Financial Reporting
Final Exam
Course Introduction
Financial Reporting is a course designed to equip students with a comprehensive understanding of how organizations communicate financial information to external stakeholders, such as investors, creditors, and regulatory bodies. The course covers the principles and regulatory frameworks underpinning the preparation and presentation of financial statements, including the balance sheet, income statement, cash flow statement, and statement of changes in equity. Students will explore key accounting concepts, measurement bases, and the application of internationally recognized accounting standards. Emphasis is placed on analyzing and interpreting financial reports to assess an organizations financial position and performance, fostering skills critical for effective decision-making in business environments.
Recommended Textbook
Accounting Business Reporting for Decision Making 6th Edition by Jacqueline Birt
Available Study Resources on Quizplus 14 Chapters
869 Verified Questions
869 Flashcards
Source URL: https://quizplus.com/study-set/3678
Page 2
Chapter 1: Introduction to Accounting and Business Decision Making
Available Study Resources on Quizplus for this Chatper
64 Verified Questions
64 Flashcards
Source URL: https://quizplus.com/quiz/73237
Sample Questions
Q1) The information that would be of most interest to an organisation's production manager is:
A) the ability to pay off debts as they fall due.
B) annual dividends.
C) continuity of orders for the factory.
D) the company tax rate.
Answer: C
Q2) The Financial Reporting Council is responsible for overseeing the accounting and auditing _________________ process for all accounting sectors in Australia.
Answer: standard-setting
Q3) Which statement is correct?
The use of one set of accounting standards by companies throughout the world:
A) makes it more difficult for comparability and transparency of financial information.
B) leads to inefficiency in lending markets.
C) reduces the cost of preparing financial reports.
D) reduces the quality of information provided to capital market participants.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Accounting in Society
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/73236
Sample Questions
Q1) An accountant responsible for making a decision that optimises the outcome for the most number of stakeholders is said to be following which approach to decision making?
A) Deontological.
B) Kantianism.
C) Teleological.
D) Discretionary.
Answer: C
Q2) Which of these is not an ethical principle?
A) Do unto others as you would have them do unto you.
B) The end justifies the means.
C) The greatest good for the greatest number.
D) The end does not justify the means.
Answer: B
Q3) APES 110 Code of Ethics for Professional Accountants is issued by:
A) the Institute of Chartered Accountants in Australia.
B) CPA Australia.
C) Australian Securities and Investments Commission.
D) Accounting Professional & Ethical Standards Board.
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Business Structures
Available Study Resources on Quizplus for this Chatper
67 Verified Questions
67 Flashcards
Source URL: https://quizplus.com/quiz/73235
Sample Questions
Q1) A retained earnings account would be found in which type of entity's financial statements?
A) Sole Trader.
B) Partnership.
C) Company.
D) All of the above.
Answer: C
Q2) Disclosing entities that are classified as tier 2 use the ________________ disclosure requirements when preparing general purpose financial statements.
Answer: reduced
Q3) 'For-profit' business structures differ in terms of:
A) equity structure.
B) owner liability. C) taxation.
D) all of the above.
Answer: D
Q4) A major advantage of trusts is that they ________________ tax payments. Answer: minimise
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Business Transactions
Available Study Resources on Quizplus for this Chatper
68 Verified Questions
68 Flashcards
Source URL: https://quizplus.com/quiz/73234
Sample Questions
Q1) A business borrows $10 000 from the bank.What effect does this transaction have on the accounting equation?
A) An increase in the asset cash of $10 000 and an increase in the liability bank loan of $10 000.
B) An increase in the asset cash of $10 000 and a decrease in the liability bank loan of $10 000.
C) A decrease in the asset cash of $10 000 and a decrease in the liability bank loan of $10 000.
D) A decrease in the asset cash of $10 000 and an increase in the liability bank loan of $10 000.
Q2) An error that occurs when only one part of a transaction is recorded is known as a __________ - __________ error.
Q3) Which of the following statements about a trial balance is not true?
A) It has a debit and a credit column.
B) It is used to check the accuracy of the ledger or journal entries.
C) It is prepared at the end of the accounting period.
D) It will detect all errors in the ledger accounts.
Q4) Expenses have a (positive/negative)____________________ effect on Equity.
Q5) Profit (or loss)= ___________________ less expenses
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Balance Sheet
Available Study Resources on Quizplus for this Chatper
65 Verified Questions
65 Flashcards
Source URL: https://quizplus.com/quiz/73233
Sample Questions
Q1) The existence of a _____________ event is one of the essential elements of a liability.
