Take your time to read instructions before taking this test.

There are 40 questions which you are to answer in 15 minutes that gives you roughly 30 seconds per question.

If you can get at least 60%, you can be rest assured that you’ll ace ACC 209 exam

In a normal exam you will be asked between 40 – 60 questions but I only arranged 40 questions

Note

Do not be in a hurry to answer the questions

Do not waste time on a question you don’t know

Move as fast as possible and starting with questions that don’t have calculation first to save time

Always crosscheck

Don’t be in a hurry to submit, you are not in a competition

Don’t be scared. Getting an A is easy

Don’t be over confident, you can end up a D, E or F. Calm your blood, no be only you sabi book

Please do well to use our comment box incase there’s a message you want to pass to us

70 – 100 A

60 – 69 B

50 – 59 C

45 – 49 D

40 – 44 E

0 – 39 F

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ACC 209

1 / 40

1. What is the primary objective of the IASB?

A. To fund the IFRS Foundation

B. To enforce national accounting standards

C. To audit financial statements

D. To develop and approve International Financial Reporting Standards

2 / 40

2. Information aiding the confirmation or change of past predictions relates to:

A. Predictive value

B. Comparability

C. Confirmatory value.

D. Verifiability

3 / 40

3. The number of countries that have adopted IFRS includes:

A. Over 160 countries.

B. 120 countries.

C. Only European Union members.

D. Less than 100 countries.

4 / 40

4. Who appoints members of the IASB?

A. International financial institutions

B. Shareholders of global corporations

C. National governments

D. Trustees of the IFRS Foundation

5 / 40

5. Fixed assets being listed at original purchase price relates to:

A. Inventory adjustment mechanism.

B. Modified cash basis method

C. Historical cost concept.

D. Revenue generation principle

6 / 40

6. Financial statements assuming operational continuation over the foreseeable future follow:

A. Materiality concept.

B. Going concern assumption.

C. Accrual basis principle.

D. Dual aspect guideline.

7 / 40

7. Entities rounding off financial figures to the nearest significant unit demonstrate:

A. Historical cost consistency.

B. Application of materiality.

C. Verifiable evidence provision

D. Equity-based calculations

8 / 40

8. The fundamental goal of the Conceptual Framework for Financial Reporting is to:

A. Highlight flaws in existing accounting standards.

B. Simplify tax reporting for global entities.

C. Establish a coherent foundation for IFRS development and application.

D. Compare performance between entities.

9 / 40

9. How does IFRS promote global financial trust?

A. By focusing exclusively on small enterprises

B. By allowing different countries to maintain unique standards

C. By eliminating the need for financial reporting

D. By ensuring consistency, transparency, and comparability in financial statements

10 / 40

10. Benefits of adopting IFRS include

A. Exclusive use by developed countries

B. Simplified auditing standards only.

C. Improved access to global capital markets

D. Reduction in reporting quality.

11 / 40

11. What does completeness in financial statements require?

A. Biased representation of financial data

B. Only basic financial data inclusion

C. All necessary information for understanding financial performance

D. Exclusion of irrelevant data

12 / 40

12. Why was the IFRS established?

A. To replace financial reporting globally

B. To focus solely on small enterprises

C. To harmonize accounting treatments and ensure global comparability

D. To eliminate the need for financial reporting in developing countries

13 / 40

13. How does adopting IFRS benefit developing countries?

A. It focuses on domestic economic growth

B. It ensures access to global capital markets and enhances credibility

C. It eliminates the need for financial audits

D. It reduces the need for corporate governance

14 / 40

14. Revenue is recognized during the period a sale occurs under:

A. Revenue realization concept.

B. Historical cost approach.

C. Accrual basis approach.

D. Cash basis methodology.

15 / 40

15. The primary components of equity within financial statements encompass:

A. Non-current assets and common stock.

B. Share capital and retained earnings

C. Current liabilities and retained earnings.

D. Dividends and short-term loans.

16 / 40

16. A key distinction between IFRS and GAAP is:

A. IFRS uses a rules-based approach; GAAP uses a standards-based approach.

B. Both exclusively serve private companies.

C. IFRS is globally applied; GAAP is used only in the U.S.

D. GAAP focuses on small entities; IFRS targets corporations.

17 / 40

17. The goal shared by both IFRS and GAAP is:

A. Restriction of stakeholder involvement.

B. Avoidance of accounting automation.

C. Development of new accounting terminologies.

D. Assurance of financial clarity and honesty.

18 / 40

18. The guideline ensuring every transaction impacts two accounts is identified as:

A. Dual aspect principle.

B. Money measurement rule

C. Full disclosure policy

D. Historical cost approach

19 / 40

19. The classification of assets into current and non-current categories depends on:

