Question 1

Errors can occur for which of the following reasons?

Accepted Answer

A) Mistakes in applying accounting policies 
B) Misinterpretation of facts 
C) Fraud 
D) All of the above 
A) Mistakes in applying accounting policies 
B) Misinterpretation of facts 
C) Fraud 
D) All of the above

Question 2

Attached to the financial statements must be a set of notes providing disclosures required by corporate regulations and accounting standards.

Accepted Answer

A) True 
 B)False

Question 3

The correction of a material error that occurred in a previous period must be accounted for by:

Accepted Answer

A) disclosure in the notes to the financial statements. 
B) an adjustment in future accounting periods. 
C) a prospective adjustment to the financial statements. 
D) a retrospective restatement in the first financial statements issued after the discovery of the error. 
A) disclosure in the notes to the financial statements. 
B) an adjustment in future accounting periods. 
C) a prospective adjustment to the financial statements. 
D) a retrospective restatement in the first financial statements issued after the discovery of the error.

Question 4

Information about how a company has financed its operations and invested surplus cash is found in the:

Accepted Answer

A) directors' report. 
B) statement of profit or loss and other comprehensive income. 
C) statement of cash flows. 
D) statement of financial position. 
A) directors' report. 
B) statement of profit or loss and other comprehensive income. 
C) statement of cash flows. 
D) statement of financial position.

Question 5

When conducting an audit of financial statements,an auditor must give an opinion on the existence of fraud in the company's financial statements.

Accepted Answer

A) True 
 B)False

Question 6

Material prior period errors must be corrected retrospectively,unless it is impracticable to do so.

Accepted Answer

A) True 
 B)False

Question 7

Small proprietary companies are not required to prepare a directors' report to accompany their financial statements.

Accepted Answer

A) True 
 B)False

Question 8

The assessment of materiality is a matter of judgement in light of the reporting entity's particular circumstances.

Accepted Answer

A) True 
 B)False

Question 9

A statement of financial position provides information about which of the following?

Accepted Answer

A) Solvency 
B) Capacity to adapt 
C) Resources controlled 
D) All of the above 
A) Solvency 
B) Capacity to adapt 
C) Resources controlled 
D) All of the above

Question 10

Instead of sending each shareholder a full set of financial statements including notes and the directors' and auditor's reports to members,a company has a right to instead send:

Accepted Answer

A) a notice that the report has been lodged with ASIC. 
B) a statement of financial position only. 
C) a concise report. 
D) an income statement and statement of financial position only. 
A) a notice that the report has been lodged with ASIC. 
B) a statement of financial position only. 
C) a concise report. 
D) an income statement and statement of financial position only.

Errors can occur for which of the following reasons?

Attached to the financial statements must be a set of notes providing disclosures required by corporate regulations and accounting standards.

The correction of a material error that occurred in a previous period must be accounted for by:

Information about how a company has financed its operations and invested surplus cash is found in the:

When conducting an audit of financial statements,an auditor must give an opinion on the existence of fraud in the company's financial statements.

Material prior period errors must be corrected retrospectively,unless it is impracticable to do so.

Small proprietary companies are not required to prepare a directors' report to accompany their financial statements.

The assessment of materiality is a matter of judgement in light of the reporting entity's particular circumstances.

A statement of financial position provides information about which of the following?

Instead of sending each shareholder a full set of financial statements including notes and the directors' and auditor's reports to members,a company has a right to instead send:

Nature and Regulation of Companies

Financing Company Operations

Company Operations

Fundamental Concepts of Corporate Governance

Fair Value Measurement

Accounting for Company Income Tax

Financial Instruments

Foreign Currency Transactions and Forward Exchange Contracts

Property, Plant and Equipment

Leases

Intangible Assets

Business Combinations

Impairment of Assets

Disclosure: Presentation of Financial Statements

Disclosure: Statement of Cash Flows

Disclosure: 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

Investments in Joint Arrangements

Insolvency and Liquidation

Filters

Exam 14: Disclosure: Legal Requirements and Accounting Polices

Errors can occur for which of the following reasons?

Attached to the financial statements must be a set of notes providing disclosures required by corporate regulations and accounting standards.

The correction of a material error that occurred in a previous period must be accounted for by:

Information about how a company has financed its operations and invested surplus cash is found in the:

When conducting an audit of financial statements,an auditor must give an opinion on the existence of fraud in the company's financial statements.

Material prior period errors must be corrected retrospectively,unless it is impracticable to do so.

Small proprietary companies are not required to prepare a directors' report to accompany their financial statements.

The assessment of materiality is a matter of judgement in light of the reporting entity's particular circumstances.

A statement of financial position provides information about which of the following?

Instead of sending each shareholder a full set of financial statements including notes and the directors' and auditor's reports to members,a company has a right to instead send:

Nature and Regulation of Companies

Financing Company Operations

Company Operations

Fundamental Concepts of Corporate Governance

Fair Value Measurement

Accounting for Company Income Tax

Financial Instruments

Foreign Currency Transactions and Forward Exchange Contracts

Property, Plant and Equipment

Leases

Intangible Assets

Business Combinations

Impairment of Assets

Disclosure: Presentation of Financial Statements

Disclosure: Statement of Cash Flows

Disclosure: 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

Investments in Joint Arrangements

Insolvency and Liquidation

Filters