Q2) Which of the following statements is correct regarding the use of the first-in first-out (FIFO)method of valuing inventory?
A) Cost of sales for the period is calculated using weighted average cost of the goods acquired.
B) Closing inventory consists of goods purchased earlier in the period.
C) Closing inventory consists of the most recently purchased goods.
D) Cost of sales for the period is calculated using the most recent inventory cost per item.
Q3) A limitation of the balance is that the historical cost measurement of an asset does not consider the __________ __________ of money.
Q4) The accrual of annual leave and long-service leave for employees is classed as a ______________ in the liabilities section of the balance sheet.
Q5) If an asset's carrying amount is greater than its recoverable amount an __________ loss will need to be recognised immediately in the statement of profit or loss.
Q6) Goodwill is regarded as an ______________ intangible asset.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Statement of Profit or Loss and Statement of Changes in Equity
Available Study Resources on Quizplus for this Chatper
62 Verified Questions
62 Flashcards
Source URL: https://quizplus.com/quiz/73232
Sample Questions
Q1) Expenses classified by function would be categorised as:
A) marketing expenses.
B) borrowing expenses.
C) selling and distribution expenses.
D) all of the above.
Q2) The statement of profit or loss measures an entity's financial _________.
Q3) Machinery is purchased for $140 000.It is estimated that it has a useful life of 5 years and a residual value of $20 000.Using the straight-line method,calculate the amount of annual depreciation to be charged.
A) $12 000
B) $24 000
C) $28 000
D) $14 000
Q4) Managers use of accounting discretion allowable under accounting policy choices and estimates to portray a desired level of profit in a particular reporting period is referred to as ___________________ management.
Q5) Other ______________ income represents all changes in equity other than profit or loss,and transactions associated with owners such as dividends and capital contributions.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/73231
Sample Questions
Q1) If the balance of the plant and equipment asset account at the beginning of the year is $800 000,the closing balance is $650 000,and plant and equipment originally purchased for $165 000 are sold during the year,the amount spent on purchases of new plant and equipment during the year equals:
A) $485 000
B) $135 000
C) $150 000
D) $15 000
Q2) Which of the following would not be classified as a cash flow from investing activities?
A) Proceeds from repayment of loans to other parties.
B) Proceeds from the sale of plant and equipment.
C) Cash from borrowings.
D) Purchase of furniture.
Q3) __________ expense relating to property,plant and equipment is a common business expense that is not included in the statement of cash flows.
Q4) The ___________ method of preparing a statement of cash flows adjusts an entity's profit or loss for the effects of non-cash transactions and deferrals or accruals of operating activities.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Analysis and Interpretation of Financial Statements
Available Study Resources on Quizplus for this Chatper
62 Verified Questions
62 Flashcards
Source URL: https://quizplus.com/quiz/73230
Sample Questions
Q1) ________ before interest and tax divided by net finance costs equals times interest earned.
Q2) The current ratio is also known as the:
A) working capital ratio.
B) cash flow ratio.
C) quick ratio.
D) acid-test ratio.
Q3) In a vertical analysis,the anchor point for accounts payable is:
A) total assets.
B) total current liabilities.
C) total liabilities.
D) total equity.
Q4) Greenacres Ltd has a quick ratio of 1.5:1 with total current liabilities of $50 000.If Greenacres Ltd has inventory of $25 000,the total current assets is:
A) $25 000
B) $75 000
C) $100 000
D) $50 000
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Budgeting
Available Study Resources on Quizplus for this Chatper
64 Verified Questions
64 Flashcards
Source URL: https://quizplus.com/quiz/73229
Sample Questions
Q1) Having a budget that directly links employee bonuses with sales targets may lead to:
A) a culture among sales staff where sales targets are to be achieved regardless of the consequences.
B) a change of focus of sales staff away from that of customer satisfaction.
C) unfavourable variances in budgeted expenses.
D) all of the above.
Q2) The difference between actual and budgeted results is known as a ________________.
Q3) The first step in the budgeting process is commonly:
A) preparation of the master budget and sub-budgets.
B) assessment of expected trading and operating conditions.
C) preparation of initial budget estimates.
D) consideration of past performance.
Q4) The budget process usually focuses on the time frame of one:
A) day.
B) week.
C) month.
D) year.
Q5) The master budget is a set of __________ budgets for a future period.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Costvolumeprofit Analysis
Available Study Resources on Quizplus for this Chatper
62 Verified Questions
62 Flashcards
Source URL: https://quizplus.com/quiz/73228
Sample Questions
Q1) A fixed cost is a cost that:
A) changes with changes in the level of activity.
