Question 1

The government are not users of the financial reports produced by companies.

Accepted Answer

A) True 
 B)False  False

Question 2

Timeliness is a characteristic of useful information.

Accepted Answer

A) True 
 B)False  True

Question 3

The US term stock means the same as the UK term inventory

Accepted Answer

A) True 
 B)False  False

Question 4

There is a conflict between prudence and objectivity because;

Accepted Answer

A) prudence implies judgement and can never be completely objective 
B) prudence cannot be exercised because accounting information is not open to interpretation 
C) as accounting information is numeric there can be no doubt about the accuracy 
D) numbers can be manipulated so it is impossible to be objective 
A) prudence implies judgement and can never be completely objective 
B) prudence cannot be exercised because accounting information is not open to interpretation 
C) as accounting information is numeric there can be no doubt about the accuracy 
D) numbers can be manipulated so it is impossible to be objective

Question 5

Prudence is not considered to be an accounting convention

Accepted Answer

A) True 
 B)False

Question 6

The concept of materiality is applied because;

Accepted Answer

A) it makes the accounts more user-friendly if the numbers are rounded up 
B) it is difficult for those who are using the accounts to read the small numbers 
C) it is easier and is good enough for information purposes 
D) it makes stock taking easier by allowing people to make estimates. 
A) it makes the accounts more user-friendly if the numbers are rounded up 
B) it is difficult for those who are using the accounts to read the small numbers 
C) it is easier and is good enough for information purposes 
D) it makes stock taking easier by allowing people to make estimates.

Question 7

The acronym IASB stands for;

Accepted Answer

A) Internal Accounting Standards Bureau 
B) International Accounting Settlements Board 
C) International Accounting Standards Bureau 
D) International Accounting Standards Board 
A) Internal Accounting Standards Bureau 
B) International Accounting Settlements Board 
C) International Accounting Standards Bureau 
D) International Accounting Standards Board

Question 8

Which of the following is NOT a characteristic of useful information;

Accepted Answer

A) relevance 
B) flexibility 
C) completeness 
D) objectivity 
A) relevance 
B) flexibility 
C) completeness 
D) objectivity

Question 9

Financial reporting is only concerned with providing information for internal stakeholders.

Accepted Answer

A) True 
 B)False

Question 10

The concept of 'going concern' means that we assume that;

Accepted Answer

A) the business will continue to exist into the indefinite future 
B) the ownership of the business will not change in the foreseeable future 
C) the nature of the business will not change in the foreseeable future. 
D) the business will continue to be profitable for the foreseeable future. 
A) the business will continue to exist into the indefinite future 
B) the ownership of the business will not change in the foreseeable future 
C) the nature of the business will not change in the foreseeable future. 
D) the business will continue to be profitable for the foreseeable future.

Exam 1: Basics of Financial Reporting

The government are not users of the financial reports produced by companies.

Timeliness is a characteristic of useful information.

The US term stock means the same as the UK term inventory

There is a conflict between prudence and objectivity because;

Prudence is not considered to be an accounting convention

The concept of materiality is applied because;

The acronym IASB stands for;

Which of the following is NOT a characteristic of useful information;

Financial reporting is only concerned with providing information for internal stakeholders.

The concept of 'going concern' means that we assume that;

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

Accounting Theory and Conceptual Frameworks

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

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