Deck 2: IFRS Conceptual Framework and Financial Statements

Question 1

Where is "Cash flows related to taxation" usually categorized under IFRS?

A)Operating Activities
B)Investing Activities
C)Financing Activities

Answer 1

A

Question 2

Which of the following enhance qualitative characteristics of a financial report?

A)Comparability
B)Verifiability
C)Timeliness
D)Understandability
E)All of the above

Answer 2

E

Question 3

Which of the following statements about fair value is not correct?

A)Fair values are relevant because they reflect conditions relating to economic resources and obligations,under which financial statement users will make decisions
B)Fair values are neutral because they are unbiased
C)Fair values have predictive value because they help predict future cash flows of interest to investors in valuing equity
D)Fair values are not consistently applied because they reflect the same type of information every period

Answer 3

D

Question 4

IFRS applies to which type of entities?

A)Governmental entities
B)Profit-oriented entities
C)Not-for-profit entities
D)All of the above

Question 5

Which of the following is not included in the income statement?

A)Finance costs
B)Share of profit and loss from equity method
C)Extraordinary operations
D)Tax expense

Question 6

Which of the following statements is correct?

A)IFRS issued by the IASB currently consist of eleven standards issued since the formation of the IASB in 2001.
B)IAS issued by the IASC from its beginning in 1971 that have not been superseded by the IFRS.Currently of the original forty-one IAS,ten are still in effect.
C)Financial statements can be described as complying with IFRS as long as they comply with two out of the whole requirements of IFRS.
D)Interpretations originated by the IFRIC or its predecessor,the SIC.Currently,sixteen IFRIC and eleven SIC are still in effect.

Question 7

Of the following,what information is not provided by reporting entities in their financial statements?

A)Economic resources
B)Claims against the reporting entity
C)The effects of transactions
D)Projections of future financial information

Question 8

Does IFRS allow for the presentation of extraordinary items or gains and losses as a separate element of the income statement and the inclusion of "deferred tax assets/liabilities under current assets and current liabilities?

A)Yes,Yes
B)Yes,No
C)No,Yes
D)No,No

Question 9

Which following characteristics would a perfectly faithful representation have?

A)Completeness
B)Neutrality
C)Free from error
D)All of the above

Question 10

Which of the following is not a component of the Conceptual Framework for Financial Reporting?

A)Objective of general purpose financial statements
B)Presentation and disclosure
C)Legitimacy and rationality
D)Recognition and measurement

Question 11

Financial statements are directed towards the informational needs of the following capital providers except:

A)current investors
B)potential investors
C)creditors and other lenders
D)regulators,employees,and taxing authorities

Question 12

Which following components in the Framework overrides specific standards?

A)Objective of general purpose financial statements
B)Qualitative characteristics
C)Recognition and measurement
D)Presentation and disclosure
E)None of the above

Question 13

Which of the following values related to relevance do financial information have?

A)Predictive value
B)Confirmative value
C)Materiality
D)All of the above

Question 14

Does IFRS include non-cash investing and financing activities in the statement of cash flows?

A)Yes
B)No

Question 15

Which of the following is not included in financial statements?

A)Statement of financial position
B)Statement of comprehensive income
C)Accounting standards and notes from management
D)Statement of changes in equity

Question 16

IFRS' statement of comprehensive income shows the following categories:

A)Profit or loss)
B)List of items of comprehensive income
C)Total comprehensive income
D)All of the above