Business and Financial Reporting
Midterm Exam
Course Introduction
Business and Financial Reporting explores the principles and practices underlying the preparation, analysis, and communication of financial information in a business context. The course covers fundamental accounting concepts, financial statements, regulatory frameworks, and ethical considerations, emphasizing the interpretation of financial reports for internal and external stakeholders. Students will learn to evaluate the financial health of organizations, understand reporting requirements, and use financial data to make informed business decisions. Through real-world case studies and practical exercises, the course equips students with the skills necessary to effectively analyze and communicate financial information in a variety of business settings.
Recommended Textbook
Issues in Financial Accounting 16th Australia Edition by Scott Henderson
Available Study Resources on Quizplus
26 Chapters
712 Verified Questions
712 Flashcards
Source URL: https://quizplus.com/study-set/3599 Page 2
Chapter 1: Institutional Arrangements for Setting Accounting Standards in Australia
Available Study Resources on Quizplus for this Chatper
26 Verified Questions
26 Flashcards
Source URL: https://quizplus.com/quiz/71466
Sample Questions
Q1) Give an overview of the present institutional arrangements for standard setting in Australia.
Answer: In the private sector,the most important legislation specifying financial reporting requirements isthe Corporations Act 2001,which replaced the Corporations Act 1989.This legislation may be foundat <www.legislation.gov.au>.The Corporate Law Economic Reform Program (CLERP)wascommenced in 1998 as part of the Commonwealth Government's ongoing program to modernisebusiness regulation in Australia.As part of this program,the Corporations Act was simplifiedthrough substantial amendments made in 1998,some of which affected financial reporting.Section292 of the Corporations Act requires the preparation of financial statements for each financialyear by all disclosing entities,all public companies,all large proprietary companies and allregistered schemes
Q2) The role of the Australian Securities and Investments Commission is to:
A) issue accounting standards
B) administer and ensure compliance with the Corporations Act
C) develop the conceptual framework
D) supervise the AASB
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: The Conceptual Framework: Purpose, reporting
Entity, the Objective of Financial Reporting, and Qualitative
Characteristics
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/71465
Sample Questions
Q1) Distinguish between general purpose and special purpose financial statements.Give examples of each type of report.
Answer: General purpose financial statements are prepared to meet the common interests of a wide range of stakeholders,with no particular stakeholder's information needs taking priority.Special purpose financial statements are prepared for specific users who have the power to demand that the entity provides financial information directly relevant to that user's specific needs.For example,a small family-owned business may be seeking a loan from a bank.
Q2) What is one difficulty encountered with asking users of financial information what they want?
A) Cost-benefit constraint
B) Lack of available information
C) The decision making process is not the same for all decision makers.
D) Choice of information sources
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: The Conceptual Framework:
Definition,
and Measurement of the Elements in General
Purpose Financial Statements
Available Study Resources on Quizplus for this Chatper
34 Verified Questions
34 Flashcards
Source URL: https://quizplus.com/quiz/71464
Sample Questions
Q1) AASB 137 'Provisions,Contingent Liabilities and Contingent Assets' requires information about contingent liabilities to be disclosed in a note to the financial statements where the probability of a future sacrifice of economic benefit is:
A) higher than remote
B) above 20%
C) between 25% and 50%
D) above 50%
Answer: A
Q2) What is the term for the action or process of recording a transaction or event in an entity's accounting records?
A) Recording
B) Valuation
C) Aggregating
D) Recognition
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Fair Value Measurement
Available Study Resources on Quizplus for this Chatper
33 Verified Questions
33 Flashcards
Source URL: https://quizplus.com/quiz/71463
Sample Questions
Q1) What term describes the market with the greatest volume and level of activity for an asset or liability?
A) Secondary market
B) Principal market
C) Stock market
D) International exchange
Q2) Which type of cost may be adjusted when determining fair value?
A) Transaction costs
B) Transport costs
C) Both A and B
D) Neither A nor B
Q3) When making a fair value measurement,management of the entity should strive to maximize ________ while minimizing _________.
A) Observable inputs; market value
B) Transaction costs; transport costs
C) Observable inputs; unobservable inputs
D) Sufficient data; transaction costs
Q4) List and give examples of the inputs of the fair value hierarchy.
Q5) Explain the differences between the concept of unit of account and valuation premise.
