are correct. 2.4 IFRS prescribes___________. A. the use of IFRS in all companies B. the use of IFRS in limited companies C. the use of GAAP in companies with equity D. the use of bo

Question: QUESTION 2 CHOOSE THE MOST CORRECT ANSWER (20 MARKS) 2.1 Which of the following are the four enhancing qualitative characteristics of general-purpose financial statements___________. A. Verifiability, prudence, materiality, and consistency B. Verifiability, consistency, materiality and understandability C. Verifiability, consistency, neutrality and understandability D. Verifiability, comparability, neutrality and understandability E. Verifiability, comparability, timeliness and understandability 2.2 Departure from IFRS___________. A. is never allowed B. may be allowed if fair presentation would otherwise not be achieved C. shall be allowed if compliance will be so misleading that it conflicts with the objective of financial statements. D. is always allowed E. None of the above statements are correct. 2.3 The accrual basis of accounting means___________. A. recognising income and expenses in a way that achieves ‘matching’. B. recognising the elements when their definitions are met. C. recognising the elements when their definitions and recognition criteria are met. D. all of the above are correct E. none of the above