Exam 2: Conceptual Frameworks for Financial Reporting

Explain how accounting standards are set in Canada.Your answer should list the different groups responsible for setting standards and which types of businesses use each standard.

What is not an information need of users of financial information under the IFRS Conceptual Framework?

Which statement best describes a publicly accountable enterprise?

Provide three reasons for the importance of the conceptual framework for financial reporting.

Accelerated Earnings Inc.(Company)has an operating line of credit with the local bank that is secured by accounts receivable and inventory. The Company purchased inventory whenever the price was low during the year and has a substantial amount on hand at year end.The inventory price has increased substantially at year end.The Controller recorded the following journal at year end: Required: a)Who are the users of the Company's financial statements and what is their informational need? b)What part of the IFRS Conceptual Framework is violated by this journal entry? c)What is the impact of this journal entry on the Company's users? d)What correction is required?

Which of the following is an attribute of "relevance"?

Which statement is correct?

The underlying or fundamental objective of the accounting conceptual framework is

Which is an assumption of financial information in the IFRS Conceptual Framework?

Which financial statement element is being described?

Which of the following is an attribute of "representational faithfulness"?

Which financial statement is not needed under the IFRS Conceptual Framework?

What decision would users of financial information need to make under the IFRS Conceptual Framework?

What standards are not contained in the CPA Canada Handbook?

Which concept of financial reporting is being described?

Discuss some of the conceptual framework concepts involved in determining whether to capitalize or expense an expenditure.

Explain why assets and liabilities are generally not offset against one another.Use an example to illustrate your rationale.

Which statement best explains the concept of "representational faithfulness"?

Which of the following is part of the ASPE Conceptual Framework?

Which of the following is part of the IFRS Conceptual Framework?