31. How should exchange gains or losses resulting from foreign currency transactions be accounted for? a. Included as component of income from continuing operations for the period in which the rate changes. b. Included as component of other comprehensive income for the period in which the rate changes. c. Included in the statement of financial position as a deferred item. d. Included in net earnings for gains, but deferred for losses. 32. When the information about two entities engaged in the same industry has been prepared and presented in similar manner, the information exhibits the enhancing qualitative characteristics of a. Relevance b. Consistency c. Faithful representation d. Comparability 33. What are the attributes that make the information provided in the financial statements useful to the readers? a. Qualitative characteristics of financial information b. Quantitative characteristics of financial information c. Elements of financial statements d. Objectives of financial reporting 34. During the lifetime of an entity, accountants produce financial statements at arbitrary points in time in accordance with what basic accounting concept? a. Accrual b. Periodicity c. Unit of measure d. Continuity 35. The usefulness of providing information in financial statements is subject to the constraint of a. Consistency b. Cost-benefit c. Reliability d. Representational faithfulness 36. Which is not a purpose of the conceptual framework? a. To provide definitions of key terms and fundamental concepts. b. To provide specific guidelines for resolving situations not covered by existing accounting standards. c. To assists accountants in selecting among alternative accounting and reporting methods. d. To assists the International Accounting Standards Board in standard-setting process. 37. Which of the following statements regarding the conceptual framework is incorrect? a. The conceptual framework is concerned with general-purpose financial statements. b. The conceptual framework applies to financial statements of business reporting enterprises both in the private sector and in the public sector c. In cases where there is conflict between the conceptual framework and PFRS, the requirement of the conceptual framework will prevail d. The conceptual framework deals with concepts of capital 38. Inflation is ignored in accounting due to a. Economic entity assumption b. Going concern assumption c. Monetary unit assumption d. Time period assumption 39. What is the accounting concept that justifies the usage of accruals and deferrals? a. Going concern b. Materiality c. Consistency d. Stable monetary uni
31. How should exchange gains or losses resulting from foreign currency transactions be accounted for?
a. Included as component of income from continuing operations for the period in which the rate
changes.
b. Included as component of other comprehensive income for the period in which the rate changes.
c. Included in the statement of financial position as a deferred item.
d. Included in net earnings for gains, but deferred for losses.
32. When the information about two entities engaged in the same industry has been prepared and presented in similar
manner, the information exhibits the enhancing qualitative characteristics of
a. Relevance
b. Consistency
c. Faithful representation
d. Comparability
33. What are the attributes that make the information provided in the financial statements useful to the readers?
a. Qualitative characteristics of financial information
b. Quantitative characteristics of financial information
c. Elements of financial statements
d. Objectives of financial reporting
34. During the lifetime of an entity, accountants produce financial statements at arbitrary points in time in accordance
with what basic accounting concept?
a. Accrual
b. Periodicity
c. Unit of measure
d. Continuity
35. The usefulness of providing information in financial statements is subject to the constraint of
a. Consistency
b. Cost-benefit
c. Reliability
d. Representational faithfulness
36. Which is not a purpose of the conceptual framework?
a. To provide definitions of key terms and fundamental concepts.
b. To provide specific guidelines for resolving situations not covered by existing accounting standards.
c. To assists accountants in selecting among alternative accounting and reporting methods.
d. To assists the International Accounting Standards Board in standard-setting process.
37. Which of the following statements regarding the conceptual framework is incorrect?
a. The conceptual framework is concerned with general-purpose financial statements.
b. The conceptual framework applies to financial statements of business reporting enterprises both in
the private sector and in the public sector
c. In cases where there is conflict between the conceptual framework and PFRS, the requirement of the
conceptual framework will prevail
d. The conceptual framework deals with concepts of capital
38. Inflation is ignored in accounting due to
a. Economic entity assumption
b. Going concern assumption
c. Monetary unit assumption
d. Time period assumption
39. What is the accounting concept that justifies the usage of accruals and deferrals?
a. Going concern
b. Materiality
c. Consistency
d. Stable monetary unit
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