Kế toán quốc tế 1 (1)

1. 1. Which of the following statements best defines a statement of financial position?

• It is a summary of income and expenditure for an accounting period

• ·        It is a summary of cash receipts and payments made during an accounting period

• It is a summary of assets, liabilities and equity at a specified date

• It is a summary of assets and expenses at a specified date

2. 2. Which of the following statements are true?

(1)  Accounting can be described as the recording and summarising of transactions.

 

(2)  Financial accounting describes the production of a statement of financial position and statement of profit or loss for internal use.

• (1)  only

• (2) only

• Both (1) and (2)

• None

3.What is the main purpose of financial accounting?

• To record all transactions in the books of account

• To provide management with detailed analyses of costs

• To enable preparation of financial statements that provides information about an entity's financial performance and position

• To calculate profit or loss for an accounting period

4.Which of the following statements about users of accounting information is INCORRECT?

• Management is an internal user

• Taxing authorities are external users

• Present creditors are external users

• Regulatory authorities are internal users

5.Which of the following statements is FALSE?

• A statement of cash flows summarizes information about the cash inflows (receipts) and outflows (payments) for a specific period of time

• A statement of financial position reports the assets, liabilities, and owner's equity at a specific date

• An income statement presents the revenues, expenses, changes in owner's equity) and resulting net income or net loss for a specific period of time

• An statement of changes in equity summarizes the changes in owner's equity for a specific period of time

6.Which accounting concept should be considered if the owner of a business takes goods from inventory for his own personal use?

• The fair presentation concept

• The accruals concept

• The going concern concept

• The business entity concept

7.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?

• The business entity concept

• The materiality concept

• The accruals concept

• The duality concept

8.Which accounting concept states that omitting or misstating this information could influence users of the financial statements?

• The consistency concept

• The accruals concept

• The materiality concept

• The going concern concept

9.Which ONE of the following statements describes faithful representation, a qualitative characteristic of faithful representation?

• Revenue earned must be matched against the expenditure incurred in earning it.

• Revenue earned must be matched against the expenditure incurred in earning it.

• The presentation and classification of items in the financial statements should stay the same from one period to the next

• Financial information should be complete, neutral and free from error

10.Which one of the following statements best defines a liability?

• A liability an obligation arising from a past transaction or event

• A liability is a legally binding amount owed to a third party.

• A liability is an obligation arising from a past transaction or event which is expected to be settled by an outflow of economic benefits.

• A liability is anything which results in an outflow of economic benefits from an entity