Corporate Reporting
Final Exam Questions
Course Introduction
Corporate Reporting explores the principles, regulations, and practices involved in the preparation and presentation of financial statements for corporate entities. The course covers the application of International Financial Reporting Standards (IFRS), ethical and professional considerations, as well as the analysis and interpretation of published financial information. Students will develop the ability to evaluate corporate reports, understand the implications of financial disclosures, and assess the financial performance and position of organizations, with reference to real-world scenarios and evolving regulatory requirements.
Recommended Textbook
Accounting Theory 7th Edition by Jayne Godfrey
Available Study Resources on Quizplus
14 Chapters
493 Verified Questions
493 Flashcards
Source URL: https://quizplus.com/study-set/3347 Page 2
Chapter 1: Introduction
Available Study Resources on Quizplus for this Chatper
35 Verified Questions
35 Flashcards
Source URL: https://quizplus.com/quiz/66504
Sample Questions
Q1) Which of the following arguments are reasons why normative theories cannot be empirically tested?
i.It is impossible to demonstrate empirically what ought to be ii.Normative theories are based on value judgements
iii.There is no access to empirical data sets
A)i,iii
B)i,ii
C)ii,iii
D)i,ii,iii
Answer: B
Q2) The period 1800 - 1955 has been labelled the empirical period in accounting development.
A)True
B)False
Answer: True
Q3) As a result of accounting prescription being developed in a haphazard way there are follow-on inconsistencies in practice.
A)True
B)False Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Accounting Theory Construction
Available Study Resources on Quizplus for this Chatper
36 Verified Questions
36 Flashcards
Source URL: https://quizplus.com/quiz/66503
Sample Questions
Q1) Which of these is not a criticism of the descriptive pragmatic approach to theory construction?
A)It does not allow for accounting techniques to be challenged
B)Some of the users of accounting information may be illogical in their responses
C)The focus is on the accountant's behaviour not on measuring the attributes of the firm
D)There is no assessment of whether the accountant reports in the way he or she should
Answer: B
Q2) Concentrating on decision theories and testing them on large samples of people overcomes a major criticism of which of the following approaches to accounting theory construction?
A)The positive approach
B)The psychological pragmatic approach
C)The naturalistic approach
D)The descriptive pragmatic approach
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Role of Theory in Accounting Regulation
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/66502
Sample Questions
Q1) Private interest theory asserts:
A)The bigger the interest group size the easier it is for them to use the political process
B)The smaller the interest group size the easier it is for them to use the political process
C)The smaller the interest group size the harder it is for them to use the political process
D)Regulation arises as a result of government response to public demand
Answer: B
Q2) In which of these countries does taxation law have the greatest influence on financial accounting?
A)Australia
B)US
C)UK
D)France
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
5
Chapter 4: Theory Underpinning Accounting Standards
Available Study Resources on Quizplus for this Chatper
36 Verified Questions
36 Flashcards
Source URL: https://quizplus.com/quiz/66501
Sample Questions
Q1) Under the IASB Framework exposure draft,the qualitative characteristic:
A)Reliability has been replaced with faithful representation
B)Reliability has been replaced with trustworthiness
C)Timeliness has been replaced with exactness
D)Relevance has been replaced with significance
Q2) Discuss the strengths and weaknesses of principles-based accounting standards compared to rule-based standards.
Q3) To be relevant accounting information should have which of these characteristics?
A)The transaction or other event relating to the accounting information should have occurred
B)It must assist in making predictions about future situations or must help confirm past predictions of users
C)The financial information should faithfully represent transactions and events without bias or undue error
D)To be relevant accounting information should have all of the above characteristics
Q4) Is a conceptual framework necessary? Discuss the arguments for and against having a conceptual framework for accounting.
To view all questions and flashcards with answers, click on the resource link above.
6
Chapter 5: Measurement
Available Study Resources on Quizplus for this Chatper
38 Verified Questions
38 Flashcards
Source URL: https://quizplus.com/quiz/66500
Sample Questions
Q1) An ordinal scale would be used where the data set consists of the net present value of different projects measured in dollars.
A)True
B)False
Q2) The incorrect statement in relation to measurement issues for auditors is:
A)It is easier for the auditor to gather evidence if profit is measured by changes in fair value than when it is determined by matching revenue and expense transactions. B)ISA 540 is the international auditing standard that provides guidance for auditing impairment losses.
