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NEW QUESTION 28
Which one of the following is a benefit of developing financial reporting standards using a conceptual framework?

• A. The interpretation of financial reporting standards by anybody would be easy.
• B. A financial reporting environment based on standardised principles would be created.
• C. The interpretation of non-financial information is made easier.
• D. The financial statements based on these standards would be error-free.

Answer: B

NEW QUESTION 29
What is the difference between positive and normative accounting theories?

• A. Normative accounting theory explains what should occur instead of predicting what is expected to occur.
• B. Positive accounting theory explains what should occur.
• C. Normative accounting theory predicts what is expected to occur rather than explaining what should occur.
• D. Normative accounting theory specifies the prediction rules for items.

Answer: A

NEW QUESTION 30
The chairperson of XYZ Company is concerned about the readability of the annual financial report that is about to be published on its website. XYZ Company is obliged to comply with International Financial Reporting Standards, and the report contains all of the required financial statements, the auditor's report, corporate governance statements, declarations of accounting policy, explanatory notes and a section that addresses the company's corporate social responsibility program.
The chairperson is wondering whether the report can be condensed. The issue that is concerning the chairperson is known as

• A. information overload.
• B. the agency costs of monitoring.
• C. the cost of compliance.
• D. the costs of social responsibility reporting.

Answer: A

NEW QUESTION 31
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