Sdcdsc

12. A conceptual framework of accounting is a structured theory of accounting. Which of these issues would be dealt with at the operational level of the framework?

A. the scope and objective of financial reporting

B. the qualitative characteristics of financial reporting

C. the elements of financial reporting

D. the basis of recognition and measurement of the elements

Answer: D

13. Which of these is not one of the benefits of a conceptual framework?

A. reporting requirements will be more consistent and logical

B. it may allow firms to reduce their reported profit

C. the need for specific accounting standards should be reduced

D. standard setting boards will be more accountable for their actions

Answer: B

14. A disadvantage of a conceptual framework is:

A. it will be easier to avoid reporting requirements

B. it will be more expensive to prepare individual accounting standards

C. it will increase political interference in the standard setting precess

D. none of the above are disadvantages

Answer: D

15. Both the IASB and the FASB frameworks consider the main objective of financial reporting is to communicate financial information to users. The information is to be selected on the basis of its usefulness in the economic decision-making process. This objective is seen to be achieved by reporting information that is:

I Useful in making economic decisions

II Useful in assessing cash flow prospects.

III About enterprise resources, claims to those resources and changes in them

A. I, II

B. I, III

C. II, III

D. I, II, III

Answer: D