You are about to take PFRS for SMEs, today, October 15, 2018! At the end of this quiz, you will be able to find out how many questions you answered correctly and your rank. You will also be receiving your quiz results in your e-mail.

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1. An entity made an unusually high profit for the year ended 31 December 20X7 because it negotiated a significantly lower cost price for its main raw material at a time when the selling price of its products was rising sharply. Management does not want to make public the unusually high profit because they believe that knowledge of the entity’s profitability would result in their customers seeking to negotiate lower selling prices when purchasing goods from the entity. Consequently, management would like to decrease profit for the year by recognising a provision for unforeseen possible expenses.
2. Recognition criteria determine when to recognise an item. Measurement is determining the monetary amounts at which to measure an item. Uncertainties about the extent of future cash flows:
3. Assets to be sold, consumed or realised as part of the entity’s normal operating cycle are:
4. Materiality depends on:
5. Section 4 Statement of Financial Position of the IFRS for SMEs:
6. Which of the following entities must not describe its financial statements as being in compliance with the IFRS for SMEs even if it is required by law to prepare its financial statements in accordance with the IFRS for SMEs?
7. How many measurement bases does the IFRS for SMEs specify for the measurement of assets?
8. Which of the following entities is not a going concern?
9. In accordance with the IFRS for SMEs, in presenting a statement of financial position, an entity:
10. Fair presentation requires a faithful representation of the effect of transactions, other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in Section 2.

Fair presentation, in accordance with the IFRS for SMEs, is presumed to result from:
11. If the changes to the equity of an entity during the periods for which financial statements are presented arise only from profit or loss, payment of dividends, corrections of prior period errors, and changes in accounting policy:
12. When the classification of items in its financial statements is changed, the entity:
13. Rather than distributing its excess cash to its shareholders an entity acquired a rare painting. The painting is held for capital appreciation rather than for: (a) use in the production or supply of goods or services or for administrative purposes; or (b) sale in the ordinary course of business.. The IFRS for SMEs does not explicitly specify how to account for investments in paintings. How should the entity account for its investment in the  painting?
14. When there is much variability in the duration of the entity’s normal operating cycle, the operating cycle is measured at:
15. In which of the following situations can an entity that does not have public accountability claim compliance with the IFRS for SMEs in its financial statements?
16. Which of the descriptions below best describes the qualitative characteristic ‘reliability’?
17. The objective of general purpose financial statements prepared in accordance with the IFRS for SMEs is:
18. The qualitative characteristic ‘prudence’ implies that in preparing financial statements management should
19. Which qualitative characteristics are fundamental to general purpose financial information?
20. In accordance with the IFRS for SMEs, an entity must present additional line items in a statement of financial position when:

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