QUESTION 8Which of these statements is not correct?Australian accounting standards are not enforceable by the Corporations ActThe Australian Accounting Standards Board are responsible for creating accounting standardsThe main function of accounting standards is to assist users of financial information to make more informed decisionsO Accounting standards are the second source of regulation for financial reporting

Accounting standards are very important for any country in maintaining standard of accounting and…

ich of these statements is not correct? Australian accounting standards are not enforceable by the Corporations Act The Australian Accounting Standards Board are responsible for creating accoun The main function of accounting standards is to assist users of financial informa Accounting standards are the second source of regulation for financial reportin

ich of these statements is not correct? Australian accounting standards are not enforceable by the Corporations Act The Australian Accounting Standards Board are responsible for creating accoun The main function of accounting standards is to assist users of financial informa Accounting standards are the second source of regulation for financial reportin

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter2: Financial Reporting: Its Conceptual Framework

Section: Chapter Questions

Problem 14C

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What is a function of the Accounting Standards Board (AcSB)? Question 15 options: It overlooks the accounts department of the federal government. It certifies individuals to provide accounting services. It provides relief to banks during financial crisis. It ensures that accounting firms do not separate their consulting and auditing businesses. It makes rules and policies for accounting firms and businesses.
11. Which of the following statements are true? An accounting Conceptual Framework: (i) Sets out who the users of the accounts are and how it is to be used (ii) Is not an obligatory piece of legislation (iii) Defines concepts such as going concern, relevance and materiality a)All of the above is true Only b) (i) is true c) Only (ii) and (iii) is true d) (i) and (iii) is true 16. Which of the following statements about the accounting regulatory framework is not correct? a) It seeks to safeguard the public’s confidence in financial accounts. b) It ensures maximisation of dividend yield. c) It seeks to curb any attempt by directors to use inappropriate accounting policies and methods. d) It seeks to promote consistency of accounting practices, whilst permitting appropriate exercise of professional judgement. 17. Which of the following statements about the Statement of Cash Flows (SCF) is incorrect? a) Unlike the Statements of Income and of…
7. The notes to financial statements of an entity shallI. Present information about the basis of preparation of the financial statements and the specific accounting policies used.II. Disclose the information required by Philippine Financial Reporting Standards that is not presented elsewhere in the financial statements.III. Provide additional information which is not presented on the face of the financial statements but that is necessary for a fair presentation.a. I , II and IIIb. I and II onlyc. I and III onlyd. I only8. The summary of accounting policies section of the notes to financial statements shall describea. Only the measurement basis used in preparing the financial statementsb. Only the specific accounting policies followed by the entityc. Both the measurement basis and accounting policies followedd. Nature of the entity’s operations and its principal activities9. An entity is required to disclose nonfinancial information. Which is not embraced in this disclosure?a. A…
16. What is the purpose of information presented in notes to financial statements? a. To present management's responses to auditor comments b. To correct improper presentation in the financial statements c. To provide disclosures required by generally accepted accounting principles d. To provide recognition of amounts not included in the total of the financial statements 17. Proper application of accounting principles is most dependent upon a. Existence of specific guidelines b. Oversight of regulatory bodies c. External audit function d. Professional judgment of the accountant 18. Which of the following is not a correct variation of the basic accounting equation? a. Asset = Liabilities +Equity b. Asset - Liabilities = Equity c. Asset - Equity = Liabilities d. Asset + Liabilities = Equity 19. Entity A's total liabilities are P50M, while its total equity is P10. Entity A's total assets are a. P60M b. P50M c. P40M d. Any of these 20. What is the effect on an entity's financial…
The CPA Canada Handbook-Accounting is the handbook of Canadian accounting standards. Why do companies in Canada ensure that their financial reporting is consistent with Canadian GAAP? a. Their bank requires them to do so. b. Their auditors require them to do so. c. Reporting under the CPA Canada Handbook-Accounting is required by public compannies boards of directors. d. Compliance with the CPA Canada Handbook-Accounting pronouncements is usually required by many legal statutes.
IAS 37, Provisions, Contingent Liabilities and Contingent Assets was issued in 1998. The Standard sets out the principles of accounting for these items and clarifies when provisions should and should not be made. Prior to its issue, the inappropriate use of provisions had been an area where companies had been accused of manipulating the financial statements and of creative accounting.Required:a) Describe the nature of provisions and the accounting requirements for them contained in IAS 37.b) Explain why there is a need for an accounting standard in this area. Illustrate your answer with three practical examples of how the Standard addresses controversial issues.
Which is not a purpose of the conceptual framework?a. To provide definitions of key terms and fundamental concepts.b. To provide specific guidelines for resolving situations not covered by existing accounting standards.c. To assists accountants in selecting among alternative accounting and reporting methods.d. To assists the International Accounting Standards Board in standard-setting process. 37. Which of the following statements regarding the conceptual framework is incorrect?a. The conceptual framework is concerned with general-purpose financial statements.b. The conceptual framework applies to financial statements of business reporting enterprises both inthe private sector and in the public sectorc. In cases where there is conflict between the conceptual framework and PFRS, the requirement of theconceptual framework will prevaild. The conceptual framework deals with concepts of capital