32 Free Test Bank for Financial Accounting A Global
Approach 1st Edition Monger Multiple Choice
Questions

32 Free Test Bank for Financial Accounting A Global Approach 1st Edition Monger multiple choice
questions is an introduction to students to help them have a review of financial accounting.
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Which of the following measurement concepts described in the
IASB Framework for the Preparation and Presentation of
Financial Statements measures liabilities at the discounted value
of the net cash outflows expected to settle the obligation in the
normal course of business?
1.

a. Current cost

2.

b. Present value

3.

c. Historical cost

4.

d. Realizable value


3.

c. Develop a single set of high quality, understandable and enforceable
global standards

4.

d. Work actively with national standard-setters to bring about convergence
of national accounting standards with IFRS

Completeness relates to which of the following qualitative
characteristic of financial statements?
1.

a. Reliability

2.

b. Relevance

3.

c. Understandability

4.

d. Comparability

The organization that is responsible for ensuring that IASB board

a. 1, 2, 4 and then 3

2.

b. 1, 2, 4 and then 5

3.

c. 4, 2 and then 5

4.

d. 4, 1 and then 3

Which of the following measurement concepts described in the
IASB Framework for the Preparation and Presentation of
Financial Statements measures liabilities by the amount of
proceeds exchanged for the obligation?
1.

a. Current cost

2.

b. Present value

3.

c. Historical cost



a. 1, 2 and 3 only

2.

b. 2, 3 and 4 only

3.

c. 1, 2 and 4 only

4.

d. All four are requirements

Lam Corporation owes Ling Ltd. ¥50,000. Ling owes Lam
¥45,000. Which of the following is correct about reporting this
information according to the IASB Framework for the Preparation
and Presentation of Financial Statements?
1.

a. Lam should report a negative trade accounts payable amount of ¥5,000

2.

b. Lam should report assets of ¥50,000

3.

c. Ling should report assets of ¥5,000


a. Some nations have converged their national standards with International
Financial Reporting Standards

2.

b. Some nations have not converged their national standards with
International Financial Reporting Standards

3.

c. By the year 2012, all nations will be required to use International
Financial Reporting Standards

4.

d. Accounting standards are still established at the national level

Qualitative characteristics that make information provided in
financial statements useful to users include which of the following:
1- relevance 2- integrity 3- understandability 4- cost effectiveness
5- comparability 6- timeliness 7- reliability
1.

a. 2, 4, 6 and 7

2.

b. 1, 2, 5 and 6


satisfy local laws and culture

Which of the following measurement concepts described in the
IASB Framework for the Preparation and Presentation of
Financial Statements measures assets based on an amount of
cash or cash equivalents paid or the fair value of the
consideration given to acquire them?
1.

a. Current cost

2.

b. Present value

3.

c. Historical cost

4.

d. Realizable value

The qualitative characteristic of financial statements that assumes
that users have a reasonable knowledge of business, economic
activities and financial accounting, and will study the information
with reasonable diligence to comprehend its meaning is which of
the following?
1.



d. Comparability

International Financial Reporting Standards (IFRS) include all
except which of the following:
1.

a. interpretations by the International Financial Reporting Interpretations
Committee

2.

b. Pronouncements by the Standards Advisory Council

3.

c. International Financial Reporting Standards (IFRS) as currently
established by the IASB

4.

d. International Accounting Standards

Which of the following is not a characteristic of rules-based
standards?
1.

a. Rules-based standards must be clear and understandable in their
application and enforcement


4.

d. Comparability

Which of the following measurement concepts described in the
IASB Framework for the Preparation and Presentation of
Financial Statements measures liabilities at the amount of cash or
cash equivalents that would currently be required to settle the
obligation?
1.

a. Current cost

2.

b. Present value

3.

c. Historical cost

4.

d. Realizable value

If the omission or misstatement could influence the economic
decisions of users on the basis of financial statements, then
information is which of the following?
1.


4.

d. Comparability

Which concept relates to the reporting of the effects of
transactions when they occur and not necessarily when cash is
received or paid?
1.

a. Time period assumption

2.

b. Accrual basis

3.

c. Going concern

4.

d. Double-entry assumption

International Financial Reporting Standards (IFRS) are now
established by:
1.

a. the International Monetary Fund

2.


d. Realizable value

Which of the following measurement concepts described in the
IASB Framework for the Preparation and Presentation of
Financial Statements measures liabilities at the amount of cash or
cash equivalents that would be needed to settle the obligation in
the normal course of business?
1.

a. Current cost

2.

b. Present value

3.

c. Historical cost

4.

d. Realizable value

Which of the following is not a constraint on relevant and reliable
information as identified in the IASB Framework for the
Preparation and Presentation of Financial Statements?
1.

a. Fair presentation

4.

d. Realizable value

Consistency relates to which of the following qualitative
characteristic of financial statements?
1.

a. Reliability

2.

b. Relevance

3.

c. Understandability

4.

d. Comparability

Which of the following is not a mandatory step in the IASB
standard-setting process?
1.

a. Establishing procedures for reviewing comments made within a
reasonable period on documents published for comment.

2.