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CHAPTER 2 CONCEPTUAL FRAMEWORK UNDERLYING FINANCIAL ACCOUNTING IFRS questions are available at the end of this chapter. TRUE-FALSE Conceptual Answer No. Description F 1. Nature of conceptual framework. T 2. Conceptual framework definition. F 3. Levels of conceptual framework. T 4 International conceptual framework. F 5. Statements of Financial Accounting Concepts. T 6. Decision usefulness. F 7. Financial statement users. T 8. Relevance and reliability. T 9. Consistency. F 10. Relevance. F 11. Reliability. F 12. Basic elements. T 13. Comprehensive income. T 14. Going concern assumption. F 15. Economic entity assumption. F 16. Expense recognition principle. T 17. Realizable revenues. T 18. Supplementary information. F 19. Materiality factors F 20. Conservatism. MULTIPLE CHOICE Conceptual Answer No. Description c 21. GAAP defined. d 22. Purpose of conceptual framework. c 23. Conceptual framework. d 24. Conceptual framework purpose. d S 25. Conceptual framework benefits. d 26. Objectives of financial reporting. a 27. Decision usefulness. d 28. Objectives of financial reporting. a P 29. Financial reporting objectives. a 30. Primary objective of financial reporting. a 31. Primary objective of financial reporting. b 32. Characteristic of accounting information. c 33. Characteristic of accounting information. c 34. Meaning of comparability. a 35. Meaning of consistency. Test Bank for Intermediate Accounting, Thirteenth Edition MULTIPLE CHOICE Conceptual (cont.) Answer No. Description d 36. Ingredient of relevance. c 37. Ingredient of reliability. a 38. Consistency characteristic. b 39. Primary quality of accounting information. d 40. Quality of relevance. a 41. Quality of reliability. c 42. Purpose of understandable information. a 43. Decision-usefulness criterion. c 44. Primary qualities of accounting information. b 45. Definition of relevance. b 46. Definition of reliability. d 47. Relevance and reliability. c 48. Timeliness characteristic. d 49. Verifiability characteristic. b 50. Neutrality characteristic. d 51. Neutrality characteristic. c 52. Definition of verifiability. a 53. Quality of predictive value. c 54. Quality of representational faithfulness. d 55. Consistency. b 56. Consistency characteristic. b 57. Comparability and consistency. d 58. Comparability. d 59. Elements of financial statements. c 60. Distinction between revenues and gains. c 61. Definition of a loss. d 62. Definition of comprehensive income. b 63. Components of comprehensive income. d P 64. Comprehensive income. b S 65. Earnings vs. comprehensive income. a S 66. Reporting financial statement elements. b 67 Basic element of financial statements. a 68. Basic element of financial statements.... View Full Document

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