Conceptual Framework

Please help this is a review during quarantine for battery exam:

1. According to the FRSC conceptual framework, which of the following elements describes transactions or events that affect a company during a period of time? A. Assets B. Expenses C. Equity D. Liabilities 2. When fair value is used in measuring assets in the financial statements, current GAAP provides following references as basis of fair value, except A. Price in active market B. Price in recent transaction C. Price taken from industry or sector benchmarks D. Price based on assessed value of government bodies 3. Which underlying assumption is indicated in the Conceptual Framework for Financial Reporting? A. Accounting entity B. Accrual basis C. Going concern D. Monetary unit 4. What is a basic underlying assumption? A. The financial statements are complete, neutral and free from error. B. The financial statements have predictable value and confirmatory value. C. The financial statements are comparable, understandable, verifiable and timely. D. The financial statements are normally prepared on the basis that the entity will continue in operation for the foreseeable future. 5. If management intends to liquidate the entity's operations, financial statements are prepared on the basis of A. historical cost B. expected liquidation value C. financial statements do not have to be prepared D. historical cost with a note that the entity is about to liquidate 6. Which statement is correct concerning the concepts of capital? 1. Under a financial capital concept, a profit is earned only if the financial amount of the net assets at the end of the period exceeds the financial amount of the net assets at the beginning of the period, after excluding any distributions to and contributions from owners during the period. II. Under a physical capital concept, a profit is earned only if the physical productive capacity at the end of the period exceeds the physical productive capacity at the beginning of the period, after excluding distributions to and contributions from owners during the period. A. Both I and II B. Neither I nor 11 C. I only D. Il only