MULTIPLE CHOICE

Multiple Choice cial the are 1. Who issues international Financial Reporting Standards? 1 a. The IFRS Advisory Committee b. The stock exchange C. The International Accounting Standards Board d. The government 2. Which groups of people are most likely to be interested in the financial statements of a sole trader? ed Se. of che che 1 A. Shareholders of the entity B. The business's bank manager C. The tax authorities D. Financial analysts as che che ter a. A and B only b. B and C only c. B, C and D only d. A, B and C only 3. Which of the following statements is/are true? he se A. The directors of an entity are ultimately responsible for the preparation of financial statements, even if the majority of the work on them is performed by the finance department. B. If financial statements are audited, then the responsibility for those financial statements instead falls on the auditors instead of the directors. C. There are generally no laws surrounding the duties of directors in managing the affairs of an entity VARER a A only b. A and B only c. A, B and C d. A and Conly which future economic benefits are expected to flow to the entity C One of the objectives of the IFRS Foundation is to ing about convergence of 4. According to the IASB Conceptual framework which of the following is not d. Equity is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities. A The IFRS Interpretations Committee is a forum for the IASB to consult with the B. The IFRS Foundation produces IFRSs. The IFRS Foundation is overseen by the 1-40 | Conceptual Framework and Accounting Standards objective of financial statements? a. Providing information regarding the financial position of a business b. Providing information regarding the performance of a business Enabling users to assess the performance of management to aid decision making d. Helping to assess the going concern status of a business 5. The IASB Conceptual framework identifies user groups. Which of the following is not an information need for the 'Investor' group? 10 a. Assessment of repayment ability of an entity b. Measuring performance, risk and return c. Taking decisions regarding holding investments d. Taking buy/sell decisions 6. Which of the following correctly defines 'equity according to the IASB's Conceptual Framework for Financial Reporting? a. Equity is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefit. b. Equity is a resource controlled by an entity as a result of past events and from Equity is the residual interest in the assets of the entity after deducting all its 11 liabilities 7. Which of the following statements is/are true? outside world IAS national accounting standards and IFRSs. 2.A and C only b. B only CB and Conly d. Conly 12. T