Question 1

The definition of income encompasses the following criteria, except:

Accepted Answer

A)  increases in economic benefits. 
B)  control of increases in economic benefits by the entity. 
C)  including capital contributions from owners. 
D)  results in increases in equity. 
A)  increases in economic benefits. 
B)  control of increases in economic benefits by the entity. 
C)  including capital contributions from owners. 
D)  results in increases in equity.

Question 2

The Financial Reporting Council (FRC) has the power to do the following, except:

Accepted Answer

A)  directing the AASB to develop a particular accounting standard. 
B)  appointing the members of the AASB. 
C)  determining broad strategic direction for the AASB. 
D)  monitoring the development of international accounting standards. 
A)  directing the AASB to develop a particular accounting standard. 
B)  appointing the members of the AASB. 
C)  determining broad strategic direction for the AASB. 
D)  monitoring the development of international accounting standards.

Question 3

'Kwik Kut Hairdressing' rents a small shop located in Melbourne CBD to operate its hairdressing business. In accordance with the Conceptual Framework, 'Kwik Kut Hairdressing' should recognise monthly payment for the shop rental as:

Accepted Answer

A)  a decrease in assets and an increase in equity. 
B)  an increase in income and a decrease in liabilities. 
C)  a decrease in assets and a decrease in income. 
D)  a decrease in assets and an increase in expense. 
A)  a decrease in assets and an increase in equity. 
B)  an increase in income and a decrease in liabilities. 
C)  a decrease in assets and a decrease in income. 
D)  a decrease in assets and an increase in expense.

Question 4

Which of the followings are the three essential criteria in the definition of an asset?
$\begin{array}{ll}
\text { I. Future economic benefits}&\text {IV.Present obligation  }\
\text {II.Future sacrifices of economic benefits. }&\text {V. Control. }\
\text {III.Past event }&\text{VI.Ownership} \
\end{array}$

Accepted Answer

A)  I, III, IV. 
B)  II, III, V. 
C)  I, IV, VI. 
D)  I, III, V. 
A)  I, III, IV. 
B)  II, III, V. 
C)  I, IV, VI. 
D)  I, III, V.

Question 5

The only element in financial statements which has no independent definition under the Conceptual Framework is:

Accepted Answer

A)  assets. 
B)  liabilities. 
C)  equity. 
D)  expenses. 
A)  assets. 
B)  liabilities. 
C)  equity. 
D)  expenses.

Question 6

Which regulatory body has the responsibility for overseeing the standard-setting process in Australia?

Accepted Answer

A)  AASB 
B)  FRC 
C)  APRA 
D)  ASIC 
A)  AASB 
B)  FRC 
C)  APRA 
D)  ASIC

Question 7

The two fundamental qualitative characteristics of useful information are:

Accepted Answer

A)  materiality and relevance. 
B)  relevance and faithful representation. 
C)  comparability and verifiability. 
D)  timeliness and understandability. 
A)  materiality and relevance. 
B)  relevance and faithful representation. 
C)  comparability and verifiability. 
D)  timeliness and understandability.

Question 8

The Corporations Act requires the following entities to prepare a financial report, except for:

Accepted Answer

A)  public companies. 
B)  small proprietary companies. 
C)  large proprietary companies. 
D)  registered schemes. 
A)  public companies. 
B)  small proprietary companies. 
C)  large proprietary companies. 
D)  registered schemes.

Question 9

Currently the Australian conceptual framework comprises:

Accepted Answer

A)  the Framework for the Preparation and Presentation of Financial Statements. 
B)  the Conceptual Framework for Financial Reporting. 
C)  the Framework for the Preparation and Presentation of Financial Statements, SAC 1, and SAC 2. 
D)  the Conceptual Framework for Financial Reporting, SAC 1, and SAC 2. 
A)  the Framework for the Preparation and Presentation of Financial Statements. 
B)  the Conceptual Framework for Financial Reporting. 
C)  the Framework for the Preparation and Presentation of Financial Statements, SAC 1, and SAC 2. 
D)  the Conceptual Framework for Financial Reporting, SAC 1, and SAC 2.

The definition of income encompasses the following criteria, except:

The Financial Reporting Council (FRC) has the power to do the following, except:

'Kwik Kut Hairdressing' rents a small shop located in Melbourne CBD to operate its hairdressing business. In accordance with the Conceptual Framework, 'Kwik Kut Hairdressing' should recognise monthly payment for the shop rental as:

Which of the followings are the three essential criteria in the definition of an asset? I. Future economic benefits IV.Present obligation II.Future sacrifices of economic benefits. V. Control. III.Past event VI.Ownership

The only element in financial statements which has no independent definition under the Conceptual Framework is:

Which regulatory body has the responsibility for overseeing the standard-setting process in Australia?

The two fundamental qualitative characteristics of useful information are:

The Corporations Act requires the following entities to prepare a financial report, except for:

Currently the Australian conceptual framework comprises:

Application of Accounting Theory

Shareholders Equity: Share Capital and Reserves

Fair Value Measurement

Revenue

Provisions, Contingent Liabilities and Contingent Assets

Income Taxes

Financial Instruments

Share-Based Payments

Translation of the Financial Statements of Foreign Entities

Employee Benefits

Inventories

Property, Plant and Equipment

Leases

Understanding Australian Accounting Standards

Impairment of Assets

Accounting for Mineral Resources

Agriculture

Financial Statement Presentation

Statement of Cash Flows

Earnings Per Share

Operating Segments

Operating Segments

Business Combinations

Consolidation: Principles and Accounting Requirements

Consolidation: Intragroup Transactions

Consolidation: Non Controlling Interest

Joint Arrangements

Associates and Joint Ventures

Filters

Exam 1: Accounting Regulation and the Conceptual Framework

The definition of income encompasses the following criteria, except:

The Financial Reporting Council (FRC) has the power to do the following, except:

'Kwik Kut Hairdressing' rents a small shop located in Melbourne CBD to operate its hairdressing business. In accordance with the Conceptual Framework, 'Kwik Kut Hairdressing' should recognise monthly payment for the shop rental as:

Which of the followings are the three essential criteria in the definition of an asset? I. Future economic benefits IV.Present obligation II.Future sacrifices of economic benefits. V. Control. III.Past event VI.Ownership

The only element in financial statements which has no independent definition under the Conceptual Framework is:

Which regulatory body has the responsibility for overseeing the standard-setting process in Australia?

The two fundamental qualitative characteristics of useful information are:

The Corporations Act requires the following entities to prepare a financial report, except for:

Currently the Australian conceptual framework comprises:

Application of Accounting Theory

Shareholders Equity: Share Capital and Reserves

Fair Value Measurement

Revenue

Provisions, Contingent Liabilities and Contingent Assets

Income Taxes

Financial Instruments

Share-Based Payments

Translation of the Financial Statements of Foreign Entities

Employee Benefits

Inventories

Property, Plant and Equipment

Leases

Understanding Australian Accounting Standards

Impairment of Assets

Accounting for Mineral Resources

Agriculture

Financial Statement Presentation

Statement of Cash Flows

Earnings Per Share

Operating Segments

Operating Segments

Business Combinations

Consolidation: Principles and Accounting Requirements

Consolidation: Intragroup Transactions

Consolidation: Non Controlling Interest

Joint Arrangements

Associates and Joint Ventures

Filters