MCQs Answer all questions (10 x 1 marks = 10 marks) 1. Decision makers vary widely in the types of decisions they make, the methods of decision making they employ, the information they already possess or can obtain from other sources, and their ability to process information. Consequently, for information to be useful there must be a linkage between these users and the decisions they make. This link is: a. relevance. b. reliability c. understandability. d. materiality. 2. Which of the following is not a major challenge facing the accounting profession: a. Nonfinancial measurements b. Accounting for hard assets. c. Timeliness. d. Forward-looking information. 3. The underlying theme of the conceptual framework is: a. decision usefulness. b. understandability. c. reliability. d. comparability. 4. The two primary qualities that make accounting information useful for decision making are: a. comparability and consistency. b. materiality and timeliness. c. relevance and reliability. d. reliability and comparability. 5. Information is neutral if it: a. provides benefits which are at least equal to the costs of its preparation. b. can be compared with similar information about an enterprise at other points in time. c. would have no impact on a decision maker. d. is free from bias toward a predetermined result