Question 7

According to the FRF for SMEs, in which of the following circumstances have all significant risks and rewards of ownership been transferred to the buyer?

• a) The goods have been delivered to the customer.
• b) The right to receive the sale price is fixed by contract or law.
• c) The buyer has the right to cancel the sale.
• d) All significant acts have been completed.

Question 11

Which method(s) of accounting for the expense associated with a pension plan does the FRF for SMEs not allow?

• a) Expense the contributions to a defined contribution plan.
• b) Expense the current year's contribution to a defined benefit plan.
• c) Expense the cost determined by an accrued benefit obligation for a defined benefit plan.
• d) Expense no amount for pension cost.

Question 12

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