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

A. Compare performance between entities.

B. Simplify tax reporting for global entities.

C. Highlight flaws in existing accounting standards.

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

2 / 40

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

A. Removal of financial disclosures

B. Implementing IFRS standards.

C. Adoption of inconsistent standards.

D. Focus on local regulations only.

3 / 40

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

A. Restriction of stakeholder involvement.

B. Development of new accounting terminologies.

C. Assurance of financial clarity and honesty.

D. Avoidance of accounting automation.

4 / 40

4. Qualitative characteristics making financial information useful include

A. Reduced focus on comparability

B. Predictive value and neutral representation

C. Simplicity and flexibility.

D. Uniform tax rules across entities

5 / 40

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

A. To provide financial reporting templates

B. To enforce IFRS compliance globally

C. To manage the financial affairs of companies

D. To advise the IASB on financial reporting issues

6 / 40

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

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

B. Industry benchmarks for the business.

C. Tax compliance of an entity.

D. Investment potential of stakeholders.

7 / 40

7. Verification of financial information's independence ensures:

A. Faithful representation through independent verification.

B. Increased predictive value.

C. Elimination of errors in reporting

D. Simplified presentation and disclosure.

8 / 40

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

A. Verifiability

B. Predictive value

C. Comparability

D. Confirmatory value.

9 / 40

9. One reason IFRS boosts comparability is:

A. Decrease in disclosure requirements

B. Transparency in accounting practices.

C. Emphasis on tax optimization

D. Uniform reporting templates.

10 / 40

10. The accrual concept allows transactions to be recorded:

A. Only upon receiving payment

B. After a fiscal review by management.

C. When expenses are settled

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

11 / 40

11. What is the primary objective of the IASB?

A. To audit financial statements

B. To fund the IFRS Foundation

C. To enforce national accounting standards

D. To develop and approve International Financial Reporting Standards

12 / 40

12. What does neutrality in financial statements imply?

A. Information must not be manipulated to influence decisions

B. Bias in favor of management decisions

C. Financial statements should exclude external review

D. Financial statements must favor creditors over shareholders

13 / 40

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

A. Going concern assumption.

B. Dual aspect guideline.

C. Materiality concept.

D. Accrual basis principle.

14 / 40

14. Why was the IFRS established?

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

B. To replace financial reporting globally

C. To harmonize accounting treatments and ensure global comparability

D. To focus solely on small enterprises

15 / 40

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

A. Accrual and timing guidelines.

B. Historical value representation

C. Verifiability requirement.

D. Full disclosure principle.

16 / 40

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

A. Historical cost consistency.

B. Equity-based calculations

C. Verifiable evidence provision

D. Application of materiality.

17 / 40

17. 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

18 / 40

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

A. Recognition criteria outlined in IFRS.

B. Measurement standards for fixed assets.

C. The intended time for realization or settlement.

D. Revenue realization procedures

19 / 40

19. Developing countries benefit from IFRS through:

A. Improving corporate governance and transparency.

B. Minimizing international confidence.

C. Reducing access to international markets.

D. Increasing inconsistency in financial statements.

20 / 40

20. What does completeness in financial statements require?

A. Exclusion of irrelevant data

B. Biased representation of financial data

C. Only basic financial data inclusion

D. All necessary information for understanding financial performance

21 / 40

21. 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.

22 / 40

22. One reason IFRS boosts comparability is:

A. Decrease in disclosure requirements

B. Transparency in accounting practices.

C. Uniform reporting templates.

D. Emphasis on tax optimization

23 / 40

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

A. Emphasis on predictive value only

B. Limited descriptions and selective disclosures

C. Bias and material errors

D. Completeness, neutrality, and absence of material errors

24 / 40

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

A. 1990

B. 2001

C. 2010

D. 1973

25 / 40

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

A. IFRS Foundation

B. Standards Advisory Council (SAC)

C. International Financial Accounting Standards Board

D. International Financial Reporting Interpretation Committee (IFRIC)

26 / 40

26. Why do developing countries benefit from adopting IFRS?

A. It eliminates corporate governance requirements

B. It restricts access to global capital markets

C. It improves financial reporting quality and enhances credibility

D. It replaces all local accounting standards

27 / 40

27. Who appoints members of the IASB?

A. Shareholders of global corporations

B. Trustees of the IFRS Foundation

C. International financial institutions

D. National governments

28 / 40

28. Why is faithful representation crucial in financial statements?

A. To focus on hypothetical scenarios

B. To ensure accurate and unbiased presentation of financial data

C. To reduce transparency in reporting

D. To align with national accounting standards

29 / 40

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

A. Inventory adjustment mechanism.

B. Historical cost concept.

C. Modified cash basis method

D. Revenue generation principle

30 / 40

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

A. Revenue realization concept.

B. Accrual basis approach.

C. Historical cost approach.

D. Cash basis methodology.

31 / 40

31. 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

32 / 40

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

A. Relevance and faithful representation

B. Transparency and accuracy

C. Predictive value and confirmatory value

D. Materiality and neutrality

33 / 40

33. 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.

34 / 40

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

A. Accrual recognition principle.

B. Business entity concept.

C. Full disclosure obligation.

D. Verifiable evidence framework.

35 / 40

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

A. Full disclosure policy

B. Dual aspect principle.

C. Money measurement rule

D. Historical cost approach

36 / 40

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

A. Financial secrecy.

B. Audit delay mechanisms

C. Investment secrecy.

D. Corporate governance.

37 / 40

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

A. Only European Union members.

B. Less than 100 countries.

C. Over 160 countries.

D. 120 countries.

38 / 40

38. 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 approve exposure drafts

D. To oversee the IASB's funding

39 / 40

39. Financial reporting under IFRS enhances global reputation by:

A. Restricting international collaborations

B. Ensuring financial secrecy.

C. Increasing foreign investment and credibility.

D. Avoiding standardized processes.

40 / 40

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

A. Non-current assets and common stock.

B. Share capital and retained earnings

C. Dividends and short-term loans.

D. Current liabilities and retained earnings.

Your score is

The average score is 65%

ACC 209 CBT PRACTICE

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