kieso15e_testbank_ch02

CHAPTER 2 CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING IFRS questions are avaia!e at t"e en# o$ t"is %"a&ter'

TRUE(FALSE)Con%e&tua Ans*er T T F T F T F T T F F F T T F F T T F F

No' 1. 2. 3. 4 5. #. '. (. +. 1-. 11. 12. 13. 14. 15. 1#. 1'. 1(. 1+. 2-.

+es%ri&tion Nature of conceptual framework. Conceptual framework definition. Levels of conceptual framework. International conceptual framework. tatements of Financial !ccountin" Concepts. $%&ective of financial reportin". Financial statement users. )elevance and fait*ful representation. Consistenc,. )elevance. Fait*ful representation. asic elements. Compre*ensive income. /oin" concern assumption. 0conomic entit, assumption. 0pense reco"nition principle. )eco"nia%le revenues. upplementar, in information. Cost %enefit tradeoff. Conservatism.

MULTIPLE CHOICE)Con%e&tua Ans*er c d c d d d a d a a a % c c a

No' 21. 22. 23. 24.  25. 25. 2#. 2'. 2(. 2+.  3-. 3-.  31. 31. 32. 33. 34. 35.

+es%ri&tion /!! defined. urpose of conceptual framework. Conceptual framework. Conceptual framework purpose. Conc onceptu eptual al fra frame mew work ork %ene %enefi fits ts.. $%&ectives of financial reportin". ecision usefulness. /eneral purpose of financial reportin". rimar, o%&ective of financial reportin". 0am 0ampl ple e of comp compar ara% a%iilit, lit,.. ri rimar, mar, 6uali ualit, t, of rel relevan evanc ce. C*aracteristic of accountin" information. C*aracteristic of accountin" information. 7eanin" of compara%ilit,. 7eanin" of consistenc,.

2(2

Test ,an- $or Inter.e#iate A%%ountin/0 Fi$teent" E#ition

MULTIPLE CHOICE)Con%e&tua Ans*er d c a % d a d a c % % d c d % d c a c d % % d d c c d % d % a % a d c d c % % a c c d a % a d d a

No' 3#. 3'. 3(. 3+. 4-. 41. 42. 43. 44. 45. 4#. 4'. 4(. 4+. 5-. 51. 52. 53. 54. 55. 5#. 5'. 5(. 5+. #-. #1. #2. #3.  #4.  #5. #5.  ##. ##. #' #(. #+. '-. '1. '2. '3 '4.  '5.  '#. ''. '(. '+. (-. (1. (2. (3. (4.

+es%ri&tion In"redient of relevance. In"redient of relia%ilit,. Consistenc, c*aracteristic. rimar, 6ualit, of accountin" information. :ualit, of relevance. :ualit, of relia%ilit,. Consistenc, 6ualit,. ecisionusefulness cr criterion. rimar, 6ualities of accountin" information. efinition of relevance. efinition of relia%ilit,. )elevance 6ualit,. 7aterialit, c*aracteristic. Completeness c* c*aracteristic. Neutralit, c*aracteristic. Neutralit, c*aracteristic. efinition of verifia%ilit,. :ualit, of predictive value. :ualit, of free from error. Consistenc,. Consistenc, c*aracteristic. Compara%ilit, and consistenc,. Compara%ilit,. 0lements of financial statements. istinction %etween revenues and "ains. efinition of a loss. efinition of compre*ensive income. Components of compre*ensive income. Compre*ensive income. 0arn 0arnin in"s "s vs. vs. comp compre re*e *ens nsiv ive e inc incom ome. e. )epo )eport rtin in" " fina financ ncia iall stat statem emen entt elem elemen ents ts.. asic element of financial statements. asic element of financial statements. asic element of financial statements. efinition of "ains. ;istorical cost assumption. eriodicit, assumption. /oin" concern assumption. eriodicit, assumption. 7onetar, unit as assumption. erio riodicit, as assumption. 7onetar, unit assumption. 0conomic entit, assumption. 0conomic entit, assumption. eriodicit, assumption. /oin" concern assumption. /oin" concern assumption. Implications of "oin" concern assumption. ;istorical cost principle.

8cont.9

2(2

Test ,an- $or Inter.e#iate A%%ountin/0 Fi$teent" E#ition

MULTIPLE CHOICE)Con%e&tua Ans*er d c a % d a d a c % % d c d % d c a c d % % d d c c d % d % a % a d c d c % % a c c d a % a d d a

No' 3#. 3'. 3(. 3+. 4-. 41. 42. 43. 44. 45. 4#. 4'. 4(. 4+. 5-. 51. 52. 53. 54. 55. 5#. 5'. 5(. 5+. #-. #1. #2. #3.  #4.  #5. #5.  ##. ##. #' #(. #+. '-. '1. '2. '3 '4.  '5.  '#. ''. '(. '+. (-. (1. (2. (3. (4.

+es%ri&tion In"redient of relevance. In"redient of relia%ilit,. Consistenc, c*aracteristic. rimar, 6ualit, of accountin" information. :ualit, of relevance. :ualit, of relia%ilit,. Consistenc, 6ualit,. ecisionusefulness cr criterion. rimar, 6ualities of accountin" information. efinition of relevance. efinition of relia%ilit,. )elevance 6ualit,. 7aterialit, c*aracteristic. Completeness c* c*aracteristic. Neutralit, c*aracteristic. Neutralit, c*aracteristic. efinition of verifia%ilit,. :ualit, of predictive value. :ualit, of free from error. Consistenc,. Consistenc, c*aracteristic. Compara%ilit, and consistenc,. Compara%ilit,. 0lements of financial statements. istinction %etween revenues and "ains. efinition of a loss. efinition of compre*ensive income. Components of compre*ensive income. Compre*ensive income. 0arn 0arnin in"s "s vs. vs. comp compre re*e *ens nsiv ive e inc incom ome. e. )epo )eport rtin in" " fina financ ncia iall stat statem emen entt elem elemen ents ts.. asic element of financial statements. asic element of financial statements. asic element of financial statements. efinition of "ains. ;istorical cost assumption. eriodicit, assumption. /oin" concern assumption. eriodicit, assumption. 7onetar, unit as assumption. erio riodicit, as assumption. 7onetar, unit assumption. 0conomic entit, assumption. 0conomic entit, assumption. eriodicit, assumption. /oin" concern assumption. /oin" concern assumption. Implications of "oin" concern assumption. ;istorical cost principle.

8cont.9

Conceptual Framework