Deegan, Financial Accounting 9e Chapter 01 Testbank
Chapter 01 Testbank
1. Directors could elect not to comply with an accounting standard on the grounds that applying
the particular accounting standard would cause the accounts not to present a 'true and fair view'.
True False
2. The role of the Financial Reporting Council is to provide broad oversight of the process for
setting standards in Australia, including the authority to direct the AASB to develop, amend or
revoke a particular standard.
True False
3. To stay up-to-date, financial accountants must continually keep abreast of ongoing changes
and this is why professional accounting bodies require their members to undergo continuing
professional development/education.
True False
4. AASB 1053 introduced a two-tier reporting system for entities producing general purpose
financial statements.
True False
5. An auditor’s opinion is an assurance of the future viability of the entity, or of the efficiency or
effectiveness with which management has conducted the affairs of the entity.
True False
6. Articles in the financial press suggest that professional money managers, security analysts and
other investors impose costs on firms when their managers appear to delay bad news disclosures.
True False
7. One of the reasons why regulators require reporting entities to comply with accounting
standards is that this is perceived to increase the ‘comparability’ of the information being
produced by different reporting entities.
True False
8. What are two of the key ways in which management accounting differs from financial
accounting?
A. Management accounting provides special-purpose information to people external to the firm
and it is highly regulated.
Chapter 01 Testbank
1. Directors could elect not to comply with an accounting standard on the grounds that applying
the particular accounting standard would cause the accounts not to present a 'true and fair view'.
True False
2. The role of the Financial Reporting Council is to provide broad oversight of the process for
setting standards in Australia, including the authority to direct the AASB to develop, amend or
revoke a particular standard.
True False
3. To stay up-to-date, financial accountants must continually keep abreast of ongoing changes
and this is why professional accounting bodies require their members to undergo continuing
professional development/education.
True False
4. AASB 1053 introduced a two-tier reporting system for entities producing general purpose
financial statements.
True False
5. An auditor’s opinion is an assurance of the future viability of the entity, or of the efficiency or
effectiveness with which management has conducted the affairs of the entity.
True False
6. Articles in the financial press suggest that professional money managers, security analysts and
other investors impose costs on firms when their managers appear to delay bad news disclosures.
True False
7. One of the reasons why regulators require reporting entities to comply with accounting
standards is that this is perceived to increase the ‘comparability’ of the information being
produced by different reporting entities.
True False
8. What are two of the key ways in which management accounting differs from financial
accounting?
A. Management accounting provides special-purpose information to people external to the firm
and it is highly regulated.
