2 1 multiple choice questions 1 which of the following is not a purpose of a concept 4306370

2 1 multiple choice questions 1 which of the following is not a purpose of a concept 4306370

2.1   Multiple Choice Questions

1) Which of the following is not a purpose of a conceptual framework of accounting concepts and financial reporting objectives?

A) To increase the user's ability to understand financial statements.

B) To increase financial statement users' confidence in financial reporting.

C) To provide a foundation for detailed accounting and reporting rules.

D) To enhance comparability among companies' financial statements.

2) Which of the following is not correct about the conceptual framework in accounting?

A) It is the basis for standard-setting for accounting standard setting bodies.

B) It is based on fundamental accounting truths derived from the laws of nature.

C) It can be used to solve emerging or complex accounting problems.

D) It can be used to develop consistent and comparable accounting principles.

3) Which is a purpose of the conceptual framework in accounting?

A) To support principles-based accounting standards, principles and practices.

B) To provide rules from which decision-useful financial information can be developed.

C) To promote global consistency, acceptance and adoption of IFRS around the globe.

D) To develop different accounting practices between countries around the globe.

4) The underlying or fundamental theme of the accounting conceptual framework is

A) decision usefulness.

B) comparability.

C) reliability.

D) understandability.

5) Which is not a qualitative characteristic of financial information in the IFRS Framework?

A) Understandability.

B) Historical cost.

C) Faithful representation.

D) Comparability.

6) Which is not an assumption of financial information in the IFRS Framework?

A) Accrual basis of accounting.

B) Going concern.

C) Timeliness.

D) Financial capital maintenance.

7) Which is not an element of financial information in the IFRS Framework?

A) Other comprehensive income.

B) Assets.

C) Income.

D) Liabilities.

8) Which is not a criteria for recognition of financial information in the IFRS Framework?

A) The amount is reasonably measurable.

B) The expenses should be matched with revenues.

C) The amount must be measured at historical cost.

D) Inflow of outflow of cash flows are probable.

9) Who are not users of financial information under the IFRS Framework?

A) Present investors.

B) Potential investors.

C) Employees.

D) Management.

10) What are the information needs of users of financial information under the IFRS Framework?

A) Information about forecasted future performance.

B) Information about future cash flows.

C) Information about financial position at a point in time.

D) Information about forecasted future financial position.

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