Question 1

An interim report required to be prepared by a disclosing entity under IAS 34/AASB 134 Interim Financial Reporting is defined as a report for:

Accepted Answer

A)  each three months. 
B)  each half-year. 
C)  a period shorter than a full reporting period. 
D)  nine months. 
A)  each three months. 
B)  each half-year. 
C)  a period shorter than a full reporting period. 
D)  nine months. B

Question 2

What is the correct heading on a statement of financial position made up to 30 June 2016?

Accepted Answer

A)  As at 30 June 2016 
B)  For the year ended 30 June 2016 
C)  For the period ended 30 June 2016 
D)  30th June 2016 
A)  As at 30 June 2016 
B)  For the year ended 30 June 2016 
C)  For the period ended 30 June 2016 
D)  30th June 2016 A

Question 3

It is proposed that how many of the following entities would be classed as belonging to Tier 2 under AASB 1053 Application of Tiers of Australian Accounting Standards, and thus be given relief from some reporting requirements?
F1F1F1S1F1F1F10Not-for-profit private sector entities
F1F1F1S1F1F1F10Most public sector entities
F1F1F1S1F1F1F10Small proprietary companies

Accepted Answer

A)  0 
B)  1 
C)  2 
D)  3 
A)  0 
B)  1 
C)  2 
D)  3 D

Question 4

What is an alternative name for the balance sheet?

Accepted Answer

A)  Statement of financial performance 
B)  Statement of financial balances 
C)  Statement of financial situation 
D)  Statement of financial position 
A)  Statement of financial performance 
B)  Statement of financial balances 
C)  Statement of financial situation 
D)  Statement of financial position

Question 5

Which statement about concise financial reports is true?

Accepted Answer

A)  The company has the right to send a concise report to the shareholder unless they request a full report. 
B)  Concise reports do not have to include a statement of changes in equity. 
C)  A full report must be sent to the shareholder unless they request a concise report. 
D)  The company must apply to ASIC if they want the right to issue concise reports rather than full reports. 
A)  The company has the right to send a concise report to the shareholder unless they request a full report. 
B)  Concise reports do not have to include a statement of changes in equity. 
C)  A full report must be sent to the shareholder unless they request a concise report. 
D)  The company must apply to ASIC if they want the right to issue concise reports rather than full reports.

Question 6

The term that is currently the most commonly preferred for owner's equity in a company balance sheet is:

Accepted Answer

A)  equity. 
B)  shareholder's funds. 
C)  share capital and reserves. 
D)  shareholder's equity. 
A)  equity. 
B)  shareholder's funds. 
C)  share capital and reserves. 
D)  shareholder's equity.

Question 7

How many of these expenses that would normally appear in an internally prepared income statement are required to be separately disclosed in an external income statement prepared to conform to the requirements of the accounting standards?
F1F1F1S1F1F1F10Advertising
F1F1F1S1F1F1F10Insurance
F1F1F1S1F1F1F10Telephone

Accepted Answer

A)  0 
B)  1 
C)  2 
D)  3 
A)  0 
B)  1 
C)  2 
D)  3

Question 8

An interim report required to be prepared by a disclosing entity under IAS 34/AASB 134 Interim Financial Reporting is defined as a report for:

Accepted Answer

A)  each three months. 
B)  each half-year. 
C)  a period shorter than a full reporting period. 
D)  nine months. 
A)  each three months. 
B)  each half-year. 
C)  a period shorter than a full reporting period. 
D)  nine months.

Question 9

If expenses are classified into the groups, cost of sales, selling expenses, administrative expenses and finance expenses, under IAS 1/AASB 101 they are classified by:

Accepted Answer

A)  nature. 
B)  function. 
C)  liquidity. 
D)  tangibility. 
A)  nature. 
B)  function. 
C)  liquidity. 
D)  tangibility.

Question 10

Under the accounting standards, which of these is not included in the calculation of a company's profit or loss (not including other comprehensive income in the definition of profit)?

Accepted Answer

A)  Gain on the sale of fixed assets 
B)  Dividends received 
C)  Adjustments from translation of the financial statements of a foreign operation 
D)  Expense on the impairment of assets held 
A)  Gain on the sale of fixed assets 
B)  Dividends received 
C)  Adjustments from translation of the financial statements of a foreign operation 
D)  Expense on the impairment of assets held

Question 11

Under AASB 1039 and the Corporations Act which of these does not have to be included in a concise financial report?

Accepted Answer

A)  Statement of cash flows 
B)  Statement of changes in equity 
C)  Notes to the financial statements 
D)  Directors' report 
A)  Statement of cash flows 
B)  Statement of changes in equity 
C)  Notes to the financial statements 
D)  Directors' report

Question 12

AASB 1039:

Accepted Answer

A)  requires a company to prepare interim financial reports. 
B)  permits a company to prepare concise financial reports. 
C)  requires a company to prepare a statement of changes in equity. 
D)  designates a company as a disclosing entity. 
A)  requires a company to prepare interim financial reports. 
B)  permits a company to prepare concise financial reports. 
C)  requires a company to prepare a statement of changes in equity. 
D)  designates a company as a disclosing entity.

Question 13

When might borrowing costs not appear in a statement of profit or loss and other comprehensive income?

Accepted Answer

A)  If they result from a negatively geared project. 
B)  If they are less than five percent of total expenses. 
C)  If borrowing costs are directly attributable to the acquisition, construction or production of a qualifying asset. 
D)  If they are not incurred in the ordinary course of business. 
A)  If they result from a negatively geared project. 
B)  If they are less than five percent of total expenses. 
C)  If borrowing costs are directly attributable to the acquisition, construction or production of a qualifying asset. 
D)  If they are not incurred in the ordinary course of business.

