CFAI Practice: Pre1 Reporting Standards

Total: 5 questions


Question 1

Which organization is responsible for developing International Financial Reporting Standards (IFRS)?

  • A. Financial Accounting Standards Board (FASB)
  • B. International Accounting Standards Board (IASB)
  • C. International Organization of Securities Commissions (IOSCO)

Question 2

The qualitative characteristic that requires financial information to make a difference in users’ decisions is best described as:

  • A. Faithful representation
  • B. Comparability
  • C. Relevance

Question 3

Under IFRS, fair value measurement of an asset reflects:

  • A. The original purchase price of the asset
  • B. The price that would be received to sell the asset in an orderly transaction
  • C. The replacement cost of the asset at current market conditions

Question 4

The going concern assumption in financial reporting means that:

  • A. A company will liquidate its assets in the near future
  • B. A company is expected to continue operating for the foreseeable future
  • C. Revenue is recognized only when cash is received

Question 5

Under IFRS, which of the following is a required financial statement?

  • A. Statement of changes in equity
  • B. Statement of comprehensive budget
  • C. Statement of tax reconciliation