Correct Answer:
B. Relevance and faithful representation
The IFRS Conceptual Framework identifies relevance and faithful representation as fundamental; the others are enhancing.
November 13, 2026 · Accounting and Finance MCQs, Financial Accounting MCQs
The fundamental qualitative characteristics of useful financial information are:
Related MCQs
A mixed (semi-variable) cost is a cost that:
A.
Contains both fixed and variable components
B.
Is completely fixed
C.
Is completely variable
D.
Is never related to activity
Correct answer is:
A. Contains both fixed and variable components
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A transfer price is:
A.
The price charged to external customers
B.
The price of raw materials from suppliers only
C.
The price at which goods or services are transferred between divisions of the same organization
D.
A government-regulated price
Correct answer is:
C. The price at which goods or services are transferred between divisions of the same organization
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The normal balance of a revenue account is:
A.
Debit
B.
Zero
C.
Depends on the auditor
D.
Credit
Correct answer is:
D. Credit
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Financial independence of a Supreme Audit Institution means that:
A.
It has adequate resources and control over its budget to perform its mandate
B.
It is financed by the audited entities
C.
It has no budget
D.
It depends on ministers for funds each month
Correct answer is:
A. It has adequate resources and control over its budget to perform its mandate
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The management assertion of completeness means that:
A.
All recorded transactions actually occurred
B.
All transactions and balances that should have been recorded have been recorded
C.
All assets are owned by the entity
D.
All items are stated at fair value
Correct answer is:
B. All transactions and balances that should have been recorded have been recorded
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Treasury bills (T-bills) are:
A.
Long-term bonds with 30-year maturity
B.
Short-term government securities issued at a discount
C.
Shares of public companies
D.
Foreign exchange reserves
Correct answer is:
B. Short-term government securities issued at a discount
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