1. A soundly developed conceptual framework of concepts and objectives should a. increase financial statement users' understanding of and confidence in financial reporting, b. enhance comparability among companies' financial statements. c. allow new and emerging practical problems to be more quickly solved. d. All of these answer choices are correct. 2. What is a purpose of having a conceptual framework? a. To make sure that economic activity can be identified with a particular legal entity. b. To segregate activities among different companies. c. To provide comparable information for different companies. d. To enable the profession to more quickly solve emerging practical problems and to provide a foundation from which to build more useful standards 3. The underlying theme of the conceptual framework is a decision usefulness. b. understandability c. faithful representation d. comparability 4. Which of the following is a characteristic describing the fundamental quality of relevance? a. Predictive value. b Neutrality c. Verifiability d. Understandability 5. Which of the following is a fundamental quality of useful accounting information? a Conservatism b. Comparability c. Faithful representation d. Consistency 6. Which of the following is an ingredient of faithful representation? a. Predictive value b. Materiality C. Neutrality d. Confirmatory value