Wk3 Quiz 3

What financial reporting standard is applied when the FS is free from material misstatements and faithfully presents the financial position of the company?

• Comparability

• Consistency

• Fair Presentation

• Materiality

What reporting principle refers to the assumption that the entity will remain in business in the foreseeable future.

• Going concern

• Consistency

• Offsetting

• Accrual

The presentation and classification of items in the FS are retained from one period to the next.

• Fair presentation

• Accrual

• Comparability

• Consistency

The transactions and other events are recognized when they occur and NOT when cash is received or paid.

• accrual

• offsetting

• materiality

• comparability

The accounting principles, policies, conventions, rules and practices applied in preparing and presenting the FS are written in the notes section of the report.

• disclosure of accounting policies

• comparability of information

• materiality and aggregation

• offsetting principle