5. Fair presentation is achieved by the application of IFRSS along with additional disclosures when necessary. Which of the following statements regarding disclosure is correct? a. Information must be presented in a manner that provides relevant, reliable. comparable and understandable information. b. Each IFRS gives specific disclosure requirements, additional disclosures are not required to be given voluntarily by management. c. Additional disclosures may be given so that management can present information in a way that delivers the most positive message about an entity's financial position and performance. d. Additional disclosure is only necessary when an entity departs from the requirements of an IFRS because its application would be misleading and depart from the objectives of the Conceptual Framework. 6. Which of the following statements is correct of general purpose financial statements? General purpose financial statements meet the specific needs of users including banks and regulators. ii. General purpose financial statements are designed to help decision-makers make their own estimates as to an organization's value i. a. i only b. ii only c. both i and ii d. neither i nor ii 7. The Conceptual Framework for financial reporting mentions several measurement bases that are used in financial statements. Which of the following is not an advantage of measurement using historical cost? a. It is reliable. b. It is relevant. C. It is objective. d. It is easy to understand and calculate.
5. Fair presentation is achieved by the application of IFRSS along with additional disclosures when necessary. Which of the following statements regarding disclosure is correct? a. Information must be presented in a manner that provides relevant, reliable. comparable and understandable information. b. Each IFRS gives specific disclosure requirements, additional disclosures are not required to be given voluntarily by management. c. Additional disclosures may be given so that management can present information in a way that delivers the most positive message about an entity's financial position and performance. d. Additional disclosure is only necessary when an entity departs from the requirements of an IFRS because its application would be misleading and depart from the objectives of the Conceptual Framework. 6. Which of the following statements is correct of general purpose financial statements? General purpose financial statements meet the specific needs of users including banks and regulators. ii. General purpose financial statements are designed to help decision-makers make their own estimates as to an organization's value i. a. i only b. ii only c. both i and ii d. neither i nor ii 7. The Conceptual Framework for financial reporting mentions several measurement bases that are used in financial statements. Which of the following is not an advantage of measurement using historical cost? a. It is reliable. b. It is relevant. C. It is objective. d. It is easy to understand and calculate.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:5. Fair presentation is achieved by the application of IFRSS along with additional
disclosures when necessary. Which of the following statements regarding disclosure
is correct?
a. Information must be presented in a manner that provides relevant, reliable.
comparable and understandable information.
b. Each IFRS gives specific disclosure requirements, additional disclosures are not
required to be given voluntarily by management.
c. Additional disclosures may be given so that management can present information
in a way that delivers the most positive message about an entity's financial
position and performance.
d. Additional disclosure is only necessary when an entity departs from the
requirements of an IFRS because its application would be misleading and depart
from the objectives of the Conceptual Framework.
6. Which of the following statements is correct of general purpose financial statements?
i. General purpose financial statements meet the specific needs of users including
banks and regulators.
ii. General purpose financial statements are designed to help decision-makers make
their own estimates as to an organization's value
a. i only
b. ii only
c. both i and ii
d. neither i nor ii
7. The Conceptual Framework for financial reporting mentions several measurement
bases that are used in financial statements.
Which of the following is not an advantage of measurement using historical cost?
a. It is reliable.
b. It is relevant.
C. It is objective.
d. It is easy to understand and calculate.
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