Test Bank for Applying IFRS Standards 4th Edition By Ruth Picker Kerry Clark John Dunn David Kolitz Gilad Livne Janice Loftus Leo van der Tas (All Chapters, 100 Original Verified, A+ Grade) 3

Test-bank-for-Intermediate-Accounting-IFRS-Edition-
volume-1-by-Donald-E-Kieso-Jerry-J-Weygandt-Terry
b CHAPTER 2 b




CONCEPTUAL FRAMEWORK UNDERLYING FINANCIAL ACCOUNTI
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NG

CHAPTER LEARNING OBJECTIVES
b b




1. Describebthebusefulnessbofbabconceptualbframework.

2. Describebeffortsbtobconstructbabconceptualbframework.

3. Understandbthebobjectivebofbfinancialbreporting.

4. Identifybthebqualitativebcharacteristicsbofbaccountingbinformation.

5. Definebthebbasicbelementsbofbfinancialbstatements.

6. Describebthebbasicbassumptionsbofbaccounting.

7. Explainbthebapplicationbofbthebbasicbprinciplesbofbaccounting.

8. Describebthebimpactbthatbconstraintsbhavebonbreportingbaccountingbinformation.
TRUE-FALSE—Conceptual
1. Thebconceptualbframeworkbforbaccountingbhasbbeenbdiscoveredbthroughbempiricalbresearch.

2. Abconceptualbframeworkbisbabcoherentbsystembofbinterrelatedbobjectivesbandbfundamentalsbthatbcanble
adbtobconsistentbstandards.

3. ThebInternationalbAccountingbStandardsbBoardb(IASB)busesbabconceptualbframeworkbbasedbonbindividu
albconceptsbdevelopedbbybeachbmemberbofbthebstandard-settingbbody.

4. AbsoundlybdevelopedbconceptualbframeworkbenablesbthebInternationalbAccountingbStandardsbBoardb(I
ASB)btobissuebmorebusefulbandbconsistentbpronouncementsboverbtime.

5. AbsoundlybdevelopedbconceptualbframeworkbenablesbthebInternationalbAccountingbStandardsbBoardb(I
ASB)btobquicklybsolvebnewbandbemergingbpracticalbproblemsbbybreferencingbbasicbtheory.

6. ThebIASBbhasbissuedbabconceptualbframeworkbthatbisbbroadlybconsistentbwithbthatbofbthebUnitedbStates.

7. ThebInternationalbAccountingbStandardsbBoard’sb(IASB’s)bConceptualbFrameworkbincludesbsupplement
arybinformation.

,2b-b2 TestbBankbforbIntermediatebAccounting:bIFRSbEdition

8. ThebInternationalbAccountingbStandardsbBoard’sb(IASB’s)bConceptualbFrameworkbincludesbthebelement
sbofbfinancialbstatements.

9. Theb2ndblevelbofbthebIASB’sbconceptualbframeworkbprovidesbthebqualitativebcharacteristicsbthatbmakebac
countingbinformationbusefulbandbthebelementsbofbfinancialbstatements.

10. Onebofbthebchallengesbinbdevelopingbabcommonbconceptualbframeworkbwillbbebtobagreebonbhowbthebfr
ameworkbshouldbbeborganizedbsincebthebFASBbandbIASBbconceptualbframeworksbareborganizedbinbveryb
differentbways.

11. Thebfirstblevelbofbthebconceptualbframeworkbidentifiesbthebrecognitionbandbmeasurementbconceptsbuse
dbinbestablishingbaccountingbstandards.

12. Decisionbusefulnessbisbthebunderlyingbthemebofbthebconceptualbframework.
13. Usersbofbfinancialbstatementsbarebassumedbtobhavebnobknowledgebofbbusinessbandbfinancialbaccountin
gbmattersbbybfinancialbstatementbpreparers.

14. ThebfoundationbofbthebInternationalbAccountingbStandardsbBoard’sb(IASB’s)bConceptualbFrameworkbisbf
oundbonbthebthirdblevelbofbthebFrameworkbandbincludesbassumptions,bprinciples,bandbconstraints.

15. AnbimplicitbassumptionbofbthebInternationalbAccountingbStandardsbBoard’sb(IASB’s)bConceptualbFrame
workbisbthatbusersbneedbtobbebexpertsbinbbusinessbandbfinancialbaccountingbmattersbtobunderstandbtheb
informationbcontainedbinbfinancialbstatements.

16. Relevancebandbreliabilitybarebthebtwobprimarybqualitiesbthatbmakebaccountingbinformationbusefulbforbd
ecisionbmaking.
17. Thebideabofbconsistencybdoesbnotbmeanbthatbcompaniesbcannotbswitchbfrombonebaccountingbmethodbt
obanother.

