7. Which of the following is a fundamental quality of useful accounting information?3/1 A) Conservatism B)...

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7. Which of the following is a fundamental quality of useful accounting information?3/1 A) Conservatism B) Comparability C) Faithful representation D) Consistency 8. A decrease in net assets arising from peripheral or incidental transactions is called a(n) A) capital expenditure. B) cost. C) loss. D) expense. 9. Which of the following is not a basic element of financial statements? A) Assets B) Balance sheet C) Losses D) Revenue 10. Which of the following basic elements of financial statements is more associated with the balance sheet than the income statement? A) Equity B) Revenue C) Gains D) Expenses 11. Which basic assumption may not be followed when a firm in bankruptcy reports financial results? A) Economic entity assumption B) Going concern assumption C) Periodicity assumption D) Monetary unit assumption 12. Under current GAAP, inflation is ignored in accounting due to the A) economic entity assumption. B) going concern assumption. C) monetary unit assumption. D) periodicity assumption. 13. Revenue generally should be recognized A) at the end of production. B) at the time of cash collection. C) when realized. D) when the performance obligation is satisfied. 14. The measurement principle includes the A) fair value principle only. B) historical cost principle only. C) revenue recognition principle and expense recognition principle. D) historical cost principle and the fair value principle. 7. Which of the following is a fundamental quality of useful accounting information?3/1 A) Conservatism B) Comparability C) Faithful representation D) Consistency 8. A decrease in net assets arising from peripheral or incidental transactions is called a(n) A) capital expenditure. B) cost. C) loss. D) expense. 9. Which of the following is not a basic element of financial statements? A) Assets B) Balance sheet C) Losses D) Revenue 10. Which of the following basic elements of financial statements is more associated with the balance sheet than the income statement? A) Equity B) Revenue C) Gains D) Expenses 11. Which basic assumption may not be followed when a firm in bankruptcy reports financial results? A) Economic entity assumption B) Going concern assumption C) Periodicity assumption D) Monetary unit assumption 12. Under current GAAP, inflation is ignored in accounting due to the A) economic entity assumption. B) going concern assumption. C) monetary unit assumption. D) periodicity assumption. 13. Revenue generally should be recognized A) at the end of production. B) at the time of cash collection. C) when realized. D) when the performance obligation is satisfied. 14. The measurement principle includes the A) fair value principle only. B) historical cost principle only. C) revenue recognition principle and expense recognition principle. D) historical cost principle and the fair value principle.