11/9/23, 4:03 PM CLASS TEST : ACC2214 : FINANCIAL REPORTING

CLASS TEST : ACC2214 : FINANCIAL

REPORTING
PROGRAMME : DIPLOMA OF ACCOUNTANCY

* Indicates required question

1. Email *

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GROUND RULES
• Please enter to Zoom/Google meet 15 minutes before exam start.
• You are NOT allowed to refer to any notes, textbooks and internet resources during the exam
• You should take the exam in a quiet, isolated and well-lit place. Make sure there are no other people in
the area during online exam
• You should not communicate with anyone by any means during the exam
• Make sure that your mobile phone is 20 feet away from the laptop
• You should have a reliable internet connection when taking the exam, at least 4 Mbps. No extra time
will be granted due to any technical issues
• In case you have inquiries during the exam, you should contact the invigilator through the ‘Group
Chat’ function in Zoom
• Under normal circumstances, toilet breaks will only be allowed upon approval from invigilator. Inform
the invigilator/TA via the ‘Chat Tool’ if you really need a toilet break and will be away from the webcam
during the exam. You must seek approval from the invigilator/TA before leaving your seat.
• You will be given a score of zero if plagiarism is found
• You are not allowed to leave the Zoom meeting until the invigilator asks you to do so

Configuration in Zoom for live proctoring

• To capture student’s activity on screen, Exam Board Department requires students to record their
screen by using screen capturing tools such as the “Screen Recording” feature in MS PowerPoint. The
“Screen Recording” feature is located at “Media” under the “Insert” tab in PowerPoint. Click here to
learn more or download www.freescreenrecording.com
• Webcam must be turned ON and is placed in a proper position, showing your face and the real
background.
• Turn ON the microphone and video, it may be muted and unmuted by the invigilator/TA during the
exam. Lower the microphone volume in Zoom audio setting.
• Turn OFF the virtual background
• Your name in Zoom must be the official name (i.e. same as the name on your student ID)
• Turn ON the speaker during the exam to receive announcements/ instructions from the invigilator/TA

Process of the live proctoring

• You will be proctored by the invigilator/TA through your webcam in Zoom during the exam
• Have your student ID on the desk as you will be instructed to show the ID to the invigilator/TA for
identity check
• Exam announcements will be made verbally through the Zoom meeting, be sure the speaker is ON
• During the exam, you may be asked by the invigilator/TA to present your student ID to the webcam for
another identity check
• Some students may be asked to move your webcam around to ensure the environment is proper for the
exam

Key reminders for submitting exam in Google Form

• Once completed, please click submit button and wait until received response from google form

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11/9/23, 4:03 PM CLASS TEST : ACC2214 : FINANCIAL REPORTING

• Make sure the final exam answer is submitted to Google Form on time
• During the exam, you should contact invigilators through the group chat in Zoom for any inquiries

INSTRUCTION

Time allowed

1.5 hour / 30 Multiple Choice Questions (MCQ)

• Make sure you already start recording the screen

• Answer ALL questions
• Do not review the questions until further instruction given by invigilator
• You may tick more than one answer per question
• You are PROHIBITED to view other notes material or Google tabs as this is a closed class test
• This class test can only be submitted once, so make sure to check all answers before submitting
• Once submit the answer, inform your respective lecturer via Zoom Chat/Google Meet Chat
• Students have 5 minutes buffer time to submit answer.
• STUDENTS CAN LEAVE THE EXAMINATION HALL ONLY AFTER CLASS TEST ENDS

YOU MAY START ANSWERING

2. Which constraint requires that information must be capable of making a * 1 point

difference in the decisions of users?

Mark only one oval.

Cost constraint

Materiality constraint

Timeliness constraint

Verifiability constraint

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3. Which of the following is not one of the enhancing qualitative characteristics of * 1 point
useful financial information?

Mark only one oval.

Understandability

Consistency

Faithful representation

Relevance

4. Which characteristic of useful information helps users in making predictions * 1 point

about the future financial performance of an entity?

Mark only one oval.

Verifiability

Materiality

Comparability

Predictive value

5. The Conceptual Framework for Financial Reporting is issued by which * 1 point

international organization?

Mark only one oval.

International Financial Reporting Standards (IFRS) Foundation

International Accounting Standards Board (IASB)

Financial Accounting Standards Board (FASB)

Generally Accepted Accounting Principles (GAAP)

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6. Which of the following constraints limits the reporting of information based on its * 1 point

cost versus its usefulness?

Mark only one oval.

Cost constraint

Materiality constraint

Relevance constraint

Comparability constraint

7. Faithful representation as a characteristic of useful financial information means * 1 point

that the information should be ___________.

Mark only one oval.

created based on management's intentions

free from bias and error

designed to meet investor expectations

tailored to support the company's objectives

8. Which of the following is not a fundamental qualitative characteristic of useful * 1 point

financial information?

Mark only one oval.

Comparability

Neutrality

Verifiability

Predictive value

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9. Which of the following is a characteristic of useful financial information * 1 point

according to the Conceptual Framework for Financial Reporting?

Mark only one oval.

Relevance

Lengthiness

Complexity

Opacity

10. What is the primary purpose of a conceptual framework in accounting? * 1 point

Mark only one oval.

To establish legal requirements for financial reporting

To provide guidelines for preparing financial statements

To determine the company's tax liability

To create marketing strategies for the company

11. Which financial statement presents the cash inflows and outflows from * 1 point
operating, investing, and financing activities?

