Question 1

0 out of 1 points

Investors who provide their money to establish a business are regarded as internal users of accounting information.

Selected Answer: True

Answers: True

False

Question 2

1 out of 1 points

Many professionals who are not accountants find it an advantage to have a grasp of accounting concepts.

Selected Answer: True

Answers: True

False

Question 3

1 out of 1 points

The most senior accounting position in a corporation is generally referred to as the:

Selected Answer: Chief Financial Officer

Answers: Managing Director

Chief Financial Officer

Managing Accountant

Head Accountant

Auditor

Question 4

0 out of 1 points

The internal user of accounting information is:

Selected Answer:

Consumer

Answers: Investor

Consumer

Production manager

Australian Tax Office

Supplier

Question 5

0 out of 1 points

The normal time delay in Australia in providing the annual report of large companies to external users after the end of the financial year is:

Selected Answer: one month.

Answers: two weeks.

one month.

six months.

two months.

three months.

Question 6

0 out of 1 points

The Framework describes the qualitative characteristic of relevance as:

Selected Answer: information that can be recorded in accounting reports.

Answers:

information that is of value to users in decision making.

information that can be classified.

information that can be recorded in accounting reports.

information that can be reliably measured.

information that is understandable  

Question 7

0 out of 1 points

Which of these is an asset?

Selected Answer: Interest earned on investments

Answers: Income tax payable

Revaluation reserve

Interest earned on investments

Income received in advance

None is an asset

Question 8

0 out of 1 points

The information in accounting reports is governed by:

Selected Answer:

GPFR.

Answers: SPFR.

GPFR.

GAAP.

GARP.

None of the above.

Question 9

0 out of 1 points

Decreases in economic benefits in the form of outflows or depletions of assets or incurrences of liabilities that result in a decrease in equity, other than those relating to distributions to equity participants, is the definition of:

Selected Answer:

liabilities.

Answers: assets.

liabilities.

income.

expenses.

equity.   

Question 10

0.25 out of 1 points

The Financial Reporting Council is made up of representatives of

Selected Answer:

governments.

Answers: stakeholders from the business community.

professional accounting bodies.

governments.

regulatory agencies.

All of the above

Question 11

1 out of 1 points

Which of these is a decision relevant to the accounting function of an entity?

Selected Answer:

All of the above

Answers: Whether debts can be repaid

Finding the most cost effective way to produce goods

The investment prospects of the entity

All of the above

None of the above  

Question 12

0 out of 1 points

The best description of the primary purposes of providing accounting information is:

Selected Answer:

to calculate the bank account balance.

Answers:

to assist users in making informed decisions.

to calculate the bank account balance.

to allow the preparation of a taxation return.

to enable the financial statements to be prepared.

Question 13

0 out of 1 points

Businesses tend to resist providing forecast data to those outside the organisation mainly because:

Selected Answer:

the data is inaccurate.

Answers: it is too difficult.

of fear of the loss of competitive advantage.

the data is inaccurate.

it is too costly.

Question 14

1 out of 1 points

The change that will increase owners' equity is:

Selected Answer:

earning a profit for the year.

Answers: a company buying back its own shares.

earning a profit for the year.

a loss incurred for the year.

payment of a dividend by a company to its shareholders.

Question 15

0 out of 1 points

Financial accounting reports, compared to management reports, tend to be:

Selected Answer:

detailed.

Answers: unstructured.

detailed.

qualitative.

general purpose.

Question 16

0 out of 1 points

The test to determine if an item of accounting information is worthwhile collecting is:

Selected Answer:

cost test.

Answers: cost test.

worthwhile test.

cost/benefit test.

validation test.

Question 17

1 out of 1 points

Which of these are costs of providing accounting information?

Selected Answer:

all of the above

Answers: cost of computer hardware

the cost of management time spent on reading and interpreting accounting reports

wages of accounting staff

all of the above

Question 18

0 out of 1 points

How many of these are differences between management and financial accounting?

Nature of reports produced Frequency of reports Level of detail in the reports Degree of regulation

Selected Answer:

two

Answers: one

two

three

four

Question 19

0 out of 1 points

Management reports, compared to financial reports, are:

Selected Answer:

standardised.

Answers: aggregated.

detailed.

standardised.

summarised.

Question 20

1 out of 1 points

Which external user of financial information is able to demand the preparation of a specific financial report?

Selected Answer:

tax department

Answers: public

tax department

creditor

customer