Question 14

Under IAS 1/AASB 101, concerning the statement of changes in equity, it is true that:

Accepted Answer

A)  it is an additional financial report that each entity is required to supply to its external users. 
B)  it only shows changes in retained earnings not changes in share capital. 
C)  transfers to reserves from retained profits do not have to be separately disclosed as they do not change total equity. 
D)  opening and closing total equity must be reconciled showing all the changes for the period but this is not necessary for the components of equity. 
A)  it is an additional financial report that each entity is required to supply to its external users. 
B)  it only shows changes in retained earnings not changes in share capital. 
C)  transfers to reserves from retained profits do not have to be separately disclosed as they do not change total equity. 
D)  opening and closing total equity must be reconciled showing all the changes for the period but this is not necessary for the components of equity.

Question 15

Under AASB 1039 and the Corporations Act how many of these must be included in a concise financial report?
Sales revenue
Earnings per share
Details of any changes in accounting policies

Accepted Answer

A)  0 
B)  1 
C)  2 
D)  3 
A)  0 
B)  1 
C)  2 
D)  3

Question 16

How many financial statements must be included, as a minimum, in an interim financial report required to be prepared by a disclosing entity?

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  4 
A)  1 
B)  2 
C)  3 
D)  4

Question 17

The term that is currently most commonly preferred for owner's equity in a company balance sheet is:

Accepted Answer

A)  shareholder's equity. 
B)  shareholder's funds. 
C)  equity. 
D)  share capital and reserves. 
A)  shareholder's equity. 
B)  shareholder's funds. 
C)  equity. 
D)  share capital and reserves.

Question 18

When might borrowing costs not appear in a statement of comprehensive income?

Accepted Answer

A)  If they result from a negatively geared project. 
B)  If they are less than five percent of total expenses. 
C)  If borrowing costs are directly attributable to the acquisition, construction or production of a qualifying asset. 
D)  If they relate to research expenditure. 
A)  If they result from a negatively geared project. 
B)  If they are less than five percent of total expenses. 
C)  If borrowing costs are directly attributable to the acquisition, construction or production of a qualifying asset. 
D)  If they relate to research expenditure.

Question 19

Which of these is not one of the general reporting requirements of IAS 1/AASB 101 as it applies to Australia?

Accepted Answer

A)  The reports must be in English. 
B)  Comparative figures must be provided. 
C)  The name of the ultimate parent entity must be disclosed. 
D)  The name and address of each shareholder must be disclosed. 
A)  The reports must be in English. 
B)  Comparative figures must be provided. 
C)  The name of the ultimate parent entity must be disclosed. 
D)  The name and address of each shareholder must be disclosed.

Question 20

The accounting standard Presentation of Financial Statements is:

Accepted Answer

A)  AASB 1039. 
B)  IAS 1/AASB 101. 
C)  IAS 20/AASB 120. 
D)  AASB 1004. 
A)  AASB 1039. 
B)  IAS 1/AASB 101. 
C)  IAS 20/AASB 120. 
D)  AASB 1004.

Exam 23: Presentation of Financial Statements

An interim report required to be prepared by a disclosing entity under IAS 34/AASB 134 Interim Financial Reporting is defined as a report for:

What is the correct heading on a statement of financial position made up to 30 June 2016?

What is an alternative name for the balance sheet?

Which statement about concise financial reports is true?

The term that is currently the most commonly preferred for owner's equity in a company balance sheet is:

How many of these expenses that would normally appear in an internally prepared income statement are required to be separately disclosed in an external income statement prepared to conform to the requirements of the accounting standards? Advertising Insurance Telephone

An interim report required to be prepared by a disclosing entity under IAS 34/AASB 134 Interim Financial Reporting is defined as a report for:

If expenses are classified into the groups, cost of sales, selling expenses, administrative expenses and finance expenses, under IAS 1/AASB 101 they are classified by:

Under the accounting standards, which of these is not included in the calculation of a company's profit or loss (not including other comprehensive income in the definition of profit)?

Under AASB 1039 and the Corporations Act which of these does not have to be included in a concise financial report?

AASB 1039:

When might borrowing costs not appear in a statement of profit or loss and other comprehensive income?

Under IAS 1/AASB 101, concerning the statement of changes in equity, it is true that:

Under AASB 1039 and the Corporations Act how many of these must be included in a concise financial report? Sales revenue Earnings per share Details of any changes in accounting policies

How many financial statements must be included, as a minimum, in an interim financial report required to be prepared by a disclosing entity?

The term that is currently most commonly preferred for owner's equity in a company balance sheet is:

When might borrowing costs not appear in a statement of comprehensive income?

Which of these is not one of the general reporting requirements of IAS 1/AASB 101 as it applies to Australia?

The accounting standard Presentation of Financial Statements is:

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Recording Transactions

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle Closing and Reversing Entries

Accounting for Retailing

Accounting for Systems

Accounting for Manufacturing

Cost Accounting Systems

Cash Management and Control

Cost-Volume-Profit Analysis for Decision Making

Budgeting for Planning and Control

Performance Evaluation for Managers

Differential Analysis, Profitability Analysis and Capital Budgeting

Partnerships: Formation, Operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation, Disposal and Other Aspects

Liabilities

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Filters