The Conceptual Framework

Question 1

What do investors want to ensure when they have purchased shares in a company?

Accepted Answer

Wise and careful use of their investment

Question 2

Economic decisions include making a loan to the company, buying and selling shares, and appointing or replacing.......

Accepted Answer

True

Question 3

The objective of financial statements is to provide information about the financial position, performance,......

Accepted Answer

True

Question 4

The Framework does not mention the assessment of stewardship or accountability of management

Accepted Answer

False

Question 5

What is the purpose of users assessing the stewardship or accountability of management according to the Framework?

Accepted Answer

To make economic decisions

Question 6

Which of the following are not users of financial statements?

Accepted Answer

Competitors

Question 7

The financial performance of the entity is shown in the Statement of Profit or Loss.

Accepted Answer

True

Question 8

What is the purpose of the IASB Conceptual Framework for Financial Reporting?

Accepted Answer

To assist in the production of consistent standards for financial reporting

Question 9

Which of the following is NOT one of the sections of the Framework?

Accepted Answer

Disclosure of financial statements

Question 10

How many sections is the Framework divided into

Accepted Answer

7

Question 11

Which financial statement details the assets and liabilities held by an entity at a specific point in time?

Accepted Answer

Statement of Financial Position

Questions 11