CBT TEST

ACC 209 CBT PRACTICE

Phil January 21, 2025Last Updated: January 21, 2025

0 1,068 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. Information aiding the confirmation or change of past predictions relates to:

A. Verifiability

B. Confirmatory value.

C. Comparability

D. Predictive value

2 / 40

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

A. Money measurement rule

B. Historical cost approach

C. Dual aspect principle.

D. Full disclosure policy

3 / 40

3. Who appoints members of the IASB?

A. National governments

B. Shareholders of global corporations

C. Trustees of the IFRS Foundation

D. International financial institutions

4 / 40

4. 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 eliminating the need for financial reporting

D. By allowing different countries to maintain unique standards

5 / 40

5. How does adopting IFRS benefit developing countries?

A. It reduces the need for corporate governance

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

C. It focuses on domestic economic growth

D. It eliminates the need for financial audits

6 / 40

6. 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 replaces all local accounting standards

D. It restricts access to global capital markets

7 / 40

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

A. Accrual recognition principle.

B. Verifiable evidence framework.

C. Business entity concept.

D. Full disclosure obligation.

8 / 40

8. A key distinction between IFRS and GAAP is:

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

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

C. Both exclusively serve private companies.

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

9 / 40

9. The accrual concept allows transactions to be recorded:

A. When expenses are settled

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

C. Only upon receiving payment

D. After a fiscal review by management.

10 / 40

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

A. Removal of financial disclosures

B. Adoption of inconsistent standards.

C. Implementing IFRS standards.

D. Focus on local regulations only.

11 / 40

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

A. Assurance of financial clarity and honesty.

B. Development of new accounting terminologies.

C. Avoidance of accounting automation.

D. Restriction of stakeholder involvement.

12 / 40

12. What does completeness in financial statements require?

A. All necessary information for understanding financial performance

B. Only basic financial data inclusion

C. Biased representation of financial data

D. Exclusion of irrelevant data

13 / 40

13. What is the primary objective of the IASB?

A. To audit financial statements

B. To enforce national accounting standards

C. To fund the IFRS Foundation

D. To develop and approve International Financial Reporting Standards

14 / 40

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

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

B. Highlight flaws in existing accounting standards.

C. Compare performance between entities.

D. Simplify tax reporting for global entities.

15 / 40

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

A. 120 countries.

B. Less than 100 countries.

C. Only European Union members.

D. Over 160 countries.

16 / 40

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

A. Historical cost concept.

B. Revenue generation principle

C. Inventory adjustment mechanism.

D. Modified cash basis method

17 / 40

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

A. To manage the financial affairs of companies

B. To advise the IASB on financial reporting issues

C. To provide financial reporting templates

D. To enforce IFRS compliance globally

18 / 40

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

A. Dual aspect guideline.

B. Materiality concept.

C. Going concern assumption.

D. Accrual basis principle.

19 / 40

19. Developing countries benefit from IFRS through:

A. Minimizing international confidence.

B. Improving corporate governance and transparency.

C. Reducing access to international markets.

D. Increasing inconsistency in financial statements.

20 / 40

20. One reason IFRS boosts comparability is:

A. Emphasis on tax optimization

B. Uniform reporting templates.

C. Decrease in disclosure requirements

D. Transparency in accounting practices.

21 / 40

21. 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

22 / 40

22. Qualitative characteristics making financial information useful include

A. Simplicity and flexibility.

B. Reduced focus on comparability

C. Predictive value and neutral representation

D. Uniform tax rules across entities

23 / 40

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

A. Cash basis methodology.

B. Revenue realization concept.

C. Accrual basis approach.

D. Historical cost approach.

24 / 40

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

A. Bias and material errors

B. Emphasis on predictive value only

C. Completeness, neutrality, and absence of material errors

D. Limited descriptions and selective disclosures

25 / 40

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

A. Relevance and faithful representation

B. Predictive value and confirmatory value

C. Transparency and accuracy

D. Materiality and neutrality

26 / 40

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

A. Verifiability requirement.

B. Full disclosure principle.

C. Accrual and timing guidelines.

D. Historical value representation

27 / 40

27. Why is faithful representation crucial in financial statements?

A. To ensure accurate and unbiased presentation of financial data

B. To focus on hypothetical scenarios

C. To reduce transparency in reporting

D. To align with national accounting standards

28 / 40

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

A. Industry benchmarks for the business.

B. Investment potential of stakeholders.

C. Tax compliance of an entity.

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

29 / 40

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

A. Historical cost consistency.

B. Verifiable evidence provision

C. Equity-based calculations

D. Application of materiality.

30 / 40

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

A. Investment secrecy.

B. Corporate governance.

C. Audit delay mechanisms

D. Financial secrecy.

31 / 40

31. 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.

32 / 40

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

A. To approve exposure drafts

B. To manage national accounting standards

C. To oversee the IASB's funding

D. To review financial reporting issues not addressed by IFRS

33 / 40

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

A. 2010

B. 2001

C. 1973

D. 1990

34 / 40

34. Benefits of adopting IFRS include

A. Improved access to global capital markets

B. Reduction in reporting quality.

C. Exclusive use by developed countries

D. Simplified auditing standards only.

35 / 40

35. 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.

36 / 40

36. 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

37 / 40

37. 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.

38 / 40

38. Verification of financial information's independence ensures:

A. Increased predictive value.

B. Faithful representation through independent verification.

C. Elimination of errors in reporting

D. Simplified presentation and disclosure.

39 / 40

39. 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)

40 / 40

40. Why was the IFRS established?

A. To focus solely on small enterprises

B. To replace financial reporting globally

C. To harmonize accounting treatments and ensure global comparability

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

Your score is

The average score is 65%

Phil January 21, 2025Last Updated: January 21, 2025

0 1,068 1 minute read

ACC 209 CBT PRACTICE

Phil

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