Question 11 Which of the following is a quality of information provided in financial statements that the FRF for SMEs considers useful and that the FASB considers a fundamental quality?

• a) Understandability
• b) Relevance
• c) Reliability
• d) Comparability

Question 12 Which of the following statements best describes the presentation or disclosure requirements related to major categories of revenues under the FRF for SMEs?

• a) Major categories of revenue should be presented separately in an income statement and their nature described in notes to the financial statements.
• b) Major categories of revenue may be reported separately in an income statement or disclosed in the notes to the financial statements.
• c) Major categories of revenue need not be described in notes to financial statements unless they are separately presented in an income statement.
• d) Major categories of revenue need not be presented in an income statement or disclosed in notes to financial statements unless they result in significantly different profit margins.

Question 13 Under the FRF for SMES, which of the following is not one of the four factors set forth in the FRF for SMEs to consider when determining whether a price is fixed or determinable?

• a) Whether the sale is cancelable
• b) Whether a right of return exists
• c) Whether price protections or inventory credit arrangements exist
• d) Whether title has passed