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NEW QUESTION 50
Which one of these is a disadvantage of a conceptual framework?

A. It increases the chances of political interference in the development of accounting standards.B. It replaces the established principles.C. It mandates the formats of various financial statements.D. A single framework is not suitable for all users of financial statements.

Answer: D

 

NEW QUESTION 51
Which one of the following is the correct treatment of sales?

A. Cash sales are recorded in the receivables ledger prior to posting to the general ledger.B. Cash and credit sales are recorded in the receivables ledger prior to posting to the general ledger.C. Credit sales are not recorded in the receivables ledger prior to posting to the general ledger.D. Credit sales are recorded in the receivables ledger prior to posting to the general ledger.

Answer: D

 

NEW QUESTION 52
According to the Australian Accounting Standards Board, which one of the following is a benefit of adopting International Financial Reporting Standards (IFRSs)?

A. to become a resource for developing nations who can easily adopt IFRSs as a full set of standardsB. to make it easier for tax authorities to calculate taxes on investors' overseas incomeC. to increase foreign investors' understanding of local financial reportsD. to enable the national government to control activities of foreign multinationals

Answer: C

 

NEW QUESTION 53
To be relevant, financial information has to
I)be provided in a timely manner.
II)comply with the going concern assumption.
III)have predictive and/or confirmatory value.
IV)exclude computations that are difficult to understand.

A. I and II onlyB. II and III onlyC. III and IV onlyD. I and III only

Answer: D

 

NEW QUESTION 54
Which accounting theory is best described by the statement 'An approach to accounting is one where a theory is thought of as a body of knowledge that explains and attempts to predict actual accounting practice'?

A. normative accounting theoryB. positive accounting theoryC. historical cost accounting theoryD. general accounting theory

Answer: B

 

NEW QUESTION 55
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