Answer the following Questions

$1.$Adequate disclosure in financial statements to meet the needs and purposes of their users is a means of attaining the quality of:

A$.$Verifiability

B$.$Completeness

C$.$Understandability

D$.$Neutrality

$2.$The concept that refers to the tendency of accountants to resolve uncertainty in favor of understating assets and revenues and overstating liabilities and expenses is known:

A$.$materiality.

B$.$prudence.

C$.$substance over form.

D$.$verifiability.

$3.$Which of the following is a constraint to relevant and reliable information, according to the Framework?

A$.$Prudence

B$.$Substance over form

C$.$Materiality

D$.$Balance between benefit and cost

$4.$ Objectivity provides assurance that the information presented on the financial statements are:

A$.$timely.

B$.$complete.

C$.$reliable.

D$.$prudent.

$5.$It represents the undiscounted amount of cash and cash equivalents expected to be paid to settle the liabilities in the ordinary course of business.

A$.$Present value

B$.$Realizable value

C$.$Current cost

D$.$Historical cost

$6.$Which among the following does not necessarily contribute to reliability of accounting information?

A$.$Providing information that possesses confirmatory value.

B$.$Providing complete information within the bounds of materiality and cost

C$.$Providing information that are free from bias.

D$.$Informing the users of the accounting policies and changes in accounting policies employed in the preparation of the financial statements.

$7.$ For the information to be useful, there must be a linkage between the information and the decisions that the users must make. This linkage is:

A$.$Materiality

B$.$Relevance

C$.$Reliability

D$.$Understandability

$8.$An expense may result from a$/$an:

A$.$decrease in asset from primary operations.

B$.$decrease in an asset from incidental transactions.

C$.$increase in liability from incidental transactions.

D$.$increase in asset from primary operations.

$9.$ It is the process of incorporating in the statement of financial position or statement of comprehensive income an item that meets the definition of an element of the financial statements.

A$.$Recognition

B$.$Measurement

C$.$Realization

D$.$Allocation

$10.$ All of the following expenses are recognized on the basis of a direct association between the costs and the earnings of specific items of income, except:

A$.$Salesmen's commission

B$.$Depreciation expense

C$.$Warranty expense

D$.$Cost of goods sold