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Flashcards in Ch 2 Wrong Answers Deck (10):
0

Imperative for providing comparisons of company from period to period, which qualitative characteristic?

Consistency (comparability)

1

Ignores the economic consequences of a standard or rule?

Neutrality

2

4 qualitative characteristics related to both relevance and faithful representation?

Verifiability
Timeliness
Understand ability
Comparability

3

Issuance of interim reports is an example of what enhancing quality of relevance?

Timeliness

4

Includes all changes in equity during period, except those resulting from investments by owner's and distributions to owners.
Name the element?

Comprehensive income

5

Allocates expenses to revenues in proper period.
Name the assumption, principle or constraint?

Expense recognition principle

6

Rationale why plant assets are not reported at liquidation value (do not use historical cost principle). Identify the accounting assumption, principle or constraint.

Going concern assumption

7

Intangible assets are capitalized and amortized over periods benefited. What is the assumption, principle or constraint?

Expense recognition principle

8

The use of consolidated statements is justified. What assumption, principle or constraint is this an example of?

Economic entity assumption

9

An allowance of doubtful accounts is established. What assumption, principle or constraint is this an example of?

Measurement principle (fair value)