intermediate accounting chapter 2
CHAPTER 2
CONCEPTUAL FRAMEWORK UNDERLYING FINANCIAL ACCOUNTING
IFRS questions are available at the end of this chapter.
TRUe-FALSe—Conceptual
Answer No. Description F 1. Nature of conceptual framework. T 2. Conceptual framework definition. F 3. Levels of conceptual framework. T 4 International conceptual framework. F 5. Statements of Financial Accounting Concepts. T 6. Decision usefulness.Objective of financial reporting. F 7. Financial statement users. T 8. Relevance and reliabilityfaithful representation. T 9. Consistency. F 10. Relevance. F 11. Faithful representation.Reliability. F 12. Basic elements. T 13. Comprehensive income. T 14. Going concern assumption. F 15. Economic entity assumption. F 16. Expense recognition principle. T 17. Realizable revenues. T 18. Supplementary information. F 19. Materiality factorsCost benefit trade-off. F 20. Conservatism.
Multiple Choice—Conceptual
Answer No. Description c 21. GAAP defined. d 22. Purpose of conceptual framework. c 23. Conceptual framework. d 24. Conceptual framework purpose. d S25. Conceptual framework benefits. d 26. Objectives of financial reporting. a 27. Decision usefulness. d 28. Objectives of financial reporting. a P29. Financial reporting objectives. a 30. Primary objective of financial reporting. a 31. Primary objective of financial reporting. b 32. Characteristic of accounting information. c 33. Characteristic of accounting information. c 34. Meaning of comparability. a 35. Meaning of consistency.
Multiple Choice—Conceptual (cont.)
Answer No. Description d 36. Ingredient of relevance. c 37. Ingredient of reliability. a 38. Consistency characteristic. b 39. Primary quality of accounting information. d 40. Quality of relevance. a 41. Quality of reliability. c 42. Purpose of understandable informationConsistency quality. a 43. Decision-usefulness criterion. c 44. Primary qualities of accounting
CONCEPTUAL FRAMEWORK UNDERLYING FINANCIAL ACCOUNTING
IFRS questions are available at the end of this chapter.
TRUe-FALSe—Conceptual
Answer No. Description F 1. Nature of conceptual framework. T 2. Conceptual framework definition. F 3. Levels of conceptual framework. T 4 International conceptual framework. F 5. Statements of Financial Accounting Concepts. T 6. Decision usefulness.Objective of financial reporting. F 7. Financial statement users. T 8. Relevance and reliabilityfaithful representation. T 9. Consistency. F 10. Relevance. F 11. Faithful representation.Reliability. F 12. Basic elements. T 13. Comprehensive income. T 14. Going concern assumption. F 15. Economic entity assumption. F 16. Expense recognition principle. T 17. Realizable revenues. T 18. Supplementary information. F 19. Materiality factorsCost benefit trade-off. F 20. Conservatism.
Multiple Choice—Conceptual
Answer No. Description c 21. GAAP defined. d 22. Purpose of conceptual framework. c 23. Conceptual framework. d 24. Conceptual framework purpose. d S25. Conceptual framework benefits. d 26. Objectives of financial reporting. a 27. Decision usefulness. d 28. Objectives of financial reporting. a P29. Financial reporting objectives. a 30. Primary objective of financial reporting. a 31. Primary objective of financial reporting. b 32. Characteristic of accounting information. c 33. Characteristic of accounting information. c 34. Meaning of comparability. a 35. Meaning of consistency.
Multiple Choice—Conceptual (cont.)
Answer No. Description d 36. Ingredient of relevance. c 37. Ingredient of reliability. a 38. Consistency characteristic. b 39. Primary quality of accounting information. d 40. Quality of relevance. a 41. Quality of reliability. c 42. Purpose of understandable informationConsistency quality. a 43. Decision-usefulness criterion. c 44. Primary qualities of accounting