Page 169 - CAPE Financial Services Syllabus Macmillan_Neat

-8-

(A) financing and investing activities
(B) economic resources and obligations
(C) product lines
(D) cash flows.

33. The two primary decision-specific qualities that make accounting information useful are

(A) verifiability and representational faithfulness
(B) cost effectiveness and materiality
(C) predictive value and feedback
(D) relevance and reliability

34. Relevance requires that information possess which of the following qualities?

(A) Reliable, predictive, comparable
(B) Comparable, predictive, neutral
(C) Predictive, feedback, timely
(D) Neutral, feedback, reliable

35. The qualitative characteristic that means there is agreement between a measure and a
real-world phenomenon is

(A) Neutral
(B) Materiality
(C) Verifiability
(D) Representational faithfulness

36. Which of the following is considered a practical constraint on the qualitative
characteristics?

(A) Timeliness
(B) Verifiability
(C) Conservatism
(D) Cost effectiveness

37. The underlying assumption that presumes a company will continue indefinitely is referred
to as
(A) periodicity
(B) monetary unit
(C) going concern
(D) economic entity

38. In general, revenue is recognized when the earnings process is virtually complete and

02269010/SPEC2016

GO ON TO THE NEXT PAGE