acct 1008 practice questions

The statement relating to the conceptual Framework sconcept of understandability that is not true is. Select one: a. Information about complex matters should be included in the reports if it is considered relevant b. It is expected that users of financial statements will be willing to study the information with reasonable diligence c. In preparing financial statements it should be assumed that users possess very little knowledge accounting d. Every attempt should be made to communicate information in the most effective manner Which of these is not a characteristic of equity as specified in the conceptual Framework? 1. Select one: a. It ranks after liabilities as a claim on asset b. It must be controlled by the entity c. It is diminished by unprofitable operations d. It cannot be calculated independently of assets and liabilities In the conceptual Framework materiality is an aspect of: 2. Select one: a. relevance b. faithful representation c.verifiability d timeliness According to the conceptual Framework which of these is not an essential characteristic of an asset? 3. Select one: a. It must have been acquired for money b. There must be future economic benefits C. The entity must have control over the future economic benefits d. The event giving rise to the entity's control over the resource must have occurred