Testbank
to accompany
Accounting: business
reporting for decision
making
7th edition
by
Birt et al.
Not for distribution. Instructors may assign selected questions in their LMS.
© John Wiley & Sons Australia, Ltd 2020
,Chapter 2: Accounting in society
Learning objectives
1. Identify the sources of company regulation in Australia
Q1, Q2, Q3, Q4, Q5, Q49
2. Explain the current standard-setting framework and the role of the professional
accounting associations in the standard-setting process
Q6, Q7, Q8, Q9, Q10, Q50, Q51
3. Evaluate the role of the Conceptual Framework and illustrate the qualitative
characteristics of financial statements
Q11, Q12, Q13, Q14, Q15, Q16, Q17, Q18, Q19, Q20, Q21, Q22, Q23, Q52, Q53,
Q54, Q55
4. Explain the concept of corporate governance
Q24, Q25, Q56, Q57
5. Outline corporate governance guidelines and practices
Q26, Q27, Q28, Q58, Q59
6. Outline the role of ethics in business and compare ethical philosophies relevant to
business decision making
Q29, Q30, Q31, Q32, Q33, Q34, Q35, Q36, Q37, Q38, Q60
7. Explain the use of codes of ethical conduct and apply ethical decision-making
methods to business situations
Q39, Q40, Q41, Q42, Q43, Q44, Q61, Q62, Q63
8. Give examples of the limitations of accounting information
Q45, Q46, Q47, Q48, Q64, Q65
, Multiple-choice questions
1. Primarily, which body enforces the Corporations Act 2001?
a. Australian Accounting Standards Board
*b. Australian Securities and Investments Commission
c. Financial Reporting Council
d. Australian Securities Exchange
Correct answer: b
Learning objective 2.1 ~ Identify the sources of company regulation in Australia
2. Which body issues legally enforceable accounting standards that apply to Australian
companies?
a. Australian Securities and Investments Commission
b. Financial Reporting Council
*c Australian Accounting Standards Board
d. Australian Professional Accounting bodies
Correct answer: c
Learning objective 2.1 ~ Identify the sources of company regulation in Australia
3. The Australian Securities and Investments Commission has many roles. Which of the
below is not one of ASIC’s roles?
a. To promote confident and informed participation in the financial system by
investors and consumers.
*b. To ensure financial institutions honour their commitments.
c. To uphold the law uniformly, effectively and quickly.
d. None of the above; all the listed options are roles of ASIC.
Correct answer: b
Learning objective 2.1 ~ Identify the sources of company regulation in Australia
4. What is the acronym for the regulatory body that oversees the operations of financial
institutions such as banks and building societies in Australia?
a. ASX
b. ATO
*c. APRA
d. ASIC
Correct answer: c
Learning objective 2.1 ~ Identify the sources of company regulation in Australia
