Acca financial Accounting (FA) Study Text ac ca (FA)

Which concept is applied when a business records the cost of a non-

current asset even though it does not legally own it?

 

A substance 

over 

form 

B prudence 

C accruals 

D going 

concern 

 

 

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Chapter 23 

KAPLAN PUBLISHING

 

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The Framework identifies several qualitative characteristics that make 

financial information useful. 

Which one of the following only contains qualitative characteristics 

of useful information contained in the Framework? 

A 

prudence, consistency, understandability, faithful representation, 

substance over form 

B 

accruals basis, going concern concept, consistency, prudence, true 

and fair view 

C 

faithful representation, neutrality, substance over form, 

completeness, consistency, faithful and free from material error 

D 

relevance, faithful representation, timeliness, comparability, 

verifiability 

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