Financial Statements IASB Quiz

Question 1 of 13

1

"Going Concern Basis" is an underlying assumption of financial statements.

Select one of the following:

True
False

Explanation

Question 2 of 13

1

Using the accrual basis underlying assumption, the effects of transactions and other events are recognised when the cash is received or paid not when they occur.

Select one of the following:

True
False

Explanation

Question 3 of 13

1

Relevant information is capable of making a difference in the decisions made by users. Relevance requires financial information to be related to what?

Select one of the following:

An economic decision
An entity specific decision

Explanation

Question 4 of 13

1

The financial information in the financial reports should represent what it purports to represent. Meaning, it should show what really are present and what really happened..

Select one of the following:

True
False

Explanation

Question 5 of 13

1

There are four possible measurement bases for assets: historical cost, current cost, present value and which other?

Select one of the following:

Past Cost
Net Realisable Value

Explanation

Question 6 of 13

1

Fill the blank spaces to complete the text.

DEFINITION of 'Historical Cost' A measure of value used in accounting in which the price of an on the balance sheet is based on its or cost when acquired by the company.

Explanation

Question 7 of 13

1

Select from the dropdown list to complete the text.

A method of accounting in which assets are valued on the basis of their current replacement cost, and increases in their ( value, depreciation value ) as a result of inflation are excluded from calculations of profit.

Explanation

Question 8 of 13

1

With regards to inventory, net realisable value (NRV) is the estimated selling price in the ordinary course of business minus any cost to complete and to sell the goods. NRV is one of the amounts considered when determining the lower of cost or market for items in inventory...

Select one of the following:

True
False

Explanation

Question 9 of 13

1

The current worth of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the ❌ of the future cash flows.

Drag and drop to complete the text.

present value

past value

current value

discounted value

Explanation

Question 10 of 13

1

What does IASB stand for in the IASB Conceptual Framework?

Select one of the following:

International Accounting Standards Board
International Accounting Standards Body
International Accountancy Standards Board
Independant Accounting Standards Board

Explanation

Question 11 of 13

1

A method of accounting in which asset are valued on the basis of their current replacement cost.

Select one of the following:

True
False

Explanation

Question 12 of 13

1

	Created by rachel_heap_02 over 8 years ago

Short quiz testing your knowledge of the IASB Conceptual Framework

Financial Statements IASB Quiz

Financial Statements IASB Quiz

Question 1 of 13

"Going Concern Basis" is an underlying assumption of financial statements.

Select one of the following:

Explanation

Question 2 of 13

Using the accrual basis underlying assumption, the effects of transactions and other events are recognised when the cash is received or paid not when they occur.

Select one of the following:

Explanation

Question 3 of 13

Relevant information is capable of making a difference in the decisions made by users. Relevance requires financial information to be related to what?

Select one of the following:

Explanation

Question 4 of 13

The financial information in the financial reports should represent what it purports to represent. Meaning, it should show what really are present and what really happened..

Select one of the following:

Explanation

Question 5 of 13

There are four possible measurement bases for assets: historical cost, current cost, present value and which other?

Select one of the following:

Explanation

Question 6 of 13

Fill the blank spaces to complete the text.

DEFINITION of 'Historical Cost' A measure of value used in accounting in which the price of an on the balance sheet is based on its or cost when acquired by the company.

Explanation

Question 7 of 13

Select from the dropdown list to complete the text.

A method of accounting in which assets are valued on the basis of their current replacement cost, and increases in their value depreciation value( value, depreciation value ) as a result of inflation are excluded from calculations of profit.

Explanation

Question 8 of 13

With regards to inventory, net realisable value (NRV) is the estimated selling price in the ordinary course of business minus any cost to complete and to sell the goods. NRV is one of the amounts considered when determining the lower of cost or market for items in inventory...

Select one of the following:

Explanation

Question 9 of 13

The current worth of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the ❌ of the future cash flows.

Drag and drop to complete the text.

Explanation

Question 10 of 13

What does IASB stand for in the IASB Conceptual Framework?

Select one of the following:

Explanation

Question 11 of 13

A method of accounting in which asset are valued on the basis of their current replacement cost.

Select one of the following:

Explanation

Question 12 of 13

Historical cost is a method of accounting in which assets are valued at their original cost

Select one of the following:

Explanation

Question 13 of 13

What is the formula for calculating Net Realisable Value (NRV)?

Select one of the following:

Explanation

A method of accounting in which assets are valued on the basis of their current replacement cost, and increases in their ( value, depreciation value ) as a result of inflation are excluded from calculations of profit.