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1. Under Qualitative Characteristics of Useful Financial Information, the ability through consensus of measures to ensure that information represents what it purports to represent is an example of the concept of:
   1. Relevance
   2. Verifiability
   3. Faithful representation
   4. None of the above
2. Under Qualitative Characteristics of Useful Financial Information, which of the following is a qualitative characteristic associated with relevance:

a. Completeness

b. Free from error

c. Neutrality

d. None of the above

3. What is meant by comparability when discussing Qualitative Characteristics of Useful Financial Information:

a. Information has predictive or confirmatory value.

b. Information is reasonably free from error.

c. Information about a reporting entity is more useful if it can be compared with similar information about other entities and with similar information about the same entity for another period or another date

d. Information is timely.

4. An item is considered material if:

a. It doesnt cost a lot of money.

b. It is of a tangible good.

c. The cost of reporting the item is greater than its benefits

d. None of the above

5. one or more of the following statements are not characteristics of assets:

a. An asset is a present economic resource controlled by the entity as a result of past events

b. An economic resource is a right that has the potential to produce economic benefits

c. a +b

d. None of the above

6. According to conceptual framework for financial reporting what is the objective of financial reporting?

a. Provide information that is useful to management in making decisions.

b. Provide information that clearly portrays nonfinancial transactions.

c. Provide information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors.

d. Provide information that excludes claims to the resources.

7. According to the conceptual framework for financial reporting, comparability and timeliness are an ingredient of:

	Faithful Representation	Relevance	Enhancing Qualities
a.	Yes	No	Yes
b.	Yes	Yes	No
c.	No	Yes	Yes
d.	No	No	Yes

8. Characteristics & definition or description of Relevant included:

a. Relevant financial information helps assure users that information

faithfully represents the economic

b. Relevant financial information if it has predictive & confirmatory value together only

c. Relevant financial information is capable of making a difference in the

decisions made by users.

d. b +c

9. According to the Consolidated financial statements What of the following statement is false

a. Consolidated financial statements provide information about the assets

liabilities, equity, income, and expenses of both the parent and its subsidiaries as a single reporting entity.

b. Consolidated financial statements provide information about the assets

liabilities, equity, income, and expenses of the parent as a single reporting entity.

c. Consolidated financial statements provide information about the assets

liabilities, equity, income, and expenses of the subsidiaries as a single reporting entity.

d. b + c

10. Faithful representation Definition or Description is:

a. financial information is capable of making a difference in the

decisions made by users.

b. financial reports represent economic phenomena in words

c. financial information must be accurate in all respects

d. None of the above

defined