FINANCIAL ACCOUNTING AND REPORTING QUESTIONS WITH CORRECT ANSWERS 2025

FINANCIAL ACCOUNTING AND REPORTING
QUESTIONS WITH CORRECT ANSWERS 2025
InternationalGAccountingGStandardsGBoardG(IASB)G-GCORRECTGANSWERG-
OnGaGglobalGlevel,GtheyGdetermineGtheGgeneralGaccountingGstandardsGandGisGmadeGupGofGboardGmembersG
fromGnineGcountries



InternationalGFinancialGReportingGStandardsG(IFRS)G-GCORRECTGANSWERG-
IASB'sGmissionGisGtoGdevelopGaGsingleGsetGofGglobalGaccountingGstandardsGpublishedGasGpronouncements



GenerallyGAcceptedGAccountingGPrinciplesG(GAAP)G-GCORRECTGANSWERG-
AccountingGstandardsGinGtheGUS;GWhileGIFRSGisGprinciples-based,GtheGUSGstandardsGareGrules-based



InternationalGFinancialGReportingGStandardsG(IFRS)GBasicGPrinciplesG-GCORRECTGANSWERG-
Relevance:GInfoGmustGbeGofGvalueGtoGdecisionGmakers;

Materiality:GInfoGmustGhaveGsignificantGimpactGonGfinancialGposition;

FaithfulGRepresentation;

Verifiability;

Timeliness;

Understandability;

Completeness



IFRSGBasicGElementsGthatGmustGbeGreportedGinGfinancialGstatementsG-GCORRECTGANSWERG-
Assets,GLiabilities,GEquities



FinancialGAccountingGStandardsGBoardG(FASB)G-GCORRECTGANSWERG-
Independent,GselfGregulatingGorganizationGformedGinG1973GthatGdecidesGonGGAAPGandGpublishesGinGtheGfo
rmGofGAccountingGStandardsGCertificationG(ASC)GTopics



SECG-GCORRECTGANSWERG-
AuthorityGforGenforcingGUSGaccountingGprinciples,GwhichGreliesGonGFASBGtoGdevelopGtheGaccountingGstand
ards

, SECGRegulationGS-XG-GCORRECTGANSWERG-
OutlinesGaccountingGreportingGrequirements,GwhichGareGpublishedGwithinGtheGSEC'sGFinancialGReportingG
ReleaseG(FRR)



4GBasicGPrinciplesGUnderlyingGGAAPG-GCORRECTGANSWERG-Historical-
CostGPrinciple:GmostGassetsGandGliabilitiesGreportedGatGhistoricalGcost;

Full-
DisclosureGPrinciple:GInfoGthatGmayGinfluenceGjudgmentGandGdecisionGofGuserGofGfinancialGinfoGshouldGbeG
disclosed;

RevenueGRecognitionGPrinciple:GrevenueGreportedGwhenG(1)GcashGorGaGclaimGforGcashGisGreceivedGinGexcha
ngedGforGgoods/servicesGandG(2)GtheGearningsGprocessGisGsubstantiallyGcomplete;

MatchingGPrinciple:GExpensesGmustGbeGreportedGwhenGrevenuesGwithGwhichGtheyGareGassociatedGareGrec
ognized



DifferencesGbetweenGGAAPGandGIFRSG-GCORRECTGANSWERG-IFRSGdoesGnotGpermitGlast-in,Gfirst-
outG(LIFO)Gaccounting;

IFRSGusesGsingle-stepGmethodGforGimpairmentGwrite-downsGwhileGGAAPGusesG2-step;

IFRSGrequiresGcapitalizationGofGdevelopmentGcostsGonceGcertainGqualifyingGcriteriaGareGmetGwhileGGAAPGr
equiresGdevelopmentGtoGbeGexpensedGasGincurred



Sarbanes-OxleyGActG(SOX)G-GCORRECTGANSWERG-
ActGpassedGbyGUSGCongressGwithGpurposesGofGrestoringGconfidenceGinGpublishedGfinancialGstatementsGbyG
establishingGsetGofGcontrolsGoverGauditGproceduresGandGdisclosureGrequirements;GthisGwasGaGresultGofGacc
ountingGmanipulationsGthatGledGtoGdownfallGofGseveralGpublicGcompanies



AssociationGofGCharteredGCertifiedGAccountantsG(ACCA)G-GCORRECTGANSWERG-
MostGpopularGinternationalGaccountingGcertification



CertifiedGPublicGAccountantG(CPA)G-GCORRECTGANSWERG-PrimaryGaccountingGcertificationGinGUS



CharteredGAccountantG(CA)G-GCORRECTGANSWERG-
PopularGcertificationGinGUK,GCanada,GIndiaGandGotherGformerGBritishGColonies



5GTypesGofGAuditGOpinionsG-GCORRECTGANSWERG-StandardGUnqualifiedGOpinion;