5. Which IFRS principle emphasizes caution when there is uncertainty about the realization or measurement of assets or income?
a) Fair Presentation
b) Prudence
c) Going Concern
d) Substance over Form

6. What is the basis for recording transactions and events in financial statements under the accrual basis principle?
a) When the cash is received or paid
b) When they occur
c) Only at the end of the financial year
d) As per the legal form of the transaction

7. Which of the following is a key characteristic of IFRS for SMEs?
a) High level of complexity.
b) Exclusively for large corporations
c) Streamlined and tailored for smaller businesses
d) Applicable only in the United States

Question

5. Which IFRS principle emphasizes caution when there is uncertainty about the realization or measurement of assets or income? 
a) Fair Presentation 
b) Prudence 
c) Going Concern 
d) Substance over Form 
 
6. What is the basis for recording transactions and events in financial statements under the accrual basis principle? 
a) When the cash is received or paid 
b) When they occur 
c) Only at the end of the financial year 
d) As per the legal form of the transaction 
 
7. Which of the following is a key characteristic of IFRS for SMEs? 
a) High level of complexity. 
b) Exclusively for large corporations 
c) Streamlined and tailored for smaller businesses 
d) Applicable only in the United States

GinnyAnswer · Answer

The IFRS principles prioritize caution through the Principle of Prudence, the accrual basis records transactions when they occur, and IFRS for SMEs is tailored specifically for smaller businesses. These principles guide accurate financial reporting. Understanding these aspects is crucial for proper financial management. ;

Answered by GinnyAnswer | 2025-07-05

Answer (1)

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