Following are your quiz results for International Financial Reporting Standards for Compensation Professionals (T7)
1. What is one objective of the International Accounting Standards Board (IASB)?:
- Encourage higher global economic growth rates
- Promote the use of one set of global accounting standards
- Issue detailed application guidelines
- Provide guidance on conflicting interpretations of IASB's standards
2. Which of the following is a benefit of moving towards one set of international standards?:
- More efficient resource allocation
- Decreased competition between exchanges
- Static financial software systems
- Higher profits due to increased costs to investors
3. Users of accounting information can broadly be classified into which two categories?:
- Board of directors, management
- Internal, external
- Customers, suppliers
- Government, community
4. In what way would a preparer use the conceptual framework?:
- Monitoring the effectiveness of IASB
- Raising funds for the IASB Foundation
- Approving IASB principles-based standards
- Developing accounting policies in the absence of specific standards
5. What assumption is made when financial information is provided about reporting entities?:
- Users have reasonable knowledge of financial accounting matters to understand the information
- Reporting entities have exhibited a consistent ability to provide timely information
- Users have the decision-making authority to act in a manner consistent with the information provided
- Reporting entities have been screened to ensure transparency
6. Which of the following is a guiding principle of accrual accounting?:
- Constraint principle
- Matching principle
- Expense recognition principle
- Full disclosure principle
7. Retained earnings appear in two of the financial reports. Which report identifies the change in retained earnings that has occurred in the past 12 months?:
- Statement of Financial Position
- Statement of Comprehensive Income
- Statement of Changes in Shareholders' Equity
- Statement of Cash Flows
8. The IAS 19 standard must be applied by an employer in accounting for all employee benefits with the exception of which of the following?:
- Share-based payments such as share options
- Termination benefit paid before employee's normal retirement date
- Long-term paid absences such as sabbatical leave
- Social security contributions
9. Employee bonuses paid within 12 months are which type of employee benefits as classified by IAS 19?:
- Defined benefit plans
- Post-employment benefits
- Long-term benefits
- Short-term benefits
10. Accounting for which type of benefit requires actuarial assumptions?:
- Defined contribution plans
- Short-term employee benefits
- Defined benefit plans
- Termination benefits
