The International Accounting Standards Board’s (IASB’s) Conceptual Framework includes all of the

following except
aNeutrality
bMateriality
cComparability
d.Relevance
Câu Hỏi 2Hoàn thànhĐạt điểm 1,00 trên 1,00Đặt cờ
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Which of the bodies listed below is responsible for revewing International Accounting Standards and
issuing guidance on their application?
Select one:
a.International Accounting Standards Board
b.IFRS Intepretation Committee
c.IFRS Foundation
d.IFRS Advisory Council
Câu Hỏi 3Hoàn thànhĐạt điểm 0,00 trên 1,00Xóa cờ
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Which of the following is not true concerning a conceptual framework in accounting?
a.It should be a basis for standard-setting
b.It should allow practical problems to be solved more quickly by reference to it
c.It should be based on fundamental truths that are derived from the laws of nature
d.All of these answers are correct
Câu Hỏi 4Hoàn thànhĐạt điểm 1,00 trên 1,00Đặt cờ
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Which of the following measurement base(s) should be used by an entity according to the conceptual
framework for financial reporting?
Select one:
a.Present value
b.Current cost
c.Any of the above
d.Historical cost
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Changing the method of inventory valuation should be reported in the financial statements under what
qualitative characteristic of accounting information?
 
a.Consistency
b.Comparability
c.Verifiability
d.Timeliness
Câu Hỏi 6Hoàn thànhĐạt điểm 1,00 trên 1,00Đặt cờ
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Which of the following statements in relation to income is true?
Select one:
a.Gains and revenue are different in nature and therefore are recognised as separate elements of the financial
statements per the conceptual framework.
b.The conceptual framework defines income as an increase in economic benefits which results in an increase in
equity.
c.Gains are normally reported separately from revenue in the Statement of profit or loss and other
comprehensive income due to the different probabilities attached to that type of income.
d.The conceptual framework requires that all items of income are reported on a net basis.
Câu Hỏi 7Hoàn thànhĐạt điểm 1,00 trên 1,00Đặt cờ
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Which of the following basic elements of financial statements is more associated with the statement of
financial position than the income statement?
a.Equity
b.Expenses
c.Income
d.Gains
Câu Hỏi 8Hoàn thànhĐạt điểm 1,00 trên 1,00Đặt cờ
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What is meant by comparability when discussing financial accounting information?
a.Information has predictive or feedback value
b.Information is timely
c.Information is reasonably free from error
d.Information that is measured and reported in a similar fashion across companies
Câu Hỏi 9Hoàn thànhĐạt điểm 1,00 trên 1,00Đặt cờ
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The conceptual framework for financial reporting lists the qualitative characteristics of financial
statements.(i) Comparability;(ii) Verifiability;(iii) Timeliness;(iv) Understandability;(v) Relevance;(vi)
Faithful representation. Which two of the above are not included in the enhancing qualitative
characteristics listed by the conceptual framework?
Select one:
a.(iv) and (v)
b.(v) and (vi)
c.(i) and (vii)
d.(ii) and (v)
Câu Hỏi 10Hoàn thànhĐạt điểm 1,00 trên 1,00Đặt cờ
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Which of the following accounting treatments correctly applies the principle of faithful representation?
Select one:
a.Reporting a transaction based on its legal status rather than its economic substance
b.Excluding a subsidiary from consolidation because its activities are not compatible with those of the rest of
the group
c.Allocating part of the sales proceeds of a motor vehicle to interest received even though it was sold with 0%
(interest free) finance
d.Recording the whole of the net proceeds from the issue of a loan note which is potentially convertible to
equity shares as debt (liability)
1.Which of the following statements in relation to income is true?

Select one:

a.The conceptual framework requires that all items of income are reported on a net basis.
b.Gains are normally reported separately from revenue in the Statement of profit or loss and other
comprehensive income due to the different probabilities attached to that type of income.
c.The conceptual framework defines income as an increase in economic benefits which results in an increase in
equity.
d.Gains and revenue are different in nature and therefore are recognised as separate elements of the financial
statements per the conceptual framework.

2.The International Accounting Standards Board’s (IASB’s) Conceptual Framework includes all
of the following except:

a.Qualitative characteristics of accounting information

3.What is meant by comparability when discussing financial accounting information?

a.Information is timely
b.Information is reasonably free from error
c.Information has predictive or feedback value
d.Information that is measured and reported in a similar fashion across companies

4.Which of the following accounting treatments correctly applies the principle of faithful
representation?

Select one:

a.Recording the whole of the net proceeds from the issue of a loan note which is potentially convertible to
equity shares as debt (liability)
b.Excluding a subsidiary from consolidation because its activities are not compatible with those of the rest of
the group
c.Allocating part of the sales proceeds of a motor vehicle to interest received even though it was sold with 0%
(interest free) finance
d.Reporting a transaction based on its legal status rather than its economic substance
Company A issuing its annual financial reports within one month of the end of the year is an example of
which enhancing quality of accounting information?
a.Timeliness
b.Verifiability
c.Comparability
d.Understandability
What is the objective of general-purpose financial reporting?

a.to provide a metric for financial information used to determine when the boundary between two or more
entities should be disregarded and the entities considered to be a licensing arrangement
b.to provide companies with the option to select information that favors one set of interested parties over
another.
c.to provide financial information about the reporting entity that is useful to present and potential equity
investors, lenders, and other creditors in making decisions in their capacity as capital providers
d.to provide users with financial information that implies total freedom from error.

