2. The following statements are correct, except: a. It is expected that IFRS will be beneficial to investors for this will reduce cost of comparing alternative investments. b. The Conceptual Framework is a set of principle-based international standards stating how particular types of transactions should be reported in the financial statements. c. The Conceptual Framework is used to set standards, enhance consistency across standards, and provide a benchmark for judgments. d. Preparers of financial statements use the Conceptual Framework to develop accounting policies in the absence of specific standard or interpretation. 3. Statement 1: The concepts that underlie the Philippine Financial Reporting Standards (PFRS) are objectives of general- purpose financial statements, qualitative characteristics, elements, recognition and measurement, and presentation and disclosure. Statement 2: The PFRS in the Philippines are adopted by the Philippine Financial Reporting Standard Council (PFRSC) and adopted by the Philippine Securities and Exchange Commission (PSEC). a. Only the first statement is correct. b. Only the second statement is correct. с. Both statements are correct. d. Neither of the statements is correct. 4. Which of the following statements is correct? 1. Financial statements are most commonly prepared in accordance with an accounting model based on recoverable historical cost and the nominal financial capital maintenance concept. II. The Conceptual Framework to a certain extent is PFRS and, hence, - defines standards for any particular measurement or disclosure issue. a. Ionly Both I and II C. b. Пonly d. Neither I nor II
2. The following statements are correct, except: a. It is expected that IFRS will be beneficial to investors for this will reduce cost of comparing alternative investments. b. The Conceptual Framework is a set of principle-based international standards stating how particular types of transactions should be reported in the financial statements. c. The Conceptual Framework is used to set standards, enhance consistency across standards, and provide a benchmark for judgments. d. Preparers of financial statements use the Conceptual Framework to develop accounting policies in the absence of specific standard or interpretation. 3. Statement 1: The concepts that underlie the Philippine Financial Reporting Standards (PFRS) are objectives of general- purpose financial statements, qualitative characteristics, elements, recognition and measurement, and presentation and disclosure. Statement 2: The PFRS in the Philippines are adopted by the Philippine Financial Reporting Standard Council (PFRSC) and adopted by the Philippine Securities and Exchange Commission (PSEC). a. Only the first statement is correct. b. Only the second statement is correct. с. Both statements are correct. d. Neither of the statements is correct. 4. Which of the following statements is correct? 1. Financial statements are most commonly prepared in accordance with an accounting model based on recoverable historical cost and the nominal financial capital maintenance concept. II. The Conceptual Framework to a certain extent is PFRS and, hence, - defines standards for any particular measurement or disclosure issue. a. Ionly Both I and II C. b. Пonly d. Neither I nor II
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 3MC: The third step for making a capital investment decision is to establish baseline criteria for...
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Answer all the following questions.
Transcribed Image Text:2. The following statements are correct, except:
a. It is expected that IFRS will be beneficial to investors for this will
reduce cost of comparing alternative investments.
b. The Conceptual Framework is a set of principle-based
international standards stating how particular types of
transactions should be reported in the financial statements.
c. The Conceptual Framework is used to set standards, enhance
consistency across standards, and provide a benchmark for
judgments.
d. Preparers of financial statements use the Conceptual Framework
to develop accounting policies in the absence of specific standard
or interpretation.
3. Statement 1: The concepts that underlie the Philippine Financial
Reporting Standards (PFRS) are objectives of general-
purpose financial statements, qualitative characteristics,
elements, recognition and measurement, and
presentation and disclosure.
Statement 2: The PFRS in the Philippines are adopted by the
Philippine Financial Reporting Standard Council
(PFRSC) and adopted by the Philippine Securities and
Exchange Commission (PSEC).
a. Only the first statement is correct.
b. Only the second statement is correct.
с.
Both statements are correct.
d. Neither of the statements is correct.
4. Which of the following statements is correct?
1. Financial statements are most commonly prepared in accordance
with an accounting model based on recoverable historical cost
and the nominal financial capital maintenance concept.
II. The Conceptual Framework to a certain extent is PFRS and, hence,
- defines standards for any particular measurement or disclosure
issue.
a. Ionly
Both I and II
C.
b. Пonly
d. Neither I nor II
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