6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: The Choice of Accounting Methods
Available Study Resources on Quizplus for this Chatper
33 Verified Questions
33 Flashcards
Source URL: https://quizplus.com/quiz/71462
Sample Questions
Q1) Which of the following is not a reason preparers of financial statements need to make choices about which accounting policies to use?
A) Some aspects of financial reporting practice are not covered by specific accounting standards
B) Some standards have alternative policies with no clear indication of the proper criteria to be used
C) Judgements are to be made for certain issues, such as useful life, depreciation, and allowance for doubtful debts
D) The IASB is attempting to converge accounting policies with other worldwide accounting standards setters
Q2) Which accounting topic was the source of strong opposition by the business community during the conceptual framework period?
A) Goodwill
B) Interest on long-term loans
C) Comprehensive income
D) Equity classification
Q3) Explain the meaning of creative accounting and discuss various factors that tend to limit its operation.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: The Statement of Financial Position
Available Study Resources on Quizplus for this Chatper
29 Verified Questions
29 Flashcards
Source URL: https://quizplus.com/quiz/71461
Sample Questions
Q1) Which statement concerning the statement of financial position and the requirements of the Corporations Act is not true?
A) The Act requires the statement of financial position to present a 'true and fair view' of the entity's financial position
B) The Act states that if the financial statement would not give a true and fair view, additional information must be included in the notes to the statements in order to provide that view
C) True and fair view is defined in the Act to mean in accordance with generally accepted accounting standards
D) None of the above, i.e., all of the statements are true
Q2) Which of the following is not another name for share capital?
A) Paid-up capital
B) Contributed capital
C) Treasury capital
D) Issued capital
Q3) Discuss the concept of reserves and the sources from which they arise.
Q4) Identify and discuss the requirements concerning the classification of assets contained in AASB 101.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Accounting for Current Assets
Available Study Resources on Quizplus for this Chatper
33 Verified Questions
33 Flashcards
Source URL: https://quizplus.com/quiz/71460
Sample Questions
Q1) Which Australian accounting standard deals with inventory?
A) AASB 101
B) AASB 132
C) AASB 9
D) AASB 102
Q2) AASB 108 requires that changes to accounting estimates be dealt with prospectively.This means that the effect of a past overestimate of doubtful debts expense is:
A) recognised in the current reporting period
B) used to increase this periods estimated expense
C) both A and B
D) neither A nor B
Q3) Which of the statements is correct? In the United States:
A) there is a requirement to use the same cost flow assumption for taxation and financial reporting purposes
B) for perishable goods FIFO must be used
C) FIFO is not allowed for taxation purposes
D) none of the statements is correct
Q4) Explain and discuss the criteria contained in AASB 101 for distinguishing between current and non-current assets.
9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Accounting for Property, plant and Equipment
Available Study Resources on Quizplus for this Chatper
36 Verified Questions
36 Flashcards
Source URL: https://quizplus.com/quiz/71459
Sample Questions
Q1) What are defined as immovable public facilities that are necessary to sustain living standards and concerned with essential services?
A) Current assets
B) Heritage assets
C) Property, plant and, equipment
D) Infrastructure assets
Q2) Under the provisions of AASB 116,concerning an asset that has been re-valued upward,which statement is correct?
A) If the asset is disposed of, the revaluation surplus can remain in the accounts after the disposal of the asset that created it
B) The amount of the revaluation increment is included in equity without being included in net profit
C) Neither of the statements is correct
D) Both of the statements are correct
Q3) What is the main feature of the cost model in asset measurement?
A) The gross carrying amount of an asset is unchanged over its useful life
B) Depreciation is not measured
C) Assets are impaired each year based on estimated useful life
D) None of the above are correct
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Accounting for Company Income Tax
Available Study Resources on Quizplus for this Chatper
26 Verified Questions
26 Flashcards
Source URL: https://quizplus.com/quiz/71458
Sample Questions
Q1) Discuss the results of empirical research that examines whether tax-effect accounting should continue to be required.