C)Under the international auditing standard on impairment losses auditors are required to judge if the amount recognised as an impairment loss is reasonable D)Auditors must assess whether the asset or liability values are properly determined from management's significant assumptions.
Q3) The ratio scale does not allow for all the fundamental arithmetic operations to be performed on the data.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Accounting Measurement Systems
Available Study Resources on Quizplus for this Chatper
47 Verified Questions
47 Flashcards
Source URL: https://quizplus.com/quiz/66499
Sample Questions
Q1) Exit price accounting can be seen as a short-term approach as it focuses on disposition and liquidation values.
A)True
B)False
Q2) Which of the following is not true with respect to the notion of adaptive behaviour?
A)It implies a continual attempt to adapt to the competitive business environment for the sake of survival
B)The firm should consider at all times the alternative opportunities for greater returns for its non-current assets (i.e.if they were sold and the proceeds invested elsewhere)
C)The firm will keep a non-current asset if the present value of the future net cash flows from the use of the asset is less than the present value of the expected net cash flows from an alternative investment of the exit value of the asset
D)All of the above
Q3) Exit price accounting considers value in use as one of its key factors.
A)True
B)False
Q4) Are holding gains a component of accounting profit? Discuss.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Assets
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/66498
Sample Questions
Q1) A valuation approach used by current IASB standards is:
i.Written down historical cost
ii.Fair values based on exit values
iii.Fair values based on value in use
A)i,ii
B)i,iii
C)ii,iii
D)i,ii,iii
Q2) An asset must have future cash generating abilities according to the IASB (AASB)Framework definition.
A)True
B)False
Q3) Which approach does the FASB's SFAS 157 'Fair value measurements' recommend to be used in determining fair value?
A)The market approach
B)The income approach
C)The cost approach
D)All are possible approaches which the standard suggests could be used to determine fair value
To view all questions and flashcards with answers, click on the resource link above.
Page 9
Chapter 8: Liabilities and Owners Equity
Available Study Resources on Quizplus for this Chatper
32 Verified Questions
32 Flashcards
Source URL: https://quizplus.com/quiz/66497
Sample Questions
Q1) A physical capital rather than a financial capital view is appropriate under proprietary theory.
A)True
B)False
Q2) The usual measurement basis allowed by the IFRS and adopted in practice for subsequent measurement of long-term borrowings in IFRS consolidated financial statements is:
A)Cost
B)Fair value
C)Amortised cost
D)Expected payments
Q3) 'Since pension funds are separate legal entities,it might be presumed that unfunded commitments of the plans are not liabilities of an employer firm that pays into a fund.'
J.Godfrey,et el,'Accounting Theory',7<sup>th</sup> Ed.p.273.Explain and discuss.
Q4) Interpretation of the IASB (AASB)Framework suggests that a liability should cease to be recognised when assets or services have been transferred to other entities in satisfaction of the debt.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Revenue
Available Study Resources on Quizplus for this Chatper
31 Verified Questions
31 Flashcards
Source URL: https://quizplus.com/quiz/66496
Sample Questions
Q1) Which standard provides specific guidance about revenue recognition in relation to the sale of goods and the rendering of service?
A)IAS 18/AASB 118
B)IAS 39/AASB 139
C)IAS 19/AASB 119
D)None of the above
Q2) According to Myers,Paton and Littleton when do revenue and profit accrue in the earnings process for a clothing manufacturer?
A)Purchase of the raw materials (cloth,thread etc. )
B)Completion of the piece of clothing for sale
C)Sale of the clothing to a retail store on credit
D)All of the above
Q3) In which of these standards are gains and losses from remeasurement of assets included in either operating income or in 'comprehensive income'?
A)IAS 16/AASB 116
B)IAS 19/AASB 119
C)IAS 41/AASB 141
D)All of the above
Q4) Explain and comment on the behavioural view of revenue.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Expenses
Available Study Resources on Quizplus for this Chatper
31 Verified Questions
31 Flashcards
Source URL: https://quizplus.com/quiz/66495
Sample Questions
Q1) Which of these is considered to be the 'ideal' way to match expenses?
A)Allocation of costs
B)Cause and effect
C)Immediate recognition
D)All of the above are equally 'ideal' depending upon the circumstances
Q2) For an outflow to be recognised as an expense it must be probable that the outflow of future economic benefits has occurred or the expense must be able to be measured with reliability.
