D.

A profit is earned only if the physical productive capacity of the entity at the end of the period exceeds the physical productive
capacity at the beginning of the period, after excluding any transactions with owners
31. External financial statements, according to Framework for the Preparation and Presentation of Financial Statements, should provide
all of the following information except
63. Per Framework the removal of an account balance from the books of accounts
A. Write-off B. Derecognition C. Retirement D. Disposal
Per Framework, the relevance of providing information in financial statements is subjects to the constraint of
A. Comparability C. Reliability
B. Cost-benefit D. Faithful representation
Financial accounting can be broadly defined as the area of accounting that prepares
A. GP FSs to be used by internal users only
B. B. FSs to be used by investors only
C. C. GP FSs to be used by both internal and external users
D. D. FSs to be used primarily by management
Statement 1: 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
Statement 2: General purpose financial reports provide all the information that users may need to make economic decisions
A. True true B. True false C. False true D. False false