Answer the following Questions

$1.$ 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.