Published financial statements are regulated by

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

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

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

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

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?

A. director's report

B. chairman's statement

C. corporate governance statement

D. corporate social responsibility report

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

A. market power

B. efficient market

C. bargaining power

D. incentive substitution

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

A. IFRS Interpretations Committee (IFRIC).

B. International Federation of Accountants (IFAC).

C. International Accounting Standards Board (IASB).

D. International Accounting Standards Committee (IASC).

An element is recognised in the statement of financial position or statement of comprehensive income if
I.
the value of the item can be measured reliably.
II.
the value of the item can be measured accurately.
III.
it is certain that there will be future economic benefits associated with the item.
IV.
it is probable that there will be future economic benefits associated with the item.
Which of the above options are correct?

A. I and III only

B. I and IV only

C. II and III only

D. III and IV only

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?

A. Canada

B. Australia

C. United Kingdom

D. United States of America

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

A. I only

B. I and II only

C. II and III only

D. III only

XYZ Ltd is listed on the Australian Securities Exchange (ASX). Which one of the following reports is the company required to prepare as a part of its annual financial report?

A. sustainability report

B. chairman's statement

C. management commentary

D. corporate governance statement

Which one of the following statements is correct about using judgement in the financial reporting process?

A. Accountants should not be allowed to use their own judgement.

B. A true and fair view cannot be assured if individual judgement is allowed.

C. Judgement can be allowed in the statement of comprehensive income but not in the statement of financial position.

D. Use of individual judgement is required to choose between alternative methods available within accounting standards.

A company's financial report is compliant with International Financial Reporting Standards.
Where in the report would an investor find the amount of money received by the company for investment activities?

A. statement of cash flows

B. statement of financial position

C. statement of changes in equity

D. statement of comprehensive income

In a stock market that displays strong efficiency, share prices reflect all available

A. public information.

B. public and inside information.

C. information about future expansion plans.

D. information about past changes in share prices.

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

A. Regulatory Framework

B. Conceptual Framework

C. Generally Accepted Accounting Principles

D. International Financial Reporting Standards