Question 1

Which of the following statements is not correct in relation to corporate social responsibility (CSR) reporting?

Accepted Answer

A)  Social responsibility is the responsibility of an organisation for the impacts of its decisions and activities on society and the environment, through transparent and ethical behaviour. 
B)  There has been a decline in the number of Australian companies presenting information on socially responsible activities. 
C)  Currently there are no accounting standards requiring CSR reporting by Australian companies. 
D)  It is likely that CSR reporting will continue to be driven by community concerns with global warming and the impact of company activities on the environment. 
A)  Social responsibility is the responsibility of an organisation for the impacts of its decisions and activities on society and the environment, through transparent and ethical behaviour. 
B)  There has been a decline in the number of Australian companies presenting information on socially responsible activities. 
C)  Currently there are no accounting standards requiring CSR reporting by Australian companies. 
D)  It is likely that CSR reporting will continue to be driven by community concerns with global warming and the impact of company activities on the environment.

Question 2

According to AASB 101/IAS 1 Presentation of Financial Statements, a complete set of financial statements only comprises a statement of financial position, statement of profit or loss and other comprehensive income and a statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following items must be presented as a line item on the face of a statement of financial position?

Accepted Answer

A)  Trade and other receivables 
B)  Sales revenue 
C)  Cost of goods sold 
D)  Share of profit of subsidiaries 
A)  Trade and other receivables 
B)  Sales revenue 
C)  Cost of goods sold 
D)  Share of profit of subsidiaries

Question 4

An entity is required to classify its assets and liabilities as current or non-current unless it is considered more relevant to present them according to their:

Accepted Answer

A)  fair value. 
B)  liquidity. 
C)  age. 
D)  function. 
A)  fair value. 
B)  liquidity. 
C)  age. 
D)  function.

Question 5

The notes are an integral part of the financial statements.

Accepted Answer

A) True 
 B)False

Question 6

AASB 101/IAS 1 Presentation of Financial Statements requires entities to disclose within the financial statements a description of the nature of the entity's operations and principal activities.

Accepted Answer

A) True 
 B)False

Question 7

A reporting entity must disclose somewhere in the financial report, which of the following items of information? I. The legal residence and form of the entity.
II) The name and location of the stock exchange on which the entity's securities are traded.
III) The address of the registered office.
IV) The country of incorporation.

Accepted Answer

A)  I, II, III and IV 
B)  II, II and IV only 
C)  I, II and IV only 
D)  I, III and IV only 
A)  I, II, III and IV 
B)  II, II and IV only 
C)  I, II and IV only 
D)  I, III and IV only

Question 8

Which of the following is not included in a complete set of financial statements?

Accepted Answer

A)  A statement of changes in equity for the period 
B)  A statement of cash flows for the period 
C)  A statement of financial position for the period 
D)  Notes, comprising a summary of significant accounting policies and other explanatory information 
A)  A statement of changes in equity for the period 
B)  A statement of cash flows for the period 
C)  A statement of financial position for the period 
D)  Notes, comprising a summary of significant accounting policies and other explanatory information

Question 9

According to AASB 101/IAS 1 Presentation of Financial Statements, a required format for the presentation of a statement of financial position is:

Accepted Answer

A)  not prescribed and no guidance is provided in the standard. 
B)  not prescribed but guidance is provided in the standard for a suitable format. 
C)  prescribed by the standard. 
D)  prescribed by the Corporations Act. 
A)  not prescribed and no guidance is provided in the standard. 
B)  not prescribed but guidance is provided in the standard for a suitable format. 
C)  prescribed by the standard. 
D)  prescribed by the Corporations Act.

Question 10

Although currently voluntary, it is likely that Corporate Social Responsibility (CSR) reporting will be regulated by the introduction of an accounting standard in the near future.

Accepted Answer

A) True 
 B)False

Question 11

Categorising expenses as distribution costs and administration expenses is an example of which classification method?

