[Jul-2023] Financial-Accounting-and-Reporting Exam Dumps - Free Demo & 365 Day Updates [Q50-Q70] : Exam for engine : http://blog.test4engine.com

QUESTION 50
According to the IASB’s Conceptual Framework, the key reason general purpose financial statements are produced is to satisfy the information needs of

employees.

management.

internal users.

capital providers.

QUESTION 51
LMN Ltd recently changed the measurement base for their assets. They should I)treat this like a change in an estimate.
II)treat this like a change in the accounting policy.
III)disclose this in the notes to financial statements.

I only

III only

I and III only

II and III only

QUESTION 52
Which one of the following is an objective of the International Federation of Accountants (IFAC)?

to provide advice on accounting standards to the OECD

to issue new international financial reporting standards (IFRS)

to establish high quality professional standards in accountancy

to provide direction to the Financial Accounting Standards Board (FASB)

QUESTION 53
The IASB evaluates the merits of adding a potential item to its agenda mainly by reference to the needs of

investors.

suppliers.

tax agencies.

regulatory authorities.

QUESTION 54
The chairperson of XYZ Company is concerned about the readability of the annual financial report that is about to be published on its website. XYZ Company is obliged to comply with International Financial Reporting Standards, and the report contains all of the required financial statements, the auditor’s report, corporate governance statements, declarations of accounting policy, explanatory notes and a section that addresses the company’s corporate social responsibility program.
The chairperson is wondering whether the report can be condensed. The issue that is concerning the chairperson is known as

information overload.

the cost of compliance.

the agency costs of monitoring.

the costs of social responsibility reporting.

QUESTION 55
Which one of the following is not an advantage of accounting regulation?

It provides quality of information in and across financial statements.

It provides flexibility in the way accounting information is presented to users.

It provides the required accounting information to all necessary shareholders.

It instils public confidence in the accounting system employed in commerce and industry.

QUESTION 56
Financial markets have achieved operational efficiency when

past records are used to predict the future prices of goods.

the costs of financial transactions are kept as low as possible.

the cost of transactions is a reflection of the actual cost incurred.

the price of stocks and shares are available accurately and quickly.

QUESTION 57
The concept of transparency in corporate governance means that listed companies should disclose

their future strategy.

confidential issues relating to competitors.

material information that affects decisions.

only mandatory information by management.

QUESTION 58
An agent is answerable under the contract to the agent’s principal and must account for the resources of the agent’s principal and the money the agent has gained working on the principal’s behalf. In the context of agency, this definition describes an agent’s

contract.

relationship.

fiduciary duty.

accountability.

QUESTION 59
A rules-based approach to standard setting

provides a broad framework for standard setting.

helps a standard-setting body to prioritise matters.

prescribes standards that attempt to cover all eventualities a business may face.

ensures there are no conflicts within accounting standards as each issue is handled just once.

QUESTION 60
Which one of the following includes social reporting guidelines?

Global Reporting Initiative (GRI)

International Accounting Standards (IAS)

Generally Accepted Accounting Principles (GAAP)

International Financial Reporting Standards (IFRS)

QUESTION 61
A company purchased a machine 10 years ago for $143 890. It is expected that the machine will generate future revenues of $108 495. The machine could be scrapped for $81 232. An equivalent machine in the same condition would cost $94 950 to buy now. What is the deprival value of the asset?

$35 395

$81 232

$94 950

$108 495

QUESTION 62
The ability of a company to pay its bills when and as they fall due is a measure of

solvency.

economic value.

compliance with the conceptual framework.

the true and fair view of the financial report.

QUESTION 63
Which form of capital market efficiency exists when share prices on the stock market reflect all information whether public or not?

allocative efficiency

strong form efficiency

semi-strong form efficiency

information processing efficiency

QUESTION 64
Which one of the following is the correct treatment of sales?

Cash sales are recorded in the receivables ledger prior to posting to the general ledger.

Credit sales are recorded in the receivables ledger prior to posting to the general ledger.

Cash and credit sales are recorded in the receivables ledger prior to posting to the general ledger.

Credit sales are not recorded in the receivables ledger prior to posting to the general ledger.

QUESTION 65
Which one of the following would be included in a statement of financial position?

cost of sales

finance costs

retained earnings

proceeds from long term borrowings

QUESTION 66
Which one of these is a key principle of good corporate governance?

effective communication with shareholders

restriction of shareholders’ rights in decision-making

effective management of the employees of the company

non-disclosure of directors’ agency relationship with the company

QUESTION 67
As per the International Accounting Standards Board conceptual framework, which of the following holds the primary responsibility for preparing and presenting financial statements?
I)owners
II)auditors
III)directors

I only

I and II only

II and III only

III only

QUESTION 68
Which one of the following best describes the objective of the International Financial Reporting Standards (IFRS) Foundation?

to co-ordinate the accounting profession on a global scale by issuing and establishing international standards

to develop an International regulatory framework in the national jurisdictions of countries that produce accountants

to guide investors who compare the financial statements of one entity in one country with those of another entity located elsewhere

to promote the application, convergence and use of International Financial Reporting Standards (IFRS) as a high quality reporting solution

QUESTION 69
Restrictions on the scope of a specific accounting standard are stated in

that specific standard.

the IASB’s Conceptual Framework.

the explanatory materials provided by the AASB.

various Statements of Accounting Concepts (SACs) issued by the AASB.

QUESTION 70
Which one of the following statements regarding the IASB’s Conceptual Framework for Financial Reporting is correct?

It overrides any local or international accounting standard.

It specifies the concepts that underlie the preparation and presentation of special purpose financial statements.

It specifies the concepts that underlie the preparation and presentation of general purpose financial statements.

It specifies the concepts that underlie the preparation and presentation of only consolidated financial statements.