nceptual framework 9. What is the role of the IASB? naking a. Oversee the standard setting and regulatory process b. Formulate international financial reporting standards Review defective accounts d. Control the accountancy profession C. is not 10. According to the IASB's Conceptual Framework for Financial Reporting, which two of the following are part of faithful representation? A. It is neutral B. It is relevant C. It is presented fairly D. It is free from material error cual a. A and B b. Band C c. A and D d. Cand D he of 11. Listed below are some characteristics of financial information. m A. Relevance B. Comparability C. Faithful representation D. Timeliness 7 Which of these are fundamental characteristics, according to the IASB's Conceptual Framework for Financial Reporting? a. A and B only b. Band D only C.Cand D only d. A and Conly 12. The IASB's Conceptual Framework for Financial Reporting gives four enhancing qualitative characteristics. What are these four characteristics? a. Consistency, understandability, faithful representation, substance over form b. Accrual basis, going concern concept, consistency, true and fair View Faithful representation, comparability, understandability, relevance d. Comparability, timeliness, understandability, verifiability a. An entity is not a going concern if the management has the needs to liquidate the b. An entity is not a going concern if the management intends to curtail significantly 1-42 | Conceptual Framework and Accounting Standards 13. Which one of the following statements is true of the historical cost convention? a. It fails to take account of changing price levels over time b. It records only past transactions c. It values all assets at their cost to the business, without any adjustment for depreciation d. It has been replaced in accounting records by a system of current cost accounting 14. Which one of the following is the main aim of accounting? a. To maintain ledger accounts for every asset and liability b. To provide financial information to users of such information c. To produce a trial balance d. To record every financial transaction individually 15. Which accounting concept or convention which, in times of rising prices, tends to understate asset values and overstate profits? The going concern concept b. The prudence concept C. The realisation concept d. The historical cost convention 16. Which of the following is not an enhancing qualitative characteristic of good financial information? a. Verifiability b. Timeliness C. Comparability d. Profitability 17. Which of the following statements is correct? entity 20. c. the scale of the entity's operations. Both A and B are correct. d. Neither A nor B is correct