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1. What is the objective of financial statements according to the Framework? (a) To provide information about the financial position, performance, and changes in financial position of an entity that is useful to a wide range of users in making economic decisions. (b) To prepare and present a balance sheet, an income statement, a cash flow statement, and a statement of changes in equity. (c) To prepare and present comparable, relevant, reliable, and understandable information to investors and creditors. (d) To prepare financial statements in accordance with all applicable Standards and Interpretations. 2. Which of the following are underlying assumptions of financial statements? (a) Relevance and reliability. (b) Financial capital maintenance. maintenance and physical capital (c) Accrual basis and going concern. (d) Prudence and conservatism. 3. What are qualitative characteristics of financial statements according to the Framework? (a) Qualitative characteristics are the attributes that make the information provided in financial statements useful to users. (b) Qualitative characteristics are broad classes of financial effects of transactions and other events. (c) Qualitative characteristics are non-quantitative aspects of an entity's position and performance and changes in financial position. (d) Qualitative characteristics measure the extent to which an entity has complied with Interpretations. all relevant Standards and 4. Which of the following is not a qualitative characteristic of financial statements according to the Framework? (a) Materiality. (b) Understandability. (c) Comparability. (d) Relevance.

1. What is the objective of financial statements according to the Framework? (a) To provide information about the financial position, performance, and changes in financial position of an entity that is useful to a wide range of users in making economic decisions. (b) To prepare and present a balance sheet, an income statement, a cash flow statement, and a statement of changes in equity. (c) To prepare and present comparable, relevant, reliable, and understandable information to investors and creditors. (d) To prepare financial statements in accordance with all applicable Standards and Interpretations. 2. Which of the following are underlying assumptions of financial statements? (a) Relevance and reliability. (b) Financial capital maintenance. maintenance and physical capital (c) Accrual basis and going concern. (d) Prudence and conservatism. 3. What are qualitative characteristics of financial statements according to the Framework? (a) Qualitative characteristics are the attributes that make the information provided in financial statements useful to users. (b) Qualitative characteristics are broad classes of financial effects of transactions and other events. (c) Qualitative characteristics are non-quantitative aspects of an entity's position and performance and changes in financial position. (d) Qualitative characteristics measure the extent to which an entity has complied with Interpretations. all relevant Standards and 4. Which of the following is not a qualitative characteristic of financial statements according to the Framework? (a) Materiality. (b) Understandability. (c) Comparability. (d) Relevance.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter2: Financial Reporting: Its Conceptual Framework
Section: Chapter Questions
Problem 7C
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IASB FRAMEWORK 1. What is the objective of financial statements according to the Framework? (a) To provide information about the financial position, performance, and changes in financial position of an entity that is useful to a wide range of users in making economic decisions. (b) To prepare and present a balance sheet, an income statement, a cash flow statement, and a statement of changes in equity. (c) To prepare and present comparable, relevant, reliable, and understandable information to investors and creditors. (d) To prepare financial statements in accordance with all applicable Standards and Interpretations. 2. Which of the following are underlying assumptions of financial statements? (a) Relevance and reliability. (b) Financial capital maintenance and physical capital maintenance. (c) Accrual basis and going concern. (d) Prudence and conservatism. 3. What are qualitative characteristics of financial statements according to the Framework? (a) Qualitative characteristics are the attributes that make the information provided in financial statements useful to users. (b) Qualitative characteristics are broad classes of financial effects of transactions and other events. (c) Qualitative characteristics are non-quantitative aspects of an entity's position and performance and changes in financial position. (d) Qualitative characteristics measure the extent to which an entity has complied with all Interpretations. relevant Standards and 4. Which of the following is not a qualitative characteristic of financial statements according to the Framework? (a) Materiality. (b) Understandability. (c) Comparability. (d) Relevance.
Transcribed Image Text:IASB FRAMEWORK 1. What is the objective of financial statements according to the Framework? (a) To provide information about the financial position, performance, and changes in financial position of an entity that is useful to a wide range of users in making economic decisions. (b) To prepare and present a balance sheet, an income statement, a cash flow statement, and a statement of changes in equity. (c) To prepare and present comparable, relevant, reliable, and understandable information to investors and creditors. (d) To prepare financial statements in accordance with all applicable Standards and Interpretations. 2. Which of the following are underlying assumptions of financial statements? (a) Relevance and reliability. (b) Financial capital maintenance and physical capital maintenance. (c) Accrual basis and going concern. (d) Prudence and conservatism. 3. What are qualitative characteristics of financial statements according to the Framework? (a) Qualitative characteristics are the attributes that make the information provided in financial statements useful to users. (b) Qualitative characteristics are broad classes of financial effects of transactions and other events. (c) Qualitative characteristics are non-quantitative aspects of an entity's position and performance and changes in financial position. (d) Qualitative characteristics measure the extent to which an entity has complied with all Interpretations. relevant Standards and 4. Which of the following is not a qualitative characteristic of financial statements according to the Framework? (a) Materiality. (b) Understandability. (c) Comparability. (d) Relevance.
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