The International Accounting Standards Board’s (IASB’s) Conceptual Framework includes all of
the following except:

a.Neutrality
b.Relevance
c.Materiality
d.Comparability
Which of the following is a fundamental quality of useful accounting information?
a.Consistency
b.Conservatism
c.Faithful representation
d.Comparability

Which of the following statements is incorrect in relation to the recognition criteria for elements
of the financial statements?

Select one:

a.Income is recognised when an increase in future economic benefits related to a decrease in an asset or an
increase in a liability that has arisen can be measured reliably.
b.Assets are recognised when it is probable that future economic benefits will flow to the entity and the asset
has a cost or value that can be measured reliably.
c.Because equity is the arithmetic difference between assets and liabilities, a separate recognition criteria for
equity is not needed in the conceptual framework.
d.Liabilities are recognised when it is probable that an outflow of resources embodying economic benefits will
result from the settlement of a present obligation and the amount at which settlement will take place can be
measured reliably.

Which one of the following would be classified as a liability?

Select one:

a.Expansion is planning to invest in new machinery and has been quoted a price of $570,000.
b.Dexter's business manufactures a product under licence. In 12 months' time the licence expires and Dexter
will have to pay $50,000 for it to be renewed.
c.Reckless purchased an investment 9 months ago for $120,000. The market for these investments has now
fallen and Reckless's investment is valued at $90,000.
d.Carter has estimated the tax charge on its profits for the year just ended as $165,000.

IAS 8
TEST 1
Câu Hỏi 1Applying a new policy to transactions other events and conditions as if that policy
had always been applied. This is:
a.Retrospective restatement
b.Change in accounting estimate
c.Retrospective application
d.Change in accounting policies
Câu Hỏi 2 Specific principles bases conventions rules and practices applied in presenting
financial statements. This defines:
Select one:
a.Accounting estimates
b.Accounting policies
c.accounting errors
d.Prospective application
Câu Hỏi 3Change in accounting policy does not include
a.Change from the practice (convention) of paying as Christmas bonus one month’s salary to staff
before the end of the year to the new practice of paying one-half month’s salary only.
b.Change in useful life from 10 years to 7 years.
c.Change of method of valuation of inventory from FIFO to weighted-average.
d.Change of method of valuation of inventory from weighted-average to FIFO.
Câu Hỏi 4
When a public shareholding company changes an accounting policy voluntarily, it has to
a.Treat the effect of the change as an extraordinary item.
b.Account for it retrospectively.
c.Treat it prospectively and adjust the effect of the change in the current period and future periods.
d.Inform shareholders prior to taking the decision.
Câu Hỏi 5Adjustment of the carrying amount of an asset or a liability or the consumption of
an asset. This defines:
a.Acconting policies
b.A change in accounting estimates
c.Misstatements
d.A change in accounting policies
Câu Hỏi 6When an independent valuation expert advises an entity that the salvage value of
its plant and machinery had drastically changed and thus the change is material, the entity
should
a.Change the annual depreciation for the current year and future years.
b.Change the depreciation charge and treat it as a correction of an error.
c.Ignore the effect of the change on annual depreciation, because changes in salvage values would
normally affect the future only since these are expected to be recovered in future.
d.Retrospectively change the depreciation charge based on the revised salvage value.
Câu Hỏi 7When it is difficult to distinguish between a change of estimate and a change in
accounting policy, then an entity should
a.Since this change is a mixture of two types of changes, it is best if it is ignored in the year of the
change; the entity should then wait for the following year to see how the change develops and then
treat it accordingly.
b.Treat the entire change as a change in accounting policy.
c.Treat the entire change as a change in estimate with appropriate disclosure.
d.Apportion, on a reasonable basis, the relative amounts of change in estimate and the change in
accounting policy and treat each one accordingly.
Câu Hỏi 8XYZ Inc. changes its method of valuation of inventories from weighted-average
method to first-in, first-out (FIFO) method. XYZ Inc. should account for this change as
a.A change in accounting policy and account for it prospectively.
b.A change in accounting policy and account for it retrospectively.
c.Account for it as a correction of an error and account for it retrospectively.
d.A change in estimate and account for it prospectively.
Câu Hỏi 9Correcting the recognition measurement and disclosure of amounts in financial
statements as if a prior-period error had never occurred. This is:
a.Change in accounting policies
b.Change in accounting estimate
c.Retrospective restatement
d.Retrospective application
Câu Hỏi 10Under IFRS, a voluntary change in accounting method may only be made by a
company if:
a.There is no prohibition of the method in the standards.
b.The new method provides reliable and more relevant information.
c.A new standard mandates the change in method.
d.Management prefers the new method.