- PART-A
- Brief Questions
- 7th Part
(a)Relevance, (b)Timely, (c)Usefulness/Comparability, (d)Reliability, (e)Neutral,
Ans: (a)Predictive value, (b)Feedback value, (c)Consistency, (d)Verifiable, (e)Faithful.
46.Given the qualitative characteristics of accounting established by the FASB's conceptual framework , complete each of the following statements .
(a)_____________ is the quality of information that gives assurance that it is free of error and bias; it can depended on
(b)_____________ means using the same accounting principles and method from year to year within a company.
(c)For information to be ________, it should have predictive or feedback value and it must be presented on a timely basis.
Ans: (a)Reliability, (b)Consistency, (c)relevant.
47.Presented below is a set of qualitative characteristics of accounting information:
1.Predictive value 2.Neutral.
3.Verifiable 4.Timely.
(a)_______________ Accounting information should help users make predications about the outcome of future events.
(b)_______________Accounting information be selected,or presented to favor one set of interested users over another
(c)_______________Accounting information must be proved to be free or error and bias.
(d)_______________Accounting information must be available to decision makers before it loses its capacity to influence their decisions.
Ans:(a)1 (b)2 (c)3 (d)4.
48.Presented below are four concepts discussed in this chapter
1.Time period assumption.
2.Cost Principle.
3.Full disclosure principle
4.Conservatism.
Match these concepts to the following accounting practices.Each number can be used only once
(a)__________Recording inventory at its purchase price
(b)__________ Using notes and supplementary schedules in the financial statements.
(c)__________ Preparing financial statements on an annual basis.
(d)__________Using the lower of cost or market method for inventory valuation.
Ans: (a)1. (b)2. (c)3. (d)4.
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