2017, October Flashcards
Discuss the extent to which the treatment of goodwill arising on consolidation under IFRS reflects the Framework principles of faithful representation and relevance to decision making?
Critically review the two major developments in the past decade that enable firms to report systematically within guidelines on their management of sustainability and stakeholder issues.
How has accounting research enabled us to assess the plausibility of the Efficient Market Hypothesis?
Explain how the valuation of long term liabilities such as pension fund obligations are treated differently under historical cost, IAS 29 and fair value accounting.
Explain why accountants have a code of ethics and demonstrate by example how compliance with any two ethical principles in the code could be breached.
Ball and Brown discovered that
(a) accounting reports affected stock prices
(b) accounting reports had no value relevance
(c) accounting supported efficient markets
Fair value level one requires
(a) semi-strong form stock market efficiency
(b) effectively perfect markets
(c) only for the market to be active
Legitimacy theory rests on the idea of
(a) a social contract
(b) isomorphism
(c) good corporate governance
The institutional theory calls saying one thing but doing another
(a) isomorphism
(b) decoupling
(c) normal
Stakeholder theory says the group that affects company decisions most is the one with
(a) the most power
(b) the most salience
(c) the most money
A particular feature of G4 under the GRI is
(a) detailed accounts of interactions with stakeholders
(b) a listing of each type of natural capital relevant to the business
(c) an ecological analysis of the firm’s business model
Tests of value relevance are also tests of
(a) the efficient market hypothesis in the strong form
(b) information content
(c) the capital asset pricing model
Under IAS 16
(a) all leases are finance leases for the lessee
(b) all leases over 12 months to go are finance leases for the lessee
(c) all leases are over six months to go are finance leases to the lessor
Under CPP and CCA during inflation, a firm whose adjusted payables exceed its receivables will report
(a) losses from holding monetary items
(b) gains from holding monetary items
(c) transfers to purchasing power reserve account
Illiquidity means
(a) inability to pay debts in full on time
(b) a shortage of cash
(c) an excess of current liabilities over liquid assets
Fact or opinion?
This is the best thing that ever happened to me.
Fact or opinion?
ROCE is often called the primary ratio in analysing accounting reports.
Fact or opinion?
Accountancy is the key to good investment decisions.
Fact or opinion?
The CEO of Enron had no integrity whatsoever.
Fact or opinion?
China is truly Communist.
Fact or opinion?
Donald Trump is impeachable.
Fact or opinion?
Fair value accounting for derivatives has been blamed for volatility in the stock market.
Fact or opinion?
Fair value accounting causes market volatility.
Fact or opinion?
Social capital can be described but not measured.
Fact or opinion?
Do not invest in CFG Inc.
Fact or opinion?
Faithful representation is a postulate of the Conceptual Framework.
Fact or opinion?
ERC varies inversely with financial leverage.
Fact or opinion?
Net present value is a matter of guesswork which is the same as a matter of opinion.
Fact or opinion?
I pass this examination.
Fact or opinion?
Would I lie to you?
Fact or opinion?
Anchorage and availability are two halves of the one heuristic.
Fact or opinion?
This is our most profitable year.
Fact or opinion?
This is our most successful year.
Fact or opinion?
Our earnings this year are forecasted to be higher than all previous years
Fact or opinion?
The current ratio is measured on the ratio scale.
