a
206.Characteristics associated with faithfully representative accounting information are
a.verifiable and timely.
b.neutral and verifiable.
c.complete and neutral.
d.relevance and verifiable.
a
207.Which of the following statements is
not
true?
a.Comparability means using the same accounting principles from year to year within a company.
b.Faithful representation is the quality of information that gives assurance that it is free from error.
c.Relevant accounting information must be capable of making a difference in the decision.
d.The primary objective of financial reporting is to provide financial information that is useful to investors and creditors for making decision.
a
208.An item is considered material if
a.it doesn't cost a lot of money.
b.it is of a tangible good.
c.its size is likely to influence the decision of an investor or creditor.
d.the cost of reporting the item is greater than its benefits.
209.A company using the same accounting principles from year to year is an application of
a.timelines.
b.consistency.
c.full disclosure.
d.materiality.
a
210.Which of the following is a constraint in accounting?
a.Comparability.
b.Cost.
c.Consistency.
d.Relevance.
a
211.The periodicity assumption states that the economic life of a business can be divided into
a.equal time periods.
b.cyclical time periods.
c.artificial time periods.
d.perpetual time periods.
a
212.Which accounting assumption assumes that an enterprise will continue in operation longenough to carry out its existing objectives and commitment?
a.Monetary unit assumption.
b.Economic entity assumption.
c.Periodicity assumption.
d.Going concern assumption.
a.of different entities can be combined if all the entities are corporations.
b.must be reported to the IASB.
c.of a sole proprietorship cannot be distinguished from the personal economic events of its owners.
d.of every entity can be separately identified and accounted for.
a
214.Which of the following is
not
an accounting assumption?
a.Integrity.
b.Going concern.
c.Periodicity.
d.Economic entity.
a
215.The periodicity assumption states
a.the business will remain in operation for the foreseeable future.
b.the life of a business can be divided into artificial time periods and that useful reports covering those periods can be prepared.
c.every economic entity can be separately identified and accounted for.
d.only those things that can be expressed in money are included in the accounting records.