Question 5 1 Point that the future The Framework's recognition criteria provides that an asset is recognised in the balance sheet when it is economic benefits will flow to the entity and the asset has a cost or value that can be measured A probable; reliably B certain; accurately Possible; reliably D probable; accurately Question 6 1 Point Ms Maple is an accounting cadet for one of the big accounting firms. She is a bit confused as to which of the following sources should be referred to first in dealing with an accounting issue. A conceptual framework B accounting standards industry practice D auditing standards Question 7 1 Point Which of the following are considered in the AASB Framework as enhancing qualitative characteristics? A relevance, faithful representation, materiality and comparability B materiality, faithful representation, understandability and comparability C relevance, faithful representation, timeliness and understandability D verifiability, timeliness, understandability and comparability Question 8 1 Point The term 'bargain purchase option' is not used explicitly in AASB 16 but is described as: A the exercise price of a purchase option if the lessee is reasonably certain to exercise that option. the option to purchase the asset at a price that is expected to be sufficiently lower that the fair value at the date the B option becomes exercisable, for it to be reasonably certain at the inception of the lease, that the option will be exercised and being in place when the lessee is guaranteed to undertake the option at the end of the lease. C being in place when the lessee is guaranteed to undertake the option at the end of the lease. the option to purchase the leased asset for significantly less than its cost at the date the option becomes exercisable, for it to be reasonably certain at the inception of the lease, that the option will be exercised