[Jun 16, 2022] ExamDumpsVCE Financial-Accounting-and-Reporting Exam Practice Test Questions (Updated 100 Questions) [Q40-Q59]

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[Jun 16, 2022] ExamDumpsVCE Financial-Accounting-and-Reporting Exam Practice Test Questions (Updated 100 Questions)

Pass CPA Australia Financial-Accounting-and-Reporting Exam Info and Free Practice Test

NO.40 In individual countries, Generally Accepted Accounting Principles (GAAP) is primarily a combination of

national company law and national accounting standards.

national company law and local stock exchange requirements.

national company law, national accounting standards and local stock exchange requirements.

company law, accounting standards, local stock exchange requirements and international accounting standards.

NO.41 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.

NO.42 Which one of the following is not a function of the trustees of the International Financial Reporting Standards Foundation (IFRS Foundation)?

ensuring the financing of the International Accounting Standards Board (IASB)

appointing the members of the International Accounting Standards Board (IASB)

promoting the application of International Financial Reporting Standards (IFRSs)

providing suggestions on technical matters relating to accounting standards

NO.43 According to the IASB Conceptual Framework, income is an increase in economic benefits in the form of I)inflows.
II)decreases of liabilities.
III)enhancements of assets.
IV)contributions from equity holders.

I, II and III only

I, II and IV only

I, III and IV only

II, III and IV only

NO.44 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.

NO.45 The amount of cash or cash equivalents that could currently be obtained by selling an asset in an orderly disposal, refers to which basis of measurement?

current cost

present value

historical cost

realisable value

NO.46 Which one of the following would be recognised in the statement of profit or loss and other comprehensive income?

inventory

employee wages

retained earnings

prepayment of expenses

NO.47 Which one of the following would be included in the statement of financial position?

depreciation

deferred tax

distribution costs

gains on property valuations

NO.48 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.

NO.49 Published financial statements are regulated by

rules to ensure the provision of consistent financial information to investors.

International Financial Reporting Standards to ensure the provision of useful financial information to shareholders.

accounting and legal rules to ensure the provision of relevant and reliable financial information to shareholders.

shareholders who specify the framework for the provision of consistent and comparable financial information for decision-making.

NO.50 Which one of the following situations would result in either a new liability being recognised or an existing liability being increased?

A company pays only half of an overdue invoice.

A company establishes an asset revaluation reserve.

At the end of the reporting period, there are unpaid wages.

A company recognises the depreciation expense for the current period.

NO.51 The Framework for the Preparation and Presentation of Financial Statements which assists the development of the International Financial Reporting Standards (IFRS) was originally approved by the

IFRS Interpretations Committee (IFRIC).

International Federation of Accountants (IFAC).

International Accounting Standards Board (IASB).

International Accounting Standards Committee (IASC).

NO.52 Which one of the following is not an Australian Securities Exchange (ASX) principle of good corporate governance?

Safeguard the environment.

Respect the rights of shareholders.

Remunerate fairly and responsibly.

Promote ethical and responsible decision-making.

NO.53 The accounting policies used by companies must result in financial reports that are

easy to read.

independently audited.

signed by the CEO or equivalent.

comparable with previous years’ reports.

NO.54 A decrease in assets is most likely to be recognised in the financial report as

a liability.

an expense.

revenue earned.

a change in equity.

NO.55 Which one of the following reports sets out how directors have run a company and if they implemented proper procedures to deal with matters like accountability, audits, directors’ roles and responsibilities, internal controls and relations with shareholders?

director’s report

chairman’s statement

corporate governance statement

corporate social responsibility report

NO.56 Which one of the following bodies makes accounting standards in Australia?

ASIC

FRC

IASB

AASB

NO.57 Which accounting theory is best described by the statement ‘An approach to accounting is one where a theory is thought of as a body of knowledge that explains and attempts to predict actual accounting practice’?

general accounting theory

positive accounting theory

normative accounting theory

historical cost accounting theory

NO.58 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

NO.59 Which one of the following examples would not represent an agency cost?

the cost of engaging an external auditor

the cost of employing an internal auditor

the cost of preparing a financial report for shareholders

the cost of preparing a cost-benefit report for a new project

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[Jun 16, 2022] ExamDumpsVCE Financial-Accounting-and-Reporting Exam Practice Test Questions (Updated 100 Questions) [Q40-Q59]

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