14) General purpose financial statements are A Those statements that cater to the common and specific needs of a wide range of external users. B. Those statements that cater to the common needs of a wide range of external users and internal users. Those statements that cater to the common needs of a limited range of external users. D. Those statements that cater to the common needs of a wide range of external users. 15) Accounting has been given various definition, which of the following is not one of those definitions? A Accounting is a service activity. Its function is to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions B. Accounting is an art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part of at least, of a financial character and interpreting the result thereof Accounting is a systematic process of objectively obtaining and evaluating events to ascertain the degree of correspondence between these assertions and established criteria and communicating the results to interested users D. Accounting is the process of identifying, measuring, and communicating economic information to permit informed judgment and decisions by users of information 16) The users of financial statements who are interest in information that enables them to determine whether the amounts owing to them will be paid when due A Lenders Investors B. Customers D. Suppliers and other trade creditors 17) The Conceptual Framework includes all of the following except: A. Objective of financial reporting C. Elements of financial statements B. Qualitative characteristics of accounting information D. Supplementary information 18) Which statement is incorrect regarding the Conceptual Framework? A. The objective of general-purpose financial reporting is the foundation of the Conceptual Framework? B. The conceptual Framework is useful to auditors by assisting them in forming an opinion as to whether financial statements conform to PFRSS, The Conceptual Framework may override a specific PFRS. D. The conceptual framework includes a cost-benefit constraint, which means that the benefits of the information must be greater than the costs of providing it. 19) Which statement relates to verifiability? A Enables users to identify and understand similarities in, and difference among, items. B. Information is available to decision-makers in time to be capable of influencing their decisions. c. Different knowledgeable and independent observers could reach consensus, although not necessarily complete agreement, that a particular depiction is a faithful representation D. Financial reports are prepared for users who have a reasonable knowledge of business and economic activities and who review and analyze the information with diligence. 20) It is the accounting process of assigning numbers, commonly in monetary terms, to the economic transactions and events A. Analyzing B. Measuring C Classifying D. interpreting