HRM732 Module 1 UPDATED ACTUAL
Exam Questions and CORRECT Answers
Accounting Period - CORRECT ANSWER - a span of time with a beginning and end.
usually a month, quarter, or year
What triggers the accounting recording process? - CORRECT ANSWER - an economic
event
What is the point of the accounting period? - CORRECT ANSWER - to set a finite date in
which all the events since the prior report are summarized
PRocessing economic events - CORRECT ANSWER - Economic event where you analyse
transactions then Record the event in General journal, summarize the even in the General ledger,
summarize by preparing trial balance and financial statements
Reasons for preparing financial reports include - CORRECT ANSWER - internal
management performance review, government auditing regulatory compliance review, investor
presentations, lending institution loan decisions, employee bonus determination
Who uses financial information> - CORRECT ANSWER - external and internal users
What is IFRS? - CORRECT ANSWER - international financial reporting standards which
is a mandatory system of reporting that is now required for all publicly accountable entities.
What is ASPE? - CORRECT ANSWER - Accounts Standards for Private Enterprises is a
mandatory system for anything privately held
IFRS and ASPE are what based? - CORRECT ANSWER - principle based as opposed to
rule based standards to encourage the use of professional judgement in applying basic accounting
principles
Exam Questions and CORRECT Answers
Accounting Period - CORRECT ANSWER - a span of time with a beginning and end.
usually a month, quarter, or year
What triggers the accounting recording process? - CORRECT ANSWER - an economic
event
What is the point of the accounting period? - CORRECT ANSWER - to set a finite date in
which all the events since the prior report are summarized
PRocessing economic events - CORRECT ANSWER - Economic event where you analyse
transactions then Record the event in General journal, summarize the even in the General ledger,
summarize by preparing trial balance and financial statements
Reasons for preparing financial reports include - CORRECT ANSWER - internal
management performance review, government auditing regulatory compliance review, investor
presentations, lending institution loan decisions, employee bonus determination
Who uses financial information> - CORRECT ANSWER - external and internal users
What is IFRS? - CORRECT ANSWER - international financial reporting standards which
is a mandatory system of reporting that is now required for all publicly accountable entities.
What is ASPE? - CORRECT ANSWER - Accounts Standards for Private Enterprises is a
mandatory system for anything privately held
IFRS and ASPE are what based? - CORRECT ANSWER - principle based as opposed to
rule based standards to encourage the use of professional judgement in applying basic accounting
principles
