Corporate Reporting
Test Preparation
Course Introduction
Corporate Reporting focuses on the preparation, analysis, and interpretation of financial statements in accordance with relevant accounting standards and regulatory requirements. The course covers key concepts such as revenue recognition, asset valuation, liabilities, equity, and the disclosure of financial and non-financial information critical to stakeholders. Students will learn how to evaluate corporate performance, assess compliance with international reporting frameworks such as IFRS, and understand the ethical responsibilities of professional accountants in corporate transparency. The course also addresses current issues and emerging trends in financial reporting, preparing students for practical challenges in the corporate environment.
Recommended Textbook
Contemporary Issues in Accounting 2nd Edition by Michaela Rankin
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12 Chapters
226 Verified Questions
226 Flashcards
Source URL: https://quizplus.com/study-set/3296
Page 2
Chapter 1: Contemporary Issues in Accounting
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18 Verified Questions
18 Flashcards
Source URL: https://quizplus.com/quiz/65391
Sample Questions
Q1) An example of how theory can predict accounting practice is:
A)agency theory.
B)capital market theory.
C)asset recognition theory.
D)corporate social responsibility theory.
Answer: A
Q2) How can theories be of benefit in accounting?
A)they assist us in describing and explaining current accounting practice only.
B)they assist us to improve accounting practice and they provide principles to take into account when taking action or making decisions.
C)they help to identify problems and deficiencies with current accounting practice but do not assist us in improving accounting practice.
D)they assist us to predict and improve accounting practice only.
Answer: B
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Chapter 2: The Conceptual Framework for Financial Reporting
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17 Verified Questions
17 Flashcards
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Sample Questions
Q1) Conceptual frameworks issued by the IASB apply only to:
A)both non-profit and for-profit entities.
B)non-profit entities.
C)for profit entities.
D)public sector entities.
Answer: C
Q2) Which of the following questions does the Conceptual Framework NOT answer?
A)What type of information should be included in financial reports?
B)Who are financial reports for?
C)What is the purpose of the financial reports?
D)What exact measurement basis should be used in financial reports?
Answer: D
Q3) Accounting standards are seen to be political because:
A)They can influence perceptions about organisations.
B)They can create wealth transfers between different groups in society.
C)They can affect the competitiveness of organisations.
D)All of the above.
Answer: D
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Chapter 3: Standard Setting
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20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/65389
Sample Questions
Q1) Which of the following is NOT a key element of regulation?
A)Regulation should be biased.
B)An intention to intervene.
C)A restriction on choice.
D)The exercise of control.
Answer: A
Q2) Which of the following is NOT a function of the AASB? standard setting.
A)Participate in the development of international accounting standards.
B)Making accounting standards.
C)Promoting international accounting standards.
D)Enforcing compliance with accounting standards.
Answer: D
Q3) Which of the following is NOT a disadvantage of regulation?
A)It can restrict communication.
B)It can be difficult to reverse.
C)It leads to standardisation.
D)It can be difficult to determine the optimal regulations.
Answer: C
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5
Chapter 4: Measurement
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18 Verified Questions
18 Flashcards
Source URL: https://quizplus.com/quiz/65388
Sample Questions
Q1) Which of the following is NOT a limitation of measurement in accounting?
A)It is impossible to compare entities over a period of time.
B)There is little agreement on what measurement methods should be used.
C)Measurement can be quite subjective.
D)There are some accounting items that are not easily measured.
Q2) Which measurement system would seem most relevant to investors?
A)Current cost.
B)Historic cost.
C)Fair value.
D)Deprival value.
Q3) The statement that is true with respect to current cost accounting is:
A)Current operating profit is the excess of the current value of the output sold over the current cost of the related inputs.
B)Gains are recorded only when the assets are disposed of.
C)Holding gains are not included in current operating profits.
D)None of the above is true.
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6
Chapter 5: Theories in Accounting
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17 Verified Questions
17 Flashcards
Source URL: https://quizplus.com/quiz/65387
Sample Questions
Q1) A normative theory:
A)Is based on what should be the case given a certain objective.
B)Is completely divorced from reality.
C)Describes,explains or predicts activities.
D)Only focuses on normal activities.
Q2) Stakeholder theory:
A)Has both a normative and positive version.
B)Is completely different to legitimacy theory.
C)Focuses on government power.
D)All of the above.
Q3) Contingency theory proposes that:
A)Shareholder needs drive accounting system choices.
B)Accounting policies are likely to be consistent within industries.
C)Size is not an important factor when considering management accounting systems.
D)No universally consistent accounting system can apply to all organisations.
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Chapter 6: Products of the Financial Reporting Process
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20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/65386
Sample Questions
Q1) What is NOT one of the key elements of control?
A)Influence over returns.
B)Ownership.
C)Variable returns.
D)None of the above,i.e.they are all elements of control.
Q2) AASB 134 Interim Reporting mandates:
A)That interim financial reports should be prepared at least once per year.
B)The minimum contents of interim financial reports.
C)Who must prepare interim financial reports.
D)All of the above.
Q3) Which of the following has NOT been identified as a reason that management might voluntarily disclose information in annual reports?