A)True
B)False
Q3) Explain the essence of each of the three basic methods of matching commonly relied on;associated cause and effect,systematic and rational allocation and immediate recognition.
Q4) Under the FASB's Concept Statement No 6,the statement that is correct is:
A)There is no distinction between expenses and losses
B)Losses are regarded as always arising outside the course of the ordinary activities of the entity
C)The treatment of losses is similar to that of the Framework
D)All of the statements are correct
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Positive Theory of Accounting Policy and Disclosure
Available Study Resources on Quizplus for this Chatper
34 Verified Questions
34 Flashcards
Source URL: https://quizplus.com/quiz/66494
Sample Questions
Q1) DeAngelo argues that larger auditors,such as those commonly referred to as the 'Big 4',are of lower quality than other auditors because larger auditors have 'more to lose' by failing to report a discovered breach in a particular client's record.
A)True
B)False
Q2) Which of these is not an underlying assumption of positive accounting theory?
A)Individuals attempt to maximise their own wealth
B)Accounting numbers play a central role in the distribution of wealth
C)People are self-interested and rational
D)Non-financial aspects of individuals' utility functions are important in the distribution of wealth.
Q3) Initially monitoring costs are incurred by the principal,however,ultimately agents will bear the monitoring costs.
A)True
B)False
Q4) Distinguish between the ex ante efficient contracting approach and ex post opportunism.
Q5) Explain and discuss why the firm can be described as a 'nexus of contracts.
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Capital Market Research
Available Study Resources on Quizplus for this Chatper
36 Verified Questions
36 Flashcards
Source URL: https://quizplus.com/quiz/66493
Sample Questions
Q1) Positive accounting theory is aimed at prescribing how the world should work rather than providing an understanding of how the world does work.
A)True
B)False
Q2) One explanation for differences in the earnings response coefficient across firms is that earnings announcements by large firms have more information content than earnings announcements by small firms.
A)True
B)False
Q3) You have been given the following one period market model for Acme Ltd for the calendar quarter ending June 2010:
<sub>Acme </sub>= 3.0% R<sub>Acme </sub>= 10 %
<sub>Acme </sub>= 0.6 R<sub>m </sub>= 7%
What is the error during this period of time?
A)3%
B)2.8%
C)0%
D)1.8%
Q4) Explain what accounting researchers mean by the market 'being efficient'.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Behavioural Research
Available Study Resources on Quizplus for this Chatper
36 Verified Questions
36 Flashcards
Source URL: https://quizplus.com/quiz/66492
Sample Questions
Q1) Libby and Zimmer found a negative correlation between accuracy of judgement and confidence.
A)True
B)False
Q2) The higher the beta in the Brunswik lens regression model,the more important the information cues will be to a person in making decisions.
A)True
B)False
Q3) Which of these is not an option suggested by Libby for improving decision making?
A)Replacing decision makers with a model of themselves
B)Prescribing normative decision rules for repetitive decision making tasks
C)Educating decision makers
D)Changing the presentation and amount of information
Q4) One of the limitations of using CART models is that when there is lot of data available for analysis it becomes difficult to derive simple rules to train other analysts.
A)True
B)False
Q5) Discuss the limitations of behavioural accounting research.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Emerging Issues in Accounting and Auditing
Available Study Resources on Quizplus for this Chatper
29 Verified Questions
29 Flashcards
Source URL: https://quizplus.com/quiz/66491
Sample Questions
Q1) Which of these is a future direction in accounting and auditing?
A)The convergence of international accounting standards and the FASB standards
B)An improvement in the quality of international auditing standards and their increased acceptance
C)An increase is sustainability accounting and reporting
D)All of the above
Q2) The Sarbanes-Oxley Act in the United States decided not to restrict auditors' provision of non-audit consulting services to their clients as the evidence that the practice comprised auditor's independence was mixed.
A)True
B)False
Q3) The most widely used set of guidelines for sustainability reporting are published by:
A)The IASB
B)The United Nations
C)The FASB
D)The Global Reporting Initiative
Q4) What,in your opinion,was the role of fair value accounting in the Global Financial Crisis?
To view all questions and flashcards with answers, click on the resource link above. Page 16