C2: ACCOUNTING STANDARD

Question 1

IFRS stands for:

Answer 1

International Financial Reporting Standards

Question 2

ASPE stands for:

Answer 2

Accounting Standards for Private Enterprise

Question 3

Which accounting standard do public companies MUST follow?

Answer 3

IFRS

Question 4

Revenues and expenses are recorded when cash is received/paid if the company follows:

Answer 4

Accrual Basis

Question 5

Revenues and expenses are recorded when they are earned/incurred if the company follows:

Answer 5

Cash Basis

Question 6

Revenue will ______ retained earnings.

Answer 6

Increase

Question 7

Expenses will ______ retained earnings.

Answer 7

Decrease

Question 8

Dividends declared will ______ retained earnings.

Answer 8

Decrease

Question 9

Every transaction must affect at least ____ accounts.

Answer 9

2

Question 10

When using the accounting equation, each line MUST _________.

Answer 10

Balance

Question 11

Operating activities = Net _______.

Answer 11

Inflow (+)

Question 12

Investing activities = Net _______.

Answer 12

Outflow (-)

Question 13

NetIncome / SalesRevenue = ?

Answer 13

ProfitMargin

Question 14

NetIncome/AverageTotalAssets = ?

Answer 14

ReturnonAssets

Question 15

Are relevance and faithful representation fundamental or enhancing qualitative characteristics?

Answer 15

Fundamental