1. Which statement is incorrect concerning fair presentation of financial statements?

a. fair presentation requires the faithful representation of the effects of transactions and other
events
b. financial Statements shall present fairly the financial position, financial performance and cash
flows of an entity
c. In virtually all circumstances, a fair presentation is achieved by compliance with applicable
PFRS.
d. an entity whose financial statements comply with the PFRS shall not make an explicit and
unreserved statement of such compliance in notes.
2. Which of the following cannot be considered fair presentation of financial statements?
a. to present information in a manner that provides relevant and faithfully represented financial
information
b. to provide additional disclosures when compliance with specific PFRS is insufficient to
understand the financial position and financial performance
c. to select and apply accounting policies in accordance with applicable PFRS
d. To rectify inappropriate accounting policies in either by disclosure of the accounting
policies used or by notes or explanatory information
3. Which statement indicates a going concern?
Management intends to liquidate the entity
Management intends to cease the operations of the entity
Management has no realistic alternative but to cease the operations of the entity
None of the above
4. An entity is permitted to depart from a particular standard if all of the following conditions are satisfied
except
a. in extremely rare circumstance
b. when management concludes that compliance with the standard would be misleading
c. when the departure from the standard is necessary to achieve fair presentation
d. when the conceptual framework for financial reporting prohibits such a departure
5. The effects of transactions and other events on economic resources and claims are depicted in the
periods in which those effects occur even if the resulting cash receipts and payments occur in a different
period.
Accrual accounting
Cash accounting
Modified accrual accounting
Modified cash accounting