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1. Which of the following statements about the primary purpose of financial reporting is the most correct?
   1. Provides information that can help with decision making.
   2. The individual needs of users can be satisfied by tailoring of financial reports.
   3. Enables accountability since managers would have to account for resources used.
   4. Identifies a range of existing and potential users dependant on financial statements to make decisions.
2. Which of the following would not be an example of a user who may rely on general purpose financial reports?
   1. Henry who is given $5 000 on his 18th birthday by his grandfather to invest in the share market.
   2. Singh who manufactures sugar free muesli bars hopes to secure long term sales contracts with school canteens all over the county.
   3. Milly who runs a successful organic food caf is keen to expand into the food truck industry by obtaining finance via crowd-funding.
   4. Van who owns a fishing and camping store is keen to expand his product range by approaching his suppliers to ask about increasing his credit limit.
3. Which of the following is not a role of The Conceptual Framework (The Framework)?
   1. It is the foundation that standard-setters use when developing accounting standards.
   2. It enables the external auditors to evaluate compliance with IFRS and then form an opinion.
   3. It enables consistency when the existing accounting standards do not provide guidance on a particular issue.
   4. It is an alternative to the detailed accounting standards as it is much easier to understand by users of financial statements.
4. Which of the following is not an objective of The Conceptual Framework?
   1. Addresses the common needs of users of financial reports.
   2. 1. Enables consistency of qualitative characteristics in financial reports.
      2. Enables implementation of one universal set of accounting standards.
      3. Provides guidance for transactions not addressed in existing accounting standards.

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