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NEW QUESTION 21
To be relevant, financial information has to
I)be provided in a timely manner.
II)comply with the going concern assumption.
III)have predictive and/or confirmatory value.
IV)exclude computations that are difficult to understand.

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

Answer: A

NEW QUESTION 22
The chairperson of XYZ Company is concerned about the readability of the annual financial report that is about to be published on its website. XYZ Company is obliged to comply with International Financial Reporting Standards, and the report contains all of the required financial statements, the auditor's report, corporate governance statements, declarations of accounting policy, explanatory notes and a section that addresses the company's corporate social responsibility program.
The chairperson is wondering whether the report can be condensed. The issue that is concerning the chairperson is known as

• A. information overload.
• B. the agency costs of monitoring.
• C. the cost of compliance.
• D. the costs of social responsibility reporting.

Answer: A

NEW QUESTION 23
Which one of the following describes the key advantage of the manual system of accounting?

• A. A thorough understanding of the business can be gained through it.
• B. Corrections are easily managed as updating or recreating the whole document is not difficult.
• C. The quality of output is not necessarily an issue.
• D. Processing is maintained at a reasonable speed even while dealing with large volumes of data.

Answer: A

NEW QUESTION 24
XYZ Ltd is listed on the Australian Securities Exchange (ASX). Which one of the following reports is the company required to prepare as a part of its annual financial report?

• A. management commentary
• B. sustainability report
• C. corporate governance statement
• D. chairman's statement

Answer: C

NEW QUESTION 25
......

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