According to PAS 1, what is the purpose of financial statements?

A) To provide information about the financial position, financial performance, and cash flows of
an entity.

B) To calculate the tax liabilities of an entity.

C) To ensure the compliance of the entity with regulatory requirements.

D) To predict the future financial performance of an entity.

Which of the following is NOT a primary objective of the PAS 1 Conceptual Framework?

A) To assist preparers of financial statements in applying accounting standards.

B) To assist users in interpreting and understanding the information contained in financial

statements.

C) To set the specific guidelines for measurement and recognition of financial elements.

D) To provide a foundation for the development of future accounting standards.

Which of the following statements is TRUE about the qualitative characteristics of

financial information as per PAS 1?

A) Relevance and faithful representation are the enhancing qualitative characteristics.

B) Understandability, timeliness, and verifiability are the fundamental qualitative characteristics.

C) Relevance and faithful representation are the fundamental qualitative characteristics.

D) Comparability and materiality are the fundamental qualitative characteristics.

According to PAS 1, which of the following is considered a component of financial

statements?

A) Statement of changes in equity.

B) Statement of budget versus actual figures.

C) Statement of production costs.

D) Statement of corporate social responsibility.