To achieve faithful representation, the financial information must be: relevant, comparable, and timely. complete, neutral, and free from material error. relevant, consistent, and timely. consistent, unbiased, and relevant.
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- Question 16 What are the Enhancing Qualities of the Qualitative Characteristics of accounting information? Answers: Completeness, Verifiability, Timeliness, Understandability Comparability, Neutrality, Timeliness, Understandability Comparability, Verifiability, Timeliness, Free from Error Comparability, Verifiability, Timeliness, Understandability2. Explain the following concept used in the preparation of financial statement i. Relevance ii. Reliability iii. Faithfull representation iv. Neutrality v. Completeness vi. ComparabilityQuestion 22 What are the 2 Fundamental Qualities of useful accounting information? Answers: Faithful Representation, Accuracy Relevance, Faithful Representation Timeliness, Consistency Relevance, Materiality
- 38. This approach is useful for compliance reviews where operators should do what the contract, law, regulation, or procedures documentation requires .It also useful for financial reviews, where accountants and others involved in record keeping and preparing financial statements must adhere to applicable accounting standards. Group of answer choices Cause and Effect Value Stream Map Process Flow Map Force Field AnalysisQ5. A. Explain the need for high-quality standards in the accounting and reporting. B. Explain the revenue recognition issues.13. If the financial statements provided by a company includes all information, depicted without any bias and are free from errors, which qualitative characteristics is assumed to be possessed by the financial statements? a. Relevance b. Faithful representation c. Comparability d. Understandability
- Please answer all 3 subparts. Question 1 (i) What are the 5 components of the COSO framework? A. Risk assessment, control environment, control activities, information and communication, monitoringB. Control environment, risk assessment, control activities, information and communication, monitoring.C. Control activities, monitoring, information and communication, control environment monitoringD. Control activities, control environment, risk assessment, monitoring, information and communication (ii) An opinion which is given by the auditor when the financial statements give a true and fair view except for a particular matter, which the auditor explains is called:A. An adverse opinionB. An unmodified opinionC. A qualified opinionD. A disclaimer opinion (iii) Which of the following is NOT a reason why linking reward to performance may not solve remuneration problems?A. Unsuitable measures of performance may be selected B. Many performance measures are based on the short term resultsC.…5 A conceptual framework for financial reporting is a statement of generally accepted theoretical principles, which provide the basis for __________________. i)Development of new accounting standards ii)Development of accounting staff through training programs iii)Evaluation of accounting standards which already in existence. iv)Developing quality control methods to enhance the quality of products and services. a. iii) & iv) b. ii) & iv) c. i) & iii) d. i) & ii)Q21 The Conceptual Framework_________. Select one: a. does not define standards for any particular measurement or disclosure issue b. overrides all other IFRS requirements c. is an IFRS d. is in the hierarchy that management must in the absence of a specific IFRS requirement apply in developing an accounting policy that results in information that is relevant
- According to the International Accounting Standards Board’s Conceptual Framework, which qualitative characteristics enhance the usefulness of information that is relevant and faithfully representative? Consistency, reliability, measurability, timeliness Materiality, understandability, comparability, reliability Comparability, understandability, timeliness, verifiability Consistency, prudence, measurability, verifiability47-One of the objective of financial reporting is that correct and authentic information should be floated to the interested parties. For this purpose, the valuation of assets and other accounts must be real and up to the mark. There is a lot of debate on this issue that the items appearing in the balance sheet must show the real value of assets. Historical cost assumption supports the idea that since there are many objections on the valuation of the items appearing in the balance sheet, then it is better to use historical cost as O a. It is verifiable, hence achieve accounting objective O b. It is common across the globe O c. None of the options O d. It is up-to-date does not require any further modificationsQualitative Characteristics The following is a list of qualitative characteristics of useful accounting information identified in the FASB's and the IASB's Statement of Financial Accounting Concepts No. 8 and statements describing the qualities. A. Comparability B. Decision usefulness C. Relevance D. Faithful representation E. Predictive value F. Confirmatory value G. Verifiability H. Neutrality I. Free from error J. Consistency K. Materiality L. Timeliness M. Understandability N. Completeness Required: Select the appropriate letter identifying each quality on the statement describing the quality. 1. Different knowledgeable and independent observers can reach consensus that a particular representation is faithful. 2. Making information available to decision makers before it loses its capacity to influence decisions. 3. Capacity to make a difference in a decision, enabling users to predict future outcomes and/or confirm prior expectations. 4. Overall objective of…