Check for Understanding: Accounting Principles Globally

Quiz Summary

0 of 11 Questions completed

Questions:

You have already completed the quiz before. Hence you can not start it again.

Quiz is loading…

You must sign in or sign up to start the quiz.

You must first complete the following:

Results

Quiz complete. Results are being recorded.

Results

0 of 11 Questions answered correctly

Your time:

You have reached 0 of 0 point(s), (0)

Current
Review
Answered
Correct
Incorrect

Question 1 of 11

1. Question
What does GAAP stand for?
- Generally Accepted Accounting Policies
- Generally Accepted Auditing Principles
- Generally Accepted Accounting Principles
- Generally Accepted Auditing Policies
Correct

Incorrect
Question 2 of 11

2. Question
Which of the following statements is true about GAAP?
- GAAP is a set of rules that must be followed by all companies.
- GAAP is a set of guidelines that companies can choose to follow or not.
- GAAP is only applicable to public companies.
- GAAP is a set of guidelines developed by the International Accounting Standards Board.
Correct

Incorrect
Question 3 of 11

3. Question
Which GAAP principle requires companies to provide information that could affect the decisions of financial statement users and ensures that all financial information is presented in a clear and concise manner?
- Cost Principle
- Full Disclosure Principle
- Conservatism Principle
- Revenue Recognition Principle
Correct

Incorrect
Question 4 of 11

4. Question
Which of the following statements about fair value accounting for IFRS is correct?
- Fair value accounting requires companies to record assets and liabilities on their balance sheets at their historical cost.
- Fair value accounting requires companies to record assets and liabilities on their balance sheets at their current market value.
- Fair value accounting requires companies to record assets and liabilities on their balance sheets at their amortized cost.
- Fair value accounting requires companies to record assets and liabilities on their balance sheets at their face value.
Correct

Incorrect
Question 5 of 11

5. Question
When should a provision or contingency be recognized in the financial statements under IFRS?
- When it is possible that the liability will be incurred.
- When the amount of the liability can be measured reliably.
- When the liability has been incurred but the timing of the payment is uncertain.
- When the liability is probable and the amount can be measured reliably.
Correct

Incorrect
Question 6 of 11

6. Question
When does an impairment loss in IFRS occur?
- When the recoverable amount of an asset exceeds its carrying value.
- When the carrying value of an asset exceeds its recoverable amount.
- When the value in use of an asset is equal to its fair value less costs to sell.
- When the fair value of an asset is equal to its carrying value.
Correct

Incorrect
Question 7 of 11

7. Question
Which of the following is an example of a contingency?
- A lawsuit that the company is facing.
- A loan that the company has taken out.
- A sale that the company has made.
- An investment that the company has made.
Correct

Incorrect
Question 8 of 11

8. Question
Which of the following statements about leases is correct?
- Leases must be classified as either finance leases or operating leases, and different accounting treatments apply to each type.
- Leases are always classified as finance leases.
- Leases are always classified as operating leases.
- Leases do not need to be classified as either finance leases or operating leases.
Correct

Incorrect
Question 9 of 11

9. Question
Which IFRS principle requires that financial statements should not contain any bias or prejudice towards a particular stakeholder group?
- Substance over form
- Neutrality
- Completeness
- Prudence
Correct

Incorrect
Question 10 of 11

10. Question
Which IFRS principle requires that revenue and expenses should be recognized in the period they are incurred, regardless of when cash is received or paid?
- Accrual basis of accounting
- Fair value measurement
- Materiality
- Going concern
Correct

Incorrect
Question 11 of 11

11. Question
According to the matching principle of GAAP, when should expenses be recognized?
- In the same period as the related revenue they helped generate
- In the period after the related revenue they helped generate
- In the period before the related revenue they helped generate
- Expenses should not be recognized under the matching principle
Correct

Incorrect

Check for Understanding: Accounting Principles Globally

Check for Understanding: Accounting Principles Globally

Quiz Summary

Information

Results

Results

Categories

1. Question

2. Question

3. Question

4. Question

5. Question

6. Question

7. Question

8. Question

9. Question

10. Question

11. Question