ACC 209 CBT PRACTICE

Phil 10 hours agoLast Updated: January 21, 2025

0 398 1 minute read

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

I wish you success

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ACC 209

1 / 40

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

A. Highlight flaws in existing accounting standards.

B. Compare performance between entities.

C. Simplify tax reporting for global entities.

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

2 / 40

2. One reason IFRS boosts comparability is:

A. Uniform reporting templates.

B. Emphasis on tax optimization

C. Decrease in disclosure requirements

D. Transparency in accounting practices.

3 / 40

3. What is the primary objective of the IASB?

A. To enforce national accounting standards

B. To develop and approve International Financial Reporting Standards

C. To fund the IFRS Foundation

D. To audit financial statements

4 / 40

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

A. Revenue realization procedures

B. Recognition criteria outlined in IFRS.

C. Measurement standards for fixed assets.

D. The intended time for realization or settlement.

5 / 40

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

A. Verifiable evidence framework.

B. Business entity concept.

C. Accrual recognition principle.

D. Full disclosure obligation.

6 / 40

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

A. Development of new accounting terminologies.

B. Avoidance of accounting automation.

C. Assurance of financial clarity and honesty.

D. Restriction of stakeholder involvement.

7 / 40

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

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

B. Tax compliance of an entity.

C. Investment potential of stakeholders.

D. Industry benchmarks for the business.

8 / 40

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

A. International Financial Reporting Interpretation Committee (IFRIC)

B. International Financial Accounting Standards Board

C. Standards Advisory Council (SAC)

D. IFRS Foundation

9 / 40

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

A. Focus on local regulations only.

B. Implementing IFRS standards.

C. Adoption of inconsistent standards.

D. Removal of financial disclosures

10 / 40

10. Financial reporting under IFRS enhances global reputation by:

A. Ensuring financial secrecy.

B. Avoiding standardized processes.

C. Increasing foreign investment and credibility.

D. Restricting international collaborations

11 / 40

11. The accrual concept allows transactions to be recorded:

A. After a fiscal review by management.

B. Only upon receiving payment

C. When expenses are settled

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

12 / 40

12. What does completeness in financial statements require?

A. Biased representation of financial data

B. Exclusion of irrelevant data

C. All necessary information for understanding financial performance

D. Only basic financial data inclusion

13 / 40

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

A. Equity-based calculations

B. Verifiable evidence provision

C. Historical cost consistency.

D. Application of materiality.

14 / 40

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

A. Historical cost concept.

B. Modified cash basis method

C. Revenue generation principle

D. Inventory adjustment mechanism.

15 / 40

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

A. Completeness, neutrality, and absence of material errors

B. Emphasis on predictive value only

C. Bias and material errors

D. Limited descriptions and selective disclosures

16 / 40

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

A. Verifiability

B. Confirmatory value.

C. Comparability

D. Predictive value

17 / 40

17. One reason IFRS boosts comparability is:

A. Decrease in disclosure requirements

B. Emphasis on tax optimization

C. Uniform reporting templates.

D. Transparency in accounting practices.

18 / 40

18. Qualitative characteristics making financial information useful include

A. Predictive value and neutral representation

B. Uniform tax rules across entities

C. Simplicity and flexibility.

D. Reduced focus on comparability

19 / 40

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

A. 1973

B. 2001

C. 1990

D. 2010

20 / 40

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

A. Accrual basis approach.

B. Cash basis methodology.

C. Revenue realization concept.

D. Historical cost approach.

21 / 40

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

A. Accrual and timing guidelines.

B. Full disclosure principle.

C. Historical value representation

D. Verifiability requirement.

22 / 40

22. How does IFRS promote global financial trust?

A. By eliminating the need for financial reporting

B. By focusing exclusively on small enterprises

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

D. By allowing different countries to maintain unique standards

23 / 40

23. Benefits of adopting IFRS include

A. Simplified auditing standards only.

B. Improved access to global capital markets

C. Reduction in reporting quality.

D. Exclusive use by developed countries

24 / 40

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

A. Dual aspect guideline.

B. Going concern assumption.

C. Accrual basis principle.

D. Materiality concept.

25 / 40

25. Developing countries benefit from IFRS through:

A. Reducing access to international markets.

B. Increasing inconsistency in financial statements.

C. Minimizing international confidence.

D. Improving corporate governance and transparency.

26 / 40

26. Who appoints members of the IASB?

A. International financial institutions

B. Trustees of the IFRS Foundation

C. National governments

D. Shareholders of global corporations

27 / 40

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

A. To manage national accounting standards

B. To approve exposure drafts

C. To oversee the IASB's funding

D. To review financial reporting issues not addressed by IFRS

28 / 40

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

A. Financial secrecy.

B. Investment secrecy.

C. Corporate governance.

D. Audit delay mechanisms

29 / 40

29. Why is faithful representation crucial in financial statements?

A. To focus on hypothetical scenarios

B. To reduce transparency in reporting

C. To ensure accurate and unbiased presentation of financial data

D. To align with national accounting standards

30 / 40

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

A. 120 countries.

B. Over 160 countries.

C. Only European Union members.

D. Less than 100 countries.

31 / 40

31. A key distinction between IFRS and GAAP is:

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

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

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

D. Both exclusively serve private companies.

32 / 40

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

A. To advise the IASB on financial reporting issues

B. To manage the financial affairs of companies

C. To enforce IFRS compliance globally

D. To provide financial reporting templates

33 / 40

33. What does neutrality in financial statements imply?

A. Financial statements should exclude external review

B. Financial statements must favor creditors over shareholders

C. Bias in favor of management decisions

D. Information must not be manipulated to influence decisions

34 / 40

34. Why was the IFRS established?

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

B. To focus solely on small enterprises

C. To replace financial reporting globally

D. To harmonize accounting treatments and ensure global comparability

35 / 40

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

A. Dividends and short-term loans.

B. Current liabilities and retained earnings.

C. Non-current assets and common stock.

D. Share capital and retained earnings

36 / 40

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

A. Materiality and neutrality

B. Relevance and faithful representation

C. Predictive value and confirmatory value

D. Transparency and accuracy

37 / 40

37. How does adopting IFRS benefit developing countries?

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

B. It eliminates the need for financial audits

C. It focuses on domestic economic growth

D. It reduces the need for corporate governance

38 / 40

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

A. Full disclosure policy

B. Historical cost approach

C. Money measurement rule

D. Dual aspect principle.

39 / 40

39. Verification of financial information's independence ensures:

A. Simplified presentation and disclosure.

B. Increased predictive value.

C. Elimination of errors in reporting

D. Faithful representation through independent verification.

40 / 40

40. Why do developing countries benefit from adopting IFRS?

A. It restricts access to global capital markets

B. It eliminates corporate governance requirements

C. It replaces all local accounting standards

D. It improves financial reporting quality and enhances credibility

Your score is

The average score is 65%

Phil 10 hours agoLast Updated: January 21, 2025

0 398 1 minute read

ACC 209 CBT PRACTICE

Phil

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