Free CPA Australia Financial-Accounting-and-Reporting Exam Questions

Which one of the following statements regarding the IASB's Conceptual Framework for Financial Reporting is correct?

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

Which of the following statements are correct in the context of accounting concepts and principles? I)The going concern assumption requires that assets be carried at their cost values.II)Prudence allows the creation of contingency reserves and more generous provisions.III)Financial information is considered complete even if it excludes non-material information.IV)Understandability does not require complex information to be excluded from financial reports. 

A company purchased a machine 10 years ago for $143 890. It is expected that the machine will generate future revenues of $108 495. The machine could be scrapped for $81 232. An equivalent machine in the same condition would cost $94 950 to buy now. What is the deprival value of the asset? 

Liquidity of a company is based on its ability to