Home CBT TEST ACC 209 CBT PRACTICE

CBT TEST

ACC 209 CBT PRACTICE

Phil

January 21, 2025

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

A. 2001

B. 2010

C. 1973

D. 1990

2 / 40

2. The accrual concept allows transactions to be recorded:

A. When expenses are settled

B. After a fiscal review by management.

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

D. Only upon receiving payment

3 / 40

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

A. Restriction of stakeholder involvement.

B. Development of new accounting terminologies.

C. Avoidance of accounting automation.

D. Assurance of financial clarity and honesty.

4 / 40

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

A. Bias and material errors

B. Emphasis on predictive value only

C. Limited descriptions and selective disclosures

D. Completeness, neutrality, and absence of material errors

5 / 40

5. Why was the IFRS established?

A. To focus solely on small enterprises

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

C. To harmonize accounting treatments and ensure global comparability

D. To replace financial reporting globally

6 / 40

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

A. Simplify tax reporting for global entities.

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

C. Highlight flaws in existing accounting standards.

D. Compare performance between entities.

7 / 40

7. Financial reporting under IFRS enhances global reputation by:

A. Restricting international collaborations

B. Increasing foreign investment and credibility.

C. Avoiding standardized processes.

D. Ensuring financial secrecy.

8 / 40

8. 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.

9 / 40

9. 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.

10 / 40

10. 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.

11 / 40

11. What does neutrality in financial statements imply?

A. Bias in favor of management decisions

B. Financial statements should exclude external review

C. Financial statements must favor creditors over shareholders

D. Information must not be manipulated to influence decisions

12 / 40

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

A. Revenue realization procedures

B. Recognition criteria outlined in IFRS.

C. The intended time for realization or settlement.

D. Measurement standards for fixed assets.

13 / 40

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

A. Predictive value

B. Confirmatory value.

C. Comparability

D. Verifiability

14 / 40

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

A. Historical value representation

B. Accrual and timing guidelines.

C. Full disclosure principle.

D. Verifiability requirement.

15 / 40

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

A. Money measurement rule

B. Full disclosure policy

C. Dual aspect principle.

D. Historical cost approach

16 / 40

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

A. Accrual basis approach.

B. Revenue realization concept.

C. Cash basis methodology.

D. Historical cost approach.

17 / 40

17. Why do developing countries benefit from adopting IFRS?

A. It improves financial reporting quality and enhances credibility

B. It restricts access to global capital markets

C. It eliminates corporate governance requirements

D. It replaces all local accounting standards

18 / 40

18. Qualitative characteristics making financial information useful include

A. Uniform tax rules across entities

B. Predictive value and neutral representation

C. Reduced focus on comparability

D. Simplicity and flexibility.

19 / 40

19. Developing countries benefit from IFRS through:

A. Improving corporate governance and transparency.

B. Increasing inconsistency in financial statements.

C. Minimizing international confidence.

D. Reducing access to international markets.

20 / 40

20. One reason IFRS boosts comparability is:

A. Emphasis on tax optimization

B. Transparency in accounting practices.

C. Uniform reporting templates.

D. Decrease in disclosure requirements

21 / 40

21. How does IFRS promote global financial trust?

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

B. By allowing different countries to maintain unique standards

C. By eliminating the need for financial reporting

D. By focusing exclusively on small enterprises

22 / 40

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

A. Transparency and accuracy

B. Relevance and faithful representation

C. Predictive value and confirmatory value

D. Materiality and neutrality

23 / 40

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

A. International Financial Accounting Standards Board

B. International Financial Reporting Interpretation Committee (IFRIC)

C. IFRS Foundation

D. Standards Advisory Council (SAC)

24 / 40

24. 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

25 / 40

25. Why is faithful representation crucial in financial statements?

A. To ensure accurate and unbiased presentation of financial data

B. To align with national accounting standards

C. To focus on hypothetical scenarios

D. To reduce transparency in reporting

26 / 40

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

A. Application of materiality.

B. Verifiable evidence provision

C. Equity-based calculations

D. Historical cost consistency.

27 / 40

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

A. Accrual basis principle.

B. Dual aspect guideline.

C. Materiality concept.

D. Going concern assumption.

28 / 40

28. 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

29 / 40

29. A key distinction between IFRS and GAAP is:

A. Both exclusively serve private companies.

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

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

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

30 / 40

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

A. Implementing IFRS standards.

B. Removal of financial disclosures

C. Adoption of inconsistent standards.

D. Focus on local regulations only.

31 / 40

31. 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

32 / 40

32. What is the primary objective of the IASB?

A. To develop and approve International Financial Reporting Standards

B. To enforce national accounting standards

C. To fund the IFRS Foundation

D. To audit financial statements

33 / 40

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

A. Financial secrecy.

B. Corporate governance.

C. Investment secrecy.

D. Audit delay mechanisms

34 / 40

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

A. Historical cost concept.

B. Inventory adjustment mechanism.

C. Revenue generation principle

D. Modified cash basis method

35 / 40

35. What does completeness in financial statements require?

A. Exclusion of irrelevant data

B. All necessary information for understanding financial performance

C. Biased representation of financial data

D. Only basic financial data inclusion

36 / 40

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

A. Full disclosure obligation.

B. Business entity concept.

C. Accrual recognition principle.

D. Verifiable evidence framework.

37 / 40

37. Who appoints members of the IASB?

A. Shareholders of global corporations

B. International financial institutions

C. National governments

D. Trustees of the IFRS Foundation

38 / 40

38. Benefits of adopting IFRS include

A. Simplified auditing standards only.

B. Reduction in reporting quality.

C. Exclusive use by developed countries

D. Improved access to global capital markets

39 / 40

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

A. Current liabilities and retained earnings.

B. Share capital and retained earnings

C. Non-current assets and common stock.

D. Dividends and short-term loans.

40 / 40

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

A. To oversee the IASB's funding

B. To review financial reporting issues not addressed by IFRS

C. To manage national accounting standards

D. To approve exposure drafts

Your score is

The average score is 65%

ACC 209 CBT PRACTICE

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