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. 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

2 / 40

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

A. Tax compliance of an entity.

B. Investment potential of stakeholders.

C. Industry benchmarks for the business.

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

3 / 40

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

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

4 / 40

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

A. Inventory adjustment mechanism.

B. Modified cash basis method

C. Historical cost concept.

D. Revenue generation principle

5 / 40

5. 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.

6 / 40

6. How does IFRS promote global financial trust?

A. By allowing different countries to maintain unique standards

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

C. By eliminating the need for financial reporting

D. By focusing exclusively on small enterprises

7 / 40

7. Who appoints members of the IASB?

A. International financial institutions

B. Trustees of the IFRS Foundation

C. National governments

D. Shareholders of global corporations

8 / 40

8. What is the primary objective of the IASB?

A. To fund the IFRS Foundation

B. To develop and approve International Financial Reporting Standards

C. To audit financial statements

D. To enforce national accounting standards

9 / 40

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

A. Transparency and accuracy

B. Relevance and faithful representation

C. Materiality and neutrality

D. Predictive value and confirmatory value

10 / 40

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

A. Historical cost consistency.

B. Application of materiality.

C. Verifiable evidence provision

D. Equity-based calculations

11 / 40

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

A. Historical cost approach

B. Full disclosure policy

C. Dual aspect principle.

D. Money measurement rule

12 / 40

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

A. Full disclosure principle.

B. Historical value representation

C. Accrual and timing guidelines.

D. Verifiability requirement.

13 / 40

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

A. Dividends and short-term loans.

B. Share capital and retained earnings

C. Non-current assets and common stock.

D. Current liabilities and retained earnings.

14 / 40

14. 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 reduces the need for corporate governance

D. It eliminates the need for financial audits

15 / 40

15. 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.

16 / 40

16. Developing countries benefit from IFRS through:

A. Increasing inconsistency in financial statements.

B. Reducing access to international markets.

C. Improving corporate governance and transparency.

D. Minimizing international confidence.

17 / 40

17. The accrual concept allows transactions to be recorded:

A. Only upon receiving payment

B. When expenses are settled

C. After a fiscal review by management.

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

18 / 40

18. Why do developing countries benefit from adopting IFRS?

A. It eliminates corporate governance requirements

B. It restricts access to global capital markets

C. It replaces all local accounting standards

D. It improves financial reporting quality and enhances credibility

19 / 40

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

A. Full disclosure obligation.

B. Accrual recognition principle.

C. Business entity concept.

D. Verifiable evidence framework.

20 / 40

20. 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 harmonize accounting treatments and ensure global comparability

D. To replace financial reporting globally

21 / 40

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

A. Simplify tax reporting for global entities.

B. Compare performance between entities.

C. Highlight flaws in existing accounting standards.

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

22 / 40

22. 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

23 / 40

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

A. Investment secrecy.

B. Corporate governance.

C. Audit delay mechanisms

D. Financial secrecy.

24 / 40

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

A. International Financial Accounting Standards Board

B. IFRS Foundation

C. International Financial Reporting Interpretation Committee (IFRIC)

D. Standards Advisory Council (SAC)

25 / 40

25. Qualitative characteristics making financial information useful include

A. Simplicity and flexibility.

B. Predictive value and neutral representation

C. Reduced focus on comparability

D. Uniform tax rules across entities

26 / 40

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

A. Completeness, neutrality, and absence of material errors

B. Bias and material errors

C. Limited descriptions and selective disclosures

D. Emphasis on predictive value only

27 / 40

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

A. 2010

B. 1990

C. 2001

D. 1973

28 / 40

28. Benefits of adopting IFRS include

A. Reduction in reporting quality.

B. Exclusive use by developed countries

C. Improved access to global capital markets

D. Simplified auditing standards only.

29 / 40

29. Why is faithful representation crucial in financial statements?

A. To align with national accounting standards

B. To reduce transparency in reporting

C. To focus on hypothetical scenarios

D. To ensure accurate and unbiased presentation of financial data

30 / 40

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

A. Avoidance of accounting automation.

B. Assurance of financial clarity and honesty.

C. Development of new accounting terminologies.

D. Restriction of stakeholder involvement.

31 / 40

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

A. To manage the financial affairs of companies

B. To enforce IFRS compliance globally

C. To provide financial reporting templates

D. To advise the IASB on financial reporting issues

32 / 40

32. What does neutrality in financial statements imply?

A. Financial statements must favor creditors over shareholders

B. Information must not be manipulated to influence decisions

C. Financial statements should exclude external review

D. Bias in favor of management decisions

33 / 40

33. 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.

34 / 40

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

A. The intended time for realization or settlement.

B. Revenue realization procedures

C. Measurement standards for fixed assets.

D. Recognition criteria outlined in IFRS.

35 / 40

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

A. Implementing IFRS standards.

B. Focus on local regulations only.

C. Adoption of inconsistent standards.

D. Removal of financial disclosures

36 / 40

36. Verification of financial information's independence ensures:

A. Simplified presentation and disclosure.

B. Elimination of errors in reporting

C. Faithful representation through independent verification.

D. Increased predictive value.

37 / 40

37. 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

38 / 40

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

A. Confirmatory value.

B. Verifiability

C. Comparability

D. Predictive value

39 / 40

39. One reason IFRS boosts comparability is:

A. Emphasis on tax optimization

B. Decrease in disclosure requirements

C. Transparency in accounting practices.

D. Uniform reporting templates.

40 / 40

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

A. Materiality concept.

B. Dual aspect guideline.

C. Going concern assumption.

D. Accrual basis principle.

Your score is

The average score is 65%

ACC 209 CBT PRACTICE

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