11.Which of the following statements are true? An accounting Conceptual Framework: (i) Sets out who the users of the accounts are and how it is to be used(ii) Is not an obligatory piece of legislation(iii) Defines concepts such as going concern, relevance and materialitya)All of the above is true Onlyb) (i) is truec) Only (ii) and (iii) is trued) (i) and (iii) is true 16. Which of the following statements about the accounting regulatory framework is not correct?a) It seeks to safeguard the public’s confidence in financial accounts.b) It ensures maximisation of dividend yield.c) It seeks to curb any attempt by directors to use inappropriate accounting policiesand methods.d) It seeks to promote consistency of accounting practices, whilst permittingappropriate exercise of professional judgement. 17. Which of the following statements about the Statement of Cash Flows (SCF) is incorrect?a) Unlike the Statements of Income and of Financial Position, the cash flow data reflected in the SCF is not affected by accounting policies.b) The SCF is simply a version of the Income Statement but prepared under the cash basis rather than the accruals basis.c) The issue of share capital affects the SCF and Statement of Financial Position, but not the Income Statement.d) The SCF may be considered by lenders in the assessment of the business’s liquidity and ability to service debt. Eric Song has set up as a sole trader and introduced his savings worth £8,000 to his business, Song Sounds. What is the double entry to record the transaction?a) Dr Capital Cr Cashb) Dr Bank Cr Creditorsc) Dr Bank Cr Capitald) Dr Capital Cr Creditors For the accounting period in which a short-term loan is paid off, which of the following correctly describes the effects on the financial statements?a) Neither current assets nor current liabilities will be affected.b) Both current assets and current liabilities will be affected.c) Whilst current liabilities will fall, current assets will remain unchanged.d) Whilst current assets will fall, current liabilities will remain unchanged.KPL Ltd has a year end of 31 March 2021. During the year it paid £1,600 for rent. At the start of the year it had an accrual of £400 and at 31 March 2021 had prepaid £250 of rent in respect of the year starting 1 April 2021. What is the charge to the income account for the year ended 31 March 2021?a) £950b) £1,600c) £1,450d) £1,750 11.Which of the following statements are true?An accounting Conceptual Framework:(i)Sets out who the users of the accounts are and how it is to be used(ii)Is not an obligatory piece of legislation(ii) Defines concepts such as going concern, relevance and materialitya) All of the above is trueb) Only (i) is truec) Only (ii) and (ii) is trued) (i) and (ii) is true

Question

11.Which of the following statements are true? An accounting Conceptual Framework: (i) Sets out who the users of the accounts are and how it is to be used(ii) Is not an obligatory piece of legislation(iii) Defines concepts such as going concern, relevance and materialitya)All of the above is true Onlyb)  (i) is truec) Only (ii) and (iii) is trued) (i) and (iii) is true 16. Which of the following statements about the accounting regulatory framework is not correct?a)  It seeks to safeguard the public’s confidence in financial accounts.b)  It ensures maximisation of dividend yield.c)  It seeks to curb any attempt by directors to use inappropriate accounting policiesand methods.d)  It seeks to promote consistency of accounting practices, whilst permittingappropriate exercise of professional judgement. 17. Which of the following statements about the Statement of Cash Flows (SCF) is incorrect?a)  Unlike the Statements of Income and of Financial Position, the cash flow data reflected in the SCF is not affected by accounting policies.b)  The SCF is simply a version of the Income Statement but prepared under the cash basis rather than the accruals basis.c)  The issue of share capital affects the SCF and Statement of Financial Position, but not the Income Statement.d)  The SCF may be considered by lenders in the assessment of the business’s liquidity and ability to service debt. Eric Song has set up as a sole trader and introduced his savings worth £8,000 to his business, Song Sounds. What is the double entry to record the transaction?a)  Dr Capital                     Cr Cashb)  Dr Bank                        Cr Creditorsc)  Dr Bank                          Cr Capitald)  Dr Capital                       Cr Creditors For the accounting period in which a short-term loan is paid off, which of the following correctly describes the effects on the financial statements?a)  Neither current assets nor current liabilities will be affected.b)  Both current assets and current liabilities will be affected.c)  Whilst current liabilities will fall, current assets will remain unchanged.d)  Whilst current assets will fall, current liabilities will remain unchanged.KPL Ltd has a year end of 31 March 2021. During the year it paid £1,600 for rent. At the start of the year it had an accrual of £400 and at 31 March 2021 had prepaid £250 of rent in respect of the year starting 1 April 2021. What is the charge to the income account for the year ended 31 March 2021?a)  £950b)  £1,600c)  £1,450d)  £1,750 11.Which of the following statements are true?An accounting Conceptual Framework:(i)Sets out who the users of the accounts are and how it is to be used(ii)Is not an obligatory piece of legislation(ii) Defines concepts such as going concern, relevance and materialitya) All of the above is trueb) Only (i) is truec) Only (ii) and (ii) is trued) (i) and (ii) is true

Accepted Answer

The questions are multiple choice questions. The accounting conceptual framework is a theory that…