NEW QUESTION 58
Financial markets have achieved operational efficiency when

NEW QUESTION 59
The International Accounting Standards Board’s Conceptual Framework for Financial Reporting for the preparation and presentation of financial statements is concerned with the information needs of most users, but not for each possible user.
Which one of the following stakeholders would not be one of the users that the Conceptual Framework is concerned about?

NEW QUESTION 60
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 61
According to the Australian Accounting Standards Board, which one of the following is a benefit of adopting International Financial Reporting Standards (IFRSs)?

NEW QUESTION 62
Which one of the following contributes to an efficient capital market?

NEW QUESTION 63
Which one of the following is an objective of the International Federation of Accountants (IFAC)?

NEW QUESTION 64
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 65
In the context of a regulatory framework, a principles-based system

NEW QUESTION 66
Generally accepted accounting practice recognises revenue when

NEW QUESTION 67
The ability of a company to pay its bills when and as they fall due is a measure of

NEW QUESTION 68
Which one of the following parties provides information to ensure that the financial statements show a true and fair view?

NEW QUESTION 69
Investors use the audited financial statements of a company to
I)evaluate the company’s current return on assets
II)predict the company’s market conditions for future years.
III)predict the company’s market conditions for future years.
IV)make a judgement on the liquidity and solvency of the company.

NEW QUESTION 70
Which one of the following financial statements helps provide information about factors that might affect an entity’s liquidity or solvency?

NEW QUESTION 71
Which one of the following countries has the view that Generally Accepted Accounting Principles (GAAP) refers to accounting practices which are regarded as permissible by the accounting profession?

NEW QUESTION 72
Which one of the following is a benefit of developing financial reporting standards using a conceptual framework?

NEW QUESTION 73
Which one of the following describes the key advantage of the manual system of accounting?

NEW QUESTION 74
A company sold some old operating equipment from its factory. After depreciation was accounted for, a small gain on sale was recorded. According to the revised IAS 1 Presentation of Financial Statements, this transaction will be shown as a separate item ‘gain on sale of equipment’. This item will be shown in the statement of

NEW QUESTION 75
Which one of these concepts suggests that stock prices react to new information almost instantly?

NEW QUESTION 76
When business managers seek detailed information about the profitability or efficiency of different parts of their operations, they would find the most useful information in

NEW QUESTION 77
In relation to financial statements, the ‘true and fair override’ indicates that

NEW QUESTION 78
Which one of the following would be included in the statement of financial position?

NEW QUESTION 79
Which one of the following is not an Australian Securities Exchange (ASX) principle of good corporate governance?

NEW QUESTION 80
Which one of the following examples would not represent an agency cost?