Q2) Consider each of the following separate situations.State whether each gives rise to a deferred tax asset (DTA)or a deferred tax liability (DTL).Give reasons for your answer and also indicate why and when any DTA or DTL will be reversed in the accounting records. (i)Depreciation for accounting purposes exceeds depreciation allowed for income tax purposes
(ii) A provision for doubtful debts has been made for the first time (iii) Goodwill is beingamortisedeach year
(iv) A loss has been incurred, for both accountingand taxation purposes, but the company expects to earn profits in each of the next two years
Q3) A difference between the amounts of the accounting expenses and the tax deductions of a company which will be reversed in future periods indicates:
A) unethical accounting practices
B) a permanent difference
C) a greater annual income tax expense
D) a temporary difference
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Accounting for Intangible Assets
Available Study Resources on Quizplus for this Chatper
32 Verified Questions
32 Flashcards
Source URL: https://quizplus.com/quiz/71457
Sample Questions
Q1) Explain and discuss the application of AASB 138 in its proposals to account for research and development expenditure.
Q2) The main reason why accounting for intangible assets is more difficult than accounting for other assets is:
A) intangible assets are inherently inert and their value can grow or dissipate quickly
B) intangible assets may be developed internally
C) intangible assets do not have physical substance
D) all of the above are equally important reasons why accounting for intangible assets is more difficult than accounting for other assets
Q3) When the sum of the fair values of the identifiable net assets acquired exceeds the cost of acquisition,the difference is known as:
A) negative goodwill
B) excess on acquisition
C) goodwill
D) both A and B
Q4) Discuss the accounting treatment for trademarks and brand names in accordance with AASB 138.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Accounting for Leases
Available Study Resources on Quizplus for this Chatper
33 Verified Questions
33 Flashcards
Source URL: https://quizplus.com/quiz/71456
Sample Questions
Q1) The viewpoint that assets and liabilities should be recognised in the accounts of the lessee is known as:
A) The lease capitalization approach
B) The operating lease approach
C) The financing lease approach
D) The fair value approach
Q2) How is the lessee to measure the lease liability after the commencement date.
A) Increasing the carrying amount to re ect interest on the lease liability
B) Reducing the carrying amount to re ect the lease payment made
C) Remeasuring the carrying amount to re ect any reassessment or lease modi cations
D) All the above are measurement requirements
Q3) List and explain the different items set out in a typical lease agreement.
Q4) A typical lease agreement will always set out all of the following except:
A) who is responsible for the payment of maintenance and repair costs, insurance and taxes
B) that the lease is non-cancellable by either party
C) the amount and timing of the lease (rental) payments
D) the period of the lease
Q5) What are the main characteristics of a sale-and-leaseback agreement?
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Accounting for Employee Benefits
Available Study Resources on Quizplus for this Chatper
29 Verified Questions
29 Flashcards
Source URL: https://quizplus.com/quiz/71455
Sample Questions
Q1) There are two types of risk associated with post-employment benefits,investment risk and actuarial risk.Explain these terms and describe the situations when these risks are borne by the employee and when they are borne by the employer (in accordance with AASB 119).
Q2) The timing of the recognition of an expense and liability is based on the date:
A) when the entity can no longer withdraw for the offer of those benefits
B) when the entity recognises costs for a restructuring that is within the scope of AASB 137
C) of the most recent financial statements
D) the earlier of A or B
Q3) Wages and salaries can be divided into which two parts?
A) Current and long-term
B) Monetary and non-monetary
C) Current and in arrears
D) Cash and short-term benefits
Q4) Which of the following is not considered a post-employment benefit by AASB 119?
A) Superannuation
B) Termination benefits
C) Administrative support
D) Free travel
Page 14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Accounting for Financial Instruments
Available Study Resources on Quizplus for this Chatper
30 Verified Questions
30 Flashcards
Source URL: https://quizplus.com/quiz/71454
Sample Questions
Q1) A futures contract can be arranged:
A) only on financial measures such as stock market price indices
B) only through an established stock exchange
C) only on commodities such as agricultural products
D) on virtually any commodity or financial measure
Q2) A 'hedging' financial instrument can:
A) protect against losses from adverse movements in foreign exchange rates
B) eliminate any possible gain from changes in the Australian dollar/US dollar exchange rate
C) offset the risk of loss from adverse commodity price changes
D) do all of the above
Q3) A futures contract provides for:
A) a purchase or sale now at a price to be determined based on future events
B) a purchase or sale in the future at a price to be determined when the transaction is completed
C) a purchase or sale in the future at a fixed price agreed at the date of the agreement
D) any of the above
To view all questions and flashcards with answers, click on the resource link above.
