TRUE OR FALSE

A. Relevance is the term used to describe that verifiablity. Many decisions by owners, potential owners, lenders and other creditors are based on implicit or explicit predictions about the amount and timing of the return on an equity investment, loan or other credit instrument

B. The materiality of information depends on the size and nature of the omission or misstatement judged in the surrounding circumstances. The size or nature of the item, or a combination of both, could be the determining factor.

C. Some entities that prepare their financial statements in compliance with full IFRS Standards present earnings per share applying IAS 33 Earnings per Share. The IFRS for SMEs Standard does not require earnings per share to be presented in financial statements

D. Historical cash flow information is also useful in examining the relationship between profitability and financial performance.

E. Cash flow information also enhances the comparability of the reporting of operating performance by different entities because it eliminates the effects of using different accounting treatments for the same transactions and events

F. The direct method presents operating cash flows by major classes of gross cash receipts (for example receipts from customers) and gross payments (for example payments to suppliers or employees)