Financial Reporting and Analysis: Using Financial Accounting Information 13th test bank

 
   21.   Relevance and reliability are two primary qualities that make accounting information useful for decision making.
 
ANS:  T                    PTS:   1                    DIF:    Difficulty: Easy        
NAT:  BUSPROG: Communication           
STA:   AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP:   Development of Generally Accepted Accounting Principles (GAAP) in the United States
KEY:  Bloom's: Knowledge                        NOT:  Time: 1 min.            
 
   22.   Predictive value, feedback value, and timeliness are ingredients needed to ensure that the information is reliable.
 
ANS:  F                    PTS:   1                    DIF:    Difficulty: Moderate 
NAT:  BUSPROG: Communication           
STA:   AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP:   Development of Generally Accepted Accounting Principles (GAAP) in the United States
KEY:  Bloom's: Knowledge                        NOT:  Time: 1 min.            
 
   23.   Decision usefulness is a pervasive constraint imposed upon financial accounting information.
 
ANS:  F                    PTS:   1                    DIF:    Difficulty: Easy        
NAT:  BUSPROG: Communication           
STA:   AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP:   Development of Generally Accepted Accounting Principles (GAAP) in the United States
KEY:  Bloom's: Knowledge                        NOT:  Time: 1 min.            
 
   24.   Relevance is a quality requiring that the information be timely and that it also have predictive value or feedback value or both.
 
ANS:  T                    PTS:   1                    DIF:    Difficulty: Easy        
NAT:  BUSPROG: Communication           
STA:   AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP:   Development of Generally Accepted Accounting Principles (GAAP) in the United States
KEY:  Bloom's: Knowledge                        NOT:  Time: 1 min.            
 
   25.   The SEC has the authority to determine generally accepted accounting principles and to regulate the accounting profession.
 
ANS:  T                    PTS:   1                    DIF:    Difficulty: Easy        
NAT:  BUSPROG: Communication