1. The FASB's and IASB's joint project to develop a common Conceptual Framework is essential for developing high-quality standards that are

1. Internally consistent
2. Precise
3. Internationally converged

a.I, II, and III.

b.I and II only.

c.I and III only.

d.II and III only.

2. Measurement of Assets

Assets may be measured or valued at

1. Current replacement cost.
2. Net realizable value.
3. Adjusted historical cost.
4. Adjusted present value.

a.II and III only.

b.I, II and III only.

c.I, II and IV only.

d.I, II, III and IV.

3. Information that would be useful to existing and potential investors to help them assess the amount, timing, and uncertainty of the prospects for future net cash inflows to the company is specifically covered by which of the following?

1. Conceptual Framework
2. Objective: Useful Information for Expected Returns to Investors, Lenders, and Other Creditors
3. Objective: Useful Information about Net Cash Inflows to the Company

a.III only.

b.II and III only.

c.I, II, and III.

d.II only.

4. The primary stakeholders that are important users of financial information include all of the following except:

a.Investors such as Warren Buffett.

b.Banks such as Bank of America.

c.Tax authorities such as the IRS.

d.New York Stock Exchange (NYSE).

5.

The Conceptual Framework is expected to do all of the following except:

a.Increase users' understanding of and confidence in financial reporting.

b.Enhance financial statement comparability across firms and over time.

c.Ensure that CPAs act ethically in discharging their stewardship role.

d.Provide a frame of reference for auditors for resolving accounting questions in situations where a standard does not exist.