Which of the following is the best description of reliability in relation to information in financial statements?

A comprehensive integrative module crafted by Armee Jay L. Cresmundo, Jasper Andrew C. Adjarani, and Kelvin J. Culajara for the accountancy department...

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27.Which of the following is the best description of 'reliability' in relation toinformation in financialstatements?a. Influence on the economic decisions of usersc. Inclusion of adegree of cautionb.Freedom from material error and biasd.Comprehensibility to users

28. This is the quality of information that influences the economic decisionsof financial statement users?

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29. According to the IASBFramework for the preparation and presentation of financial statements, which TWO of the following are examples of 'expenses'?I.A loss on the disposal of a non-current assetIIA decrease in equity arising from a distribution to equity participantsIIIA decrease in economic benefits during the accounting periodIVA reduction in income for the accounting period

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30.If accounting information is timely, and has predictive as well as feedbackvalue, then it is considered to be

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31.Which of the following accounting concepts states that before a transactionis recorded, sufficient evidence must exist to allow two or moreknowledgeable individuals to reach essentially the same conclusion aboutthe transaction?a. Continuity assumptionc.Reliability quality b. Separate entity assumptiond. Materiality constraint

32. Which of the following statements about prudence and conservatism is(are) true?I.Conservatism is not a concept in the IASB Conceptual FrameworkII.Prudence is the same as conservatismIII.Conservatism is intentional bias --- downward bias in recognizing profitsand assets and an upward bias in recognizing expenses and liabilitiesIV.Prudence is the inclusion of a degree of caution in the exercise of  judgments needed in making the estimates required under conditions of uncertainty

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9.Which of the following is the best description of reliability in relation to information infinancial statements?A.Comprehensibility to usersC.Influence on the economic decisionsB.Freedom from material error and biasD.Inclusion of degree of caution of users

10. According to the IASB Framework for the preparation and presentation of financialstatements, which TWO of the following are examples of expenses?I.A loss on the disposal of a non-current assetII. A decrease in equity arising from a distribution to equity participantsIII. A decrease in economic benefits during the accounting periodIV. A reduction in income for the accounting period

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11. An expiration of cost which is incurred without compensation or return and is notabsorbed as cost of revenue is called

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12. Which of the following best describes the distinction between expenses and losses?

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13. Which of the following statements about accounting recognition is (are) true?I. In accounting, there are instances when a gain/loss would arise upon initialrecognition of an asset.II. No asset can simultaneously be an asset of more than one entityIII. At times, two or more entities may share the benefits that an asset providesIV. An appropriate basis for recognizing an asset is when a particular enterprise acquiresthe right to utilize and control access to the asset’s benefitsA.I and II onlyC.I, II and III onlyB.I and IV onlyD.I, II, III and IV

14. Which one of the following term best describes the amount of cash or cash equivalentsthat could currently be obtained by selling an asset in an orderly disposal?

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