FAC 1601 UPDATED ACTUAL EXAM QUESTIONS CORRECT ANSWERS GRADED A PLUS.pdf

FAC 1601 UPDATED ACTUAL EXAM QUESTIONS CORRECT ANSWERS GRADED A PLUS




Question:
IAS.

Answer:
International Accounting Standards



Question:
APB.

Answer:
Accounting Practices Board



Question:
FRSC.

Answer:
Financial Reporting Standards Council



Question:
SAICA.

Answer:
South African Institute of Chartered Accountants.



Question:
Purpose of Conceptual Framework Overview.

, Answer:
Develop future accounting standards; keeps legislation standardized and reduces number of
alternative accounting treatments; foundation of all IFRS; guides accounting standards, policies and
interpretation



Question:
Objective of Conceptual Framework.

Answer:
Provide financial info for investors, lenders, creditors to make resource allocation decisions



Question:
Qualitative Characteristics of Useful Financial Information.

Answer:
Relevance: Info must influence decisions (materiality is key). Faithful Representation: Info must
reflect substance, not just legal form; must be complete, neutral, and free from error.



Question:
Enhancing.

Answer:
Comparability, verifiability, timeliness, and understandability



Question:
Assets.

Answer:
Present economic resources controlled by the entity due to past events.



Question: