qualitative characteristics and accounting assumptions

Question 1

qc- comparability

Answer 1

enables users to identify and understand similarities and differences among the items in other financial reports

Question 2

qc- verifiability

Answer 2

helps to assure stakeholders that the information presented in reports faithfully represents what it claims.

Question 3

qc- timeliness

Answer 3

requires information represented in a financial report to be be made available to decisions makers in a timely fashion so that it can influence there decision

Question 4

qc- faithful representation

Answer 4

assure the stakeholder that the information presented in financial reports is complete, without bias, free from material error

Question 5

qc- understandability

Answer 5

requires relevant and faithfully financial information to be easily comprehensible to stakeholders with resonable knowledge of business and economic activities

Question 6

qc- relevance

Answer 6

requires financial information to have the capability to make a difference in the decisions made by stakeholders. if it holds value to there decisions then it should be included and visa versa

Question 7

a-period

Answer 7

the devision of a business life into equal time periods to determine the businesses performance through comparing.

Question 8

a- accural basis

Answer 8

reports the periods profit by subtracting expenses from revenue from the certain period

Question 9

a- going concern

Answer 9

reports based on the assumption that the existing business will continue to operate in the future

Question 10

a- entity

Answer 10

the records of assets, liabilities and business activities of the activities of the entity are kept seperate from the owners entity.