Exam (elaborations)
ACCCOB2 EX 1-3, EX 1-4 TEST
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ACCCOB2 EX 1-3, EX 1-4 TEST...
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True - ANSWER The Conceptual Framework is not a PFRS and hencedoes not define standards for any particular measurement or disclosure
issue.
True - ANSWER The objective of general-purpose financial reporting is
to provide financial information about the reporting entity that is useful to
existing and potential investors, lenders, and other creditors in making
decisions about providing resources to the entity.
False - ANSWER Financial statements provide all the information that
existing and potential investors, lenders and other creditors need.
True - ANSWER Financial statements show the value of a reporting
entity.
True - ANSWER Focusing on common information needs does not
prevent the reporting entity
from including additional information that is most useful to a particular
subset of primary users.
True - ANSWER Accrual accounting recognizes the effects of
transactions and other events and
circumstances on a reporting entity's economic resources and claims in
the periods in which those effects occur, even if the resulting cash
receipts and payments occur in a different period.
True - ANSWER If financial information is to be useful, it must be
relevant and faithfully represent what it intends to represent.
True - ANSWER The usefulness of financial information is enhanced if it
is comparable, verifiable, timely, and understandable.
False - ANSWER The fundamental qualitative characteristics of useful
financial information are relevance and timeliness.
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