Mark only one oval.

Income Statement

Balance Sheet

Statement of Cash Flows

Statement of Retained Earnings

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12. What element represents increases in equity that result from transactions with * 1 point
owners in their capacity as owners (e.g., investments by owners)?

Mark only one oval.

Liabilities

Assets

Revenues

Owner's Equity

13. Which element reflects changes in equity from transactions and other events, not * 1 point
including those resulting from owner investments or distributions?

Mark only one oval.

Liabilities

Assets

Expenses

Gains

14. Which financial statement shows the revenues, expenses, and net income (or * 1 point

loss) for a specific period?

Mark only one oval.

Balance Sheet

Income Statement

Statement of Cash Flows

Statement of Retained Earnings

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15. Which element represents the residual interest in the assets of an entity after * 1 point

deducting its liabilities?

Mark only one oval.

Assets

Liabilities

Equity

Expenses

16. When a company generates profits from its primary business operations, which * 1 point
element is affected?

Mark only one oval.

Assets

Liabilities

Equity

Revenues

17. Which element represents what a company owes to external parties and is a legal * 1 point
obligation to repay a sum of money?

Mark only one oval.

Assets

Liabilities

Equity

Revenues

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18. The followings are true about equity, except * 1 point

I. Equity = Total Assets - Total Liabilities
II. Consist of share capital
III. Consist of retained earnings
IV. Is the residual interest in assets less liabilities

Mark only one oval.

I , II , III

II , III , IV

I, II , IV

All of the above

19. Which of the following true about income under conceptual framework? * 1 point

I. Increases in economic benefits during accounting period

II. Increased when there is depletions of assets
III. Relating to contributions from equity participants
IV. Results in increase in equity

Mark only one oval.

I and III

II and III

III and IV

I and IV

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20. Which of the following true about expenses under conceptual framework? * 1 point

I. Increases in economic benefits during accounting period

II. Decreases in economic benefits during accounting period
III. Results in decrease in equity
IV. Relating to contributions to equity participants

Mark only one oval.

I and III

II and III

III and IV

I and IV

21. To be recognized in financial statements, an item needs to ________. * 1 point

I. be relevant
II. be measured reliably
III. be faithful representation
IV. have confirmatory value

Mark only one oval.

I , II , III

II , III , IV

I, III , IV

All of the above

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11/9/23, 4:03 PM CLASS TEST : ACC2214 : FINANCIAL REPORTING

22. The measure is a process of determining monetary value for elements of * 1 point
financial statements. Which of the following are measurement methods allowed
under conceptual framework?
I. Historical Cost
II. Fair Value
III. Current Cost
IV. Value in Use

Mark only one oval.

I , II , III

II , III , IV

I, III , IV

All of the above

23. What is true about derecognition? * 1 point

Mark only one oval.

Derecognized items must be presented inside financial statements

Derecognized items can be measurement reliably

It is probable that any future economic benefit associated with the item derecognized
will flow to or from the entity

Derecognized asset is removed if we loss of control on the asset.

24. The key element of the regulatory environment is_________. * 1 point

I. Local corporate law
II. Local financial reporting standards
III. International financial reporting standards
IV. International conceptual frameworks

Mark only one oval.

I , II , IV

I , III , IV

II, III , IV

All of the above

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25. What are the characteristics of a principles based accounting reporting * 1 point
framework?

Mark only one oval.

A principle-based approach mandates the same benchmark for all projects

A principles-based approach implies different benchmarks, based on judgment and

contextual information

A principles-based approach is apply in US Gaap

A principles-based approach is less flexible than rules-based approach

26. What are the primary elements on financial statements? * 1 point

Mark only one oval.

Assets, liabilities, and equity

Revenues and expenses

Gains and losses

All of the above

27. What are the responsibilities of International Accounting Standards Board * 1 point
(IASB)?
I. IASB is responsible for publication of International Financial Reporting
Standards (IFRS)
II. IASB is responsible for preparation of International Financial Reporting
Standards (IFRS)
III. IASB is responsible for preparation of exposure drafts
IV. IASB is responsible for withdrawal of IFRSs

Mark only one oval.

II and III

III and IV

I, II , III

All of the above

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28. IFRS Foundation oversees the processes of IASB. Which of the following is * 1 point
false?

Mark only one oval.

IFRS Foundation take account of financial reporting needs of medium-sized entities

IFRS Foundation promotes the use and application of local accounting standards

IFRS Foundation bring about convergence on national accounting standards and IFRS

IFRS Foundation take account of financial reporting needs of emerging economies

29. The historical cost of an asset is generally adjusted for which of the following * 1 point
over time?

Mark only one oval.

Market value changes

Inflation

Accumulated depreciation

All of the above

30. Which of the following is an example of a non-cash transaction that does not * 1 point

affect the income statement?

Mark only one oval.

Purchasing inventory on credit

Collecting accounts receivable from customers

Paying interest on a loan

Depreciating a fixed asset

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31. What does the Conceptual Framework state about derecognition? * 1 point

Mark only one oval.

For an asset, derecognition normally occurs when the entity loses control of all or part of
the recognised asset

For a liability, derecognition normally occurs when the entity no longer has a present
obligation for all or part of the recognised liability

Derecognition is the removal of all or part of a recognised asset or liability from an

entity's statement of financial position

All of the above

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