Accounting Theory chapter 2

20 Questions - Developed by:
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  • 1
    How does the conceptual framework differ from an accounting standard?
  • 2
    The accounting conceptual framework is what kind of theory?
  • 3
    The Conceptual Framework:

  • 4
    Which of the following questions does the Conceptual Framework NOT answer?
  • 5
    Which of the following statements is correct in relation to the assumptions to be made when preparing financial reports?
  • 6
    The conceptual framework states that it is concerned with general purpose financial reports. What are general purpose financial reports?

  • 7
    According to the conceptual framework the primary objective of financial information is
  • 8
    The Conceptual Framework identifies a limited range of primary users of financial statements. Which of the following best describes these users?
  • 9
    According to the Conceptual Framework which of the following are included in the fundamental qualitative characteristics that accounting information should have?

    I. Relevance
    II. Reliability
    III. Faithful Representation
    IV. Understandability
  • 10
    A key aspect of relevance is that information is

  • 11
    The four enhancing qualitative characteristics recognized by the conceptual framework are:
  • 12
    The constraints on financial reporting identified under the conceptual framework are:
  • 13
    Which of the following elements in the financial statement is NOT defined by reference to other elements?
  • 14
    Which of the following are key parts of the definition of an asset?

    I. Probability
    II. Control
    III. Ownership
    IV. Past Transaction or Event
    V. Reliable Measurement
    VI. Future Economic Benefits
  • 15
    An element is considered probable if the chance of the flow associated with it occuring is greater than:
  • 16
    A key political benefit that may arise from a conceptual framework in accounting is:

  • 17
    Accounting standards are seen to be political because
  • 18
    Which of these is not a criticism of conceptual framework projects?
  • 19
    It is argued that the conceptual framework is descriptive, not prescriptive, because:
  • 20
    Faithfull representation has been criticized because

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