Accounting Multiple Choice Question – 31 May 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Shareholders must be provided with the financial statements of any company in which they own shares because . . .?

Select ONE answer:

  1. of the provisions of the Companies Acts.
  2. of regulations issued by the Stock Exchange.
  3. of regulations issued by the Accounting Standards Board (ASB).
  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 1

  1. Correct
  2. Not correct – Stock Exchange regulations apply only to companies whose shares are listed on the Exchange.
  3. Not correct – Regulations issued by the Accounting Standards Board relate to the preparation of financial statements, not to their dissemination / publication.
  4. Not correct

 

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Accounting Multiple Choice Question – 30 May 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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The format in which the financial statements of UK registered limited companies must be published is prescribed by . . .?

Select ONE answer:

  1. Statements of Standard Accounting Practice (SSAPs).
  2. The UK Companies Acts.
  3. Financial Reporting Standards (FRSs).
  4. The Companies Registration Office.

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 2

  1. Not correct
  2. Correct – The format of company financial statements throughout the EU was prescribed in the EC fourth directive on company law. This directive required all member states to issue national legislation containing the provisions of the directive. As a result. all member states now have legislation in place governing the format and content of the financial statements of companies.
  3. Not correct
  4. Not correct

 

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Accounting Multiple Choice Question – 29 May 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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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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Accounting Multiple Choice Question – 28 May 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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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

 

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Accounting Multiple Choice Question – 27 May 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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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

 

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