What is a purpose of having a conceptual framework? To provide comparable information for different companies. To make sure that economic activity can be identified with a particular legal entity. To segregate activities among competing companies. To enable the profession to more quickly solve emerging practical problems and to provide a foundation from which to build more useful standards. Question 26 Accounting information is considered to be relevant when it O is understandable by reasonably informed users of accounting information is verifiable and neutral is capable of making a difference in a decision O can be depended on to represent the economic conditions and events that it is intended to represent. Question 27 The allowance for doubtful accounts, which appears as a deduction from accounts receivable on a statement of financial position and which is based on an estimate of bad debts, is an application of the O Materiality principle. Revenue recognition principle. Consistency principle. Expense recognition principle Question 28 Which assumption or principle requires that all information significant enough to affect a decision of reasonably informed users should be reported in the financial statements? Historical cost Expense recognition Full disclosure Going concern. Question 29 In the International Accounting Standards Board's (LASB's) Conceptual Framework, qualitative characteristics Are considered either fundamental or enhancing O Distinguish better information from inferior information for decision-making purposes. O All of these choices are correct Contribute to the decision-usefulness of financial reporting information