Accepted Answer

A)  Nature of expense method 
B)  Function of expense method 
C)  Purpose of expense method 
D)  None of the above 
A)  Nature of expense method 
B)  Function of expense method 
C)  Purpose of expense method 
D)  None of the above

Question 12

Which of the following is not an example of an assumption that must be disclosed under AASB 101/IAS 1 Presentation of Financial Statements when future-oriented estimates are necessary to measure the recoverable amount of assets?

Accepted Answer

A)  Useful lives 
B)  Future interest rates 
C)  Future changes in salaries 
D)  Future bad debts 
A)  Useful lives 
B)  Future interest rates 
C)  Future changes in salaries 
D)  Future bad debts

Question 13

The term 'finance costs' is synonymous with:

Accepted Answer

A)  advances from lenders. 
B)  loans payable. 
C)  non-current liabilities. 
D)  interest expense. 
A)  advances from lenders. 
B)  loans payable. 
C)  non-current liabilities. 
D)  interest expense.

Question 14

One of the primary objectives of the statement of financial position is to provide information about an entity's financial position including its assets, liabilities and equity.

Accepted Answer

A) True 
 B)False

Question 15

Revenue arises from a company's ordinary activities.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is incorrect?

Accepted Answer

A)  Current assets are those assets that are realised or consumed within an entity's operating cycle. 
B)  For entities with diverse operations, such as retail and banking activities, a mixed basis of presentation may be appropriate. 
C)  An entity's operating cycle is usually 12 months but may be longer than 12 months after the reporting period. 
D)  An entity is permitted to classify deferred tax assets as current assets. 
A)  Current assets are those assets that are realised or consumed within an entity's operating cycle. 
B)  For entities with diverse operations, such as retail and banking activities, a mixed basis of presentation may be appropriate. 
C)  An entity's operating cycle is usually 12 months but may be longer than 12 months after the reporting period. 
D)  An entity is permitted to classify deferred tax assets as current assets.

Question 17

Which of the following items must be presented as a separate line item on the face of a statement of profit or loss and other comprehensive income?

Accepted Answer

A)  Cost of sales 
B)  Share of profit or loss of associates and joint ventures 
C)  Wages and salaries expense 
D)  Share of profit or loss of subsidiaries 
A)  Cost of sales 
B)  Share of profit or loss of associates and joint ventures 
C)  Wages and salaries expense 
D)  Share of profit or loss of subsidiaries

Question 18

Asset, liability and equity items are summarised in the:

Accepted Answer

A)  statement of profit or loss and other comprehensive income. 
B)  statement of financial performance. 
C)  statement of financial position. 
D)  statement of changes in equity. 
A)  statement of profit or loss and other comprehensive income. 
B)  statement of financial performance. 
C)  statement of financial position. 
D)  statement of changes in equity.

Question 19

The following are normally presented in a statement of financial position as current items:

Accepted Answer

A)  deferred tax liabilities. 
B)  accounts payable. 
C)  deferred tax assets. 
D)  property, plant and equipment. 
A)  deferred tax liabilities. 
B)  accounts payable. 
C)  deferred tax assets. 
D)  property, plant and equipment.

Question 20

Which of the following items are not permitted to be disclosed as separate line items on the face of the statement of financial position?

Accepted Answer

A)  Investment property 
B)  Cash and cash equivalents 
C)  Deferred tax assets 
D)  Share of profit of associates 
A)  Investment property 
B)  Cash and cash equivalents 
C)  Deferred tax assets 
D)  Share of profit of associates

Which of the following statements is not correct in relation to corporate social responsibility (CSR) reporting?

According to AASB 101/IAS 1 Presentation of Financial Statements, a complete set of financial statements only comprises a statement of financial position, statement of profit or loss and other comprehensive income and a statement of cash flows.

Which of the following items must be presented as a line item on the face of a statement of financial position?

An entity is required to classify its assets and liabilities as current or non-current unless it is considered more relevant to present them according to their:

The notes are an integral part of the financial statements.

