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NEW QUESTION 29
Which one of the following practices is not considered creative accounting?
- A. window dressing
- B. profit smoothing
- C. trading in derivatives
- D. aggressive earnings management
Answer: C
NEW QUESTION 30
Published financial statements are regulated by
- A. rules to ensure the provision of consistent financial information to investors.
- B. shareholders who specify the framework for the provision of consistent and comparable financial information for decision-making.
- C. accounting and legal rules to ensure the provision of relevant and reliable financial information to shareholders.
- D. International Financial Reporting Standards to ensure the provision of useful financial information to shareholders.
Answer: C
NEW QUESTION 31
Which one of the following statements is correct?
- A. Accounting standards are developed and maintained using a consultative process with the OECD.
- B. Australian accounting standards are based on the US GAAP.
- C. Accounting standards prescribe the possible accounting treatments.
- D. Accounting standards provide the basic knowledge upon which the conceptual framework is developed.
Answer: C
NEW QUESTION 32
According to the IASB Conceptual Framework, income is an increase in economic benefits in the form of I)inflows.
II)decreases of liabilities.
III)enhancements of assets.
IV)contributions from equity holders.
- A. I, II and III only
- B. I, II and IV only
- C. II, III and IV only
- D. I, III and IV only
Answer: A
NEW QUESTION 33
You assumed the role as the Chairperson of the Board of Directors of Daylight Ltd. As you start to write your first directors’ report, which one of the following areas are you not required to include in your report?
- A. Details regarding any significant changes to Daylight’s state of affairs for the year that just ended.
- B. Review of operations of Daylight during the year just ended and any likely developments in the future that may impact Daylight.
- C. Details regarding accounting policies pursued by Daylight in preparation of its financial statements.
- D. Details of any dividends paid or proposed.
Answer: C
NEW QUESTION 34
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