Accounting Unit 1.1 -1.3 Quiz

IFRS stands for

IASB

What are the FOUR groups that comprises the IASB

• Certified Auditors

• Preparers of financial statements

• The General Public

• University lecturers

• Banks, suppliers and creditors

Which of the following users of accounting information determines taxation policies?

• Trade Unions

• Government

• Shareholders

• Securities and Exchange Commission

Which of the following agencies is responsible for the approval of accounting standards?

• International Accounting Standards Committee (IASC)

• International Chartered Accountants of Trinidad and Tobago (ICATT)

• International Chartered Institute of Accountants of Jamaica (ICAJ)

• International Accounting Standards Board (IASB)

Which basis of accounting is required for the preparation of general purpose financial statements?

• Cash Basis

• LIFO Basis

• Accrual Basis

• Depreciation Basis

Which are the reasons for adopting the IFRS for SME's?

• It makes it simpler for SME's to comply

• It means that all businesses can have consistent repporting

• It brings about political harmony between member countries

• It reduces the cost associated wiht meeting the requirements of IAS and IFRS's

The second level of the Conceptual Framework of Accounting consists of

• Elements of financial statements

• The objectives of financial reporting

• The characteristics of financial information

• Assumptions and Constraints

For accounting information to be relevant according to the Conceptual Framework of Accounting it must:

I. Possess predictive value

II. Be complete

III. Have materiality

IV. Neutral

• I and III only

• I and II only

• II and IV only

• all of the above

Which of the following groups has only external users of accounting information?

• Owners, present investors, Stock exchange

• Managers, Board of Directors, Partners

• Potential investors, government planners, and stock brokers

• Government planners, partners, supervisors