Question 1

The measurement method most commonly used in the preparation of financial statements is:

Accepted Answer

A)  present value; 
B)  current cost; 
C)  realisable value; 
D)  historical cost. 
A)  present value; 
B)  current cost; 
C)  realisable value; 
D)  historical cost.

Question 2

The enhancing qualitative characteristics that make financial information useful for decision-making are:$\begin{array}{lllll}&I&II&III&IV\
\text { comparability } & \text { Yes } & \text { Yes } & \text { No } & \text { No } \
\text { relevance } & \text { Yes } & \text { Yes } & \text { No } & \text { Yes } \
\text { understandability } & \text { Yes } & \text { No } & \text { No } & \text { No } \
\text { faithful representation } & \text { Yes } & \text { No } & \text { No } & \text { Yes }
\end{array}$

Accepted Answer

A)  I; 
B)  II; 
C)  III; 
D)  IV. 
A)  I; 
B)  II; 
C)  III; 
D)  IV.

Question 3

The purpose of the notes to the financial statements is to:

Accepted Answer

A)  explain any resources and obligations not recognised in the Statement of Financial Position 
B)  provide information meeting the disclosure requirements under national laws or regulations. 
C)  disclose risks and uncertainties affecting the entity. 
D)  all of the above. 
A)  explain any resources and obligations not recognised in the Statement of Financial Position 
B)  provide information meeting the disclosure requirements under national laws or regulations. 
C)  disclose risks and uncertainties affecting the entity. 
D)  all of the above.

Question 4

Information that is able to confirm or correct past evaluations that have been made by users of financial information is an example of information that satisfies which of the following characteristics of financial information identified in The Framework?

Accepted Answer

A)  Understandability 
B)  Relevance 
C)  Verifiability 
D)  Comparability 
A)  Understandability 
B)  Relevance 
C)  Verifiability 
D)  Comparability

Question 5

Which of the following statements is INCORRECT?

Accepted Answer

A)  The International Accounting Standards Board was replaced by the International Standards Committee in 2001. 
B)  The International Accounting Standards Board is funded by the IASC Foundation. 
C)  The responsibility for issuing International Financial Reporting Standards lies with the International Accounting Standards Board. 
D)  Members of the International Accounting Standards Board are appointed by the IFRS Foundation. 
A)  The International Accounting Standards Board was replaced by the International Standards Committee in 2001. 
B)  The International Accounting Standards Board is funded by the IASC Foundation. 
C)  The responsibility for issuing International Financial Reporting Standards lies with the International Accounting Standards Board. 
D)  Members of the International Accounting Standards Board are appointed by the IFRS Foundation.

Question 6

In accordance with the conceptual framework, income is recognised in the statement of profit or loss and other comprehensive income when:

Accepted Answer

A)  an decrease in future economic benefits relating to an decrease in an asset or an increase in a liability can be measured reliably. 
B)  an increase in future economic benefits relating to an increase in an asset or a decrease in a liability can be measured reliably. 
C)  an increase in future economic benefits relating to an increase in an asset can be measured reliably. 
D)  an increase in future economic benefits relating to an decrease in an asset or an increase in a liability can be measured reliably. 
A)  an decrease in future economic benefits relating to an decrease in an asset or an increase in a liability can be measured reliably. 
B)  an increase in future economic benefits relating to an increase in an asset or a decrease in a liability can be measured reliably. 
C)  an increase in future economic benefits relating to an increase in an asset can be measured reliably. 
D)  an increase in future economic benefits relating to an decrease in an asset or an increase in a liability can be measured reliably.

Question 7

The going concern assumption underlying the preparation of financial statements is also know as:

Accepted Answer

A)  the continuity assumption 
B)  the matching principle 
C)  the prudence principle 
D)  the historical cost measurement basis 
A)  the continuity assumption 
B)  the matching principle 
C)  the prudence principle 
D)  the historical cost measurement basis

The measurement method most commonly used in the preparation of financial statements is:

The enhancing qualitative characteristics that make financial information useful for decision-making are: I II III IV comparability Yes Yes No No relevance Yes Yes No Yes understandability Yes No No No faithful representation Yes No No Yes

The purpose of the notes to the financial statements is to:

Information that is able to confirm or correct past evaluations that have been made by users of financial information is an example of information that satisfies which of the following characteristics of financial information identified in The Framework?

Which of the following statements is INCORRECT?

In accordance with the conceptual framework, income is recognised in the statement of profit or loss and other comprehensive income when:

The going concern assumption underlying the preparation of financial statements is also know as:

Owners Equity: Share Capital and Reserves

Fair Value Measurement

Revenue From Contracts With Customers

Provisions, Contingent Liabilities and Contingent Assets

Financial Instruments

Share-Based Payment

Inventories

Employee Benefits

Leases

Impairment of Assets

Financial Statement Presentation

Statement of Cash Flows

Operating Segments

Other Key Notes Disclosures

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Translation of the Financial Statements of Foreign Entities

Agriculture

Associates and Joint Ventures

Joint Arrangements

Revenue From Contracts With Customers

Financial Instruments

Financial Instruments

Share-Based Payment

Exploration for and Evaluation of Mineral Resources

Filters

Exam 1: The Iasb and Its Conceptual Framework

The measurement method most commonly used in the preparation of financial statements is:

The enhancing qualitative characteristics that make financial information useful for decision-making are: I II III IV comparability Yes Yes No No relevance Yes Yes No Yes understandability Yes No No No faithful representation Yes No No Yes

The purpose of the notes to the financial statements is to:

Information that is able to confirm or correct past evaluations that have been made by users of financial information is an example of information that satisfies which of the following characteristics of financial information identified in The Framework?

Which of the following statements is INCORRECT?

In accordance with the conceptual framework, income is recognised in the statement of profit or loss and other comprehensive income when:

The going concern assumption underlying the preparation of financial statements is also know as:

Owners Equity: Share Capital and Reserves

Fair Value Measurement

Revenue From Contracts With Customers

Provisions, Contingent Liabilities and Contingent Assets

Financial Instruments

Share-Based Payment

Inventories

Employee Benefits

Leases

Impairment of Assets

Financial Statement Presentation

Statement of Cash Flows

Operating Segments

Other Key Notes Disclosures

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Translation of the Financial Statements of Foreign Entities

Agriculture

Associates and Joint Ventures

Joint Arrangements

Revenue From Contracts With Customers

Financial Instruments

Financial Instruments

Share-Based Payment

Exploration for and Evaluation of Mineral Resources

Filters