CA Intermediate Paper 1

Framework for Preparation of Financial Statements MCQ

Chapter 2 • 5 Questions from ICAI Study Material

Questions

5

Est. Time

8 min

Source

ICAI Book

Sample Questions: Framework for Preparation of Financial Statements

Preview 3 of 5 questions from Chapter 2

1. The 'going concern' concept assumes that

A) The business can continue in operational existence for the foreseeable future. ✓
B) The business cannot continue in operational existence for the foreseeable future.
C) The business is continuing to be profitable.
D) The business cannot continue if it is not able to earn profits.

2. Two principal qualitative characteristics of financial statements are

A) Understandability and materiality FRAMEWORK
B) Relevance and reliability ✓
C) Relevance and materiality
D) Comparability and materiality.

3. All of the following are components of financial statements except

A) Balance sheet
B) Statement of Profit and loss
C) Human responsibility report ✓
D) Social responsibility report.