$1.$This means that the financial information must be available when a decision is to be made. A$.$Timeliness B$.$Neutrality C$.$Completeness D$.$ Comparability $2.$ Which of the following is a constraint of relevance and reliability to contribute to the usefulness of information? A$.$Timeliness B$.$Neutrality C$.$Comparability D$.$Materiality $3.$Reliable information: A$.$needs to be current, so users of financial statement can use it to make decisions. B$.$is verifiable, accurate and truthful. C$.$allows users to make comparisons across financial statements. D$.$is presented the same way period after period. $4.$Which among the following is not a purpose of the IASB's Framework for the Presentation of the Financial Statements? A$.$To assist the local standard setting bodies, such as the Financial Reporting Standards Council, in the adoption of the IFRS. B$.$To assist the Board of Accountancy in the regulation of the accounting profession in the Philippines. C$.$ To assist the auditors in forming an opinion as to the fairness of the presentation of the financial statements. D$.$ To assist the users in interpreting the information presented on the financial statements. $5.$The major objective of applying consistency in accounting policies is to: A$.$promote comparability between financial statements of different enterprises. B$.$promote comparability between financial statements of different reporting periods. C$.$match the appropriate revenues and expenses in a particular reporting period. D$.$reflect accurately the transaction or other circumstance that the information purports to represent. $6.$Which of the following relates to both relevance and reliability? A$.$Confirmatory value B$.$Neutrality C$.$Representational faithfulness D$.$Comparability $7.$Which among the following is recognized as expense based on associating cause and effect? A$.$Cost of goods sold B$.$Insurance expense C$.$Depreciation D$.$Research and development expense $8.$The following are among the four qualitative characteristics of financial statements: $($A$)$ Comparability $($B$)$ Timeliness $($C$)$ Relevance $($D$)$ Materiality $($E$)$ Neutrality. A$.$A and B B$.$A and C C$.$A and D D$.$A and E $9.$ Which of the following is incorrect regarding the Conceptual Framework of accounting? A$.$The Framework sets out the concepts that underlie the preparation and presentation of financial statements for external users. B$.$The Framework assists the local standards setting body in the review and adoption of existing IFRS. C$.$The Framework assists the CPAs in forming an opinion as to whether financial statements conform with Philippine Financial Reporting Standards.

D$.$The Framework is concerned with special purpose financial reports. $10.$ Under a lease where the lessee acquires the benefits of ownership of an asset, the lessee often recognizes the present value of future rental payments as an asset even though legal title to the property is not acquired. This is an example of: A$.$Materiality B$.$Prudence C$.$Substance over form D$.$Consistency