AASB 101/IAS 1 Presentation of Financial Statements requires entities to disclose within the financial statements a description of the nature of the entity's operations and principal activities.

Which of the following is not included in a complete set of financial statements?

According to AASB 101/IAS 1 Presentation of Financial Statements, a required format for the presentation of a statement of financial position is:

Although currently voluntary, it is likely that Corporate Social Responsibility (CSR) reporting will be regulated by the introduction of an accounting standard in the near future.

Categorising expenses as distribution costs and administration expenses is an example of which classification method?

Which of the following is not an example of an assumption that must be disclosed under AASB 101/IAS 1 Presentation of Financial Statements when future-oriented estimates are necessary to measure the recoverable amount of assets?

The term 'finance costs' is synonymous with:

One of the primary objectives of the statement of financial position is to provide information about an entity's financial position including its assets, liabilities and equity.

Revenue arises from a company's ordinary activities.

Which of the following statements is incorrect?

Which of the following items must be presented as a separate line item on the face of a statement of profit or loss and other comprehensive income?

Asset, liability and equity items are summarised in the:

The following are normally presented in a statement of financial position as current items:

Which of the following items are not permitted to be disclosed as separate line items on the face of the statement of financial position?

Nature and Regulation of Companies

Financing Company Operations

Business Combinations

Disclosure: Legal Requirements and Accounting Polices

Disclosure: Statement of Cash Flows

Foreign Currency Transactions and Forward Exchange Contracts

Translation of Financial Statements Into a Presentation Currency

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Associates and Joint Ventures

Joint Arrangements

Insolvency and Liquidation

Accounting for Company Income Tax

Property, Plant Equipment

Filters

Exam 5: Disclosure: Presentation of Financial Statements

Which of the following statements is not correct in relation to corporate social responsibility (CSR) reporting?

According to AASB 101/IAS 1 Presentation of Financial Statements, a complete set of financial statements only comprises a statement of financial position, statement of profit or loss and other comprehensive income and a statement of cash flows.

Which of the following items must be presented as a line item on the face of a statement of financial position?

An entity is required to classify its assets and liabilities as current or non-current unless it is considered more relevant to present them according to their:

The notes are an integral part of the financial statements.

AASB 101/IAS 1 Presentation of Financial Statements requires entities to disclose within the financial statements a description of the nature of the entity's operations and principal activities.

Which of the following is not included in a complete set of financial statements?

According to AASB 101/IAS 1 Presentation of Financial Statements, a required format for the presentation of a statement of financial position is:

Although currently voluntary, it is likely that Corporate Social Responsibility (CSR) reporting will be regulated by the introduction of an accounting standard in the near future.

Categorising expenses as distribution costs and administration expenses is an example of which classification method?

Which of the following is not an example of an assumption that must be disclosed under AASB 101/IAS 1 Presentation of Financial Statements when future-oriented estimates are necessary to measure the recoverable amount of assets?

The term 'finance costs' is synonymous with:

One of the primary objectives of the statement of financial position is to provide information about an entity's financial position including its assets, liabilities and equity.

Revenue arises from a company's ordinary activities.

Which of the following statements is incorrect?

Which of the following items must be presented as a separate line item on the face of a statement of profit or loss and other comprehensive income?

Asset, liability and equity items are summarised in the:

The following are normally presented in a statement of financial position as current items:

Which of the following items are not permitted to be disclosed as separate line items on the face of the statement of financial position?

Nature and Regulation of Companies

Financing Company Operations

Business Combinations

Disclosure: Legal Requirements and Accounting Polices

Disclosure: Statement of Cash Flows

Foreign Currency Transactions and Forward Exchange Contracts

Translation of Financial Statements Into a Presentation Currency

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Associates and Joint Ventures

Joint Arrangements

Insolvency and Liquidation

Accounting for Company Income Tax

Property, Plant Equipment

Filters