$1.$ What concept justifies the use of accruals and deferrals?A$.$Going concern B$.$Consistency C$.$Materiality D$.$Timeliness $2.$Neutrality means that financial accounting information should:A$.$not influence or affect the decisions of users. B$.$not be biased or prejudiced. C$.$not have undesirable or negative consequences. D$.$All of the above. $3.$Which of the following is not an objective of financial statements? A$.$To provide information about the financial position of an enterprise. B$.$To provide information about the performance of an enterprise. C$.$To provide information about the economic decisions of the enterprise. D$.$To provide information about the changes in financial position of an enterprise. $4.$ The going concern concept assumes that: A$.$market values of assets are relevant. B$.$long$-$lived assets are adjusted to current prices. C$.$business firms shall continue to operate indefinitely. D$.$enterprises will curtail their operations in the succeeding period. $5.$ Which of the following does the Conceptual Framework identify as the primary users of general$-$purpose financial reports? A$.$Employees, investors and trade union representatives B$.$Existing and potential investors, lenders and other creditors C$.$Lenders and other creditors and customers D$.$Existing and potential investors, government agencies and the general public $6.$ What is the underlying concept that supports the recognition of impairment in value of non$-$monetary assets held by the enterprise? A$.$Substance over form B$.$Consistency C$.$Prudence D$.$Neutrality $7.$ An item would be considered material and therefore, should be disclosed in the financial statements if: A$.$the expected benefits of disclosure exceed the additional costs to provide the information. B$.$the IFRSC's definition of materiality is met. C$.$the amount is deemed large enough to make a difference in the decision or evaluation of the user. D$.$the effect on earnings is more than $5\%.8.$The quality of information that makes it needed and worthy for the purpose it was prepared is: A$.$Understandability B$.$Relevance C$.$Reliability D$.$Completeness $9.$ Continuation of an enterprise in the absence of evidence to the contrary is an example of the concept of: A$.$Accounting entity B$.$Consistency C$.$Going concern D$.$Substance over form $10.$The IASB's Framework for the Presentation of Financial Statements does not deal with the: A$.$objectives of the financial statements. B$.$qualitative characteristics that make the statement useful to users. C$.$concepts of capital and capital maintenance. D$.$generally accepted accounting principles.