1. The qualitative characteristics of financial information referred to in the IASB Conceptual Framework have been defined as: a) The information that is likely to be most useful to primary users of financial reports. b) Broad basic assumptions which underlie the periodic financial accounts of business enterprises c) The methods which have been developed for expressing or applying fundamental accounting concepts to financial transactions and items d) The specific accounting bases judged by business enterprises to be most appropriate to their circumstances and adopted by them for the purpose of preparing their financial accounts Q2. Which one of the following equations correctly expresses the relationship between assets (A), liabilities (L), revenues (R), expenses (E) and equity (Egy)? a) A L+R+E+ Egy b) A Egy+(R-E)+L c) A Egy-(RE) + L d) A (L-Egy) + (R-E) Q3. Which of the following concepts is the assumption that a business will continue to trade for the foreseeable future? a) Dual aspect b) Going concern c) Materiality d) Entity Q4. On 31 December 2017 ABC limited has disposed of a large piece of machinery. The company sold the machinery for 20,000. It had originally cost them 90,000 on 1 January 2015 and was estimated to have a useful life of 6 years at this point. Calculate the profit or loss on disposal of this asset to be included in the income statement for the year ended 31 December 2017 a) Profit of 25,000 b) Loss of 25,000 c) Loss 40,000 d) Profit of 40,000