$1.$Under the Conceptual Framework, the qualitative characteristic that enables the users to compare the financial statements of an enterprise through time to identify trends in its financial position and performance is:A$.$Verifiability B$.$Comparability C$.$Completeness D$.$Understandability $2.$Which of the following is not a valid statement relating to the accrual basis of accounting? A$.$Revenues are recorded in the period that they are earned rather than in the period in which cash is collected. B$.$Expenses are recorded in the period that they are incurred rather than in the period in which cash is paid. C$.$Accrual basis results to more complete financial information compared to the cash basis. D$.$Accrual basis emphasizes the timing of cash receipts and cash disbursements in the recognition of income and expenses. $3.$The objective of general$-$purpose financial reporting as described in the Conceptual Framework is to: A$.$provide information to regulators. B$.$support the entity's tax return. C$.$meet the information needs of an entity's stakeholders. D$.$ provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions relating to providing resources to the entity. $4.$ Consolidated financial statements provide information about the assets, liabilities, equity, income and expenses of both the parent and its subsidiaries as: A$.$Separate reporting entities B$.$A partnership C$.$A single reporting entity D$.$A legal entity $5.$ The basic assumption which is the best basis for the classification of assets and liabilities as current and non$-$current is the: A$.$accounting period B$.$going concern C$.$judgment D$.$materiality $6.$ Under the accrual basis of accounting, the effects of transactions and other events are: A$.$recorded in the accounting records when they occur but reported in the financial statements when cash is received or paid. B$.$recorded in the accounting records when cash is received or paid but reported in the financial statements when they occur. C$.$recorded in the accounting records and reported in the financial statements when cash is paid or received. D$.$recorded in the accounting records and reported in the financial statements when they occur. $7.$The process of determining the monetary amounts at which the elements of the financial statements are to be recognized and carried in the financial statements is known as: A$.$Measurement B$.$Recognition C$.$Presentation D$.$Maintenance $8.$The users of financial statements who are interested in the information that enables them to determine whether their loans and interest will be paid when due. A$.$Suppliers B$.$Investors C$.$Lenders D$.$Trade creditors $9.$ Information about enterprise earnings and its components measured under accrual basis provides a better measure of an enterprise$$s performance than information about cash receipts and payments because: A$.$accrual basis recognizes that events affecting enterprise operations during a period often do not coincide with cash receipts and payments. B$.$accrual basis relates accomplishments and efforts in measuring and reporting enterprise's earnings and its components. C$.$accrual basis provides estimates of future earnings. D$.$cash receipts and cash payments information cannot adequately indicate whether or not an enterprise's performance is successful. $10.$What is the underlying concept that supports the immediate recognition of a loss? A$.$Matching B$.$Substance over form C$.$Prudence D$.$Consistency