IFRS-1

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Test Your IFRS Knowledge

Welcome to the IFRS quiz! This quiz is designed to assess your understanding of International Financial Reporting Standards (IFRS) through a series of concise questions.

Whether you are a student, educator, or professional in the financial sector, this quiz will help you:

Test your knowledge of IFRS principles
Identify areas for improvement
Engage with financial reporting concepts

9 Questions2 MinutesCreated by AnalyzingChart45

What is IFRS?

Principle based or concept based leaving a great deal up to the judgment of the users

Rules based - more specific guidelines for accounting treatment

Set of instructions for everu business.

IFRS financial statements are prepared...

Prepared on a cash basis and historical cost

Prepared on accrual basis and going concern concept

Prepared on any basis and accounting policies

What is necessary for financial information to be useful?

Financial information must be relevant and it must fully represent that which it purports to represent

Financial information must be interesting and new

Financial information must be significant and reliable

Financial information must provide only facts and their interpretations

Choose only elements of financial position

Income (increases in economic benefits, such as revenues and gains)

Asset (resource)

Liability (obligation)

Equity (residual interest)

Expenses (decreases in economic benefits, such as losses and capital maintenance adjustments)

Which of the following is not one of the reasons that a single set of international accounting standards is needed?

Which of the following is false?

Under IFRS, the term income describes both revenues and gains.

Under IFRS, companies do not engage in the adjusting process.er IFRS, the term expenses includes losses.

Under IFRS, revenue recognition fraud is a major issue.

Under IFRS, the term expenses includes losses.

Which of the following statements is true?

Under IFRS, income is the net difference between revenues and expenses.

Under IFRS, income includes revenues arising from normal course of operating activities only.

IFRS ignores the hyperinflation status

IFRS is applicable mostly to multinationals

IFRS stands for the better communications between investors and businesses

IFRS-1

Test Your IFRS Knowledge

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