Which statement is true about the Conceptual Framework for Financial Reporting?

You Answered
  
The Conceptual Framework is not a Standard.
 

  
In case of conflict, the requirements of the IFRS prevail over the Conceptual Framework
 

  
All of these statements are true about the Conceptual Framework
 

  
The Conceptual Framework describes the concepts for general purpose financial reporting.
 
 
Question 2
2 / 2 pts
Which is the purpose of the Conceptual Framework?

  
To assist all parties to understand and interpret the Standards.
 

  
To assist preparers to develop consistent accounting policy when no Standard applies to a
particular transaction or when Standard allows a choice of accounting policy.
 
Correct!
  
All of these can be considered a purpose of the Conceptual Framework.
 

  
To assist the IASB to develop IFRS based on consistent concepts.
 
 
Question 3
0 / 2 pts
Which is not a purpose of the Conceptual Framework?
   
To assist preparers of financial statements in developing an accounting policy when a
Standard allows an accounting policy choice.
 
You Answered
  
To assist preparers of financial statements in applying the Standards.
 

  
To assist users of financial statements in interpreting the Standards.
 
Correct Answer
  
To assist the BOA in promulgating rules and regulations affecting the accounting
profession.
 
 
Question 4
2 / 2 pts
The Conceptual Framework provides the foundation for Standards that

  
Contribute to economic efficiency by helping investors to identify opportunities and risks
across the world.
 

  
Strengthen accountability of the people entrusted with the economic resources of the
entity.
 
Correct!
  
All of these are the result of Standards developed based on consistent concepts.
 

  
Contribute to transparency by enhancing international comparability and quality of
financial information.
 
 
Question 5
2 / 2 pts
What is the authoritative status of the Conceptual Framework?

  
The Conceptual Framework applies only when IASB develops new standards.
 

  
The Conceptual Framework has the highest level of authority.
 

  
In the absence of a standard or an interpretation that specifically applies to a transaction,
the Conceptual Framework shall be followed.
 
Correct!
  
In the absence of a standard or an interpretation that specifically applies to a transaction,
management shall consider the applicability of the Conceptual Framework in developing
and applying an accounting policy that results in information that is relevant and faithfully
represented.
 
 
Question 6
0 / 2 pts
The Conceptual Framework is intended to establish
Correct Answer
  
The objectives and concepts for use in developing standards of financial accounting and
reporting.
 

  
The meaning of "present fairly in accordance with GAAP".
 

  
GAAP in financial reporting.
 
You Answered
  
The hierarchy of sources of GAAP.
 
 
Question 7
2 / 2 pts
A Conceptual Framework should

  
Eliminate alternative accounting principles
 

  
Lead to uniformity of financial statements
 

  
Guide multinational entities in developing generally accepted auditing standards
 
Correct!
  
Define the basic objectives, terms and concepts of accounting.
 
 
Question 8
0 / 2 pts
Which is not a purpose of the Conceptual Framework?

  
To assist accountants in selecting among alternative accounting and reporting methods.
 
Correct Answer
  
To provide specific guidelines for resolving situations not covered by existing accounting
standards.
 
You Answered
  
To assist the International Accounting Standards Board in the standard-setting process.
 

  
To provide definitions of key terms and fundamental concepts.
 
 
Question 9
2 / 2 pts
In the Conceptual Framework for Financial Reporting, what provides the "why" of
accounting?

  
Qualitative characteristic of accounting information
 

  
Element of financial statement
 

  
Measurement and recognition concept
 
Correct!
  
Objective of financial reporting
 
 
Question 10
2 / 2 pts
The underlying theme of the Conceptual Framework is
Correct!
  
Decision usefulness
 

  
Comparability
 

  
Understandability
 

  
Timeliness