on? 18. Which three of the following are not included in the fundamental qualitative characteristics of useful financial reporting information? astment for accounting A. Materiality B. Relevance C. Prudence D. Faithful representation E Comparability a. A, B and D b. A. Cand E c. B, D and E d. C, D and E , tends to 19. Some qualitative characteristics of useful financial reporting information are as follows: A. Neutrality B. Materiality C. Free from error D. Completeness According to the Conceptual Framework, which of these characteristics contribute to the faithful representation? financial a. A, B and b. A, B and D CA, C and D d. B, C and D 20. Which of the following items would be a violation of the materiality concept? a. An entity did not present separately a loss arising from the disposal of an asset for P5,000 in its statement of comprehensive income. Profit before tax for the date the year was P1 million. lificantly b. An entity did not disclose a P500,000 illegal bribe made by one of its senior management to a government official in its financial statements. An entity expensed the purchase of plastic dust bins that have an expected useful life of two years. d. None of the above statements violates the materiality concept. C 21. Which four of the following are qualitative characteristics that enhance the Conceptual fram usefulness of information that is relevant and faithfully represented? NAME: SECTION: Multiple Choice A. Understandability B. Timeliness C. Substance over form D. Comparability E Verifiability 1. Which one o in accordanc T a. A, B, C and D b. A, B, D and E c. A, C, D and E d. B, C, D and E 1 a. P2,000 p b. P70,000 C. a P100,00 future d. the P2 m contract 22. Which of the following statements is correct according to the Conceptual Framework? 2. Users of Auge measure its company's qu a. The purpose of financial statements is to provide information about the financial position, performance and changes in the financial position of an entity that is useful to a wide range of users in making economic decisions. b. Free from error means being perfectly accurate in all aspects. C. Cost is a pervasive constraint on the information that can be provided by the financial reporting. d. None of the above statements is correct. 1 Which charact 23. Which of the following statement is not correct? a. timeliness b. verifiabilit C. comparabi d. understand a. General purpose financial statements are those financial statements prepared to meet the common needs of users who are not in a position to require an entity to prepare reports tailored to their particular information needs. b. The Conceptual Framework identifies the primary users of financial statements to be the existing and potential investors, lenders and other creditors. C. The benefits of reporting financial reporting Information must justify the costs of reporting that information. d. All of the above statements are correct. 3. The role of fina make effective financial report a. lenders, in b. investors, c employees d. shareholde 4. Which of the f Framework? a. Individual needs. b. General puri entity