Reference no: EM132656223

Problem 1: The enhancing characteristics of useful information include:

a) Relevance, comparability and timeliness.

b) Materiality, understandability and faithful representation.

c) Understandability, verifiability and timeliness.

d) Neutrality, comparability and materiality.

Problem 2: Which of the following statements about the conceptual framework is INCORRECT?

a) Prudence is excluded from the framework.

b) Relevance can be based on predictive value or confirmatory value.

c) An item is immaterial if its omission or misstatement could influence decisions.

d) The framework provides prescription regarding measurement.

Problem 3: Which of the following is NOT a benefit of the conceptual framework?

a) It may reduce the need for specific accounting standards.

b) It should lead to more consistent accounting standards.

c) It reduces the need for accountants to exercise professional judgement.

d) It makes standard setters more accountable.