FULL SCR Question 2 Your answer is incorrect. Try again. Financial information must be a faithful representation of the economic reality of the events. Faithful representation is achieved when the information is: O complete neutral free from material error all of the above Question 5 x Your answer is incorrect. Try again. Using the contract-based approach, revenue is recognized for the sale of goods when the following conditions have been met: delivery of goods has occurred, consistent with terms of a real or implied contract, and any related performance obligation has been completed the seller no longer has control over the goods the amount of revenue and costs can be reliably measured and it is probable the cash will be collected all of the above Question 6 x Your answer is incorrect. Try again. The basic expense recognition criteria states that expenses should be recognized when: cash is paid there is a decrease in an asset or increase in a liability, excluding transactions with owners Othere is an increase in an asset of decrease in a liability, excluding transactions with owners all of the above Question 7 Your answer is incorrect. Try again. The conceptual framework of accounting ensures that existing standards and practices are clear and consistent. makes it possible to respond quickly to new issues. increases the usefulness of the financial information presented in financial reports. O all of the above. Question 9 x Your answer is incorrect. Try again. If accounting information has confirmatory value, it has been verified by an external audit. O is prepared on an annual basis. confirms or corrects prior expectations. O is neutral in its representations. Question 10 If accounting information has predictive value, it is useful in making predictions about o the economic environment the company operates in. O world events that impact the economy. O future interest rates and foreign currency exchange rates. O future events of a company. Question 11 Relevant accounting information is information that has been audited. O must be reported within one year. O has been objectively determined. is information that is capable of making a difference in a decision. Question 12 A company can change to a new accounting principle if management can justify that the new principle results in O more relevant and faithful representation of the financial presentation in the statements. O a higher profit. a lower profit for tax purposes. O less likelihood of clerical errors