Test Bank for International Financial Reporting and Analysis, 9th Edition by David Alexander
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Course
Financial Analysis
Institution
Financial Analysis
Test Bank for International Financial Reporting and Analysis, 9e 9th Edition by David Alexander, Ann Jorissen/Martin Hoogendoorn/Carien van Mourik.
Full Chapters test bank included
Chapter 1: A Brief Introduction to International Financial Reporting
Objectives
1.1 Introduction
1.2 Internat...
Indicate the answer choice that best completes the statement or answers the question.
1. In a number of countries (such as the US), the objective of financial reporting is primarily to:
a. help accomplish macroeconomic policies.
b. ensure that the proper amount of income tax is collected by the national government.
c. achieve a predetermined rate of growth in the nation’s economy.
d. establish a minimum standard for the quality of information between managers and investors.
2. The acronym IASB stands for:
a. Internal Accounting Standards Bureau.
b. International Accounting Settlements Board.
c. International Accounting Standards Bureau.
d. International Accounting Standards Board.
3. IFRS Standards are not necessarily consistently applied and enforced across countries because:
a. IFRS Standards have been written in the English language and with a different kind of institutional
environment in mind.
b. IFRS Standards are only available in English.
c. IFRS Standards are adopted voluntarily by companies.
d. IFRS Standards are difficult to interpret by preparers.
4. Which of the following is NOT an objective of financial reporting under IFRS Standards?
a. To provide information to shareholders.
b. To provide information to managers.
c. To provide information to creditors.
d. To provide information to investors.
5. Limited liability means:
a. the business entity’s liabilities is limited to the amount that shareholders have invested.
b. the business can issue their shares publicly.
c. the limited company’s creditors have a claim on the wealth of the company’s shareholders.
d. the business cannot have the suffix ‘Ltd’.
6. Equity investors need financial reporting information because:
a. they want to know if the company pays decent wages to the employees.
b. they want to know if the company pays attention to diversity policies.
c. they want to make the decision to hold, buy or sell their shares in the company.
d. they want to know if the management can be trusted.
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