5. Timeliness Information confirms expectations. 4
References
Essay Learning Objective: 01-06
Explain the purpose of the
conceptual framework.
Learning Objective: 01-08 Describe the four basic assumptions
underlying GAAP.
Difficulty: 2 Medium Learning Objective: 01-07
Identify the objective and
qualitative characteristics of
financial reporting information
and the elements of financial
statements.
131.
Award: 10.00 points
Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct number code
for the term.
TERM PHRASE
Term number that matches the
phrase.
1. Gain Along with relevance, a fundamental decision-specific quality. ____
2. Materiality Results if an asset is sold for more than book value. ____
3. Completeness Contains all information necessary for faithful representation. ____
4. Comprehensive income The change in equity from nonowner transactions. ____
5. Faithful representation Concerns the decision-making impact of both the amount and nature of an item. ____
TERM PHRASE
Term number that matches the
phrase.
1. Gain Along with relevance, a fundamental decision-specific quality. 5
2. Materiality Results if an asset is sold for more than book value. 1
3. Completeness Contains all information necessary for faithful representation. 3
4. Comprehensive income The change in equity from nonowner transactions. 4
5. Faithful representation Concerns the decision-making impact of both the amount and nature of an item. 2
References
Essay Learning Objective: 01-06
Explain the purpose of the
conceptual framework.
Difficulty: 2 Medium Learning Objective: 01-07
Identify the objective and
qualitative characteristics of
financial reporting information
and the elements of financial
statements.
132.
Award: 10.00 points
Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct number code
for the term.
TERM PHRASE
Term number that matches the
phrase.
1. Neutrality Important in analysis between firms. ____
2. Comparability Accounting information should be unbiased. ____
3. Consistency The decision to include an amount in the financial statements. ____
4. Cost-effectiveness Applying the same accounting practices over time. ____
5. Recognition Considers the value of using information relative to cost of providing it. ____
TERM PHRASE
Term number that matches the
phrase.
1. Neutrality Important in analysis between firms. 2
2. Comparability Accounting information should be unbiased. 1
3. Consistency The decision to include an amount in the financial statements. 5
4. Cost-effectiveness Applying the same accounting practices over time. 3
5. Recognition Considers the value of using information relative to cost of providing it. 4
References
Essay Learning Objective: 01-06
Explain the purpose of the
conceptual framework.
Learning Objective: 01-09 Describe the recognition,
measurement, and disclosure concepts that guide accounting
practice.
Difficulty: 2 Medium Learning Objective: 01-07
Identify the objective and
qualitative characteristics of
financial reporting information
and the elements of financial
statements.
133.
Award: 10.00 points
Listed below are five terms are followed by a list of phrases that describe or characterize five of the terms. Match each phrase with the correct number
code for the term.
TERM PHRASE
Term number that matches the
phrase.
1. Monetary unit assumption Implies consensus among different observers. ____
2. Verifiability Assumes all transactions can be identified with a particular entity. ____
3. Economic entity assumption Assumes an entity will continue to operate indefinitely. ____
4. Going concern assumption Requires reporting the financial life of an entity in discrete time frames. ____
5. Periodicity assumption Ignores the possibility of inflation. ____
TERM PHRASE
Term number that matches the
phrase.
1. Monetary unit assumption Implies consensus among different observers. 2
2. Verifiability Assumes all transactions can be identified with a particular entity. 3
3. Economic entity assumption Assumes an entity will continue to operate indefinitely. 4
4. Going concern assumption Requires reporting the financial life of an entity in discrete time frames. 5
5. Periodicity assumption Ignores the possibility of inflation. 1
References
Essay Learning Objective: 01-07
Identify the objective and
qualitative characteristics of
financial reporting information