A)To win reporting awards.
B)To mislead competitors.
C)To manage powerful stakeholders.
D)To forestall regulation.
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Chapter 7: Corporate Governance
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21 Verified Questions
21 Flashcards
Source URL: https://quizplus.com/quiz/65385
Sample Questions
Q1) Which of the following is NOT an example of good corporate governance in relation to shareholders?
A)Provide shareholders with all information made available to directors.
B)Treat all shareholders equally.
C)Have rules that allow shareholders to call extraordinary meetings.
D)All of the above.
Q2) According to the 'Anglo-Saxon' model whose interest should be the focus of corporate governance?
A)Community.
B)Employees.
C)Shareholders.
D)Environment.
Q3) Which of the following is NOT an example of corporate governance practice?
A)Formation of a nominating committee to identify potential new directors.
B)Codes of conduct for directors.
C)Requirements that most board directors be independent.
D)None of the above,i.e.they are all examples of corporate governance.
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Chapter 8: Capital Markets Research and Accounting
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19 Verified Questions
19 Flashcards
Source URL: https://quizplus.com/quiz/65384
Sample Questions
Q1) Which of the following is NOT one of the three assumptions underlying value relevance literature?
A)Share prices adequately represent investors' use of information in valuing equity securities.
B)Accounting earnings are not highly associated with equity market value changes.
C)Equity users are the dominant users of financial reports.
D)Share-price-based tests can measure relevance and reliability as defined by accounting bodies.
Q2) Which of the following is NOT an assumption behavioural finance?
A)People are over confident.
B)People make systematic errors in their thinking.
C)People anchor on long term experience and under appreciate recent experience.
D)People avoid realising paper losses but seek to realise paper gains.
Q3) To test whether accounting information and capital markets researchers examine:
A)The relationship between expected earnings and share returns.
B)The statements of shareholders about their decisions to sell shares.
C)The relationship between unexpected earnings and share returns.
D)The relationship between shareholder expectations and share price.
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Chapter 9: Earnings Management
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20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/65383
Sample Questions
Q1) Why does income smoothing generally lead to a higher share value?
A)It is perceived as increasing the chance of insolvency.
B)It reduces the perceived risk of the company.
C)It leads to higher perceived income.
D)None of the above.
Q2) Which of the following components of managerial compensation are thought to most encourage earnings management?
A)Shares or share options.
B)Their base salary.
C)Their cash bonuses.
D)Various perquisites.
Q3) With regards to inventory which of the following would be classed as conservative accounting?
A)Consistently and quickly applying the lower of cost and net realisable value rule.
B)Being slow to write down slow-moving inventory.
C)Still recording obsolete inventory as an asset.
D)Overstating inventory by including non-existent inventory in accounts.
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11
Chapter 10: Fair Value Accounting
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20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/65382
Sample Questions
Q1) Which of the following is not part of the definition of fair value under AAASB 13?
A)Knowledgeable and willing parties.
B)Price received to sell an asset.
C)Price paid to sell a liability.
D)At measurement date.
Q2) Which of the following is NOT part of the old definition of fair value?
A)An arms-length transaction.
B)The amount an asset could be exchanged for.
C)The amount a liability could be settled for.
D)At measurement date.
Q3) Fair value accounting:
A)Appears in many accounting standards.
B)Is a new concept.
C)Is currently rare in accounting standards.
D)Is simply a refinement to the definition of historic cost.
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12
Chapter 11: Sustainability and Environmental Accounting
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17 Verified Questions
17 Flashcards
Source URL: https://quizplus.com/quiz/65381
Sample Questions
Q1) The three parts of the triple bottom line are:
A)Economic,Environmental and Social.
B)Economic,Stakeholder and Employee.
C)Financial,Economic and Government.
D)Financial,Customer and Government.
Q2) Stakeholder power is general considered to relate to which of the following factors?
A)How vocal they are prepared to be.
B)The degree of control they have over resources required by the organisation.
C)The amount of impact the organisation has on them.
D)None of the above.
Q3) The IASB project on Accounting for Carbon Emissions:
A)Is currently an Exposure Draft (ED133/A).
B)Part of the IASB research program.
C)Is complete with the release of IFRS 4.
D)Does not exist.
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13
Chapter 12: International Accounting
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19 Verified Questions
19 Flashcards
Source URL: https://quizplus.com/quiz/65380
Sample Questions
Q1) To what does International Accounting refer?
A)Comparison of accounting practices between countries.
B)Accounting for international transactions.
C)Descriptions of accounting practices in different countries.
D)All of the above.
Q2) Transfer pricing has been identified as a major problem for multi-national entities.This refers to:
A)The pricing of goods and services exchanged within a corporate group.
B)Paying local workers less than expatriate employees.
C)Setting up parent entities in tax havens.
D)Manufacturing cheaply in the third world to sell at high profit in the first world.
Q3) One significant barrier to the adoption of international accounting standards in Islamic countries has been:
A)Refusal to compartmentalise religious and secular life.
B)The requirement to pay zakat (a religious levy).
C)The prohibition on charging interest.
D)All of the above.
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