Quiz Topic 2 (Conceptual Framework) arfb123

When the conceptual framework is effective for implementation?

• 1 Jan 2020

• 1 Jan 2018

• 1 Jan 2021

• 1 Jan 2011

Which financial statement that we are refering to analyse about the financial health of a company?

• Statament of Financial Position

• Statment of Profit n Loss

• Statement of Cash FLow

• Statement of Changes in Equity

What are recognition criteria that introduced by conceptual framework?

• Faithful representation and accurate

• Relevance and timely

• Faithful representation and relevance

• Relevance and Prudence

Which of the below is the function of financial statement to the public?

• Interested in the entity's ability to pay salaries and wages

• To make macroeconomic policies and regulate activities

• Interested in company's corporate social activities such as donations and provision of scholarship

• Interested in the company ability to continue to operate in future (services provided)

Why is it important for a company to have financial statements that are complete, neutral, and free from errors?

• To make sure the financial statement is RELEVANT

• To make sure the financial statement is FAITHFUL REPRESENT

• To make sure the financial statement is TIMELINESS

• To make sure the UNDERSTANDABILITY of the financial statement

Which of the following is NOT a fundamental qualitative characteristic or non from theier value of fundamental qualitative characteristic of financial information?

• Relevance
  

• Faithful representation

• Comparability

• Materiality

Relevance in financial reporting means that the information must be:

• Free from errors
  xternal auditors

• Similar to past reports

• Capable of influencing users' decisions

• Verified by external auditors

Faithful representation includes which of the following attributes?

• Predictive value, confirmatory value, materiality

• Relevance, reliability, understandability

• Comparability, verifiability, timeliness

• Completeness, neutrality, freedom from error

Which qualitative characteristic ensures that similar transactions are recorded and reported consistently?

• Comparability

• Timeliness

• Verifiability

• Understandability

Which of the following does NOT enhance the usefulness of financial information?

• Comparability

• Faithful representation

• Timeliness

• Verifiability