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NEW QUESTION 28
Which accounting theory is best described by the statement 'An approach to accounting is one where a theory is thought of as a body of knowledge that explains and attempts to predict actual accounting practice'?

• A. positive accounting theory
• B. general accounting theory
• C. historical cost accounting theory
• D. normative accounting theory

Answer: A

NEW QUESTION 29
Restrictions on the scope of a specific accounting standard are stated in

• A. that specific standard.
• B. various Statements of Accounting Concepts (SACs) issued by the AASB.
• C. the explanatory materials provided by the AASB.
• D. the IASB's Conceptual Framework.

Answer: A

NEW QUESTION 30
Which one of the following includes social reporting guidelines?

• A. International Accounting Standards (IAS)
• B. Generally Accepted Accounting Principles (GAAP)
• C. Global Reporting Initiative (GRI)
• D. International Financial Reporting Standards (IFRS)

Answer: C

NEW QUESTION 31
The International Accounting Standards Board's Conceptual Framework for Financial Reporting for the preparation and presentation of financial statements is concerned with the information needs of most users, but not for each possible user.
Which one of the following stakeholders would not be one of the users that the Conceptual Framework is concerned about?

• A. a company's executive management
• B. members of the public who have small investment holdings in the company
• C. governments and regulatory bodies
• D. potential investors in the company

Answer: A

NEW QUESTION 32
An element is recognised in the statement of financial position or statement of comprehensive income if
I.
the value of the item can be measured reliably.
II.
the value of the item can be measured accurately.
III.
it is certain that there will be future economic benefits associated with the item.
IV.
it is probable that there will be future economic benefits associated with the item.
Which of the above options are correct?

• A. II and III only
• B. I and IV only
• C. III and IV only
• D. I and III only

Answer: B

NEW QUESTION 33
......