CHAPTER 2 TOPIC 1

1. Other aspects of the conceptual framework include all except

A. The qualitative characteristic equity
B. Useful financial information
C. Derecognition measurement
D. A reporting entity concept

2. Buying, selling or holding equity and debt instrument are one of decision of
A. Conceptual framework
B. Financial information
C. General purpose of financial reporting
D. Economic resources of the entity

3. The examples of management’s responsibilities to use the entity’s economic resources include
A. Economic factors
B. Equity (drawing)
C. Price
D. Technological changes

4. A reporting entity’s economic resources and claims may also change for reasons other than
A. Financial performance
B. Issuing debt
C. Equity instruments
D. Entity’s liquidity

5. Accrual accounting depicts the effect of

A. Profit and loss
B. Transaction
C. Depreciation
D. Assets

6. The board, in developing standards will

A. Seek for political climate
B. To provide the information set
C. Set a particular subset of primary use
D. Not design to show the value of entity

7. The management of a reporting entity also interested in financial

A. Profit and loss
 B. Statements of the months
C. Information of the entity
D. Percentages

8. All of the below are correct on people who cannot requires reporting entities to provide
information except
A. Debtor
B. Investor
C. Creditors
D. Owner

9. The conceptual framework is not a

A. Entity
B. Standard
C. Information
D. Terms

10. The purpose of the conceptual framework is to

I. Assist the MASB to develop MFRS standard that are based on consistent concepts
II. Assist prepares to develop consistent accounting policies when no standard applies to a
particular transaction or other event, or when a standard allows a choice of accounting
policies
III. Assist all parties to understand and interpret the standard
A. I and II
B. II and III
C. I, II and III
CHAPTER 2 :TOPIC 2

1. Financial reports provide information about the reporting entity’s

A. Economics status
B. Economic resources
C. Reporting entity
D. Economic phenomena

2. What are the fundamental qualitative characteristics?

A. Faithful
B. Reasonable
C. Balance
D. Timeliness

3. Relevance financial information is

A. Capable of making a difference in the decisions made by the users.
B. Having information available to decision makers in time to be capable of influencing their
decisions.
C. Classifying, characterising and presenting information clearly and concisely make it
understandable
D. To help assuring the users that information faithfully represents the economic phenomena it
purposes to represent

4. Having information available to decision-makers in time to be capable of influencing their

decisions. What characteristics has this meaning?
A. Timeliness
B. Understandability
C. Verifiability
D. Comparability

5. Applying the fundamental qualitative characteristics information must be

A. Relevant
B. Balance
C. Efficient
D. Faithful
 6. Qualitative helps to enhance the usefulness of information that both is relevant and provide a
faithful representation of what it purpose to represent. Which of the following characteristic are
correct?
I. Comparability
II. Verifiability
III. Understandability
IV. faithful
A. I and II
B. I,II, and III
C. II,III and IV
D. I,III and IV

7. Verification of verifiability qualitative characteristic can be

A. Direct
B. Faithful
C. Punctual
D. Compare

8. Enable users to identify and understand similarities in, and difference among items. Which
qualitative characteristics match this meaning?
A. Timeliness
B. Faithful
C. Understandability
D. Comparability

9. What is cost constraint?

A. A pervasive constraint on the information that can be provided by financial reporting
B. A financial reporting that is relevant and faithfully represents what its purports to represents
helps.
C. A constraint that can be direct or indirect
D. A cost to assures users that information faithfully represents the economic phenomena its
purports to represent.

10. Which of the following are correct for a depiction to a faithful representation?
I. Complete
II. Neutral
III. Free from error
IV. Honest
A. I and II
B. I,II and III
C. II,III, and IV
D. I ,II and IV

CHAPTER 2: TOPIC 3

1) Which of the statements and notes are wrong in financial statement?

A. Cash flows
B. Drawings
C. Assets and liabilities
D. Equity

2) To help users of financial statements to identify and assess changes and trends. What are this
purpose for?
A. Reporting period
B. Accounting period
C. Financial statement
D. The period of SOFP and SOPL

3) Which one entity has control over ?

A. Subsidiary
B. Owners
C. Partnership
D. Parents

4) Why determining the appropriate boundary of a reporting entity can be difficult?

A. Illegal entity
B. A misleading information
C. Consolidated financial statement
D. does not contain an arbitrary or incomplete set of economics.
5) Consolidated financial statement are not designed to provide separate information about the
A. Assets,liability and equity
B. Depreciation, and discount
C. Assets, income and insurance
D. Expense, income and profits

6) To provide financial information about the reporting entity’s assets ,liabilities,equity,income and
expenses that is useful to users of financial statements in assessing management’s stewardship
of entity’s economic resources. What does these objective for?
A. Financial statement
B. Profit or loss
C. Bank
D. Reporting entity

7) Assets and liabilities- including unrecognized assets and liabilities- and equity that existed at the
end of the reporting period, or during the reporting period.what criteria of financial statement is
this ?
A. Balance
B. Scope of financial statement
C. Going concern assumption
D. Reporting period

8) The information is provided for the scope of financial statement in

A. Financial position, by recognizing the balance of assets and owner equity
B. Profit and loss, by recognizing its unbalance
C. Profit and loss, by recognizing its expense and discount
D. Financial position by recognizing its assets,liabilities and equity.

9) I)Not a legal entity

II)Does not comprise only legal entities linked by a parent-subsidiary

The information above are strictly for

A. Reason of the difficulties of appropriate boundaries of a reporting entities

B. The perspective adopted in financial statements
C. Going concern assumption
D. The reporting entities

10) Who will receive the unconsolidated financial statement information?

A. Subsidiary
B. Partner
C. Debtor
D. creditor