What are the main categories of financial accounting concepts?

Multiple Choice

• Policies, measurement methods and accounting estimates.

• Organizational facts, financial reporting objectives and reporting constraints.

• Fundamental, enhancing and pervasive considerations.

• Underlying assumptions, qualitative characteristics, and measurement methods.

  The underlying concept that supports the valuation of assets at cost rather than liquidation values is:

  Multiple Choice

• The principle of conservatism.

• The unit-of-measure assumption.

• The going-concern assumption.

• The principle of substance over form.

  A private enterprise in Canada may not follow which framework:

  Multiple Choice

• IFRSs for SMEs

• IFRS

• ASPE

• Disclosed basis of accounting

  n order to assess cash flows, users will:

  Multiple Choice

• Extrapolate the cash flows from financing activities into future years.

• Review and understand the inflows and outflows related to an entitys operating activities.

• Review the cash and cash equivalents on the SFP.

• Review the various sources of financing used by the company.

  Which is a constraint of financial reporting?

  Multiple Choice

• ASPE requirements

• Income tax standards

• Contract compliance.

• Industry standards

  Which is not a judgment that must be made by accountants in preparing statements?

  Multiple Choice

• Choose appropriate measurement methods.

• Recognize revenues appropriately so as to provide management with the maximum bonus. .

• Decide what information to disclose in both the statements and the notes.

• Make suitable accounting estimates.

  he assumption that justifies annual financial statements is likely to be:

  Multiple Choice

• Comparability.

• Time period assumption.

• Unit-of-measure concept.

• Going concern assumption.