18. Timelinessbandbneutralitybarebtwobingredientsbofbrelevance.

19. Verifiabilitybandbpredictivebvaluebarebtwobingredientsbofbreliability.

20. ThebsecondblevelbofbthebInternationalbAccountingbStandardsbBoard’sb(IASB’s)bConceptualbFrameworkbs
ervesbasbabbridgebbetweenbtheb“why”bofbaccountingbandbtheb“how”bofbaccounting.

21. InbthebInternationalbAccountingbStandardsbBoard’sb(IASB’s)bConceptualbFramework,bqualitativebcharact
eristicsbarebconsideredbeitherbrelevantborbprudent.

22. InbthebInternationalbAccountingbStandardsbBoard’sb(IASB’s)bConceptualbFramework,bqualitativebcharact
eristicsbdistinguishbbetterbinformationbfrombinferiorbinformationbforbdecision-makingbpurposes.

23. InbthebInternationalbAccountingbStandardsbBoard’sb(IASB’s)bConceptualbFramework,banbenhancingbqual
itativebcharacteristicbisbpredictivebvalue.

24. InbthebInternationalbAccountingbStandardsbBoard’sb(IASB’s)bConceptualbFramework,banbingredientbofbab
fundamentalbqualitativebcharacteristicbisbunderstandability.

, Frombhttps://buytestbank.eu/Test-bank-for-Intermediate-Accounting-IFRS-Editionvolume-1-by-
Donald-E-Kieso-Jerry-J-Weygandt-Terry-D-Warfiel
25. TobbebabfaithfulbrepresentationbasbdescribedbbybthebInternationalbAccountingbStandardsbBoard’sb(IASB’
s)bConceptualbFramework,binformationbmustbbebconfirmatory.

26. AnbenhancingbqualitybasbdescribedbbybthebInternationalbAccountingbStandardsbBoard’sb(IASB’s)bConcep
tualbFrameworkbisbcomparability.

27. Moon,bInc.bappliesbdifferentbaccountingbtreatmentsbtobsimilarbeventsbfrombperiodbtobperiod.bMoon,bIn
c.bisbviolatingbverifiabilitybasbdescribedbbybthebInternationalbAccountingbStandardsbBoard’sb(IASB’s)bCon
ceptualbFramework.

28. ThebInternationalbAccountingbStandardsbBoard’sb(IASB)bdefinitionbofbretainedbearningsbisb“thebresidualb
interestbinbthebassetsbofbthebentitybafterbdeductingballbitsbliabilities.”b

29. Thebhistoricalbcostbprinciplebwouldbbebofblimitedbusefulnessbifbnotbforbthebgoingbconcernbassumption.

30. Thebeconomicbentitybassumptionbmeansbthatbeconomicbactivitybcanbbebidentifiedbwithbabparticularbleg
albentity.

31. MaterialitybisbonebofbthebbasicbassumptionsbofbaccountingbusedbbybthebInternationalbAccountingbStand
ardsbBoardb(IASB).

32. PeriodicitybisbonebofbthebbasicbassumptionsbofbaccountingbusedbbybthebInternationalbAccountingbStand
ardsbBoardb(IASB).

33. TimelinessbisbonebofbthebbasicbassumptionsbofbaccountingbusedbbybthebInternationalbAccountingbStand
ardsbBoardb(IASB).
34. Thebperiodicitybbasicbassumptionsbofbaccountingb(usedbbybthebInternationalbAccountingbStandardsbBoa
rd)bmakesbdepreciationbandbamortizationbpoliciesbjustifiablebandbappropriate.

35. ThebIASBbconceptualbframeworkbspecificallybidentifiesbaccrualbbasisbaccountingbasbonebofbitsbfundame
ntalbassumptions.

36. OnebofbtwobassumptionsbmadebbybthebIASBbconceptualbframeworkbisbthatbthebreportingbentitybisbabgoi
ngbconcern.

37. Thebexpensebrecognitionbprinciplebstatesbthatbdebitsbmustbequalbcreditsbinbeachbtransaction.

38. Revenuesbarebrealizablebwhenbassetsbreceivedborbheldbarebreadilybconvertiblebintobcashborbclaimsbtobca
sh.

39. Supplementarybinformationbmaybincludebdetailsborbamountsbthatbpresentbabdifferentbperspectivebfrom
bthatbadoptedbinbthebfinancialbstatements.




40. Companiesbconsiderbonlybquantitativebfactorsbinbdeterminingbwhetherbanbitembisbmaterial.

41. ThebInternationalbAccountingbStandardsbBoardbhasbgivenbcompaniesbtheboptionbofbusingbfairbvaluebtobr
eportbfinancialbliabilities.