Question 1

Which of the following has NOT been identified as a reason that management might voluntarily disclose information in annual reports?

Accepted Answer

A) To win reporting awards. 
B) To mislead competitors. 
C) To manage powerful stakeholders. 
D) To forestall regulation. 
A) To win reporting awards. 
B) To mislead competitors. 
C) To manage powerful stakeholders. 
D) To forestall regulation. B

Question 2

Approximately what percentage of the real value of companies is thought to be the result of intangible assets?

Accepted Answer

A) 50%. 
B) 10%. 
C) 30%. 
D) 70%. 
A) 50%. 
B) 10%. 
C) 30%. 
D) 70%. D

Question 3

Earnings Management:

Accepted Answer

A) is always bad for shareholders. 
B) is always illegal. 
C) depends on timing difference between cash and accrual accounting. 
D) None of the above. 
A) is always bad for shareholders. 
B) is always illegal. 
C) depends on timing difference between cash and accrual accounting. 
D) None of the above. C

Question 4

The annual report:

Accepted Answer

A) Is thought to have little influence on stakeholder perceptions. 
B) May have significant additional voluntary disclosure in the financial statements. 
C) Is used for impression management. 
D) Is not thought to be an important information avenue for organisations. 
A) Is thought to have little influence on stakeholder perceptions. 
B) May have significant additional voluntary disclosure in the financial statements. 
C) Is used for impression management. 
D) Is not thought to be an important information avenue for organisations.

Question 5

Which of the following is NOT an argument for a standardised annual reporting period?

Accepted Answer

A) Most businesses operate on a natural 12 month cycle. 
B) It allows investors to compare entities more easily. 
C) It is necessary to calculate an annual dividend. 
D) Various laws require regular information be produced by the entity. 
A) Most businesses operate on a natural 12 month cycle. 
B) It allows investors to compare entities more easily. 
C) It is necessary to calculate an annual dividend. 
D) Various laws require regular information be produced by the entity.

Question 6

Extensible business reporting language (XBRL)is expected to:

Accepted Answer

A) Facilitate better corporate analysis. 
B) Benefit all businesses,large to small. 
C) Ease the burden of reporting to governments. 
D) All of the above. 
A) Facilitate better corporate analysis. 
B) Benefit all businesses,large to small. 
C) Ease the burden of reporting to governments. 
D) All of the above.

Question 7

Manipulation of reported earnings:

Accepted Answer

A) Affects wealth transfers between the company and others. 
B) Can be both legal and illegal. 
C) Includes income smoothing. 
D) All of the above. 
A) Affects wealth transfers between the company and others. 
B) Can be both legal and illegal. 
C) Includes income smoothing. 
D) All of the above.

Question 8

Intangible assets are defined as:

Accepted Answer

A) Identifiable non-monetary assets without physical substance. 
B) One-sided financial assets. 
C) Unidentifiable assets without physical. 
D) All of the above. 
A) Identifiable non-monetary assets without physical substance. 
B) One-sided financial assets. 
C) Unidentifiable assets without physical. 
D) All of the above.

Question 9

Income smoothing:

Accepted Answer

A) Is only possible when sufficient profits are regularly made. 
B) Aims to produce a steady growth in the profit stream. 
C) Transfers wealth from new shareholders to management. 
D) All of the above. 
A) Is only possible when sufficient profits are regularly made. 
B) Aims to produce a steady growth in the profit stream. 
C) Transfers wealth from new shareholders to management. 
D) All of the above.

Question 10

Legitimacy theory suggests that corporate social disclosure will be used to:

Accepted Answer

A) Disclose all firm activities,good or bad. 
B) Signal deeply held ethical values of the entity. 
C) Manage the concerns of key stakeholders. 
D) The minimal degree possible. 
A) Disclose all firm activities,good or bad. 
B) Signal deeply held ethical values of the entity. 
C) Manage the concerns of key stakeholders. 
D) The minimal degree possible.

Question 11

What is the key element of the IASB definition of the reporting entity?

Accepted Answer

A) The existence of investors and creditors who cannot directly obtain information. 
B) The existence of a broad range of users who want information. 
C) The legal requirements of the country in which the entity resides. 
D) The existence of scarce resources. 
A) The existence of investors and creditors who cannot directly obtain information. 
B) The existence of a broad range of users who want information. 
C) The legal requirements of the country in which the entity resides. 
D) The existence of scarce resources.

Question 12

Pro forma reports:

Accepted Answer

A) Usually show a lower profit figure than those prepares in accordance with accounting standards. 
B) Are simply IFRS compliant reports. 
C) Are GAAP compliant reports. 
D) Usually show a higher profit figure than those prepares in accordance with accounting standards. 
A) Usually show a lower profit figure than those prepares in accordance with accounting standards. 
B) Are simply IFRS compliant reports. 
C) Are GAAP compliant reports. 
D) Usually show a higher profit figure than those prepares in accordance with accounting standards.

Question 13

What is NOT one of the key elements of control?

Accepted Answer

A) Influence over returns. 
B) Ownership. 
C) Variable returns. 
D) None of the above,i.e.they are all elements of control. 
A) Influence over returns. 
B) Ownership. 
C) Variable returns. 
D) None of the above,i.e.they are all elements of control.

