Pertemuan 1

What is the objective of financial reporting?

• Provide information that is useful to management in making decisions.

• Provide information that clearly portray nonfinancial transactions.

• Provide information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors.

• Provide information that excludes claims to the resources.

What would be an advantage of having all countries adopt and follow the same accounting standards?

• Consistency and Contingency

• Comparability and Lower preparation costs

• Undertandability and Going Concern

• Costs and Benefits

Which of the following organizations has been responsible for setting Indonesia accounting standards?

• Institute of Indonesia Chartered Accountants

• Indonesian Institute of Certified Public Accountants

• The Indonesia Institute of Management Accountant

• The Institute of Certified Management Accountants

Which one is not on due process procedure for the preparation and withdrawal of financial accounting standards is as follows:

• Identification of Issue

• Public Hearing

• Government Approval

• Exposure Draft Publication

The Financial Accounting Standards Board employs a "due process" system which

• is an efficient system for collecting dues from members

• enables interested parties to express their views on issues under consideration

• identifies the accounting issues that are the most important

• requires that all accountants must receive a copy of financial standards

Which of the following represents a form of communication through financial reporting but not through financial statements?

• Statement of financial position

• Director Statements

• Income statement

• Notes to financial statements

The purpose of the International Accounting Standards Board is to

• issue enforceable standards which regulate the financial accounting and reporting of multinational corporations

• develop a uniform currency in which the financial transactions of companies through-out the world would be measured

• promote uniform accounting standards among countries of the world

• arbitrate accounting disputes between auditors and international companies

Which one is not the three major types of pronouncements issued by The IASB:

• International Financial Reporting Standards

• Conceptual Framework for Financial Reporting

• International Financial Reporting Standards Interpretations

• Financial Services Authority Regulations

The financial statements most frequently provided include all of the following except the

• Statement of Financial Positions (Balance Sheet)

• Statement of Profit or Loss and Other Comprehensive Income (Income Statement)

• Statement of cash flows

• Statement of Retained Earnings

Users of financial reports include all of the following except

• Creditors

• Government Agencies

• Unions

• All of these are users