ATP revision question

The following are a part of the seven elements in the conceptual framework:

i. The objective of financial reporting

ii. qualitative characteristics

iii. reporting entity description and boundary

iv. Historical value

• i,ii,iii,iv

• i,ii and iii

• ii,iii,iv

• None

The conceptual framework is a structured theory of accounting which has all the following conditions EXCEPT

• deals with principles and rules of recognition and measurement and report disclosures.

• States the scope and objectives of financial eporting

• identifies and defines qualitative characteristics of financial information

• describes measurement basis and provide explanations

Which one of the following statement TRUE about accounting standard?

• Discuss accounting issues

• Help auditor to resolve financial reporting problems

• improve the credibility and reliability of financial statements

• Guide standard setters in establishing and reviewing financial reporting regulations

The following are reasons why accountants need a conceptual framework: Choose the False statement

i. Lack of general theory

ii. Permissiveness of accounting theory

iii. inconsistency of practices

iv. allow transparency and accuracy of transactions

v. help prevent fraudulent and misleading activities

• i,ii,iii

• i,ii,iv

• iv and v

• i and iv

Choose the correct statement about conceptual framework.

i. Discuss issues of accounting

ii. more flexible as compared to standard

iii. Principle based concepts

iv. defends decisions made by accountants

v. help reforming accounting theory

• i,ii,iv

• i,ii,iii and iv

• i,ii,iii

• All of the statements

There are several main requirements in an accounting standard; which is a false requirement?

i. Objectives of the standard

ii. Scope of the standard

iii. definition of the terms used

iv. structure and content

v. transaction and effective date

• All of the statements

• None of the statements

• i,ii and iii

• i,ii, iv

Select the CORRECT body that is involved in the formulation of accounting standards.

• International Accounting standard Body

• Malaysian Institute of Accountant

• International Audit Standarf Board

• Federation of Accounting Profession

What is one common difference between IASB and MASB?

• Both are international body

• Involvement in standard setting

• Self-funded organisation

• enhancing accounting profession

Who are the standard-setting bodies in Malaysia?

• MASB & FRF

• IASB & EU

• IFAC & IOSCO

• None of the them

Harmonization and standardisation are two similar activities.

• TRUE

• FALSE