Which of the following statements is correct in relation to the contents of the IASB Conceptual Framework (2018): (i) Comparability is a fundamental qualitative characteristic of useful financial information  (ii) An entity shall apply the "going concern" assumption if it is entering bankruptcy in the current quarter. (iii) The concept of physical capital maintenance requires applying the current purchasing power measurement basis (iv) The concept of prudence implies that in preparing financial statements management should seek to overstate assets and income and to understate liabilities and expenses a. (iv) b. (iii) c. (i) d. None of the statements is correct e. (ii)

7.On its balance sheet, a company undergoing reorganization should Select one: a.report its assets at current replacement cost. b.report its assets at net realizable value because there is reason to doubt that the organization is a going concern. c.report its assets at fair value, so that financial statement users can estimate whether creditors' claims will be met. d.continue to report its assets at book value. e.report its assets as pledged or free.

7. Determine the response that best completes the following statements or questions. A) The primary objective of financial reporting is to provide information.  multiple choice 1 About a firm's management team. Useful to capital providers. About a firm's financing and investing activities. Concerning the changes in financial position resulting from the income-producing efforts of the entity.  B) Statements of Financial Accounting Concepts issued by the FASB  multiple choice 2 Represent GAAP. Identify the conceptual framework within which accounting standards are developed. Have been superseded by SFASs. Are subject to approval of the SEC.  C) In general, revenue is recognized when  multiple choice 3 A good or service has been delivered to a customer. The sales price has been collected. A contract has been signed. A purchase order has been received.  D) In depreciating the cost of an asset, accountants are most concerned with…

PROBLEM 1: TRUE OR FALSE All changes in an entity’s economic resources and claims to those resources result from the entity’s financial performance. The qualitative characteristics of useful information apply only to the financial information provided in the financial statements According to IFRS® Practice Statement 2 Making Materiality Judgments, the cost is an important consideration when making materiality judgments When making materiality judgments, a quantitative assessment alone is not always sufficient to conclude that an item of information is not material Materiality judgments apply only to items that are recognized - but not to those that are unrecognized The more significant the qualitative factors are, the lower the quantitative thresholds will be. Thus, an item with a zero amount can be material in light of qualitative thresholds. When making materiality judgments, an entity should judge an item’s materiality only on its own and not in combination with other information…