Multiple choice
QUESTION 66-1Multiple choice (IFRS)
1. The IASB defines SMEs as entities that
a. Do not have public accountability.
b. Have public accountability and publish general purpose financial statements for external
users.
c. Do not publish general purpose financial statements for external users.
d. Do not have public accountability and publish general purpose financial statements for
external users.
2. All of the following entities is publicly accountable, except
a. An entity whose shares are traded in a public market.
b. An entity whose debt instruments but not the shares are traded in a public market.
c. An entity whose shares and debt instruments are traded in an "over-the-counter market".
d. An entity that is not in the process of issuing shares and debt instruments for trading in a
public market.
3. Which approach is taken by the IASB in developing IFRS for SMEs?
a. The exemptions given to smaller entities are prescribed in the mainstream accounting
standards
b. GAAP for SMEs is to be developed on a national basis
c. The standard is an independently developed set of standards
d. The standard is a simplified self-contained set of accounting principles that are based on full
IFRS
ANSWER 66-1
1. d
2. d
3. d