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    CFAS - Quiz 4

    Uploaded by

    Sanyln Acla
    The document appears to be a series of multiple choice questions about the conceptual framework for financial reporting. It tests understanding of the purposes of the conceptual framework, which include providing a foundation for consistent standards over time but not assisting with regulatory rules. It also addresses the qualitative characteristics of useful financial information, including relevance, faithful representation, predictive value, and freedom from material error. The conceptual framework aims to increase user understanding and confidence in financial reporting.

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    CFAS - Quiz 4

    Uploaded by

    Sanyln Acla
    153 views5 pages
    The document appears to be a series of multiple choice questions about the conceptual framework for financial reporting. It tests understanding of the purposes of the conceptual framework, which include providing a foundation for consistent standards over time but not assisting with regulatory rules. It also addresses the qualitative characteristics of useful financial information, including relevance, faithful representation, predictive value, and freedom from material error. The conceptual framework aims to increase user understanding and confidence in financial reporting.

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    The document appears to be a series of multiple choice questions about the conceptual framework for financial reporting. It tests understanding of the purposes of the conceptual framework, which include providing a foundation for consistent standards over time but not assisting with regulatory rules. It also addresses the qualitative characteristics of useful financial information, including relevance, faithful representation, predictive value, and freedom from material error. The conceptual framework aims to increase user understanding and confidence in financial reporting.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    153 views5 pages

    CFAS - Quiz 4

    Uploaded by

    Sanyln Acla
    The document appears to be a series of multiple choice questions about the conceptual framework for financial reporting. It tests understanding of the purposes of the conceptual framework, which include providing a foundation for consistent standards over time but not assisting with regulatory rules. It also addresses the qualitative characteristics of useful financial information, including relevance, faithful representation, predictive value, and freedom from material error. The conceptual framework aims to increase user understanding and confidence in financial reporting.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 5

    Question

    0 / 2 pts
    Which is not a purpose of having a Conceptual Framework?
    You Answered
      
    To provide a foundation from which to build more useful and consistent pronouncements
    over time.
     

      
    To enable the profession to solve emerging practical problems more quickly.
     
    Correct Answer
      
    To assist regulatory agencies in issuing rules and regulations for a particular industry.
     

      
    To assist regulatory agencies in issuing rules and regulations for a particular industry.
     
     
    Question 2
    0 / 2 pts
    Which statement is not true concerning the Conceptual Framework

      
    The Conceptual Framework should increase users' understanding and confidence in
    financial reporting.
     

      
    The Conceptual Framework should allow practical problems to be solved more quickly.
     
    You Answered
      The Conceptual Framework should be a basis for standard setting.
     
    Correct Answer
      
    The Conceptual Framework should be based on fundamental truth derived from the law of
    nature.
     
     
    Question 3
    2 / 2 pts
    What are the attributes that make the information provided in the financial statements
    useful to the readers?

      
    Elements of financial statements
     

      
    Objectives of financial reporting
     

      
    Quantitative characteristics of financial inforrmation
     
    Correct!
      
    Qualitative characteristics of financial information
     
     
    Question 4
    2 / 2 pts
    Qualitative characteristics

      
    Are considered either fundamental or enhancing.
     

      All of the choices are correct.


     

      
    Contribute to the decision-usefulness of financial reporting information.
     

      
    Distinguish better information from inferior information for decision-making purposes.
     
     
    Question 5
    0 / 2 pts
    The fundamental qualitative characteristics are

      
    Relevance and faithful representation and materiality
     
    You Answered
      
    Faithful representation and materiality
     
    Correct Answer
      
    Relevance and faithful representation
     

      
    Relevance and reliability
     
     
    Question 6
    2 / 2 pts
    Accounting information is considered relevant when it

      
    Is understandable by reasonably informed users of accounting information.
     
    Correct!
      
    Is capable of making difference in a decision
     

      
    Is verifiable and neutral.
     

      
    Can be depended on to represent the economic conditions and events that is intended to
    represent.
     
     
    Question 7
    2 / 2 pts
    The ingredients of relevant financial information are

      
    Predictive value, confirmatory value and timeliness
     

      
    Predictive value, confirmatory value, timeliness and materiality
     

      
    Predictive value, confirmatory value and materiality
     
    Correct!
      
    Predictive value and confirmatory value
     
     
    Question 8
    2 / 2 pts
    What is the quality of information that gives assurance that is reasonably free from error
    and bias?

      
    Relevance
     

      
    Verifiability
     
    Correct!
      
    Faithful representation
     

      
    Neutrality
     
     
    Question 9
    2 / 2 pts
    Which of the following is the best description of "faithful representation" in relation to
    information in financial statements? 
    Correct!
      
    Freedom from material error
     

      
    Influence on the economic decisions of users
     

      
    Comprehensibility to users
     

      
    Inclusion of a degree of caution
     
     
    Question 10
    2 / 2 pts
    To achieve faithful representation, the financial statements

      
    Must possess all of these.
     

      
    Must have predictive and confirmatory value
     

      
    Are understandable, comparable, verifiable and timely.
     
    Correct!
      
    Must be complete, neutral and reasonably free from error
     
     

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