Here is an interesting conceptual framework quiz that is designed to test your knowledge of this subject. The conceptual framework can be described as a written or visual representation of an expected relationship between variables. If you think you know this topic really well, then you must take this quiz and see how well you can score. So, are you ready to take this quiz? Let's begin then. Wishing you good luck.
To assist the International Accounting Standards Board to develop IFRS Standards.
To assist preparers of IFRS financial statements to develop consistent accounting policies when no IFRS Standard applies to a particular transaction or other event, or when a Standard allows a choice of accounting policy.
To assist all parties to understand and interpret IFRS Standards.
All of the above
True
False
True
False
No
Yes, the Board is not required to use the Conceptual Framework when developing Standards
Yes, but only from aspects of the Conceptual Framework and only if doing so is needed to meet the objective of financial reporting
True
False
Immediately after it is issued
For annual reporting periods beginning on or after 1 January 2020, with early application permitted.
Never - the Conceptual Framework is only used by the International Accounting Standards Board
Provide information to regulators
Support the entity's tax return
Meet the information needs of an entity's stakeholders.
Provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions relating to providing resources to the entity.
Employees, investors and trade union representatives
Existing and potential investors, lenders and other creditors
Lenders and other creditors and customers
Existing and potential investors, government agencies and the general public
True
False
Providing information needed to assess management's stewardship is identified as an additional objective of financial reporting, equal in prominence to providing financial information useful to users in making decisions relating to providing resources to the entity
Decisions relating to providing resources to the entity depend on users' assessment of the amount, timing and uncertainty of the prospects for future net cash inflows to the entity and on their assessment of management's stewardship
Providing information needed to assess stewardship is more important than providing information needed to assess the prospects for future cash inflows to the entity
Financial reports are not intended to provide information needed to assess stewardship
Comparability and relevance
Relevance and reliability
Relevance, reliability and comparability
Relevance and faithful representation
Comparability, relevance and faithful representation
Only predictive value
Only confirmative value
Both predictive and confirmatory value
Either predictive or confirmatory value, or both
True
False
Separate reporting entities
A partnership
A single reporting entity
A legal entity
True
False
A present obligation of the entity to transfer an economic resource as a result of past events
A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodyiong economic benefits
An amount the entity may have to pay after the end of the reporting period
None of the above
True
False
That an obligation is a duty or responsibility that an entity has no practical ability to avoid
That an obligation can arise from a duty or responsibility conditional on a future action that the entity itself may take, if the entity has no practical ability to avoid taking that action
That an obligation can arise from an entity’s customary practices, published policies or specific statements, if the entity has no practical ability to avoid those practices, policies or statements
All of the above
None of the above
Income
Profit or loss
Equity
Other comprehensive income
Capturing, for inclusion in the statement of financial position or the statement(s) of financial performance, an item that meets the definition of one of the elements of the financial statements—an asset, a liability, equity, income or expenses
Determining where an item should be presented in the financial statements
Sorting assets, liabilities, equity, income or expenses on the basis of shared characteristics
Adding together of assets, liabilities, equity, income or expenses that have shared characteristics
True
False
Uncertainty about whether an asset or liability exists
Low probability of an inflow or outflow of economic benefits
Other factors
All of the above
None of the above
For an asset, derecognition normally occurs when the entity loses control of all or part of the recognised asset
For a liability, derecognition normally occurs when the entity no longer has a present obligation for all or part of the recognised liability
Derecognition is the removal of all or part of a recognised asset or liability from an entity's statement of financial position
All of the above
True
False
The exercise of caution when making judgements under conditions of uncertainty
A bias towards understating assets or income and towards overstating liabilities or expenses
A preference towards the earlier recognition of expenses and liabilities than of income and assets
A mechanism for smoothing profits over time (understate profits in good years and overstate profits in bad years)
A form of accounting conservatism
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