annual report?

Assume the opening balance of equity (01/07/2017)is $1 500 000. During 2017/18, there was a share issue of $540 000, dividends declared of $280 000 and a profit for the year of $75 000, What is the equity balance on the 30/06/2018?

To whom do auditors report?

Accounting that takes advantage of loopholes in accounting principles is:

Which of the following comments in relation to the statement of cash flows is incorrect? The statement of cash flows:

Which of the following is not included in an audit report?

Which of the following is included in the statement of changes in equity?

A study by the International Federation of Accountants argued that companies must balance:

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

Which of the following is not a source of external accounting rules for a company listed on the Australian Stock Exchange?

A set of principles designed to guide the development of financial statements is:

Which of the following groups is not an intended audience for general purpose financial reporting?

Each ASX Corporate Governing Principle is supported by several recommendations. If the board of a listed company decides that a recommendation is not appropriate for their company:

How does the statement of comprehensive income differ from a traditional statement of financial performance?

Introduction to Accounting

Measuring and Reporting Financial Position

Measuring and Reporting Financial Performance

Recording Transactionsthe Journal and Ledger Accounts

Accounting Systems and Internal Control

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

Planning and Budgeting

Capital Investment Decisions

Filters