Professional Documents
Culture Documents
Ch03 TB Rankin
Ch03 TB Rankin
to accompany
Prepared by
Matt Tilling
Correct answer: d
Learning Objective 3.1 ~ Understand the institutional framework of Australian accounting
Correct answer: d
Learning Objective 3.1 ~ Understand the institutional framework of Australian accounting
3. Which of the following can the AASB NOT do when adopting IFRSs?
Correct answer: a
Learning Objective 3.2 ~ Explain and define an accounting standard.
Correct answer: b
Learning Objective 3.3 ~ Evaluate the distinction between rules-based and principles-based
standards.
Correct answer: a
Learning Objective 3.3 ~ Evaluate the distinction between rules-based and principles-based
standards.
Correct answer: b
Learning Objective 3.3 ~ Evaluate the distinction between rules-based and principles-based
standards.
*a. They allow mangers to select policies that may not reflect the substance of a
transaction
b. They allow accountants to use professional judgement
c. They supply broad guidelines
d. All of the above
Correct answer: a
Learning Objective 3.3 ~ Evaluate the distinction between rules-based and principles-based
standards.
a. An intention to intervene
b. A restriction on choice
*c. Regulation should be biased
d. The exercise of control
Correct answer: c
Learning Objective 3.4 ~ Apply the concept of regulation to the production of accounting information.
Correct answer: c
Learning Objective 3.4 ~ Apply the concept of regulation to the production of accounting information.
Correct answer: b
Learning Objective 3.4 ~ Apply the concept of regulation to the production of accounting information.
Correct answer: a
Learning Objective 3.4 ~ Apply the concept of regulation to the production of accounting information.
Correct answer: b
Learning Objective 3.4 ~ Apply the concept of regulation to the production of accounting information.
Correct answer: c
Learning Objective 3.4 ~ Apply the concept of regulation to the production of accounting information.
Correct answer: b
Learning Objective 3.4 ~ Apply the concept of regulation to the production of accounting information.
a. Is extensive
b. Shows that accounting is independent of political influence
*c. Supports capture theory
d. Looks after the interests of a wide range of stakeholders
Correct answer: c
Learning Objective 3.4 ~ Apply the concept of regulation to the production of accounting information.
16. Which of the following have been blamed for the Global Financial Crisis?
Correct answer: d
Learning Objective 3.5 ~ Analyse standard setting as a political process.
17. Which of the following groups benefits most from rules based accounting regulation?
a. Managers
*b. Auditors
c. Shareholders
d. Accountants
Correct answer: b
Learning Objective 3.5 ~ Analyse standard setting as a political process.
18. Which of the following groups have been criticised for their failure to respond to exposure
drafts?
a. Auditors
*b. Academics
c. Large Australian companies
d. Analysts
Correct answer: b
Learning Objective 3.5 ~ Analyse standard setting as a political process.
19. Which of the following was identified as a benefit when Australia accepted the international
harmonisation of its accounting standards?
Correct answer: d
Learning Objective 3.6 ~ Understand the benefits of harmonisation of accounting standards.
20. Which of the following has NOT been identified as a problem with Australia accepting the
international harmonisation of its accounting standards?
Correct answer: c
Learning Objective 3.6 ~ Understand the benefits of harmonisation of accounting standards.