Page 416 - Microsoft Word - 00 BA3 IW Prelims STUDENT.docx

Fundamentals of financial accounting

1.4 Which of the following statements are true?

(1) Accounting can be described as the recording and summarising of
transactions.

(2) Financial accounting describes the production of a statement of financial
position and statement of profit or loss for internal use.

A (1) only

B (2) only

C both (1) and (2)

D neither (1) nor (2)

CHAPTER 2 – THE REGULATORY FRAMEWORK OF FINANCIAL
REPORTING

2.1 The IFRS Advisory Council is responsible for:

(1) Giving advice to the IASB or trustees

(2) Advising the IASB on agenda decisions

A (1) and (2)

B (1) only

C (2) only

D neither (1) nor (2)

2.2 Which of the following statements are true?

(1) International accounting standards are effective only if adopted by national
regulatory bodies.

(2) Accounting standards provide guidance on accounting for all types of
transactions.

A (1) only

B (2) only

C (1) and (2)

D neither (1) nor (2)

410