15
Chapter 14: The Statement of Comprehensive Income
Available Study Resources on Quizplus for this Chatper
24 Verified Questions
24 Flashcards
Source URL: https://quizplus.com/quiz/71453
Sample Questions
Q1) The amount retained for asset replacement and growth is one feature of:
A) The statement of value added
B) Other comprehensive income
C) Equity
D) Operating income
Q2) Under AASB 101,which of these items need not be disclosed separately on the face of the 'statement of profit or loss and other comprehensive income'?
A) Income tax expense
B) Bad and doubtful debts
C) Finance costs
D) None of the above, i.e., all must be disclosed separately on the face of the income statement
Q3) Which items bypass the profit figure under the operating-profit approach?
A) Revenues and expenses resulting from changes in accounting policies
B) Revenue and expenses relating to prior periods
C) Revenues and expenses relating to events outside the ordinary operations of the entity
D) All of the above
Q4) Define income and explain how it differs from revenue.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Revenue
Available Study Resources on Quizplus for this Chatper
32 Verified Questions
32 Flashcards
Source URL: https://quizplus.com/quiz/71452
Sample Questions
Q1) Which type of costs to fulfil a contract are excluded from being classified as assets?
A) Direct materials
B) General and administrative costs
C) Direct labour
D) Costs that relate directly to a contract
Q2) Which of the following criteria would facilitate the combining of contracts in accordance with AASB 15 'Revenue from Contracts with Customers'?
A) The contracts are negotiated as a package with a single commercial objective.
B) The amount of consideration to be paid in one contract depends on the price or performance of the other contract.
C) Either A or B is acceptable
D) Both A and B are required
Q3) What is true of an impairment reversal?
A) It must exceed the original carrying amount net of amortisation
B) The reversal occurs through profit or loss if the conditions that caused the impairment improve
C) They are disallowed by Australian accounting standards
D) The reversal must have been based on straight-line amortisation
To view all questions and flashcards with answers, click on the resource link above.
Chapter 16: The Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
25 Verified Questions
25 Flashcards
Source URL: https://quizplus.com/quiz/71451
Sample Questions
Q1) The statement concerning a funds statement based on the total resources concept of funds that is incorrect is:
A) It excludes internal transactions such as depreciation
B) The total resources concept of funds is the broadest concept
C) Any transaction which increases liabilities or equity is a source of funds
D) Any transaction which reduces assets is a use of funds
Q2) Which transaction would be included in a cash flow statement?
A) Receipts from customers
B) Credit sales
C) Acquisition of assets in exchange for shares
D) All of the above
Q3) Although various types of financial statements related to cash flows began appearing in the early 20<sup>th</sup> century,what year introduced the first accounting standard related to this issue?
A) 1971
B) 1972
C) 1960
D) 1963
To view all questions and flashcards with answers, click on the resource link above.
18
Chapter 17: Financial Reporting: Segment Reporting and Highlights Statements
Available Study Resources on Quizplus for this Chatper
25 Verified Questions
25 Flashcards
Source URL: https://quizplus.com/quiz/71450
Sample Questions
Q1) Discuss the benefits of the 'management approach' adopted by AASB 8.
Q2) Which of the following statements relating to AASB 8 is not true?
A) It adopts a management approach
B) It applies to all for profit entities
C) Reconciliations are required for revenues, profit and loss and other material items
D) None; all of the statements are true
Q3) According to paragraph 19 of AASB 8,after which number of reportable segments should an entity consider whether a practical limit has been reached?
A) 10
B) 15
C) 8
D) None of the above
Q4) What benefits is an investor likely to gain if a business presents financial information for its various separate major organisational divisions and/or geographical areas of operations? Are there any likely costs (direct or indirect)to the investor from the presentation of this information?
To view all questions and flashcards with answers, click on the resource link above.
Chapter 18: Further Financial Reporting Issues
Available Study Resources on Quizplus for this Chatper
27 Verified Questions
27 Flashcards
Source URL: https://quizplus.com/quiz/71449
Sample Questions
Q1) All of the following are usually seen as valid reasons for having different reporting standards for different business entities,except:
A) information needs of users may be different for different entities
B) costs of designing and installing an accounting information system may be different for different entities
C) investors in smaller entities generally do not read financial reports
D) users of the reports of some entities can obtain special purpose reports for their own use as required
Q2) All of the following entities are reporting entities,except:
A) government controlled business organisations
B) small proprietary companies
C) public companies
D) listed property trusts
Q3) Why have accountants always put so much emphasis on the concept of materiality? How does this concept affect accountants,if at all,in their day-to-day work and in the preparation of periodical financial reports?
