CFAS

"I shall be straightforward and honest in all my professional and business relationships."Which ethical principle am I referring to in this statement? a. Integrity b. Objectivity c. Confidentiality d. Professional Behavior e. Professional Competence and Due Care Correct Answer: a General-purpose financial reports are not designed to show the value of a reporting entity. True False Correct Answer: TRUE Which of the following is not included in the scope of the IASB conceptu...

A complete, comprehensive and single document promulgated by the International Accounting Standards Board. Correct Answer: Conceptual Framework for Financial Reporting A summary of the terms and concepts that underlie the preparation and presentation of financial statements for external users. It is also an attempt to provide an overall theoretical foundation for accounting. Correct Answer: Conceptual Framework Intended to guide standard-setters, preparers and users of financial informat...

these are the two primary qualities that make accounting information useful for decision making Correct Answer: relevance, reliability information that helps users confirm or correct prior expectations has Correct Answer: confirmatory value enables users to identify the real similarities and differences in economic phenomena because the information has been measured and reported in a similar manner for different enterprises Correct Answer: comparability some cause which give rise to ...

Which statement is incorrect regarding the Conceptual Framework for Financial Reporting? A. Describes the objective of, and the concepts for, general purpose financial reporting B. Serves as a guide in developing future PFRSs and as a guide to resolving accounting issues that are not addressed directly in existing PFRSs C. Is not a PFRS and hence does not define standards for any particular measurement or disclosure nature D. Prevails in cases where there is conflict with a PFRS Correc...

Properties or resources owned by the business Correct Answer: Assets Primary reason for preparing financial reports in accounting Correct Answer: Decision making The ability of the business to pay its short term obligations Correct Answer: Liquidity Primary source of capital of a business Correct Answer: Owner's Investment Activities taking place in business which are measured and recorded in terms of money. Correct Answer: Business Transactions Accounting report that shows ...

the result of applying a measurement basis to an asset or liability and related income and expenses Correct Answer: measure Financial statements of a reporting entity that comprises two or more entities that are not all linked by a parent-subsidiary relationship Correct Answer: Combined Financial Statements An entity that is required, or chooses, to prepare general purpose financial statements Correct Answer: Reporting Entity a claim on the residual interest in the assets of the enti...

Under what condition can an entity classify financial asset that meets the amortized cost criteria at FVPL? Correct Answer: If doing so eliminates or reduces an accounting mismatch An entity shall prepare and present a statement of cash flows as Correct Answer: Integral part of the entity's basic financial statements Costs incurred in bringing the inventory to the present location and condition include Correct Answer: Cost of designing product for specific customers Biological trans...

If doing so eliminates or reduces an accounting mismatch - - - Under what condition can an entity classify financial asset that meets the amortized cost criteria at FVPL? Integral part of the entity's basic financial statements - - - An entity shall prepare and present a statement of cash flows as Cost of designing product for specific customers - - - Costs incurred in bringing the inventory to the present location and condition include C. Production of agricultural produce - - - Biologic...