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NEW QUESTION 41
Which one of the following practices is not considered creative accounting?
- A. profit smoothing
- B. trading in derivatives
- C. aggressive earnings management
- D. window dressing
Answer: B
NEW QUESTION 42
Which one of the following statements differentiates semi-strong form efficiency from strong form efficiency in the context of the efficient market hypothesis?
- A. Semi-strong form efficiency does not reflect knowledge whereas strong form efficiency considers knowledge in addition to publicly available information and past price movements.
- B. Semi-strong form efficiency does not reflect all publicly available information whereas strong form efficiency does incorporate all publicly available information.
- C. Semi-strong form efficiency reflects all past price movements whereas strong form efficiency reflects future share price movements.
- D. Semi-strong form efficiency addresses operational efficiency whereas strong form efficiency aims to address allocative efficiency.
Answer: A
NEW QUESTION 43
Which one of the following is an objective of the International Federation of Accountants (IFAC)?
- A. to establish high quality professional standards in accountancy
- B. to provide direction to the Financial Accounting Standards Board (FASB)
- C. to issue new international financial reporting standards (IFRS)
- D. to provide advice on accounting standards to the OECD
Answer: A
NEW QUESTION 44
Which one of the following is not a function of the trustees of the International Financial Reporting Standards Foundation (IFRS Foundation)?
- A. ensuring the financing of the International Accounting Standards Board (IASB)
- B. providing suggestions on technical matters relating to accounting standards
- C. promoting the application of International Financial Reporting Standards (IFRSs)
- D. appointing the members of the International Accounting Standards Board (IASB)
Answer: B
NEW QUESTION 45
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