Identify if the following statements are correct or not. Statement 1: The Conceptual Framework is considered an accounting standard (PFRS) Statement 2: In case of conflict, the Conceptual Framework prevails over the requirements of PFRS Statement 3: The Conceptual Framework deals with the concepts used in the preparation but not in the presentation of the FS. a. True, True, True b. True, False, True c. False, True, False d. False, False, False 2. The Conceptual Framework is intended to establish a. the GAAP in financial reporting by business enterprises b. the objectives and concepts used in developing financial reporting standards c. the meaning of 'present fairly in accordance with "generally accepted accounting principles'' d. the hierarchy of sources of GAAP 3. Which is not a basic purpose of the 2018 Conceptual Framework of Accounting? a. to assist all parties to understand and interpret standards b. to assist the FRSC in developing PFRS c. to assist preparers of financial reports to develop accounting policies for transactions when no IFRS applies d. to assist the Professional Regulatory Board of Accountancy in promulgating rules and regulations affecting the practice of accountancy in the Philippines. 4. All of the following are not included in the scope of 2018 conceptual framework, except a. Generally Accepted Accounting Principles (GAAP) b. Quantitative Characteristics of Financial Information c. Recognition and Measurement of Elements of Financial Statements d. Objective of Financial Statements 5. According to the Conceptual Framework, the usefulness of providing information in financial statements is subject to the constraint of a. Consistency b. Cost-Benefit c. Faithful Representation d. Materiality 6. What is the authoritative status of the Framework? a. the Framework has the highest level of authority b. In the absence of a Standard or an Interpretation that specifically applies to a transaction, the Framework should be followed c. In the absence of a Standard or an Interpretation that specifically applies to a transaction, management should consider the applicability of the Framework in developing and applying an accounting policy that results in information that is relevant and faithfully represented. d. The Framework applies only when the FRSC develops new or revised standards 7. Which of the following is listed in the Framework as underlying assumption regarding financial statements? a. any changes of accounting policy are neutral b. financial statements are prepared under the accrual basis c. the entity can be viewed with indefinite life d. the financial statements are faithfully represented. 8. Proper application of accounting principles is most dependent upon the a. existence of specific guidelines b. professional judgment of the accountant c. external audit function d. oversight of regulatory bodies