1. CPA Financial Accounting & Reporting Quick Revision Module 1

What is the main aim of accounting

• To produce a trial balance
• To record every financial transaction individually
• To maintain ledger accounts for every asset and liability
• To provide financial information to users of such information

Which of the following groups of users would primarily be interested in a company's annual published financial statements?

• Shareholders and suppliers
• Management and employees
• Shareholders and providers of finance
• General public, environmental pressure groups

Are the following statements correct or incorrect 1.The shareholder is only interested in a statement of financial prospects, that is, an indication of future progres. 2. The supplier of goods on credit is only interested in a statement of financial position, that is, an indication of the current state of affairs

• Sh = Y, Su = Y
• Sh = Y Su = N
• Sh = N, Su = Y
• Sh = N, Su = N

Which of the following statements concerning the International Accounting Standards Board (IASB) is correct? I.     It develops and ultimately issues International Financial Reporting Standards (IFRSs). II The IASB is accountable to the IFRS Foundation

• I only
• II only
• Both I & II
• Neither I or II

Which of the following statements is correct?

• The IASB appoints the Trustees of the IFRS Foundation
• The IFRS Foundation develops and issues Interpretations.
• The IFRS Interpretations Committee oversees the work of the IFRS Foundation
• The IFRS Advisory Council assists and advises the IASB in the process of developing IFRSs.

Which of these statements are correct? I. The IASB has the objective of enforcing IFRS. II.The IASB is responsible for developing and issuing IFRS.

• I only
• II only
• Both I & II
• Neither I or II

Which committee of the IASB provides guidance on the application of IFRS?

• IFRS Foundation
• IFRS Advisory Council
• IFRS Interpretations Committee
• International Accounting Standards Committee

What is the correcct definition of GAAP?

• National accounting standards and company law
• National accounting standards, stock exchange rules and company law
• International accounting standards, company law and stock exchange rules
• National accounting standards, international accounting standards, stock exchange rules and company law

Which of the following is an advantage of a company that prepares a set of financial statements under the regulatory framework?

• Lower costs of producing financial information
• Higher quality financial information is produced
• More financial information available for competitors
• Less disclosure of a company's activities in financial statements

What is the correct order for the process of issuing a new IFRS by the IASB?

• Discussion Paper, Standard
• Exposure Draft, Discussion Paper, Review
• Exposure Draft, Discussion Paper, Standard
• Discussion Paper, Exposure Draft, Standard