Question 14

Which of the following intellectual capital could be included in the Statement of Financial Position?

Accepted Answer

A) Development of software by the company for external use. 
B) Training of programmers employed by a company. 
C) Development of software by the company for internal use. 
D) None of the above. 
A) Development of software by the company for external use. 
B) Training of programmers employed by a company. 
C) Development of software by the company for internal use. 
D) None of the above.

Question 15

The kinds of information likely to be included in the annual report includes:

Accepted Answer

A) Occupational health and safety disclosures. 
B) Corporate governance. 
C) Environmental performance. 
D) All of the above. 
A) Occupational health and safety disclosures. 
B) Corporate governance. 
C) Environmental performance. 
D) All of the above.

Question 16

Corporate social responsibility:

Accepted Answer

A) Still means organisations should pursue profit. 
B) Is concerned about the environmental impact of organisations. 
C) Suggests that companies can build shareholder value by engaging other stakeholders. 
D) All of the above. 
A) Still means organisations should pursue profit. 
B) Is concerned about the environmental impact of organisations. 
C) Suggests that companies can build shareholder value by engaging other stakeholders. 
D) All of the above.

Question 17

Annual reports contain many financial graphics,it has been noted that:

Accepted Answer

A) They are frequently distorted to improve perceptions of performance. 
B) They are mostly unhelpful in summarising data. 
C) They are irrelevant to most users. 
D) All of the above. 
A) They are frequently distorted to improve perceptions of performance. 
B) They are mostly unhelpful in summarising data. 
C) They are irrelevant to most users. 
D) All of the above.

Question 18

AASB 134 Interim Reporting mandates:

Accepted Answer

A) That interim financial reports should be prepared at least once per year. 
B) The minimum contents of interim financial reports. 
C) Who must prepare interim financial reports. 
D) All of the above. 
A) That interim financial reports should be prepared at least once per year. 
B) The minimum contents of interim financial reports. 
C) Who must prepare interim financial reports. 
D) All of the above.

Question 19

Which of the following is specifically prohibited from recognition as an intangible asset according to AASB138?

Accepted Answer

A) Training. 
B) Internally generated brands. 
C) Research. 
D) All of the above. 
A) Training. 
B) Internally generated brands. 
C) Research. 
D) All of the above.

Question 20

Which of the following is an argument for more flexible reporting periods?

Accepted Answer

A) It makes dividend calculation easier. 
B) It makes it less attractive for entities to manipulate profits. 
C) It enhances comparability. 
D) It is widely supported. 
A) It makes dividend calculation easier. 
B) It makes it less attractive for entities to manipulate profits. 
C) It enhances comparability. 
D) It is widely supported.

Which of the following has NOT been identified as a reason that management might voluntarily disclose information in annual reports?

Approximately what percentage of the real value of companies is thought to be the result of intangible assets?

Earnings Management:

The annual report:

Which of the following is NOT an argument for a standardised annual reporting period?

Extensible business reporting language (XBRL)is expected to:

Manipulation of reported earnings:

Intangible assets are defined as:

Income smoothing:

Legitimacy theory suggests that corporate social disclosure will be used to:

What is the key element of the IASB definition of the reporting entity?

Pro forma reports:

What is NOT one of the key elements of control?

Which of the following intellectual capital could be included in the Statement of Financial Position?

The kinds of information likely to be included in the annual report includes:

Corporate social responsibility:

Annual reports contain many financial graphics,it has been noted that:

AASB 134 Interim Reporting mandates:

Which of the following is specifically prohibited from recognition as an intangible asset according to AASB138?

Which of the following is an argument for more flexible reporting periods?

Contemporary Issues in Accounting

The Conceptual Framework for Financial Reporting

Standard Setting

Measurement

Theories in Accounting

Corporate Governance

Capital Markets Research and Accounting

Earnings Management

Fair Value Accounting

Sustainability and Environmental Accounting

International Accounting

Filters

Exam 6: Products of the Financial Reporting Process

Which of the following has NOT been identified as a reason that management might voluntarily disclose information in annual reports?

Approximately what percentage of the real value of companies is thought to be the result of intangible assets?

Earnings Management:

The annual report:

Which of the following is NOT an argument for a standardised annual reporting period?

Extensible business reporting language (XBRL)is expected to:

Manipulation of reported earnings:

Intangible assets are defined as:

Income smoothing:

Legitimacy theory suggests that corporate social disclosure will be used to:

What is the key element of the IASB definition of the reporting entity?

Pro forma reports:

What is NOT one of the key elements of control?

Which of the following intellectual capital could be included in the Statement of Financial Position?

The kinds of information likely to be included in the annual report includes:

Corporate social responsibility:

Annual reports contain many financial graphics,it has been noted that:

AASB 134 Interim Reporting mandates:

Which of the following is specifically prohibited from recognition as an intangible asset according to AASB138?

Which of the following is an argument for more flexible reporting periods?

Contemporary Issues in Accounting

The Conceptual Framework for Financial Reporting

Standard Setting

Measurement

Theories in Accounting

Corporate Governance

Capital Markets Research and Accounting

Earnings Management

Fair Value Accounting

Sustainability and Environmental Accounting

International Accounting

Filters