Q4) Discuss the importance of discrete reporting. What changes have been made AASB 134 and AASB 136 to improve 'Impairment of Assets'?
To view all questions and flashcards with answers, click on the resource link above.
Page 20
Chapter 19: Accounting for Extractive Industry
Available Study Resources on Quizplus for this Chatper
25 Verified Questions
25 Flashcards
Source URL: https://quizplus.com/quiz/71448
Sample Questions
Q1) The full-cost method of accounting for exploration and evaluation costs in the extractive industries:
A) requires that all such costs be recognised as expenses
B) requires that all such costs be recognised as assets
C) allows more timely disclosure of the costs of unsuccessful exploration activities
D) gives asset values closely approximating the value of mineral deposits that are discovered
Q2) To calculate the value of the reserves,the following data are required:
A) an estimate of the current sales price per output unit
B) a discount rate
C) an estimate of the life of the fixed assets
D) an estimate of the cost of salvage per output unit
Q3) The expense (or costs written-off)method of accounting for exploration and evaluation costs in the extractive industries would seem to be the most conservative of the suggested methods of accounting for these costs.Conservatism has a long history in accounting and is often used to justify or support many accounting practices.Why then is the expense method not favoured by the Australian Accounting Standards Board? Consider both the benefits and the disadvantages arising from the use of this method.
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: Accounting for Agricultural Activity
Available Study Resources on Quizplus for this Chatper
17 Verified Questions
17 Flashcards
Source URL: https://quizplus.com/quiz/71447
Sample Questions
Q1) Agricultural activity should be classified as:
A) non-current assets
B) current assets
C) non-current liabilities
D) inventories
Q2) Greenview Dreams Ltd has an orchard of mango trees with an estimated fair value at 1 January 20X1 of $1 600 000.During the year ended 31 December 20X1 mangoes with a fair value of $300 000 were picked and they were still on hand at the end of the year.Costs of picking,sorting,packing and storage totaled $125 000.The mangoes were sold later in 2012 for $430 000.On 31 December 20X1 the mango orchard had an estimated net realisable value of $1 750 000.The total profit from operations for the 20X1 year is:
A) $325 000
B) $305 000
C) $575 000
D) $425 000
Q3) Applying fair value to agricultural activity is assumed on the basis that it can be measured reliably.What do you think could potentially cause an asset's measurement to be unreliable,and why? How detailed should be the disclosure of any inherent unreliability?
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21: Accounting for Superannuation Entities
Available Study Resources on Quizplus for this Chatper
18 Verified Questions
18 Flashcards
Source URL: https://quizplus.com/quiz/71446
Sample Questions
Q1) The general purpose financial statements of a superannuation plan should answer the following question(s):
A) Is the plan solvent?
B) Will the plan remain solvent?
C) Are the trustees diligently performing their duties?
D) All of the above
Q2) A member of a superannuation fund can leave the fund but retain a right to all accrued benefits in the case of a:
A) self-managed fund
B) vested benefits fund
C) contributory fund
D) all of the above
Q3) Generally,insurance arrangements include which of the following?
A) offered to members, with the entity only acting as an agent
B) offered to members, with the entity accepting insurance risk
C) provided to defined benefit members in relation to their projected retirement benefit
D) all of the above
Q4) Discuss some of the major differences between the requirements of AAS 25 and AASB 1056.
To view all questions and flashcards with answers, click on the resource link above. Page 23
Chapter 22: Accounting for Insurance
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/71445
Sample Questions
Q1) Which of the following are components of expected future payments?
A) Amounts in relation to unpaid reported claims
B) Claim handling costs expected to be incurred by the insurer
C) Claims incurred but not reported
D) All of the above are components of expected future payments
Q2) Which disclosure requirement is to be presented in the statement of comprehensive income?
A) The component related to risk margin
B) Information regarding material non-insurance contracts
C) The amount of net claims incurred
D) The process used to determine risk margin
Q3) What is the main accounting issue insurers faced by life insurers?
