Tag: IASB

Accounting Multiple Choice Question – 25 January 2024

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

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Which THREE of the following are elements of financial statements as identified by the IASB’s Conceptual Framework?

  • A.Income
  • B.Expenses
  • C.Profits
  • D.Losses
  • E.Obligations
  • F.Resources
  • G.Equity

Select ONE answer:

  1. A, B & C
  2. E, F & G
  3. A, B & G
  4. D, E & F

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 – According to the IASB’s Conceptual Framework, income, expenses and equity are elements of financial statements.
  4. Not correct

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Accounting Multiple Choice Question – 24 January 2024

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

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Alex the owner of Alex Trading increased his business’s total number of motor vehicles by adding his own car to the fleet for exclusive use by the business.

Which elements of the accounting equation will change due to this transaction?

Select ONE answer:

  1. Assets only
  2. Capital only
  3. Assets and capital
  4. Assets and liabilities

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 – The car increases assets while it is treated as capital introduced to Alex trading rather than as a liability of the business to its proprietor.
  4. Not correct

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Accounting Multiple Choice Question – 15 January 2024

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

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The directors of Alex Trading plc wish to omit an item from the company’s financial statements on the grounds that it is commercially sensitive.

Information on this item would influence the stakeholders when making economic decisions.

According to IAS 1 Presentation of Financial Statements, the item is thus said to be?

Select ONE answer:

  1. Neutral
  2. Prudent
  3. Material
  4. Understandable

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 – Omissions or misstatements of items are material if they could, individually or collectively, influence the economic decisions of users taken, based on the financial statements
  4. Not correct

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Accounting Multiple Choice Question – 14 January 2024

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

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According to lAS 1 Presentation of Financial Statements, compliance with International Accounting Standards and International Financial Reporting Standards will normally ensure that?

Select ONE answer:

  1. The entity’s inventory is valued at net realisable value
  2. The entity’s assets are valued at their break-up value
  3. The entity’s financial statements are prepared on the assumption that it is a going concern
  4. The entity’s financial position, financial performance and cash flows are presented fairly

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
  2. Not correct
  3. Not correct
  4. Correct

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Accounting Multiple Choice Question – 13 January 2024

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

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Which of the following definitions for the going concern concept in accounting is the closest to the definition given in IAS 1 Presentation of Financial Statements?

Select ONE answer:

  1. The directors do not intend to liquidate the entity or to cease trading in the foreseeable future
  2. The entity can pay its debts as and when they fall due
  3. The directors expect the entity’s assets to yield future economic benefits
  4. Financial statements have been prepared on the assumption that the entity is solvent would be able to pay all creditors in full in the event of being wound-up

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 -IAS 1 paragraph 25, going concern relates to whether the entity will continue in operational existence without liquidating, ceasing trading or being unable to avoid these things
  2. Not correct
  3. Not correct
  4. Not correct

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