1. Determine whether the following statements are true or false. If a statement is false, explain why.

a. Neutrality and predictive value are both characteristics of relevant information

b. The tendency of recognizing favorable events early is an example of conservatism

c. The objective of financial statements focuses primarily on the needs of internal users of financial information

d. The overriding objective of financial reporting is to provide information for making economic decisions

e. Once an accounting method is adopted, it should never be changed

2. According to the IASB Framework, predictive value is an ingredient of: Relevance Faithful representation

a. No No

b. Yes Yes

c. No Yes

d. Yes No

3. According to the IASB Framework, the

a. recognition

b. allocation

c. realization

d. matching