Question 1

If information is to be presented faithfully transactions must represent legal form over substance.

Accepted Answer

A) True 
 B)False  False

Question 2

Which of the following is NOT a recognised approach to the establishment of an effective accounting theory?

Accepted Answer

A) regulatory 
B) deductive 
C) inductive 
D) heuristic 
A) regulatory 
B) deductive 
C) inductive 
D) heuristic D

Question 3

In which jurisdiction may the requirement for 'a fair presentation' not over-ride compliance with the accounting standard?

Accepted Answer

A) EU 
B) IASB 
C) UK 
D) USA 
A) EU 
B) IASB 
C) UK 
D) USA D

Question 4

A fixed asset is defined as an asset which:

Accepted Answer

A) The firm intends to use for an extended period 
B) The firm intends to keep for the foreseeable future 
C) Will be sold in more than 12 months after refurbishment 
D) Has been owned by the firm for a long time 
A) The firm intends to use for an extended period 
B) The firm intends to keep for the foreseeable future 
C) Will be sold in more than 12 months after refurbishment 
D) Has been owned by the firm for a long time

Question 5

The critical paradigm approach to the formulation of accounting theory centres on social welfare.

Accepted Answer

A) True 
 B)False

Question 6

The IASB Framework is a device to:

Accepted Answer

A) Confer legitimacy on a private sector standard setter 
B) Offer a positive explanation of accounting principles 
C) Explain,and enforce,the rules laid down by the state 
D) Provide a prescriptive solution to problems before they arise 
A) Confer legitimacy on a private sector standard setter 
B) Offer a positive explanation of accounting principles 
C) Explain,and enforce,the rules laid down by the state 
D) Provide a prescriptive solution to problems before they arise

Question 7

The IASB Framework is designed to be a prescriptive document.

Accepted Answer

A) True 
 B)False

Question 8

IAS 8 addresses changes of accounting policy arising from three sources.

Accepted Answer

A) True 
 B)False

Question 9

There are two underlying assumptions in the IASB Conceptual Framework,the accruals basis and the going concern assumption.

Accepted Answer

A) True 
 B)False

Question 10

At the end of the year a firm sells an item of inventory for €180.The item was bought for €120 at the start of the year & replacement cost is €150.General inflation has been 5%.What is the real financial capital maintenance adjustment?

Accepted Answer

A) €0 
B) €6 
C) €24 
D) €30 
A) €0 
B) €6 
C) €24 
D) €30

Exam 9: Accounting Theory and Conceptual Frameworks

If information is to be presented faithfully transactions must represent legal form over substance.

Which of the following is NOT a recognised approach to the establishment of an effective accounting theory?

In which jurisdiction may the requirement for 'a fair presentation' not over-ride compliance with the accounting standard?

A fixed asset is defined as an asset which:

The critical paradigm approach to the formulation of accounting theory centres on social welfare.

The IASB Framework is a device to:

The IASB Framework is designed to be a prescriptive document.

IAS 8 addresses changes of accounting policy arising from three sources.

There are two underlying assumptions in the IASB Conceptual Framework,the accruals basis and the going concern assumption.

At the end of the year a firm sells an item of inventory for €180.The item was bought for €120 at the start of the year & replacement cost is €150.General inflation has been 5%.What is the real financial capital maintenance adjustment?

Basics of Financial Reporting

International Accounting Differences

The Process of Harmonization

Economic Valuation Concepts

Current Entry Value

Current Exit Value and Mixed Values

Current Purchasing Power Accounting

Fair Values

Structure of Published Financial Statements

Corporate Governance, corporate Social Responsibility and Ethics

Basics of Interpretation of Financial Statements

Fixed Non-Currenttangible Assets

Intangible Assets

Impairment and Disposal of Assets

Leases

Inventories and Construction Contracts

Accounting for Financial Instruments

Revenue

Provisions, contingent Liabilities and Contingent Assets

Income Taxes

Employee Benefits

Changing Prices and Hyperinflationary Economies

Statements of Cash Flows

Disclosure Issues

Business Combinations

Consolidated Financial Statements

Alternative Concepts on Consolidation and Business Combinations

Accounting for Associates, joint Arrangements and Related Party Disclosures

Foreign Currency Translation

Interpretation of Financial Statements

Techniques of Financial Analysis

Filters