B) stays the same per unit as the number of units changes.
C) stays the same irrespective of changes in the level of activity.
D) is a fixed proportion of profit.
Q2) Which of the following statements is correct? If the activity level goes outside the relevant range:
A) fixed costs can no longer be assumed to be fixed.
B) fixed costs will remain constant.
C) fixed costs will always increase.
D) fixed costs will always decrease.
Q3) The range of activity over which costs are assumed to be valid is the _____________ range.
Q4) If Jewel Ltd's selling price is $8 per unit,variable costs are $3 per unit and fixed costs are $300 000,the break-even number of sales units is:
A) 60 000 units.
B) 37 500 units.
C) 25 000 units.
D) 100 000 units.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Costing and Pricing in an Entity
Available Study Resources on Quizplus for this Chatper
62 Verified Questions
62 Flashcards
Source URL: https://quizplus.com/quiz/73227
Sample Questions
Q1) An example of a cost allocation using a resource driver would be:
A) allocating rent expense based on the metres of floor space within the factory taken up by a particular activity.
B) allocating rates based on the metres of land taken up by a particular activity.
C) all of these options is an example of a cost allocation using a resource driver.
D) allocating electricity costs according to kilowatt hours used to complete an activity.
Q2) Which of these is an indirect cost if the cost object is the servicing department of a motor vehicle dealership?
A) Rental of full site of business premises.
B) Wages of servicing mechanics.
C) Maintenance of servicing machinery.
D) Spare parts for the servicing of vehicles.
Q3) The costs that are incurred for the benefit of multiple cost objects are _____________ (direct/indirect)costs.
Q4) A cost object is an object that has a __________________ measurement of cost.
To view all questions and flashcards with answers, click on the resource link above.
Page 13
Chapter 12: Capital Investment
Available Study Resources on Quizplus for this Chatper
63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/73226
Sample Questions
Q1) The effect of dividend imputation on the PV analysis of investments will depend on the ______________ structure of the entity involved.
Q2) Making an investment decision also requires consideration of:
A) any taxation impacts.
B) social responsibilities.
C) available monetary and human resources.
D) All of the above require consideration.
Q3) The payback period method of investment decision making is generally regarded as:
A) mostly accurate.
B) very accurate.
C) too simplistic to be the only tool used in decision-making.
D) too complex for normal use.
Q4) Ranking projects with a higher NPV above other projects when capital is limited is considered to be a/an _________ (advantage/disadvantage)of the NPV method.
Q5) Investments requiring specialised services must also consider whether or not the ____________ with the relevant skills will be available when they are needed.
Q6) The ___________ (shorter/longer)a payback period is,the greater the risk.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Financing the Business
Available Study Resources on Quizplus for this Chatper
63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/73225
Sample Questions
Q1) The penalty for insolvency is:
A) the winding up of the entity.
B) a possible jail term for the shareholders.
C) a fine determined by the ASIC.
D) an increase in the tax rate payable for the next 2 years.
Q2) An entity that does not have enough cash to meet its financial obligations as they fall due is said to be:
A) liquid.
B) dissolved.
C) insolvent.
D) wound up.
Q3) Which of the following is a characteristic of a fixed rate business loan?
A) The interest rate may be converted to a variable rate after the initial period expires.
B) The term of the loan is usually up to 25 years.
C) All of these options are characteristics of a fixed rate business loan.
D) The loan may be unsecured, secured with entity assets, or secured with residential property.
Q4) One aspect of managing the entity's credit policy is selecting suitable_____________ customers.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Performance Measurement
Available Study Resources on Quizplus for this Chatper
62 Verified Questions
62 Flashcards
Source URL: https://quizplus.com/quiz/73224
Sample Questions
Q1) When evaluating the performance of divisions:
A) only controllable costs should be identified.
B) both controllable and non-controllable revenues and costs should be identified.
C) only uncontrollable revenues should be identified.
D) none of the options are correct.
Q2) An issue with using the original cost of an investment for the purposes of calculating ROI & RI is that:
A) there may be a delay in the replacement of the asset.
B) the asset may be replaced too early.
C) the calculation is based on today's costs.
D) the calculations will become more favourable over time.
Q3) The ___________ value added performance measure is based on the economic increase in an organisation's value after a suitable charge for capital is deducted.
Q4) The format generally used when reporting on divisional performance is a:
A) gross profit format.
B) net profit format.
C) contribution margin format.
D) a balance sheet format.
To view all questions and flashcards with answers, click on the resource link above.
Page 16