A. It overrides any local or international accounting standard.
B. It specifies the concepts that underlie the preparation and presentation of general purpose financial statements.
C. It specifies the concepts that underlie the preparation and presentation of special purpose financial statements.
D. It specifies the concepts that underlie the preparation and presentation of only consolidated financial statements.
A. meet long term commitments.
B. pay dividends to shareholders.
C. meet short term commitments.
D. buy back shares.
A. allocative efficiency
B. strong form efficiency
C. semi-strong form efficiency
D. information processing efficiency
A. normative accounting theory
B. historical cost accounting theory
C. positive accounting theory
D. general accounting theory
A. A statement of financial position explains the reasons for movement of assets and liabilities through the accounting period.
B. Assets used for long-term operations are shown under working capital in the statement of financial position.
C. Current and non-current assets are shown as separate classifications in the statement of financial position.
D. Liabilities are future obligations that will cause outflow of resources embodying economic benefits.
A. information about future expansion plans.
B. public information.
C. public and inside information.
D. information about past changes in share prices.
A. consumer laws, taxation requirements and the extent to which the country has adopted international financial reporting standards.
B. company structures, ownership, local culture and the level of development of the country.
C. the needs of investors, creditors, employees, lending institutions and taxation authorities.
D. the extent to which the country has adopted international financial reporting standards and the requirements of local securities exchange.
A. the price of stocks and shares are available accurately and quickly.
B. the costs of financial transactions are kept as low as possible.
C. the cost of transactions is a reflection of the actual cost incurred.
D. past records are used to predict the future prices of goods.
A. Australian accounting standards are based on the US GAAP.
B. Accounting standards are developed and maintained using a consultative process with the OECD.
C. Accounting standards prescribe the possible accounting treatments.
D. Accounting standards provide the basic knowledge upon which the conceptual framework is developed.
A. The financial statements based on these standards would be error-free.
B. The interpretation of non-financial information is made easier.
C. The interpretation of financial reporting standards by anybody would be easy.
D. A financial reporting environment based on standardised principles would be created.
