Question 1

What is the key element of the IASB definition of the reporting entity?

Accepted Answer

A)  The existence of a broad range of users who want information 
B)  The legal requirements of the country in which the entity resides 
C)  The existence of investors and creditors who cannot directly obtain information 
D)  The existence of scarce resources 
A)  The existence of a broad range of users who want information 
B)  The legal requirements of the country in which the entity resides 
C)  The existence of investors and creditors who cannot directly obtain information 
D)  The existence of scarce resources C

Question 2

Which of the following is an argument for more flexible reporting periods?

Accepted Answer

A)  It makes it less attractive for entities to manipulate profits 
B)  It enhances comparability 
C)  It makes dividend calculation easier 
D)  It is widely supported 
A)  It makes it less attractive for entities to manipulate profits 
B)  It enhances comparability 
C)  It makes dividend calculation easier 
D)  It is widely supported A

Question 3

Earnings Management:

Accepted Answer

A)  is always illegal 
B)  depends on timing difference between cash and accrual accounting 
C)  is always bad for shareholders 
D)  None of the above 
A)  is always illegal 
B)  depends on timing difference between cash and accrual accounting 
C)  is always bad for shareholders 
D)  None of the above B

Question 4

Extensible business reporting language (XBRL) is expected to

Accepted Answer

A)  Benefit all businesses, large to small 
B)  Ease the burden of reporting to governments 
C)  Facilitate better corporate analysis 
D)  All of the above 
A)  Benefit all businesses, large to small 
B)  Ease the burden of reporting to governments 
C)  Facilitate better corporate analysis 
D)  All of the above

Question 5

Legitimacy theory suggests that corporate social disclosure will be used to

Accepted Answer

A)  Signal deeply held ethical values of the entity 
B)  Manage the concerns of key stakeholders 
C)  Disclose all firm activities, good or bad 
D)  The minimal degree possible 
A)  Signal deeply held ethical values of the entity 
B)  Manage the concerns of key stakeholders 
C)  Disclose all firm activities, good or bad 
D)  The minimal degree possible

Question 6

AASB 134 Interim Reporting mandates:

Accepted Answer

A)  The minimum contents of interim financial reports 
B)  Who must prepare interim financial reports 
C)  That interim financial reports should be prepared at least once per year 
D)  All of the above 
A)  The minimum contents of interim financial reports 
B)  Who must prepare interim financial reports 
C)  That interim financial reports should be prepared at least once per year 
D)  All of the above

Question 7

Which of the following has NOT been identified as a reason that management might voluntarily disclose information in annual reports

Accepted Answer

A)  To mislead competitors 
B)  To manage powerful stakeholders 
C)  To win reporting awards 
D)  To forestall regulation 
A)  To mislead competitors 
B)  To manage powerful stakeholders 
C)  To win reporting awards 
D)  To forestall regulation

Question 8

Approximately what percentage of the real value of companies is thought to be the result of intangible assets?

Accepted Answer

A)  10% 
B)  30% 
C)  50% 
D)  70% 
A)  10% 
B)  30% 
C)  50% 
D)  70%

Question 9

Income smoothing

Accepted Answer

A)  Aims to produce a steady growth in the profit stream 
B)  Transfers wealth from new shareholders to management 
C)  Is only possible when sufficient profits are regularly made 
D)  All of the above 
A)  Aims to produce a steady growth in the profit stream 
B)  Transfers wealth from new shareholders to management 
C)  Is only possible when sufficient profits are regularly made 
D)  All of the above

Question 10

Which of the following is specifically prohibited from recognition as an intangible asset according to AASB138?

Accepted Answer

A)  Internally generated brands 
B)  Research 
C)  Training 
D)  All of the above 
A)  Internally generated brands 
B)  Research 
C)  Training 
D)  All of the above

Question 11

Pro forma reports

Accepted Answer

A)  Are simply IFRS compliant reports 
B)  Are GAAP compliant reports 
C)  Usually show a lower profit figure than those prepares in accordance with accounting standards 
D)  Usually show a higher profit figure than those prepares in accordance with accounting standards 
A)  Are simply IFRS compliant reports 
B)  Are GAAP compliant reports 
C)  Usually show a lower profit figure than those prepares in accordance with accounting standards 
D)  Usually show a higher profit figure than those prepares in accordance with accounting standards

Question 12

Manipulation of reported earnings:

Accepted Answer

A)  Can be both legal and illegal 
B)  Includes income smoothing 
C)  Affects wealth transfers between the company and others 
D)  All of the above 
A)  Can be both legal and illegal 
B)  Includes income smoothing 
C)  Affects wealth transfers between the company and others 
D)  All of the above

Question 13

Annual reports contain many financial graphics, it has been noted that

Accepted Answer

A)  They are mostly unhelpful in summarising data 
B)  They are irrelevant to most users 
C)  They are frequently distorted to improve perceptions of performance 
D)  All of the above 
A)  They are mostly unhelpful in summarising data 
B)  They are irrelevant to most users 
C)  They are frequently distorted to improve perceptions of performance 
D)  All of the above

Question 14

Which of the following is NOT an argument for a standardised annual reporting period?

