Chapter 5: Regulation of accounting and financial reporting
Quiz
What are the accounting standards issued by the IASB called? (Difficulty: Easy)
Internationally Accepted Accounting Standards
International Financial Accounting Standards
International Accounting Principles
International Financial Reporting Standards
From which year do all listed EU companies have to prepare their consolidated financial statements in accordance with International Accounting Standards? (Difficulty: Easy)
2003
2005
2004
2006
The IASB specifies that ‘the elements directly related to the measurement of financial position are: (Difficulty: Moderate)
assets, liabilities and profit’
expenses, revenues and equity’
expenses, revenues and profit’
assets, liabilities and equity’
Which of the following is not a long-term liability? (Difficulty: Easy)
Accounts payable (for payables due in more than one year)
Bank borrowings reimbursable in more than one year
Bank overdrafts
Bonds
Where is the decreasing liquidity approach commonly used? (Difficulty: Easy)
German-speaking countries
North America
European countries
None of these
Which of the following is not a current asset? (Difficulty: Easy)
Accounts receivable
Inventory of finished products
Inventory of raw materials
Land
Which of the following is a financial asset? (Difficulty: Easy)
Inventories
Equipment
Loan to an associate
Accounts receivable
Classification by nature of the balance sheet is the method often used in: (Difficulty: Easy)
North America
Asia
Continental and East European countries
All of these
Continental European balance sheets reflect a patrimonial approach and so list current assets at the top. (Difficulty: Easy)
True
False
The classification of the income statement by nature is often adopted in the USA. (Difficulty: Easy)
True
False
In the income statement by function, the line item ‘personnel expenses’ (or an equivalent item) is usually disclosed. (Difficulty: Easy)