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NEW QUESTION 35 Which one of the following countries has the view that Generally Accepted Accounting Principles (GAAP) refers to accounting practices which are regarded as permissible by the accounting profession?

• A. United Kingdom
• B. Canada
• C. United States of America
• D. Australia

Answer: A   NEW QUESTION 36 Historical cost accounting provides financial information that is

• A. relevant but may not be reliable for decision making.
• B. relevant and reliable for decision making.
• C. relevant for decision making.
• D. reliable but may not be relevant for decision making.

Answer: D   NEW QUESTION 37 According to the IASB's Conceptual Framework, the key reason general purpose financial statements are produced is to satisfy the information needs of

• A. management.
• B. employees.
• C. internal users.
• D. capital providers.

Answer: D   NEW QUESTION 38 In individual countries, Generally Accepted Accounting Principles (GAAP) is primarily a combination of

• A. national company law and local stock exchange requirements.
• B. company law, accounting standards, local stock exchange requirements and international accounting standards.
• C. national company law, national accounting standards and local stock exchange requirements.
• D. national company law and national accounting standards.

Answer: C   NEW QUESTION 39 Which of the following statements are correct in the context of accounting concepts and principles? I)The going concern assumption requires that assets be carried at their cost values. II)Prudence allows the creation of contingency reserves and more generous provisions. III)Financial information is considered complete even if it excludes non-material information. IV)Understandability does not require complex information to be excluded from financial reports.

• A. III and IV only
• B. I and III only
• C. II and III only
• D. II and IV only

Answer: A   NEW QUESTION 40 ......