Mindanao State University - General Santos

COURSE TITLE - ACCTG 001

CONCEPTUAL FRAMEWORK PROBLEM 2: MULTIPLE CHOICE

1)According to the conceptual framework, these are the qualitative characteristics that that make information useful to users.

1. 1. Fundamental
   2. Enhancing
   3. Relevance
   4. Comparability

2. Information that is capable of making a difference in the decisions made by users has this qualitative characteristic.
   1. Relevance
   2. Faithful representation
   3. Timeliness
   4. Verifiability

3. When making materiality judgments, the overriding consideration is
   1. The ability of the item being judged to influence users’ decisions.
   2. The size of the impact of the item being judged
   3. The characteristics of the item being judged.
   4. C and D

4. This qualitative characteristic is unique in the sense that it necessarily requires at least two items.
   1. Verifiability
   2. Faithful representation
   3. Timeliness
   4. Comparability

5. Which of the following enhances the comparability of information?
   1. Making unlike things look alike.
   2. Making like things look different.
   3. Using different methods to account for similar transactions from period to period.
   4. Using the same technologies used by other entities in the same industry where the reporting entity belongs.

6. Information has this qualitative characteristics if different, knowledgeable and independent observers could reach consensus, although not necessarily complete agreement, that a particular depiction is a faithful representation.
   1. Relevance
   2. Faithful representation