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Question;51. A soundly developed conceptual framework of;concepts and objectives should;a. increase;financial statement users? understanding of and confidence in financial;reporting.;b. enhance;comparability among companies? financial statements.;c. allow;new and emerging practical problems to be more quickly solved.;d. all;of these answers are correct.;52. Which;of the following is not true;concerning a conceptual framework in accounting?;a. It;should be a basis for standard-setting.;b. It;should allow practical problems to be solved more quickly by reference to it.;c. It;should be based on fundamental truths that are derived from the laws of nature.;d. All;of these answers are correct.;53. What;is a purpose of having a conceptual framework?;a. To;make sure that economic activity can be identified with a particular legal;entity.;b. To;segregate activities among competing companies.;c. To;provide comparable information for different companies.;d. To;enable the profession to more quickly solve emerging practical problems and to;provide a foundation from which to build more useful standards.;S54. Which of;the following is not a benefit;associated with the IASB Conceptual Framework Project?;a. A;conceptual framework should increase financial statement users? understanding;of and confidence in financial reporting.;b. Practical;problems should be more quickly solvable by reference to an existing conceptual;framework.;c. A;coherent set of accounting standards and rules should result.;d. Business;entities will need far less assistance from accountants because the financial;reporting process will be quite easy to apply.;55. A soundly developed;conceptual framework enables the International Accounting Standards Board (IASB);to;I.;Issue more useful and consistent pronouncements;over time.;II.;More quickly solve new and emerging practical;problems by referencing basic theory.;a.;I only.;b.;II only.;c.;Both I and II.;d.;Neither I nor II.;56. In the conceptual framework for financial;reporting, what provides ?the why??the purpose of accounting?;a. Recognition;measurement, and disclosure concepts such as assumptions, principles, and;constraints;b. Qualitative;characteristics of accounting information;c. Elements;of financial statements;d. Objective;of financial reporting;57. The underlying theme of the conceptual;framework is;a. decision;usefulness.;b. understandability.;c. faithful;representation.;d. comparability.;58. What is the objective of general-purpose;financial reporting?;a. to;provide financial information about the reporting entity that is useful to;present and potential equity investors, lenders, and other creditors in making;decisions in their capacity as capital providers.;b. to;provide companies with the option to select information that favors one set of;interested parties over another.;c. to;provide users with financial information that implies total freedom from error.;d. to;provide a metric for financial information used to determine when the boundary;between two or more entities should be disregarded and the entities considered;to be a licensing arrangement.;59. The International;Accounting Standards Board?s (IASB?s) Conceptual Framework includesall of the following except;a.;Objective of financial reporting.;b.;Supplementary information;c.;Elements of financial statements.;d.;Qualitative characteristics of accounting;information.;60. The second level in the;International Accounting Standards Board?s (IASB?s) Conceptual Framework;a.;Identifies the objective of financial reporting.;b.;Identifies recognition, measurement, and disclosure;concepts used in establishing and applying accounting standards.;c.;Provides the elements of financial statements.;d.;Includes assumptions, principles, and constraints.


Paper#55027 | Written in 18-Jul-2015

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