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NEW QUESTION 48
Which one of the following statements is correct about using judgement in the financial reporting process?

• A. A true and fair view cannot be assured if individual judgement is allowed.
• B. Accountants should not be allowed to use their own judgement.
• C. Use of individual judgement is required to choose between alternative methods available within accounting standards.
• D. Judgement can be allowed in the statement of comprehensive income but not in the statement of financial position.

Answer: C

NEW QUESTION 49
The ability of a company to pay its bills when and as they fall due is a measure of

• A. solvency.
• B. the true and fair view of the financial report.
• C. compliance with the conceptual framework.
• D. economic value.

Answer: A

NEW QUESTION 50
Which one of the following bodies makes accounting standards in Australia?

• A. AASB
• B. FRC
• C. ASIC
• D. IASB

Answer: A

NEW QUESTION 51
The amount of cash or cash equivalents that could currently be obtained by selling an asset in an orderly disposal, refers to which basis of measurement?

• A. realisable value
• B. current cost
• C. present value
• D. historical cost

Answer: A

NEW QUESTION 52
An example of voluntary reporting in Australia is a

• A. sustainability report.
• B. statement of comprehensive income.
• C. statement of cash flows.
• D. statement of financial position.

Answer: A

NEW QUESTION 53
......