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. 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.

2 / 40

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

A. Revenue realization concept.

B. Historical cost approach.

C. Cash basis methodology.

D. Accrual basis approach.

3 / 40

3. Who appoints members of the IASB?

A. International financial institutions

B. Shareholders of global corporations

C. Trustees of the IFRS Foundation

D. National governments

4 / 40

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

D. Simplify tax reporting for global entities.

5 / 40

5. 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 provide financial reporting templates

D. To manage the financial affairs of companies

6 / 40

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

A. Accrual recognition principle.

B. Verifiable evidence framework.

C. Full disclosure obligation.

D. Business entity concept.

7 / 40

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

A. Bias and material errors

B. Completeness, neutrality, and absence of material errors

C. Limited descriptions and selective disclosures

D. Emphasis on predictive value only

8 / 40

8. What is the primary objective of the IASB?

A. To audit financial statements

B. To develop and approve International Financial Reporting Standards

C. To fund the IFRS Foundation

D. To enforce national accounting standards

9 / 40

9. The accrual concept allows transactions to be recorded:

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

B. Only upon receiving payment

C. When expenses are settled

D. After a fiscal review by management.

10 / 40

10. One reason IFRS boosts comparability is:

A. Transparency in accounting practices.

B. Decrease in disclosure requirements

C. Emphasis on tax optimization

D. Uniform reporting templates.

11 / 40

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

A. Only European Union members.

B. Less than 100 countries.

C. 120 countries.

D. Over 160 countries.

12 / 40

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

A. 1990

B. 2001

C. 2010

D. 1973

13 / 40

13. Why was the IFRS established?

A. To harmonize accounting treatments and ensure global comparability

B. To focus solely on small enterprises

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

D. To replace financial reporting globally

14 / 40

14. Verification of financial information's independence ensures:

A. Faithful representation through independent verification.

B. Increased predictive value.

C. Simplified presentation and disclosure.

D. Elimination of errors in reporting

15 / 40

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

A. Full disclosure principle.

B. Accrual and timing guidelines.

C. Historical value representation

D. Verifiability requirement.

16 / 40

16. A key distinction between IFRS and GAAP is:

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

B. Both exclusively serve private companies.

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

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

17 / 40

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

A. To oversee the IASB's funding

B. To approve exposure drafts

C. To manage national accounting standards

D. To review financial reporting issues not addressed by IFRS

18 / 40

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

A. Inventory adjustment mechanism.

B. Revenue generation principle

C. Historical cost concept.

D. Modified cash basis method

19 / 40

19. Benefits of adopting IFRS include

A. Simplified auditing standards only.

B. Reduction in reporting quality.

C. Improved access to global capital markets

D. Exclusive use by developed countries

20 / 40

20. Why do developing countries benefit from adopting IFRS?

A. It restricts access to global capital markets

B. It replaces all local accounting standards

C. It eliminates corporate governance requirements

D. It improves financial reporting quality and enhances credibility

21 / 40

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

A. Development of new accounting terminologies.

B. Assurance of financial clarity and honesty.

C. Restriction of stakeholder involvement.

D. Avoidance of accounting automation.

22 / 40

22. What does neutrality in financial statements imply?

A. Financial statements must favor creditors over shareholders

B. Financial statements should exclude external review

C. Information must not be manipulated to influence decisions

D. Bias in favor of management decisions

23 / 40

23. One reason IFRS boosts comparability is:

A. Transparency in accounting practices.

B. Uniform reporting templates.

C. Decrease in disclosure requirements

D. Emphasis on tax optimization

24 / 40

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

A. Transparency and accuracy

B. Predictive value and confirmatory value

C. Materiality and neutrality

D. Relevance and faithful representation

25 / 40

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

A. Current liabilities and retained earnings.

B. Non-current assets and common stock.

C. Dividends and short-term loans.

D. Share capital and retained earnings

26 / 40

26. Financial reporting under IFRS enhances global reputation by:

A. Avoiding standardized processes.

B. Ensuring financial secrecy.

C. Restricting international collaborations

D. Increasing foreign investment and credibility.

27 / 40

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

A. Audit delay mechanisms

B. Corporate governance.

C. Investment secrecy.

D. Financial secrecy.

28 / 40

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

A. Confirmatory value.

B. Verifiability

C. Predictive value

D. Comparability

29 / 40

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

A. IFRS Foundation

B. International Financial Accounting Standards Board

C. International Financial Reporting Interpretation Committee (IFRIC)

D. Standards Advisory Council (SAC)

30 / 40

30. What does completeness in financial statements require?

A. All necessary information for understanding financial performance

B. Exclusion of irrelevant data

C. Only basic financial data inclusion

D. Biased representation of financial data

31 / 40

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

A. Dual aspect guideline.

B. Accrual basis principle.

C. Going concern assumption.

D. Materiality concept.

32 / 40

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

A. Investment potential of stakeholders.

B. Tax compliance of an entity.

C. Industry benchmarks for the business.

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

33 / 40

33. How does adopting IFRS benefit developing countries?

A. It eliminates the need for financial audits

B. It reduces the need for corporate governance

C. It focuses on domestic economic growth

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

34 / 40

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

A. Verifiable evidence provision

B. Application of materiality.

C. Historical cost consistency.

D. Equity-based calculations

35 / 40

35. How does IFRS promote global financial trust?

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

B. By focusing exclusively on small enterprises

C. By allowing different countries to maintain unique standards

D. By eliminating the need for financial reporting

36 / 40

36. Qualitative characteristics making financial information useful include

A. Predictive value and neutral representation

B. Reduced focus on comparability

C. Uniform tax rules across entities

D. Simplicity and flexibility.

37 / 40

37. 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

38 / 40

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

A. Money measurement rule

B. Historical cost approach

C. Full disclosure policy

D. Dual aspect principle.

39 / 40

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

A. Adoption of inconsistent standards.

B. Focus on local regulations only.

C. Implementing IFRS standards.

D. Removal of financial disclosures

40 / 40

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

A. Recognition criteria outlined in IFRS.

B. The intended time for realization or settlement.

C. Revenue realization procedures

D. Measurement standards for fixed assets.

Your score is

The average score is 65%

ACC 209 CBT PRACTICE

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