The Conceptual Framework for Financial Reporting ( QUIZ 002 )

1. The objectives of financial statements are met by:

• Statement of financial positions, statement of profit loss & other comprehensive income.
• Cash flow statement, statement of changes in equity, supporting notes.
• All of above.
   Check Answer 

2. Fundamental qualitative characteristics of useful financial informations are :

• Comparability & verifiability
• Relevance and faithful representation
• Timeliness and understandability
   Check Answer 

3. Enhancing qualitative characteristics of useful financial informations are :

• Comparability & verifiability.
• Timeliness, understandability, Comparability & verifiability.
• All above
   Check Answer 

4. Information is material if omitting it or misstating it could influence decisions that users make on the basis of financial information about a specific reporting entity.

• False
• True
• True for corporate sector entities only.
   Check Answer 

5. Faithful representation of financial information have following characteristics

• Complete
• Neutral
• Free from error, complete & neutral.
   Check Answer 


6. Frame work discusses the following items of financial statements

• Assets & Liability
• Assets , Liability & equity only
• Assets, Liability, equity, income & expenses.
   Check Answer 



7. Assumptions of going concern and accrual are explained in

• Framework
• IAS 1
• In all IFRS
   Check Answer 

8. Conceptual frame work allow only one measurement bases for elements of financial statements

• Correct
• Incorrect
• Partially correct
   Check Answer 

9. Conceptual frame is

• An IFRS
• Not IFRS
• An IAS
   Check Answer 

10. Financial reporting provide

• Exact information about value of reporting entity
• Assistance in making judgment of value of reporting entity
• All of above
   Check Answer