Accepted Answer

A)  It allows investors to compare entities more easily 
B)  It is necessary to calculate an annual dividend 
C)  Most businesses operate on a natural 12 month cycle 
D)  Various laws require regular information be produced by the entity 
A)  It allows investors to compare entities more easily 
B)  It is necessary to calculate an annual dividend 
C)  Most businesses operate on a natural 12 month cycle 
D)  Various laws require regular information be produced by the entity

Question 15

Intangible assets are defined as

Accepted Answer

A)  One-sided financial assets 
B)  Unidentifiable assets without physical 
C)  Identifiable non-monetary assets without physical substance 
D)  All of the above 
A)  One-sided financial assets 
B)  Unidentifiable assets without physical 
C)  Identifiable non-monetary assets without physical substance 
D)  All of the above

Question 16

What is NOT one of the key elements of control?

Accepted Answer

A)  Ownership 
B)  Variable returns 
C)  Influence over returns 
D)  None of the above, i.e. they are all elements of control 
A)  Ownership 
B)  Variable returns 
C)  Influence over returns 
D)  None of the above, i.e. they are all elements of control

Question 17

Corporate social responsibility

Accepted Answer

A)  Is concerned about the environmental impact of organisations 
B)  Suggests that companies can build shareholder value by engaging other stakeholders 
C)  Still means organisations should pursue profit 
D)  All of the above. 
A)  Is concerned about the environmental impact of organisations 
B)  Suggests that companies can build shareholder value by engaging other stakeholders 
C)  Still means organisations should pursue profit 
D)  All of the above.

Question 18

The kinds of information likely to be included in the annual report includes

Accepted Answer

A)  Corporate governance 
B)  Environmental performance 
C)  Occupational health and safety disclosures 
D)  All of the above 
A)  Corporate governance 
B)  Environmental performance 
C)  Occupational health and safety disclosures 
D)  All of the above

Question 19

Which of the following intellectual capital could be included in the Statement of Financial Position?

Accepted Answer

A)  Training of programmers employed by a company 
B)  Development of software by the company for internal use 
C)  Development of software by the company for external use 
D)  None of the above 
A)  Training of programmers employed by a company 
B)  Development of software by the company for internal use 
C)  Development of software by the company for external use 
D)  None of the above

Question 20

The annual report

Accepted Answer

A)  May have significant additional voluntary disclosure in the financial statements 
B)  Is used for impression management 
C)  Is thought to have little influence on stakeholder perceptions 
D)  Is not thought to be an important information avenue for organisations 
A)  May have significant additional voluntary disclosure in the financial statements 
B)  Is used for impression management 
C)  Is thought to have little influence on stakeholder perceptions 
D)  Is not thought to be an important information avenue for organisations

What is the key element of the IASB definition of the reporting entity?

Which of the following is an argument for more flexible reporting periods?

Earnings Management:

Extensible business reporting language (XBRL) is expected to

Legitimacy theory suggests that corporate social disclosure will be used to

AASB 134 Interim Reporting mandates:

Which of the following has NOT been identified as a reason that management might voluntarily disclose information in annual reports

Approximately what percentage of the real value of companies is thought to be the result of intangible assets?

Income smoothing

Which of the following is specifically prohibited from recognition as an intangible asset according to AASB138?

Pro forma reports

Manipulation of reported earnings:

Annual reports contain many financial graphics, it has been noted that

Which of the following is NOT an argument for a standardised annual reporting period?

Intangible assets are defined as

What is NOT one of the key elements of control?

Corporate social responsibility

The kinds of information likely to be included in the annual report includes

Which of the following intellectual capital could be included in the Statement of Financial Position?

The annual report

Introduction to Contemporary Issues

The Conceptual Framework for Financial Reporting

Standard Setting

Measurement

Theories in Accounting

Corporate Governance

Capital Markets Research and Accounting

Earnings Management

Fair Value Accounting

Sustainability and Environmental Accounting

International Accounting

Corporate Failure

Special Reporting Issues

Filters

Exam 6: Products of the Financial Reporting Process

What is the key element of the IASB definition of the reporting entity?

Which of the following is an argument for more flexible reporting periods?

Earnings Management:

Extensible business reporting language (XBRL) is expected to

Legitimacy theory suggests that corporate social disclosure will be used to

AASB 134 Interim Reporting mandates:

Which of the following has NOT been identified as a reason that management might voluntarily disclose information in annual reports

Approximately what percentage of the real value of companies is thought to be the result of intangible assets?

Income smoothing

Which of the following is specifically prohibited from recognition as an intangible asset according to AASB138?

Pro forma reports

Manipulation of reported earnings:

Annual reports contain many financial graphics, it has been noted that

Which of the following is NOT an argument for a standardised annual reporting period?

Intangible assets are defined as

What is NOT one of the key elements of control?

Corporate social responsibility

The kinds of information likely to be included in the annual report includes

Which of the following intellectual capital could be included in the Statement of Financial Position?

The annual report

Introduction to Contemporary Issues

The Conceptual Framework for Financial Reporting

Standard Setting

Measurement

Theories in Accounting

Corporate Governance

Capital Markets Research and Accounting

Earnings Management

Fair Value Accounting

Sustainability and Environmental Accounting

International Accounting

Corporate Failure

Special Reporting Issues

Filters