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NEW QUESTION 44
A multinational company is converting the methodology of reporting by its subsidiaries in various countries to make it uniform with the requirements of the International Financial Reporting Standards (IFRS). While changing the reporting methodologies, accountants have to apply certain judgments.
Which one of the following is not a valid motivation for decision making on reporting methodologies?
- A. to present the financial statements in a manner that is understood by most users
- B. to be consistent with the methodologies followed in the home country of the company
- C. to comply with the information demands of government bodies in home country
- D. to present the company’s financial performance in the most favourable way
Answer: D
NEW QUESTION 45
Which of the following represents a principal-agent relationship?
I.
shareholders-auditors
II.
shareholders-management
III.
security exchange-company
IV.
board of directors-employees
- A. I, II, III and IV
- B. I, II and III only
- C. II, III and IV only
- D. I, II and IV only
Answer: D
NEW QUESTION 46
Which one of the following is the correct treatment of sales?
- A. Cash and credit sales are recorded in the receivables ledger prior to posting to the general ledger.
- B. Credit sales are recorded in the receivables ledger prior to posting to the general ledger.
- C. Cash sales are recorded in the receivables ledger prior to posting to the general ledger.
- D. Credit sales are not recorded in the receivables ledger prior to posting to the general ledger.
Answer: B
NEW QUESTION 47
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