ACCT 3310 CH 2 | QUESTIONS AND ANSWERS | 2026
UPDATED | 100% CORRECT.
Which of the following is NOT a purpose of a conceptual framework of
accounting concepts and financial reporting objectives?
A) To increase the user's ability to understand financial reporting
B) To increase financial statement users' confidence in financial reporting
C) To provide a foundation for detailed accounting and reporting rules
D) To enhance comparability among companies' financial statements Answer -
C
Which of the following is NOT correct about the conceptual framework in
accounting?
A) It is the basis for standard-setting for accounting standard setting bodies
B) It is based on fundamental accounting truths derived from the laws of
nature
C) It can be used to solve emerging or complex accounting problems
D) It can be used to develop consistent and comparable accounting principles
Answer - B
The underlying or fundamental objective of the accounting conceptual
framework is
A) decision usefulness
B) comparability
C) representational faithfulness
, D) understandability Answer - A
Which is a purpose of the conceptual framework in accounting?
A) To support principles-based accounting standards, principles and practices
B) To provide rules from which decision-useful financial information can be
developed
C) To promote global consistency, acceptance and adoption of IFRS around the
globe
D) To develop different accounting practices between countries around the
globe Answer - A
Which of the following is part of the IFRS Framework
A) Statement of financial position
B) Elements of financial statements
C) Information Asymmetry
D) Financial statement Answer - B
Which is NOT a qualitative characteristic of financial information in the IFRS
Framework?
A) Understandability
B) Historical Cost
C) Representational faithfulness
D) Comparability Answer - B
Which is an assumption of financial information in the IFRS Framework?
A) Accrual basis of accounting
B) Historical cost
UPDATED | 100% CORRECT.
Which of the following is NOT a purpose of a conceptual framework of
accounting concepts and financial reporting objectives?
A) To increase the user's ability to understand financial reporting
B) To increase financial statement users' confidence in financial reporting
C) To provide a foundation for detailed accounting and reporting rules
D) To enhance comparability among companies' financial statements Answer -
C
Which of the following is NOT correct about the conceptual framework in
accounting?
A) It is the basis for standard-setting for accounting standard setting bodies
B) It is based on fundamental accounting truths derived from the laws of
nature
C) It can be used to solve emerging or complex accounting problems
D) It can be used to develop consistent and comparable accounting principles
Answer - B
The underlying or fundamental objective of the accounting conceptual
framework is
A) decision usefulness
B) comparability
C) representational faithfulness
, D) understandability Answer - A
Which is a purpose of the conceptual framework in accounting?
A) To support principles-based accounting standards, principles and practices
B) To provide rules from which decision-useful financial information can be
developed
C) To promote global consistency, acceptance and adoption of IFRS around the
globe
D) To develop different accounting practices between countries around the
globe Answer - A
Which of the following is part of the IFRS Framework
A) Statement of financial position
B) Elements of financial statements
C) Information Asymmetry
D) Financial statement Answer - B
Which is NOT a qualitative characteristic of financial information in the IFRS
Framework?
A) Understandability
B) Historical Cost
C) Representational faithfulness
D) Comparability Answer - B
Which is an assumption of financial information in the IFRS Framework?
A) Accrual basis of accounting
B) Historical cost
