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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
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