Question

1. International financial reporting interpretations (issued by the International Accounting Standards Board)

Select one:

a. Are considered authoritative and must be followed

b, Cover issues where unsatisfactory or conflicting interpretations have developed

c. Cover newly identified financial reporting issues not specifically addressed by the IASB

d. All of the choices are correct regarding International financial reporting interpretations

2. The international financial reporting environment includes challenges in financial reporting including all of the following except:

Select one:

a. Political environment

b. Decision-usefulness

c. Expectations gap

d. Ethics

3. When should an expenditure be recorded as an asset rather than an expense?

Select one:

a. When economic benefit exists

b. If the amount is material

c. Never

d. Always

4. Which of the following is not a major challenge facing the accounting profession?

Select one:

a. Nonfinancial measurements

b. Forward-looking information

c. Accounting for hard assets

d. Timeliness

5. What is a possible danger if politics plays too big a role in developing IFRS?

Select one:

a, User groups become active

b. Financial reporting standards that are issued that are not truly generally accepted

c. The IASB delegates its authority to elected officials

d. Individuals may influence the standards

Answer 1

Answer(1): All of the choices are correct regarding International financial reporting interpretations.

Answer(2): Decision-usefulness is not a challenge.

Answer(3): When economic benefit exists then an expense should be recorded as an asset rather than an expense.

Answer(4): Accounting for hard assets is not a major challenge facing the accounting profession.

Answer(5): Financial reporting standards that are issued that are not truly generally accepted, is a possible danger if politics plays too big a role in developing IFRS.