Question 1

Which type of primary user provides resources to an entity by lending cash for the purpose of receiving a return in the form of interest?

Accepted Answer

A)  Lenders 
B)  Investors 
C)  Employees 
D)  Other creditors

Question 2

There are eight Content Elements in the International Integrated Reporting Framework (IIRF). The element that covers the basis of presentation refers to:

Accepted Answer

A)  the organisation's business model. 
B)  challenges and uncertainties the organisation is likely to encounter in preparing its financial statements. 
C)  how the organisation's governance structure supports its ability to create value in the short, medium and long term. 
D)  how the organisation determines what matters to include in the integrated report and how such matters are quantified or evaluated.

Question 3

Match the descriptions with their terms :
-The extent that information presented represents the economic phenomena without bias or material error and has been prepared with appropriate recognition and measurement methods.

Accepted Answer

A)  Resource providers 
B)  Materiality 
C)  Assets 
D)  SAC 8 
E)  Full disclosure principle 
F) Cost
G) A conceptual framework
H) Verifiability
I) The Conceptual Framework
J) The Framework
K) Losses
L) Contingent liabilities

Question 4

According to the Conceptual Framework what are the two fundamental qualitative characteristics of information contained in financial reports?

Accepted Answer

A)  reliability and relevance. 
B)  reliability and comparability. 
C)  faithful representation and timeliness. 
D)  relevance and faithful representation.

Question 5

Match the descriptions with their terms :
-Decreases in economic benefits that do not arise in the ordinary course of business.

Accepted Answer

A)  Resource providers 
B)  Materiality 
C)  Assets 
D)  SAC 10 
E)  Full disclosure principle 
F) Cost
G) A conceptual framework
H) Verifiability
I) The Conceptual Framework
J) The Framework
K) Losses
L) Contingent liabilities

Question 6

The generally accepted accounting principles (GAAP) consist of accounting standards, underlying accounting concepts and principles, and the Conceptual Framework. Explain the relationships among various components of GAAP. How do preparers of general purpose financial reports determine which component to be apply first?

Accepted Answer

The answer of The generally accepted accounting principles (GAAP) consist...

Question 7

Match the descriptions with their terms :
-Outlines the objective of general purpose financial reporting.

Accepted Answer

A)  Resource providers 
B)  Materiality 
C)  Assets 
D)  SAC 5 
E)  Full disclosure principle 
F) Cost
G) A conceptual framework
H) Verifiability
I) The Conceptual Framework
J) The Framework
K) Losses
L) Contingent liabilities

Question 8

Please complete the following statementS :
-__________________________ are reports intended to meet the information needs of users who are unable to command reports to suit their specific needs.

Accepted Answer

The answer of Please complete the following statementS :
-__________________________ are...

Question 9

Which of the following businesses is likely to be a reporting entity?

Accepted Answer

A)  A listed company. 
B)  A local newsagency. 
C)  A fish & chips shop. 
D)  An Asian grocery shop.

Question 10

Match the descriptions with their terms :
-Under this principle, assets are recorded in the accounts at their purchase price.

Accepted Answer

A)  Resource providers 
B)  Materiality 
C)  Assets 
D)  SAC 11 
E)  Full disclosure principle 
F) Cost
G) A conceptual framework
H) Verifiability
I) The Conceptual Framework
J) The Framework
K) Losses
L) Contingent liabilities

Question 11

Shareholders are what type of users of general purpose financial reports?

Accepted Answer

A)  Lenders 
B)  Secondary users 
C)  Equity investors 
D)  Other creditors

Question 12

Match the descriptions with their terms :
-A set of concepts defining the nature, purpose, and content of general purpose financial reporting to be followed by financial report preparers and standard-setters.

Accepted Answer

A)  Resource providers 
B)  Materiality 
C)  Assets 
D)  SAC 4 
E)  Full disclosure principle 
F) Cost
G) A conceptual framework
H) Verifiability
I) The Conceptual Framework
J) The Framework
K) Losses
L) Contingent liabilities

Question 13

Match the descriptions with their terms :
-All circumstances and events that could make a difference to the decisions financial statement users might make should be disclosed in the financial statements.

