Property of : Course/Institute :
_______________13. Users expect that financial statements to be presented (_____), (_____), and
(_____) the company’s financial operations.
_______________20. The Financial Reporting Framework does not override or is not limited to
the (_________) when there are conflictions.
_______________21. The costs of providing financial information fall initially on the preparer
(company) and then are passed on to consumers (external users). These costs include the cost of
collecting, processing, auditing, and communicating the information as well as those associated
with losing a competitive advantage by disclosing the information.
(Reviewer/Retention Paper)
ENURMERATION:
1. Users’ Decision involve decisions about the…….
a.
b.
c.
_______________1. The (________) provides a strong theoretical foundation and allows for the
systematic adaption of accounting standards for a changing business environment.
_______________2. Is it true that Conceptual Framework is not a standard? and none of the
concepts override the concepts or requirements in any standard. The purpose of the Conceptual
Framework is to assist the Board in developing standards.
_______________3. (_________) are entities which have issued a class of securities listed for
trading on an Exchange.
_______________4. The (__________) is the “why” or purpose of accounting.
_______________5. The objective of the (___________) is to provide financial information that
is useful to users in making decisions relating to providing resources to the entity.
______________6. (________) refers to the ability of a company to use its financial resources
to adapt change.
______________7. The (__________) refers to the availability of cash in the near future after
taking account of financial commitments over this period.
______________8. (_________) refers to the availability of cash over the longer term to meet
financial commitments as they fall due.
______________9. (_________) refers to the ability of a company to maintain a given physical
level of operations.
_____________10. The (_________) and (_________) are the fundamental qualitative
characteristics of a useful financial information, and the guiding concepts that apply throughout
the revised conceptual framework.
_____________11. (__________) is capable of making a difference in the decisions made by the
users.
_____________12. Financial information is capable of making a difference in decisions if it has:
(___________) and (___________).
_____________13. Financial Information has (___________) if it can be used as an input to
processes employed by users to predict future outcomes.
(Reviewer/Retention Paper)
______________15. Financial Information has (__________) if it provides feedback about
(Confirms or Changes) previous evaluations. The information helps users to confirm or correct
earlier predictions.
______________16. A practical boundary or constraint to achieving desired qualitative
characteristics of relevance on the type of information provided is (________).
______________17. (___________) means that the numbers and descriptions match what really
happened or existed.
______________18. (__________) means that all information necessary for a user to understand
the economic activity or a phenomenon must be depicted, including all necessary descriptions
and explanations.
______________19. (_________) means that an enterprise cannot select information to favor
one set of interested parties over another. And it is supported by the exercise of prudence.
______________20. It will be a more accurate (faithful) representation of a financial item if it is
(___________).
______________21. The (_________), (________), (________) and (________) are qualitative
characteristics that enhance the usefulness of information that is relevant and faithfully
represented. These characteristics distinguish more-useful information from less-useful
information.
______________22. (___________) is the qualitative characteristic that enables uses to identify
and understand similarities in and differences among items (such as economic events between
companies).
______________23. (___________) refers to the use of the same methods for the same items,
either from period to period within a reporting entity or in a single period across entities.
______________24. (___________) means that different knowledgeable and independent
observers or users could reach consensus although not necessarily complete agreement that a
depiction is a faithful representation. It occurs when independent measurers using the same
methods obtain similar results.
______________25. (___________) means verifying an amount or other representation through
direct observation, for example, by counting cash.
______________26. (___________) means checking the inputs to a model, formula or other
technique and recalculating the output using the same methodology.
______________27. (___________) means having information available to decision makers in
time to be capable of influencing their decisions.
______________28. (___________) serves a “link” between the decision-makers and the
accounting information.
(Reviewer/Retention Paper)
ENUMERATION:
1. What are the purposes of the Conceptual Framework
a.
b.
c.
d.
e.