Conceptual Framework: the quiz

Report Summary
Name : Guest
Your Score : 6 out of 8 (75%)
Correct Answers : 6 Question
Incorrect Answers : 2 Question
Unanswered : 0 Question
Time Taken : 3 mins 2 secs
Your Result :

Your Answers

Correct Points earned: 1 out of 1

Q1) Entities have to apply the revised Conceptual Framework:

A. Immediately after it is issued
B. For annual reporting periods beginning on or after 1 January 2020, with early application
permitted (Your Answer)(Correct)
C. Never - the Conceptual Framework is only used by the International Accounting Standards Board
Explanation:See Amendments to References to the Conceptual Framework in IFRS Standards

Correct Points earned: 1 out of 1

Q2) Information needed to assess management's stewardship is always different from

information needed to assess the prospects for future net cash inflows to the
entity.
A. True
B. False (Your Answer)(Correct)
Explanation:See paragraphs 1.3 and BC1.34
Correct Points earned: 1 out of 1

Q3) Which statement is included in the Conceptual Framework?

A. Relevance is a fundamental qualitative characteristic of useful financial information
B. Financial information without both relevance and faithful representation is not useful
C. Enhancing qualitative characteristics cannot make information useful if that information is
irrelevant or does not provide a faithful representation of what it purports to represent
D. All of the above (Your Answer)(Correct)
E. None of the above
Explanation:See paragraphs 2.5, 2.4, 2.37, 2.38

Correct Points earned: 1 out of 1

Q4) A reporting entity can be:

A. A portion of an entity
B. A single entity
C. More than one entity
D. All of the above (Your Answer)(Correct)
E. None of the above
Explanation:See paragraph 3.10

Incorrect Points earned: 0 out of 1

Q5) If an entity has a legal ownership of a physical object, its asset is:
A. The set of rights arising from legal ownership of the physical object (Correct)
B. The physical object
C. The economic benefits that may flow from the physical object
D. All of the above (Your Answer)(Incorrect)
E. None of the above
Explanation:See paragraphs 4.11-4.12

Correct Points earned: 1 out of 1

Q6) What does the Conceptual Framework state about derecognition?

A. For an asset, derecognition normally occurs when the entity loses control of all or part of the
recognised asset
 B. For a liability, derecognition normally occurs when the entity no longer has a present obligation
for all or part of the recognised liability
C. Derecognition is the removal of all or part of a recognised asset or liability from an entity's
statement of financial position
D. All of the above (Your Answer)(Correct)
Explanation:See paragraph 5.26

Correct Points earned: 1 out of 1

Q7) The Conceptual Framework identifies a preferred measurement basis for all
assets and liabilities.
A. True
B. False (Your Answer)(Correct)
Explanation:See paragraph 6.2

Incorrect Points earned: 0 out of 1

Q8) An entity may decide to include income or expenses in other comprehensive

income when doing so would result in the statement of profit or loss providing
more relevant information, or providing a more faithful representation of the
entity's performance for the period.
A. True (Your Answer)(Incorrect)
B. False (Correct)
Explanation:See paragraph 7.17

Powered by TCPDF (www.tcpdf.org)