A. Measurement standards for fixed assets.

B. The intended time for realization or settlement.

C. Recognition criteria outlined in IFRS.

D. Revenue realization procedures

20 / 40

20. Why is faithful representation crucial in financial statements?

A. To ensure accurate and unbiased presentation of financial data

B. To reduce transparency in reporting

C. To focus on hypothetical scenarios

D. To align with national accounting standards

21 / 40

21. What is a responsibility of the IFRS Interpretation Committee (IFRSIC)?

A. To review financial reporting issues not addressed by IFRS

B. To manage national accounting standards

C. To oversee the IASB's funding

D. To approve exposure drafts

22 / 40

22. The purpose of general-purpose financial statements includes providing insights on:

A. Investment potential of stakeholders.

B. Financial position, performance, and cash flows of an entity.

C. Industry benchmarks for the business.

D. Tax compliance of an entity.

23 / 40

23. The accrual concept allows transactions to be recorded:

A. Only upon receiving payment

B. When expenses are settled

C. After a fiscal review by management.

D. During the period in which they occur, regardless of payment timing.

24 / 40

24. Why do developing countries benefit from adopting IFRS?

A. It eliminates corporate governance requirements

B. It improves financial reporting quality and enhances credibility

C. It restricts access to global capital markets

D. It replaces all local accounting standards

25 / 40

25. Financial reporting under IFRS enhances global reputation by:

A. Increasing foreign investment and credibility.

B. Ensuring financial secrecy.

C. Restricting international collaborations

D. Avoiding standardized processes.

26 / 40

26. Transparency and trust in global markets are promoted by:

A. Adoption of inconsistent standards.

B. Implementing IFRS standards.

C. Removal of financial disclosures

D. Focus on local regulations only.

27 / 40

27. The robust internal controls required under IFRS primarily enhance:

A. Corporate governance.

B. Financial secrecy.

C. Investment secrecy.

D. Audit delay mechanisms

28 / 40

28. What is required for faithful representation in financial statements?

A. Limited descriptions and selective disclosures

B. Emphasis on predictive value only

C. Bias and material errors

D. Completeness, neutrality, and absence of material errors

29 / 40

29. What is one of the main roles of the IFRS Advisory Committee?

A. To advise the IASB on financial reporting issues

B. To enforce IFRS compliance globally

C. To manage the financial affairs of companies

D. To provide financial reporting templates

30 / 40

30. When was the International Accounting Standards Board (IASB) formed?

A. 2010

B. 2001

C. 1973

D. 1990

31 / 40

31. Developing countries benefit from IFRS through:

A. Minimizing international confidence.

B. Reducing access to international markets.

C. Improving corporate governance and transparency.

D. Increasing inconsistency in financial statements.

32 / 40

32. What does neutrality in financial statements imply?

A. Financial statements should exclude external review

B. Information must not be manipulated to influence decisions

C. Bias in favor of management decisions

D. Financial statements must favor creditors over shareholders

33 / 40

33. Verification of financial information's independence ensures:

A. Increased predictive value.

B. Simplified presentation and disclosure.

C. Faithful representation through independent verification.

D. Elimination of errors in reporting

34 / 40

34. One reason IFRS boosts comparability is:

A. Emphasis on tax optimization

B. Decrease in disclosure requirements

C. Uniform reporting templates.

D. Transparency in accounting practices.

35 / 40

35. One reason IFRS boosts comparability is:

A. Decrease in disclosure requirements

B. Uniform reporting templates.

C. Emphasis on tax optimization

D. Transparency in accounting practices.

36 / 40

36. Qualitative characteristics making financial information useful include

A. Reduced focus on comparability

B. Predictive value and neutral representation

C. Uniform tax rules across entities

D. Simplicity and flexibility.

37 / 40

37. Information necessary for financial decisions by investors and creditors adheres to:

A. Accrual and timing guidelines.

B. Verifiability requirement.

C. Historical value representation

D. Full disclosure principle.

38 / 40

38. What are the two major qualitative characteristics of financial statements?

A. Materiality and neutrality

B. Predictive value and confirmatory value

C. Relevance and faithful representation

D. Transparency and accuracy

39 / 40

39. Which committee was replaced by the IFRS Interpretation Committee (IFRSIC) in 2010?

A. International Financial Accounting Standards Board

B. Standards Advisory Council (SAC)

C. IFRS Foundation

D. International Financial Reporting Interpretation Committee (IFRIC)

40 / 40

40. Separation of financial information for a business and its owner is mandated by:

A. Full disclosure obligation.

B. Accrual recognition principle.

C. Business entity concept.

D. Verifiable evidence framework.

Your score is

The average score is 65%

ACC 209 CBT PRACTICE

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