According to the IASB Conceptual Framework, income is an increase in economic benefits in the form of I)inflows.
II)decreases of liabilities.
III)enhancements of assets.
IV)contributions from equity holders.

• A.I, II and III only
• B.II, III and IV only
• C.I, III and IV only
• D.I, II and IV only

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An agent is answerable under the contract to the agent's principal and must account for the resources of the agent's principal and the money the agent has gained working on the principal's behalf. In the context of agency, this definition describes an agent's

• A.accountability.
• B.contract.
• C.fiduciary duty.
• D.relationship.

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Which one of the following is not a principal motivation for creative accounting?

• A.public good
• B.personal incentives
• C.benefits from shares and share options
• D.bonus-related pay

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To be relevant, financial information has to
I)be provided in a timely manner.
II)comply with the going concern assumption.
III)have predictive and/or confirmatory value.
IV)exclude computations that are difficult to understand.

• A.I and II only
• B.II and III only
• C.III and IV only
• D.I and III only

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Financial markets have achieved operational efficiency when

• A.the cost of transactions is a reflection of the actual cost incurred.
• B.the costs of financial transactions are kept as low as possible.
• C.past records are used to predict the future prices of goods.
• D.the price of stocks and shares are available accurately and quickly.

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