$1.$ What is a conceptual framework? Why is a conceptual framework necessary in financial accounting

$3$ What is meant by the term $$qualitative characteristics of accounting information

$5.$ How is materiality $($or immateriality$)$ related to the proper presentation of financial statements? What factors and measures should be considered in assessing the materiality of a misstatement in the presentation of a financial statement?

$7.$ According to the FASB conceptual framework, the objective of financial reporting for business enterprises is based on the needs of the users of financial statements. Explain the level of sophistication that the Board assumes about the users of financial statements.

$9.$ Why is it necessary to develop a definitional framework for the basic elements of accounting?

$11.$ Revenues, gains, and investments by owners are all increases in net assets. What are the distinctions among them?

$13.$ The life of a business is divided into specific time periods, usually a year, to measure results of operations for each such time period and to portray financial conditions at the end of each period.

a$.$ This practice is based on the accounting assumption that the life of the business consists of a series of time periods and that it is possible to measure accurately the results of operations for each period. Comment on the validity and necessity of this assumption.

b$.$ What has been the effect of this practice on accounting? What is its relation to the accrual system? What influence has it had on accounting entries and methodology?

$15.$ The chairman of the board of directors of the company for which you are chief accountant has told you that he has little use for accounting figures based on historical cost. He believes that replacement values are of far more significance to the board of directors than $$out$-$of$-$date costs.$$ Present some arguments to convince him that accounting data should still be based on historical cost.

$17.$ What is the fair value option? Explain how use of the fair value option reflects application of the fair value principle.

$19.$ Explain the revenue recognition principle.

$21.$ What are the five steps used to determine the proper time to recognize revenue?

$23.$ Mogilny Company paid $$135,000$ for a machine. The Accumulated Depreciation$$Equipment account has a balance of $$46,500$ at the present time. The company could sell the machine today for $$150,000.$ The company president believes that the company has a $$right to this gain.$$ What does the president mean by this statement? Do you agree?

$25.$ Statement of Financial Accounting Concepts No$.5$ identifies four characteristics that an item must have before it is recognized in the financial statements. What are these four characteristics?

$27.$ In January $2021,$ Janeway Inc. doubled the amount of its outstanding stock by selling on the market an additional $10,000$ shares to finance an expansion of the business. You propose that this information be shown by a footnote on the balance sheet as of December $31,2020.$ The president objects, claiming that this sale took place after December $31,2020,$ and therefore should not be shown. Explain your position.

$29.$ What are some of the costs of providing accounting information? What are some of the benefits of accounting information? Describe the cost$-$benefit factors that should be considered when new accounting standards are being proposed.