A) Disclosure
B) Measurement
C) Recognition
D) B and C above are correct
Q4) Explain the solvency requirements as outlined by the Insurance Act of 1973 and Prudential Standard GPS 110 'Capital Adequacy'.
Q5) List and describe the five main types of traditional activities related to life insurance.
To view all questions and flashcards with answers, click on the resource link above. Page 24
Chapter 23: International Accounting Standards, harmonisation and Convergence
Available Study Resources on Quizplus for this Chatper
14 Verified Questions
14 Flashcards
Source URL: https://quizplus.com/quiz/71444
Sample Questions
Q1) Australia adopted international accounting standards
A) on 30 June 2005.
B) on 31 December 2005.
C) on 15 January 2005.
D) on 1 January 2005
Q2) Australia initially adopted the 'internationalisation' approach to setting accounting standards.This approach involves:
A) adopting accounting standards developed and adopted in other countries
B) developing local accounting standards based on an examination of accounting standards and practices developed outside Australia
C) the adoption by Australia and other countries of a single set of accounting standards for all countries
D) all of the above
Q3) Explain how globalisation has impacted Australian accounting standards. What is the role of the various accounting governing bodies in harmonising the accounting standards?
Q4) Describe and explain the strategies adopted by the AASB in order to achieve the objective of international harmonisation of accounting standards in Australia.
25
To view all questions and flashcards with answers, click on the resource link above.
Chapter 24: Foreign Currency Translation
Available Study Resources on Quizplus for this Chatper
24 Verified Questions
24 Flashcards
Source URL: https://quizplus.com/quiz/71443
Sample Questions
Q1) The requirements for AASB 121 (para 39)include which of the following:
A) assets and liabilities for each statement of financial position presented (i.e. including comparatives) shall be translated at the closing rate at the date of that statement of financial position
B) income and expenses for each statement presenting profit or loss and other comprehensive income (i.e. including comparatives) shall be translated at exchange rates at the dates of the transactions
C) all resulting exchange differences shall be recognised in other comprehensive income
D) all of the above
Q2) The 'spot' rate of exchange for foreign currencies is:
A) the rate at which currencies can be exchanged in a particular place (e.g., in Sydney or in New York)
B) the rate of exchange between the Australian dollar and the US dollar
C) the rate at which currencies can be exchanged on the New York foreign exchange market
D) the rate at which currencies can be exchanged immediately
Q3) Explain,using simple numerical examples,the hedging of currency risk.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 25: Accounting for Corporate
Available Study Resources on Quizplus for this Chatper
25 Verified Questions
25 Flashcards
Source URL: https://quizplus.com/quiz/71442
Sample Questions
Q1) The quantitative reporting of a company's socially responsible activities may not be especially useful because:
A) there can be difficulty in allocating cost accurately to different activities
B) it provides no indication of the effectiveness of the expenditure incurred
C) much of the expenditure incurred may simply be the result of complying with legal requirements or enforcement action by government authorities
D) all of the above
Q2) The statement concerning social responsibility reporting in Australia that is not correct is:
A) Australian companies have been at the forefront of reporting and are well ahead of their counterparts in Europe and the US
B) since the 1980s there has been an increasing trend in the quantity and quality of disclosure
C) companies tend to disclose more positive than negative information
D) none of the above, i.e., all are correct statements
Q3) Explain the three components of the Emissions Reduction Fund (ERF).
To view all questions and flashcards with answers, click on the resource link above.
Chapter 26: Ethics in Accounting
Available Study Resources on Quizplus for this Chatper
26 Verified Questions
26 Flashcards
Source URL: https://quizplus.com/quiz/71441
Sample Questions
Q1) Which of the following does not fall under the ethical principle of "beneficence"?
A) objectivity
B) professional behaviour
C) confidentiality
D) professional competence and due care
Q2) Briefly describe three classes of deontological theories that have been used to examine ethical behaviour.
Q3) Which of the following is NOT part of the Foundational Ethical Principles that each community derives its own values?
A) honesty
B) justice
C) beneficence
D) respect for persons
Q4) Ethical egoism is based on a belief that people should act in a way that:
A) maximises the 'good' of the person making the decision
B) maximises the 'common good'
C) maximises good to the top stratum of the elite
D) conforms with the rules established by God
To view all questions and flashcards with answers, click on the resource link above. Page 28