Question 1

According to the IASB definition of 'income',which of the following is not included?

Accepted Answer

A)  Non-reciprocal transfers such as grants, bequests or liabilities forgiven 
B)  Gains and losses from the sale of assets 
C)  Enhancement of assets 
D)  Dividends received 
A)  Non-reciprocal transfers such as grants, bequests or liabilities forgiven 
B)  Gains and losses from the sale of assets 
C)  Enhancement of assets 
D)  Dividends received

Question 2

Which of the following measurement methods is not explicitly recognised in the IASB Conceptual Framework,although it is recognised in the FASB Framework?

Accepted Answer

A)  Current market value 
B)  Current replacement cost 
C)  Net realisable value 
D)  Present value 
A)  Current market value 
B)  Current replacement cost 
C)  Net realisable value 
D)  Present value

Question 3

Which of the following is true in relation to expenses,according to the IASB Conceptual Framework?

Accepted Answer

A)  Expenses are restricted to transactions and events relating to 'ongoing major or central operations'. 
B)  There is no reference to matching of revenue and expenses in the Conceptual Framework. 
C)  Expenses would not include losses that were not under the control of the entity, such as uninsured losses of assets from flood. 
D)  None of the given options are correct. 
A)  Expenses are restricted to transactions and events relating to 'ongoing major or central operations'. 
B)  There is no reference to matching of revenue and expenses in the Conceptual Framework. 
C)  Expenses would not include losses that were not under the control of the entity, such as uninsured losses of assets from flood. 
D)  None of the given options are correct.

Question 4

Which of the following was particularly concerned with addressing the rights of the community,in terms of access to financial information about entities?

Accepted Answer

A)  Accounting Principles Board (AP
B)  Statement No 4 (1970) 
B)  The Trueblood Report (1973) 
C)  The Corporate Report (UK) (1976) 
D)  The FASB Conceptual Framework Project 
A)  Accounting Principles Board (AP
B)  Statement No 4 (1970) 
B)  The Trueblood Report (1973) 
C)  The Corporate Report (UK) (1976) 
D)  The FASB Conceptual Framework Project

Question 5

Since 1 January 2005,the Australian Accounting Standards Board's conceptual framework consists of:

Accepted Answer

A)  The IASB's Framework for the Preparation and Presentation of Financial Statements 
B)  SAC 1: Definition of the Reporting Entity 
C)  SAC 2: Objectives of General Purpose Financial Reporting 
D)  All of the given options are correct. 
A)  The IASB's Framework for the Preparation and Presentation of Financial Statements 
B)  SAC 1: Definition of the Reporting Entity 
C)  SAC 2: Objectives of General Purpose Financial Reporting 
D)  All of the given options are correct.

Question 6

Which of the following appears to be most influential in developing the objectives of financial reporting as well as a number of other concepts that have been used as a basis for most conceptual framework projects?

Accepted Answer

A)  Accounting Principles Board (AP
B)  Statement No 4 (1970) 
B)  The Trueblood Report (1973) 
C)  The Corporate Report (UK) (1976) 
D)  The Stamp Report (1980) 
A)  Accounting Principles Board (AP
B)  Statement No 4 (1970) 
B)  The Trueblood Report (1973) 
C)  The Corporate Report (UK) (1976) 
D)  The Stamp Report (1980)

Question 7

Factors that may indicate a reporting entity include:

Accepted Answer

A)  Separation of management from those with an economic interest in the entity 
B)  The economic or political importance/influence of the entity to/on other parties 
C)  The financial characteristics of the entity 
D)  All of the given options are correct. 
A)  Separation of management from those with an economic interest in the entity 
B)  The economic or political importance/influence of the entity to/on other parties 
C)  The financial characteristics of the entity 
D)  All of the given options are correct.

Question 8

Which of the following represents a contradiction,rather than a trade-off that needs to be balanced?

Accepted Answer

A)  Information may be reliable, but the time taken to ensure its reliability may result in it being potentially irrelevant. 
B)  Determining whether the benefits derived from information are greater than the costs to produce it. 
C)  The argument for neutrality and faithful representation; but standard-setters consider the economic consequences of standards. 
D)  Information may be relevant, but the data may be so unreliable that it could be potentially misleading. 
A)  Information may be reliable, but the time taken to ensure its reliability may result in it being potentially irrelevant. 
B)  Determining whether the benefits derived from information are greater than the costs to produce it. 
C)  The argument for neutrality and faithful representation; but standard-setters consider the economic consequences of standards. 
D)  Information may be relevant, but the data may be so unreliable that it could be potentially misleading.

Question 9

Which of the following is true about conceptual frameworks?

