CIMA BA3 · Chapter 2 · Question 7 of 8
Which of the following is NOT one of the components of faithful representation described in the IASB Conceptual Framework?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Comparable
Explanation
A perfectly faithful representation would be complete, neutral and free from error. Comparability is a separate enhancing qualitative characteristic, not a component of faithful representation.
More Accounting concepts and qualitative characteristics MCQs
- Q1According to the IASB Conceptual Framework, what are the two fundamental qualitative characteristics of useful financial information?
- Q2Which of the following is NOT an enhancing qualitative characteristic in the IASB Conceptual Framework?
- Q3Financial statements are normally prepared on the assumption that the entity will continue in operation for the foreseeable future. Which…
- Q4Under the accruals basis of accounting, transactions are recognised:
- Q5Under the IASB Conceptual Framework, when is information considered material?