QUESTION 1

Which of the following phrases best describes comparability as it relates to accounting information?

		Accounting information should be free from any material error or bias.
		Accounting reports should be expressed as clearly as possible.
		Accounting information must have the ability to influence decisions.
		Items which are essentially similar should be given the same accounting treatment.

1 points

QUESTION 2

Which of the following is not a measure that can be used for the customer perspective when using the balanced scorecard?

		Market share.
		A customer satisfaction index.
		Number of branches closed down.
		Number of new customers.

1 points

QUESTION 3

Each of the following companies collapsed in the early 2000s. Which one is not an Australian company?

		HIH
		Enron
		Ansett
		One.Tel

1 points

QUESTION 4

The primary goal of management accounting is to:

		provide information that improves the quality of managers' decisions.
		provide information to shareholders.
		provide information that can be quantified in monetary terms.
		provide information that conforms to the accounting regulations.

1 points

QUESTION 5

These statements are all correct except:

		There is increasing pressure for management to address a much broader range of issues than in the past.
		All businesses currently accept that sustainability is the primary goal.
		Social and environmental concerns now have to be taken seriously by business.
		It is no longer sufficient for business to be focused solely on the maximisation of wealth.

1 points

QUESTION 6

Which of the following financial statements does not have to be prepared by a publicly listed company?

		Statement of cash flows.
		Statement of comprehensive income.
		Statement of changes in equity.
		All of the above must be prepared.

1 points

QUESTION 7

Which of the following phrases best describes the key qualitative characteristic of verifiability ?

		Verifiability means that accounting information must not contain any material undue bias or error.
		Verifiability means that accounting reports should be expressed with as much clarity as possible.
		Verifiability means that accounting information should have the ability to influence decisions.
		Verifiability means that accounting information should be able to be measured objectively.

1 points

QUESTION 8

In 2005, Australia adopted which set of accounting standards?

		US standards.
		International accounting standards.
		GAAP.
		AAS standards.
		None of the above.

1 points

QUESTION 9

Which statement concerning the balanced scorecard is incorrect?

		Its essence is to develop qualitative rather than quantitative measurement tools.
		Financial information remains a core component of decision-making and strategy development.
		Reliance solely on financial data will provide an incomplete or unbalanced approach.
		None of the above, i.e., all are correct.

1 points

QUESTION 10

Which of these is a standard disclosure for sustainability reporting recommended by the Global Reporting Initiative?

		Disclosure of strategy.
		Disclosure of performance indicators.
		Disclosure of the management approach used.
		All of the above.

1 points

QUESTION 11

The test to determine if an item of accounting information is worthwhile collecting is the:

		validation test.
		cost/benefit test.
		worthwhile test.
		cost test

1 points

QUESTION 12

Which statement concerning the balanced scorecard is not true?

		The GRI approach is likely to shrink the role of the management accountant and expand the role of the financial accountant.
		It tends to change the emphasis from production to customers.
		The Global Reporting Initiative and the balanced scorecard have much in common.
		None of the above, i.e., all are true statements.

1 points

QUESTION 13

For a business to be seen as socially responsible, the business must:

		assess the social costs and benefits of the actions it takes.
		develop and implement policies and practices in the area of social responsibility.
		ensure the media is aware that it takes social responsibility seriously, even though there may be no real indicators.
		both the first and second answer given above.

1 points

QUESTION 14

The most important function of an accounting system is to: _______

		keep employees from embezzling funds.
		collect and record data.
		provide information for decision-making, planning and control.
		prepare accounting reports.

1 points

QUESTION 15

The principle of 'stewardship' means that the main focus of accounting is on providing information to:

		employees.
		accounts payable.
		shareholders.
		none of the above.

1 points

QUESTION 16

An objective of a business could be:

		maximise profit.
		maximise sales.
		financial survival.
		all of the above.

1 points

QUESTION 17

An independent institution whose mission is to develop and disseminate globally applicable Sustainability Reporting Guidelines is:

		The Group of Eight.
		The Global Reporting Initiative (GRI)
		The United Nations.
		The World Bank.

1 points

QUESTION 18

Which of the following statements does not apply to an organisation's human resources?

		In some organisations, human resources are the key assets.
		Human resources can be the only significant asset in some organisations.
		Traditional accounting does not account for human resources very well.
		All of the above statements apply.

1 points

QUESTION 19

The three most common types of structures used by businesses in Australia are:

		partnership, private company, trust.
		sole proprietor, partnership, limited company.
		sole proprietor, limited company, co-operative.
		partnership, limited company, association.

1 points

QUESTION 20

GAAP, in an accounting context, stands for:

		General Accepted Accounting Principles.
		General Assumptions and Attitudes of Professionals.
		Good Auditing and Accounting Practices.
		none of the above.

1 points

QUESTION 21

Which of the following items would normally be classified as a non-current asset?

		Buildings.
		Prepayments.
		Stock on hand.
		Cash on hand.

1 points

QUESTION 22

Another name for the balance sheet is:

		statement of financial position.
		statement of change in owners' equity.
		statement of financial performance.
		profit and loss statement.

1 points

QUESTION 23

Which of the following is not found in a statement of financial position?

		Assets.
		Owners equity.
		Depreciation expense.
		Accounts payable.

1 points

QUESTION 24

A statement of financial position shows:

		details of how much profit was earned in the period.
		the financial position at the end of the period.
		the cash movements that took place over a particular period.
		the change in financial position over a particular period.

1 points

QUESTION 25

Which of the following organisations would be most likely to elect to order their assets on the statement of financial position according to liquidity?

		Builder.
		Retailer.
		Manufacturer.
		Credit union.

1 points

QUESTION 26

The statement of comprehensive income differs from a traditional statement of financial performance in that:

		it does not show a gross profit.
		it only shows realised gains and losses.
		it does not show financial expenses.
		it shows all realised and unrealised gains and losses.

1 points

QUESTION 27

Business profit is measured as the difference between:

		Assets and expenses.
		Income and assets.
		Income and expenses.
		Assets and liabilities.

1 points

QUESTION 28

If the cost of inventory at the end of the current year is understated and the error is never found, the effect of this error will be:

		An understatement of profit this year with no effect on profit next year.
		An overstatement of the cost of goods sold, but no effect on net profit.
		An overstatement of profit this year and an understatement of profit next year.
		An understatement of profit this year and an overstatement of profit next year.

1 points

QUESTION 29

Shelby Ltd produces monthly accounting reports. The following are all the transactions for September 2011.

Sales 25 000

Purchases 23 750

Inventory, 1 September 2011 12 500

Inventory, 30 September 2011 18 750

The gross profit for Shelby Ltd for September 2011 is:

		$5 000.
		$6 250.
		$3 750.
		$7 500.

1 points

QUESTION 30

Which of the following would be regarded as 'other comprehensive income'?

		Revaluation of property.
		Cash flow hedges.
		Foreign exchange gains.
		All of the above.