NEW QUESTION 29
In applying accounting standards, an entity develops accounting policies that ensure that the financial statements present

NEW QUESTION 30
A multinational company is converting the methodology of reporting by its subsidiaries in various countries to make it uniform with the requirements of the International Financial Reporting Standards (IFRS). While changing the reporting methodologies, accountants have to apply certain judgments.
Which one of the following is not a valid motivation for decision making on reporting methodologies?

NEW QUESTION 31
A statement of generally accepted theoretical principles which form the frame of reference for financial reporting refers to the

NEW QUESTION 32
The objective of the International Accounting Standards Board (IASB) is to

NEW QUESTION 33
JK Ltd intentionally over-valued its closing inventories to increase profitability for the year 20X8. This would help them to better price a planned share issue in 20X9. By doing this they have breached the concept of

NEW QUESTION 34
Historical cost accounting provides financial information that is

NEW QUESTION 35
Which form of capital market efficiency exists when share prices on the stock market reflect all information whether public or not?

NEW QUESTION 36
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’?

NEW QUESTION 37
Which one of these is a disadvantage of a conceptual framework?

NEW QUESTION 38
Which one of the following examples would not represent an agency cost?

NEW QUESTION 39
The two fundamental qualitative characteristics of the financial information are

NEW QUESTION 40
Which one of the following statements differentiates semi-strong form efficiency from strong form efficiency in the context of the efficient market hypothesis?

NEW QUESTION 41
Which one of the following would be included in the statement of financial position?

NEW QUESTION 42
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

NEW QUESTION 43
Which of the following represents a principal-agent relationship?
I.
shareholders-auditors
II.
shareholders-management
III.
security exchange-company
IV.
board of directors-employees

NEW QUESTION 44
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

NEW QUESTION 45
To be relevant, financial information has to
I)be provided in a timely manner.
II)comply with the going concern assumption.
III)have predictive and/or confirmatory value.
IV)exclude computations that are difficult to understand.

NEW QUESTION 46
Which one of the following is the correct treatment of sales?

NEW QUESTION 47
Which one of these concepts suggests that stock prices react to new information almost instantly?

NEW QUESTION 48
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?

NEW QUESTION 49
Which one of the following practices is not considered creative accounting?

NEW QUESTION 50
Which one of the following would be recognised in the statement of profit or loss and other comprehensive income?

NEW QUESTION 51
PLO Advertising Ltd (PLO) buys a new stretch limousine for $40 000. A number of individuals have expressed an interest in buying the limousine from PLO for $60 000. The board members decide that the limousine is worth between $65 000 and $70 000. What is the fair value of the limousine?

NEW QUESTION 52
What is the difference between positive and normative accounting theories?

NEW QUESTION 53
A statement of comprehensive income reports on