Current cost accounting reflects an approach to capital maintenance based on maintaining which one of the following?

• A.financial capability of the business
• B.cost of assets in the business
• C.operating capability of the business
• D.profitability of the business

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In applying accounting standards, an entity develops accounting policies that ensure that the financial statements present

• A.understandable and clear financial information to all interested shareholders.
• B.comparable and accurate financial information to all shareholders.
• C.relevant and reliable financial information.
• D.relevant and correct financial information to all interested shareholders.

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In the context of a regulatory framework, a principles-based system

• A.attempts to cover specific eventualities.
• B.removes any element of judgement by providing clear requirements.
• C.is a rule-driven approach.
• D.provides a theoretical basis with broad terms of reference.

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Financial managers will benefit in a strongly efficient market by

• A.having their shareholders invest more money into expanding the company's operations.
• B.being able to decide what information needs to be made available to shareholders.
• C.having their shareholders be tolerant of low profits if higher profits are expected in the future.
• D.being able to take more risks without shareholders' consent.

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Which one of the following is an objective of the International Federation of Accountants (IFAC)?

• A.to issue new international financial reporting standards (IFRS)
• B.to establish high quality professional standards in accountancy
• C.to provide direction to the Financial Accounting Standards Board (FASB)
• D.to provide advice on accounting standards to the OECD

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