21)

Corporate governance essentially involves balancing the interests of many, EXCEPT one of the following:

a.

Stakeholders

b.

Customers

c.

Research analysts

d.

Suppliers

22)

Al sakeena enterprise was keen in observing any potential problems before they occur so that all its activities are well planned. They also do assessments to discover high profitability factors and high impact risks. Which principle of corporate governance is followed by Al sakeena enterprise?

a.

Effectiveness

b.

Accountability

c.

None of these.

d.

Leadership

23)

Normative accounting theories and research seek to:

a.

Explain and predict particular phenomena based on observation

b.

All of the given options are correct.

c.

Prescribe particular approaches not driven by existing practices

d.

Describe what is normal, or generally accepted, practice

24)

M/S. Salim and company, dealers in electronic items bought a non- current asset for OMR 260,000 and the value of its depreciation was OMR 50,000. The company reported in the Balance Sheet at the written down value of OMR 210,000, although its realizable value is expected to be only OMR 130,000. Which accounting concept is followed by Salim and company?

a.

Money measurement

b.

Dual aspect

c.

Conservatism

d.

Going concern

25)

Name the organization that is responsible for reporting process, selection of independent auditor and receiving audit receipts.

a.

Corporate social responsibility

b.

Audit Committee

c.

Audit independence

d.

Board of Directors

26)

Amar pharmacy creates a provision for doubtful debts every year out of the profits made. The allowance for doubtful accounts would appear as a deduction from accounts receivable in the balance sheet of the company. Which accounting principle is best described here?

a.

Revenue Recognition principle

b.

Full disclosure.

c.

Measurement

d.

Expense recognition principle

27)

Mohamed lives in Al Amrat region with his grandparents who take good care of him. They stay in a desert, so they dont have cooking gas, electricity and various other new technologies that we have today. Mohamed was feeling very hungry one day so his grandparents took two stones lying in the desert and experimented by rubbing against each other from which fire came out. Then they decided to hunt a deer and cooked on this fire and later all ate it. The kind of research undertaken refers to:

a.

This kind of research helps in broad generalization and principles on which one can do further research

b.

This is the research undertaken for the sake of gaining knowledge by Mohameds grandparents

c.

All options are correct on experimental research

d.

This kind of research helps in developing theories.

28)

Which one of the following statements about the primary purpose of financial reporting is the most correct?

a.

Identifies a range of existing and potential users dependent on financial statements to make decisions.

b.

Provides information that can help with decision making.

c.

The individual needs of users can be satisfied by tailoring of financial reports.

d.

Enables accountability since managers would have to account for resources used.

29)

You are a Government company and there is possibility that Government can withdraw the subsidy for fertilizers in the forthcoming budget. You are creating a provision beforehand to protect the company against future losses. This is an example for which principle?

a.

Principle of Consistency.

b.

Principle of Conservatism

c.

Principle of Justice.

d.

Principle of Materiality.

30)

The shareholders of beauty enterprises receive fair treatment from directors. They are also entitled for voting rights and the right to receive dividend. Which concept of Corporate Governance is followed by beauty enterprises?

a.

Fairness

b.

Openness

c.

Transparency

d.

Honesty