Quiz for chapter 1

Introduction to IFRS and Conceptual Framework

1.Which of the following is NOT an advantage of IFRS
attributing to the international capital market?
a.Enhancing worldwide comparability for investors.
b.More efficient capital allocation.
c.Preventing nations from setting accounting standards.
d.Enhanced credibility of local markets to foreign
investors.
2. What is the role of the IASB?
a.Oversee the standard setting and regulatory process.
b.Review defective accounts.
c.Control the accountancy profession.
d.Formulate international financial reporting standards.
3. Which ONE of the following statements correctly describes how
International Financial Reporting Standards (IFRSs) should be used?
a. To provide examples of best financial reporting practice for national
bodies who develop their own requirements.
b.To ensure high ethical standards are maintained by financial
reporting professionals internationally.
c. To facilitate the enforcement of a single set of global financial
reporting standards.
d.To prevent national bodies from developing their own financial
reporting standards.
4. Sales revenue should be recognised when goods and
services have been supplied; costs are incurred when
goods and services have been received. Which
accounting concept governs the above?
a.Accruals.
b.Business entity.
c.Materiality.
d.Going concern.
5. Which of the following accounting concepts means
that similar items should receive a similar accounting
treatment?
a.Going concern.
b.Accruals.
c.Matching.
d.Consistency.
6. Which of the following is NOT a part in IASB’s
standard-setting process of IASB?
a.Agenda consultation
b.Framework development
c.Standards development
d.Implementation
7. Which of the following is NOT an advantage of
principles-based approach in setting for accounting
standard?
a.Allow accountants to apply professional judgment.
b.Result in simpler standards.
c.Easy for implementation.
d.Improve the representational faithfulness of financial
statements.