Which one of the following is not an advantage of accounting regulation?

• A.It provides flexibility in the way accounting information is presented to users.
• B.It instils public confidence in the accounting system employed in commerce and industry.
• C.It provides the required accounting information to all necessary shareholders.
• D.It provides quality of information in and across financial statements.

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Which one of the following reports sets out how directors have run a company and if they implemented proper procedures to deal with matters like accountability, audits, directors' roles and responsibilities, internal controls and relations with shareholders?

• A.corporate governance statement
• B.director's report
• C.corporate social responsibility report
• D.chairman's statement

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In a strong efficient market, the finance manager will

• A.develop strategies to disclose the company's profit or loss.
• B.analyse historical data on takeover targets.
• C.maximise the net present value of the firm's investments.
• D.employ analysts to determine the best time to issue shares.

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Which one of the following practices is not considered creative accounting?

• A.window dressing
• B.aggressive earnings management
• C.profit smoothing
• D.trading in derivatives

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Which one of the following statements is correct about using judgement in the financial reporting process?

• A.Accountants should not be allowed to use their own judgement.
• B.Use of individual judgement is required to choose between alternative methods available within accounting standards.
• C.A true and fair view cannot be assured if individual judgement is allowed.
• D.Judgement can be allowed in the statement of comprehensive income but not in the statement of financial position.

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