is including not overstating assets or revenues and understating liabilities or expenses.* prudence O conservatism matching faithful representation is confirm/correct prior expectations about past events confirm value feedback value predictive value O response value Due process is described as the standard setting process must involve representative from big four, industries and academician onlyOption 1 O the standard setting process must involve such as government, tax authority and auditors. the standard setting process must involve standards setters only O the standard setting process must involve parties that might be affected with this regulation Which of the following statement describe about the criticism of normative period. (1) normative theories were based on subjective opinion (II) evidence can be empirically tested because it is possible to explain what ought to be. (III) wealth maximization is the answer for every subject (IV) normative theories could not be empirically tested because it is impossible to explain what ought to be * OI and II I and Ill I and IV The were developed to explain and predict accounting practices. * O general scientific period O specific scientific period/ positive theory normative period/ normative theory O behavioral theory Accounting theories are often developed from different perspectives which led to O many misconducts in accounting practices O many interpretations of accounting practices O many accounting standards Omany ideas in developing accounting theories The first objective of financial statement under conceptual framework is to O assess management stewardship O communicate the financial information to the users O evaluate the profit O predict future performance The following are the purposes of why we need accounting standards EXCEPT To ensure all enterprises provide information which is clear, consistent, reliable and comparableOption 1 O As a guideline to the accountants and financial statement users. To become bureaucratic which can lead to flexibility in practices. To promote uniformity as differences among financial statement will be minimized "Accounting is an agent of social change. This is because accounting information can affect welfare of different groups in society." The statement refers to accounting as a(an) O ideology O Social commodity O mythology O intra-corporate politics Accounting act as a where the most efficient department will ___ for the department resources. * (a) intra corporate politics (b) influence top management O(a) social commodity (b) segregate (a) language (b) influence the board of directors O(a) standards setting process (b) influence the external parties * The following are the steps required in standard setting process but not in a systematic manner. (1) - Identify and review of emerging issues. (11) - Preparation of Draft Statement of Principles (DSOP) or Exposure Draft(ED). (III) - Set up working group. (IV) - Commissions staff to undertake investigations. (V) - DSOP/ED established to allow comments. (VI) - Issuance of Discussion Paper. Required: Arrange the steps into systematic manner. O1 - || - 111 - IV-V-VI OI-IV - III - 11 - VI-V 01- III - IV - 11 - VI-V OT-IV- 111 - VI - 11 - V The reasons for formalization of existing practices in textbooks and teaching methods are 1. the education legislation II. the rapid expansion of technology III. the rapid expansion of finance institution IV. the government and corporate economic policy based on accounting numbers." O I and IV O II and III O I and III O II and IV O i and I O III and IV