$1.$Adequate disclosure in financial statements to meet the needs and purposes of their users is a means of attaining the quality of:

A$.$Verifiability B$.$Completeness C$.$Understandability D$.$Neutrality $2.$The concept that refers to the tendency of accountants to resolve uncertainty in favor of understating assets and revenues and overstating liabilities and expenses is known:A$.$materiality. B$.$prudence. C$.$substance over form. D$.$verifiability$\mathrm{.}3.$Which of the following is a constraint to relevant and reliable information, according to the Framework?A$.$Prudence B$.$Substance over form C$.$Materiality D$.$Balance between benefit and cost $4.$ Objectivity provides assurance that the information presented on the financial statements are: A$.$timely. B$.$complete. C$.$reliable. D$.$prudent. $5.$It represents the undiscounted amount of cash and cash equivalents expected to be paid to settle the liabilities in the ordinary course of business. A$.$Present value B$.$Realizable value C$.$Current cost D$.$Historical cost $6.$Which among the following does not necessarily contribute to reliability of accounting information? A$.$Providing information that possesses confirmatory value. B$.$Providing complete information within the bounds of materiality and cost C$.$Providing information that are free from bias. D$.$Informing the users of the accounting policies and changes in accounting policies employed in the preparation of the financial statements. $7.$ For the information to be useful, there must be a linkage between the information and the decisions that the users must make. This linkage is: A$.$Materiality B$.$Relevance C$.$Reliability D$.$Understandability $8.$An expense may result from a$/$an: A$.$decrease in asset from primary operations. B$.$decrease in an asset from incidental transactions. C$.$increase in liability from incidental transactions. D$.$increase in asset from primary operations. $9.$ It is the process of incorporating in the statement of financial position or statement of comprehensive income an item that meets the definition of an element of the financial statements. A$.$Recognition B$.$Measurement $=$C$.$Realization $=$D$.$Allocation $=10.$ All of the following expenses are recognized on the basis of a direct association between the costs and the earnings of specific items of income, except: A$.$Salesmen's commission B$.$Depreciation expense C$.$Warranty expense D$.$Cost of goods sold