1)A conceptual framework establishes the concepts that provide guidance on
| | identifying the boundaries of financial reporting. |
| | all of these answer choices are correct. |
| | selecting the transactions, other events, and circumstances to be represented, |
| | how transactions, events and circumstances should be recognized and measured. |
5)The objective of general-purpose financial reporting in the conceptual framework is
9)Enhancing qualities of accounting information include all of the followingexcept:
12)An increase in equity (net assets) arising from peripheral or incidental transactions is called a(n)
15)Depreciation and amortization policies are justifiable and appropriate only if we assume some permanence to the company because of the:
| | going concern assumption. |
| | monetary unit assumption. |
| | economic entity assumption. |
17)Generally, revenues are recognized when the:
| | performance obligation is satisfied. |
| | All of these answer choices are correct. |
28)All of the following are ingredients of relevanceexcept:
33)Preparation of merged financial statements when a parent-subsidiary relationship exists does not violate the
| | comparability characteristic. |
| | neutrality characteristic. |
| | economic entity assumption. |
| | relevance characteristic. |
39)In 2010, the FASB and IASB agreed on
| | a common set of elements for financial statements. |
| | the constraints of financial reporting. |
| | all of these answer choices are correct. |
| | the objective of financial reporting and a common set of desired qualitative characteristics. |
8)Enhancing qualities of accounting information include:
| | comparability and verifiability. |
| | relevance and faithful representation. |
| | comparability and materiality. |
| | relevance and consistency. |
