172 Free Test Bank for Financial Accounting IFRS Edition 2nd Edition by Weygandt

Count on 172 free test bank for Financial Accounting IFRS Edition 2nd Edition by Weygandt multiple choice questions for your exam study and revision. They are financial accounting test questions that come in a large quantity and high quality. Designed for an acclaimed textbook, this sample shows pertinent coverage of accounting in action (chapter 1), addressing the chapter learning objectives, sharpening your critical thinking and reflective thinking and aiding you in knowledge mastery. Also, a list of sample questions help you understand the type of exam questions and have familiarity with the real exam conditions. Hope you enjoy and benefit from practising it!

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External users of accounting information include the

•  a. lnternational Accounting Standards Board.
•  b. shareholders of Ferragamo.
•  c. Marketing department at Olivetti.
•  d. CEO of Air Italy.

IFRS are determined by the

•  a. Internal Accounting Standards Body.
•  b. International Accounting Studies Board.
•  c. International Accounting Standards Board.
•  d. International Auditors' Standards Body.

Asian Company purchased land for W92,000,000 in 2000. At December 31, 2014, an appraisal determined the fair value of the land is W106,000,000. The company has an investment in the ordinary shares of another company for which it paid W49,000,000 in 2012.The shares are actively traded on the South Korea Stock Exchange. The fair value of the investment at December 31, 2014 is W63,000,000. The land and investment will be reported on the December 31, 2014 statement of financial position at

•  a. W92,000,000 and W49,000,000, respectively.
•  b. W92,000,000 and W63,000,000, respectively.
•  c. W106,000,000 and W49,000,000, respectively.
•  d. W106,000,000 and W63,000,000, respectively.

Internal users of accounting information include

•  a. the shareholders of Royal Dutch Shell.
•  b. the State Administration of Taxation of China.
•  c. the Chief Financial officer of Credit Suisse.
•  d. the International Accounting Standards Board.

The assumption that enables accounting to quantify (measure) economic events is the

•  a. economic entity assumption.
•  b. cost principle.
•  c. historical cost principle.
•  d. monetary unit assumption.

The economic entity assumption requires that the activities

•  a. of different entities can be combined if all the entities are corporations.
•  b. must be reported to the Securities and Exchange Commission.
•  c. of a sole proprietorship cannot be distinguished from the personal economic events of its owners.
•  d. of an entity be kept separate from the activities of its owner.

Which of the following techniques is not used by accountants to interpret and report financial information?

•  a. Graphs.
•  b. Special memos for each class of external users.
•  c. Charts.
•  d. Ratios.

When assets are distributed to the shareholders of a corporation, these distributions are termed

•  a. depletions.
•  b. consumptions.
•  c. dividends.
•  d. a credit line.

Equity is best depicted by the following:

•  a. Assets = Liabilities.
•  b. Liabilities + Assets.
•  c. Residual equity + Assets.
•  d. Assets – Liabilities.

External users of accounting information include all of following except

•  a. the shareholders of Air Italy.
•  b. the management of Pirelli.
•  c. a potential customers of Olivetti.
•  d. All of these answer choices are correct.

A basic assumption of accounting that requires activities of an entity be kept separate from the activities of its owner is referred to as the

•  a. stand alone concept.
•  b. monetary unit assumption.
•  c. corporate form of ownership.
•  d. economic entity assumption.

Bookkeeping primarily involves which of the following parts of the accounting process?

•  a. Identification.
•  b. Communication.
•  c. Recording.
•  d. Analysis.

Recording of economic events involves

•  a. keeping a systematic, chronological diary of events.
•  b. analyzing reported information.
•  c. explaining the meaning of reported data.
•  d. preparing accounting reports.

The historical cost principle requires that companies record assets at their

•  a. appraisal value.
•  b. cost.
•  c. market price.
•  d. list price.

Convergence refers to

•  a. using the same accounting principles from one period to the next.
•  b. use of the same accounting principles by all companies.
•  c. the elimination of all accounting standard-setting bodies except the International Accounting Standards Board.
•  d. the process of reducing the differences between IFRS and GAAP.

Equity can be described as

•  a. creditorship claim on total assets.
•  b. ownership claim on total assets.
•  c. benefactor's claim on total assets.
•  d. debtor claim on total assets.

The origins of accounting are generally attributed to the work of

•  a. Christopher Columbus.
•  b. Abner Doubleday.
•  c. Luca Pacioli.
•  d. Leonardo da Vinci.

Communication of economic events is the part of the accounting process that involves

•  a. identifying economic events.
•  b. quantifying transactions into dollars and cents.
•  c. preparing accounting reports.
•  d. recording and classifying information.

Liabilities

•  a. are future economic benefits.
•  b. are existing debts and obligations.
•  c. possess service potential.
•  d. are things of value used by the business in its operation.

Which of the following is not an advantage of the corporate form of business organization?

•  a. Limited liability of shareholders
•  b. Transferability of ownership
•  c. Unlimited personal liability for shareholders
•  d. Unlimited life

The fair value principle

•  a. is one of the two costing principles followed by the IASB.
•  b. is more useful than the historical cost principle for valuing some assets.
•  c. dictates that an asset should be valued at the price at which it could be sold.
•  d. All of these answer choices are correct.

GAAP stands for

•  a. Generally Accepted Auditing Procedures.
•  b. Generally Accepted Accounting Principles.
•  c. Generally Accepted Auditing Principles.
•  d. Generally Accepted Accounting Procedures.