KUIS AKUNTANSI KEUANGAN MENENGAH I (SERI 01A)

FINANCIAL REPORTING, ACCOUNTING STANDARD, AND CONCEPTUAL FRAMEWORK

TRUE-FALSE

1. Financial statements are the principal means through which financial information is
communicated to those inside an enterprise.
2. Accounting standards are now less likely to require the recording or disclosure of fair value
information due to its inherent subjectivity.
3. The 2nd level of the IASB’s conceptual framework provides the qualitative characteristics that
make accounting information useful and the elements of financial statements.
4.Users of financial statements are assumed as common people without sufficient knowledge of
business and financial accounting matters by financial statement preparers.
5.Relevance and faithful representation are the two fundamental qualities that make accounting
information useful for decision making.
6. The idea of consistency in accounting means that companies cannot switch from one
accounting method to another.
7.Verifiability and predictive value are two ingredients of faithful representation.
8.An enhancing quality as described by the International Accounting Standards Board’s (IASB’s)
Conceptual Framework is comparability.
9. Materiality is one of the basic assumptions of accounting used by the International
Accounting Standards Board (IASB).
10. The periodicity assumption of accounting (used by the International Accounting Standards
Board) makes depreciation and amortization policies justifiable and appropriate.
11. Revenues are recognized in the accounting period in which the performance obligation is
satisfied.
12. Companies consider only quantitative factors in determining whether an item is material.
13. The cost constraint included in the International Accounting Standards Board’s conceptual
framework states that financial information should be free from cost to users of the
information.
14.The IASB conceptual framework specifically identifies accrual basis accounting as one of its
fundamental assumptions.
15.Timeliness and neutrality are two ingredients of relevance.
FILL IN THE BLANKS

1. ________________________ and _______________________ are the two fundamental

qualities that make accounting information useful for decision making.

2. Information characteristic that helps users confirm or correct prior expectations is called
____________________________________.

3. ________________________ enables users to identify the real similarities and differences

in economic events between different companies.

4. __________________ is the price that would be received to sell an asset or paid to

transfer a liability in an orderly transaction between market participants at the
measurement date.

5. Information is _______________________ if omitting it or misstating it could influence

decisions that users make on the basis of the reported financial information.

6. The _______________________ characteristic requires that the same accounting method

be used from one accounting period to the next.

7._
____________________ means valuing assets at amounts originally paid for them.

8. Providing information that is of sufficient importance to influence the judgment and

decisions of an informed user is referred to as _______________________.

9. Corporations must prepare accounting reports at least yearly due to the

_______________ assumption.

10. _________________ occurs when the performance obligation is satisfied.

Solution 01A-1
1. F 6. F 11. T
2. F 7. F 12. F
3. T 8. T 13. F
4. F 9. F 14. T
5. T 10. F 15. F

Solution 01A-2
1. Relevance; Faithful Representation 6. Consistency

2. Confirmatory value 7. Historical Cost

3. Comparability 8. Full disclosure

4. Fair value 9. Periodicity

5. Material 10. Revenue recognition

 KUIS AKUNTANSI KEUANGAN MENENGAH I (SERI 01B)

FINANCIAL REPORTING, ACCOUNTING STANDARD, AND CONCEPTUAL FRAMEWORK

TRUE-FALSE

1.An enhancing quality as described by the International Accounting Standards Board’s (IASB’s)
Conceptual Framework is comparability.
2. The idea of consistency in accounting means that companies cannot switch from one
accounting method to another.
3. Accounting standards are now less likely to require the recording or disclosure of fair value
information due to its inherent subjectivity.
4. The 2nd level of the IASB’s conceptual framework provides the qualitative characteristics that
make accounting information useful and the elements of financial statements.
5.Users of financial statements are assumed as common people without sufficient knowledge of
business and financial accounting matters by financial statement preparers.
6.Timeliness and neutrality are two ingredients of relevance.
7.Relevance and faithful representation are the two fundamental qualities that make accounting
information useful for decision making.
8. Materiality is one of the basic assumptions of accounting used by the International
Accounting Standards Board (IASB).
9. The periodicity assumption of accounting (used by the International Accounting Standards
Board) makes depreciation and amortization policies justifiable and appropriate.
10. Revenues are recognized in the accounting period in which the performance obligation is
satisfied.
11. Financial statements are the principal means through which financial information is
communicated to those inside an enterprise.
12. Companies consider only quantitative factors in determining whether an item is material.
13. The cost constraint included in the International Accounting Standards Board’s conceptual
framework states that financial information should be free from cost to users of the
information.
14.The IASB conceptual framework specifically identifies accrual basis accounting as one of its
fundamental assumptions.
15.Verifiability and predictive value are two ingredients of faithful representation.
FILL IN THE BLANKS

1. The _______________________ characteristic requires that the same accounting method

be used from one accounting period to the next.

2. __________________ is the price that would be received to sell an asset or paid to

transfer a liability in an orderly transaction between market participants at the
measurement date.

3. ________________________ enables users to identify the real similarities and differences

in economic events between different companies.

4. Corporations must prepare accounting reports at least yearly due to the

_______________ assumption.

5. Information is _______________________ if omitting it or misstating it could influence

decisions that users make on the basis of the reported financial information.

6. _________________ occurs when the performance obligation is satisfied.

7._
____________________ means valuing assets at amounts originally paid for them.

8. ________________________ and _______________________ are the two fundamental

qualities that make accounting information useful for decision making.

9. Information characteristic that helps users confirm or correct prior expectations is called
____________________________________.

10. Providing information that is of sufficient importance to influence the judgment and
decisions of an informed user is referred to as _______________________.
Solution 01B-1
1. T 6. F 11. F
2. F 7. T 12. F
3. F 8. F 13. F
4. T 9. F 14. T
5. F 10. T 15. F

Solution 01B-2
1. Consistency 6. Revenue recognition

2. Fair Value 7. Historical Cost

3. Comparability 8. Relevance; Faithful Representation

4. Periodicity 9. Confirmatory value

5. Material 10. Full disclosure