6. Preparation of consolidated financial statements when a parent-subsidiary relationship exists is an example of the

Select one:

a. relevance characteristic

b. comparability characteristic

c. economic entity

d. neutrality characteristic

7. Measurement uncertainty can affect....

Select one:

a, relevance characteristic

b. faithful representation and relevance characteristic

c. understandability characteristic

d. faithful representation characteristic

8. Erin Company applies the same accounting treatment to similar events from period to period. Erin Company is exhibiting which of the following qualities as described by the International Accounting Standards Board's (IASB'S) Conceptual Framework?

Select one:

a. All of the choices are correct.

b. Verifiability.

c. Consistency,

d. Predictive value.

9. The International Accounting Standards Board's (IASB) conceptual framework includes a cost-benefit constraint. Which of the following is true regarding this constraint?

Select one:

a. Benefits are more difficult to quantify than costs

b. Benefits to preparers may include access to capital at a lower cost

c. All of the choices are correct

d. The IASB seeks input on costs and benefits as part of their due process

10. In the International Accounting Standards Board's (I ASB's) Conceptual Framework, qualitative characteristics

Select one:

a. Distinguish better information from inferior information for decision-making purposes

b. Are considered either fundamental or enhancing

c. Contribute to the decision-usefulness of financial reporting information

d. All of the choices are correct