Accepted Answer

A)  Resource providers 
B)  Materiality 
C)  Assets 
D)  SAC 2 
E)  Full disclosure principle
F) Cost
G) A conceptual framework
H) Verifiability
I) The Conceptual Framework
J) The Framework
K) Losses
L) Contingent liabilities

Question 14

Please complete the following statementS :
-_____________ serves so as not to overstate amounts when reporting the assets and income or not to understate the liabilities and expenses of a business.

Accepted Answer

The answer of Please complete the following statementS :
-_____________ serves...

Question 15

Please complete the following statementS :
-Under the _________________ theory, the reporting entity is viewed as being separate from its owners and having its own substance.

Accepted Answer

The answer of Please complete the following statementS :
-Under the...

Question 16

Ethics: Socks R Us Limited is a manufacturer of socks for various ranges of customers. Recently the company obtained a business loan from a bank with a condition that the company maintains a certain level of profitability. At the end of financial year, Socks R Us made a $15 million profit. Bob, the company's accountant, decided to report a $20 million profit to comply with the bank's loan requirement. In addition, Bob has changed the depreciation method of some machinery from straight-line to reducing-balance method without disclosing the changes in the notes to the financial statement because the results are similar to the previous method.
Which qualitative characteristics of financial reports in the Conceptual Framework have been violated by Bob's unethical decisions?

Accepted Answer

The answer of Ethics: Socks R Us Limited is a...

Question 17

Who are not the primary users of financial reports according to the Conceptual Framework?

Accepted Answer

A)  lenders. 
B)  government. 
C)  other creditors. 
D)  equity investors.

Question 18

Match the descriptions with their terms :
-Following consultation with the FASB, the IASB reissued this document in 2010.

Accepted Answer

A)  Resource providers 
B)  Materiality 
C)  Assets 
D)  SAC 6 
E)  Full disclosure principle 
F) Cost
G) A conceptual framework
H) Verifiability
I) The Conceptual Framework
J) The Framework
K) Losses
L) Contingent liabilities

Question 19

Please complete the following statementS :
-Increases in economic benefits that do not arise in the ordinary course of business are labelled as ______________.

Accepted Answer

The answer of Please complete the following statementS :
-Increases in...

Question 20

Which is not a quality of faithful representation in the Conceptual Framework?

Accepted Answer

A)  Prudence. 
B)  Neutrality. 
C)  Completeness. 
D)  Free from material error.

Exam 13: Analysing and Integrating Gaap

Which type of primary user provides resources to an entity by lending cash for the purpose of receiving a return in the form of interest?

There are eight Content Elements in the International Integrated Reporting Framework (IIRF) . The element that covers the basis of presentation refers to:

Match the descriptions with their terms : -The extent that information presented represents the economic phenomena without bias or material error and has been prepared with appropriate recognition and measurement methods.

According to the Conceptual Framework what are the two fundamental qualitative characteristics of information contained in financial reports?

Match the descriptions with their terms : -Decreases in economic benefits that do not arise in the ordinary course of business.

Match the descriptions with their terms : -Outlines the objective of general purpose financial reporting.

Please complete the following statementS : -__________________________ are reports intended to meet the information needs of users who are unable to command reports to suit their specific needs.

Which of the following businesses is likely to be a reporting entity?

Match the descriptions with their terms : -Under this principle, assets are recorded in the accounts at their purchase price.

Shareholders are what type of users of general purpose financial reports?

Match the descriptions with their terms : -A set of concepts defining the nature, purpose, and content of general purpose financial reporting to be followed by financial report preparers and standard-setters.

Match the descriptions with their terms : -All circumstances and events that could make a difference to the decisions financial statement users might make should be disclosed in the financial statements.

Please complete the following statementS : -_____________ serves so as not to overstate amounts when reporting the assets and income or not to understate the liabilities and expenses of a business.

Please complete the following statementS : -Under the _________________ theory, the reporting entity is viewed as being separate from its owners and having its own substance.

Who are not the primary users of financial reports according to the Conceptual Framework?

Match the descriptions with their terms : -Following consultation with the FASB, the IASB reissued this document in 2010.

Please complete the following statementS : -Increases in economic benefits that do not arise in the ordinary course of business are labelled as ______________.

Which is not a quality of faithful representation in the Conceptual Framework?