Tag: A-Level

Prior to issuing a Financial Reporting Standard, the old Accounting Standards Board would normally issues a ‘draft’ with a view to obtaining comments on the proposed Standard.  Such a ‘draft‘ document were referred to as . . .?

Select ONE answer:

1. an Exposure Draft.
2. an Example Draft.
3. an Explanation Draft.
4. a Financial Reporting Exposure Draft (FRED).

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct – An Exposure Draft (ED) is what was issued prior to issuing a Statement of Standard Accounting Practice (SSAP). Such EDs are no longer issued as SSAPs are no longer issued.
2. Not correct – There is no such document in accounting.
3. Not correct – There is no such document in accounting.
4. Correct

 

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Previously Statements of Standard Accounting Practice and Financial Reporting Standards were applied when preparing the financial statements . . .?

Select ONE answer:

1. of any entity whose accounts are intended to give a true and fair view of its financial position and its profit or loss.
2. of smaller private limited companies only.
3. of public limited companies (PLCs) only.
4. of companies whose shares are listed on a recognised Stock Exchange only.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – This is in accordance with the Explanatory Foreword to the accounting and financial reporting standards.
2. Not correct
3. Not correct
4. Not correct

 

This work is licensed under a Creative Commons Attribution 4.0 International License.

The abbreviation ‘SSAP’ means . . .?

Select ONE answer:

1. Statement of Standard Accounting Principles.
2. Statutory Statement of Accounting Principles.
3. Statement of Standard Accounting Practice.
4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

 

This work is licensed under a Creative Commons Attribution 4.0 International License.

Financial Reporting Standards were formally issued by the . . . ?

Select ONE answer:

1. the Stock Exchange.
2. the government.
3. the Accounting Standards Board.
4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct – The Stock Exchange issues rules and regulations concerning the financial statements of PLCs whose shares are listed on the exchange.
2. Not correct – The government is responsible for preparing legislation.
3. Correct
4. Not correct

 

This work is licensed under a Creative Commons Attribution 4.0 International License.

Goodwill maIn the financial statements of a company, goodwill should be shown . . .?

Select ONE answer:

1. under the heading ‘current assets’.
2. under the heading ‘intangible fixed assets’.
3. under the heading ‘tangible fixed assets’.
4. None of the above.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – As goodwill will normally have an expected useful economic life of more than one year, it is a fixed asset. As it does not have physical substance, it is an intangible asset.
4. Not correct

 

This work is licensed under a Creative Commons Attribution 4.0 International License.