The conceptual framework project resulted in identifying two primary qualitative characteristics that accounting information should possess-relevance and reliability.

4. Assume the following facts regarding the construction of a bridge:

The revenue that should be recognized this period is:

a. \(\$ 3,000,000\).

b. \(\$ 4,500,000\).

c. \(\$ 5,000,000\).

d. \(\$ 6,500,000\).
5. Modifying conventions include all of the following except:

a. Periodicity.

b. Cost-benefit.

c. Materiality.

d. Conservatism.
6. Which of the following is not part of the conceptual framework project?

a. Objectives of financial reporting.

b. Quantitative characteristics.

c. Qualitative characteristics.

d. Basic elements of financial statements.

Transcribed Image Text:

Construction costs this period. Total estimated construction costs Total sales price $ 3,000,000 10,000,000 15,000,000