Accepted Answer

A)  They lead to decreased international compatibility of accounting standards. 
B)  Communication between standard-setters and their constituents would be diminished. 
C)  Smaller organisations may feel overburdened by reporting requirements. 
D)  Standard-setters would be less accountable for their decisions. 
A)  They lead to decreased international compatibility of accounting standards. 
B)  Communication between standard-setters and their constituents would be diminished. 
C)  Smaller organisations may feel overburdened by reporting requirements. 
D)  Standard-setters would be less accountable for their decisions.

Question 10

Which of the following describes the accounting process?

Accepted Answer

A)  Technical 
B)  Political 
C)  Procedural 
D)  Objective 
A)  Technical 
B)  Political 
C)  Procedural 
D)  Objective

Question 11

Which of the following is not a perceived advantage in developing a conceptual framework project?

Accepted Answer

A)  Standard-setters will be less accountable for their decisions. 
B)  Setting accounting standards will be more economical, despite the resources needed to develop the conceptual framework and standards. 
C)  It will result in a reduced number of accounting standards where issues are covered by the conceptual framework. 
D)  It will provide a defence and enhance the legitimacy of the accounting profession. 
A)  Standard-setters will be less accountable for their decisions. 
B)  Setting accounting standards will be more economical, despite the resources needed to develop the conceptual framework and standards. 
C)  It will result in a reduced number of accounting standards where issues are covered by the conceptual framework. 
D)  It will provide a defence and enhance the legitimacy of the accounting profession.

Question 12

Which of the following is a characteristic of relevance?

Accepted Answer

A)  It influences economic decisions. 
B)  It represents faithfully what it purports to represent. 
C)  It provides predictive value and feedback to confirm or correct earlier expectations. 
D)  None of the given options is correct. 
A)  It influences economic decisions. 
B)  It represents faithfully what it purports to represent. 
C)  It provides predictive value and feedback to confirm or correct earlier expectations. 
D)  None of the given options is correct.

According to the IASB definition of 'income',which of the following is not included?

Which of the following measurement methods is not explicitly recognised in the IASB Conceptual Framework,although it is recognised in the FASB Framework?

Which of the following is true in relation to expenses,according to the IASB Conceptual Framework?

Which of the following was particularly concerned with addressing the rights of the community,in terms of access to financial information about entities?

Since 1 January 2005,the Australian Accounting Standards Board's conceptual framework consists of:

Which of the following appears to be most influential in developing the objectives of financial reporting as well as a number of other concepts that have been used as a basis for most conceptual framework projects?

Factors that may indicate a reporting entity include:

Which of the following represents a contradiction,rather than a trade-off that needs to be balanced?

Which of the following is true about conceptual frameworks?

Which of the following describes the accounting process?

Which of the following is not a perceived advantage in developing a conceptual framework project?

Which of the following is a characteristic of relevance?

Introduction to Financial Accounting Theory

The Financial Reporting Environment

The Regulation of Financial Accounting

International Accounting

Measurement Issues: Accounting for the Effects of Changing Prices and Market Conditions

Positive Accounting Theory

Unregulated Corporate Reporting Decisions: Considerations of Systems-Oriented Theories

Extending Corporate Accountability: The Incorporation of Social and Environmental Factors Within External Reporting

Reactions of Capital Markets to Financial Reporting

Reactions of Individuals to Financial Reporting: An Examination of Behavioural Research in Accounting

Critical Perspectives of Accounting

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Exam 6: Normative Theories of Accounting: The Case of Conceptual Framework Projects

According to the IASB definition of 'income',which of the following is not included?

Which of the following measurement methods is not explicitly recognised in the IASB Conceptual Framework,although it is recognised in the FASB Framework?

Which of the following is true in relation to expenses,according to the IASB Conceptual Framework?

Which of the following was particularly concerned with addressing the rights of the community,in terms of access to financial information about entities?

Since 1 January 2005,the Australian Accounting Standards Board's conceptual framework consists of:

Which of the following appears to be most influential in developing the objectives of financial reporting as well as a number of other concepts that have been used as a basis for most conceptual framework projects?

Factors that may indicate a reporting entity include:

Which of the following represents a contradiction,rather than a trade-off that needs to be balanced?

Which of the following is true about conceptual frameworks?

Which of the following describes the accounting process?

Which of the following is not a perceived advantage in developing a conceptual framework project?

Which of the following is a characteristic of relevance?

Introduction to Financial Accounting Theory

The Financial Reporting Environment

The Regulation of Financial Accounting

International Accounting

Measurement Issues: Accounting for the Effects of Changing Prices and Market Conditions

Positive Accounting Theory

Unregulated Corporate Reporting Decisions: Considerations of Systems-Oriented Theories

Extending Corporate Accountability: The Incorporation of Social and Environmental Factors Within External Reporting

Reactions of Capital Markets to Financial Reporting

Reactions of Individuals to Financial Reporting: An Examination of Behavioural Research in Accounting

Critical Perspectives of Accounting

Filters