Question
List A List B _____ 1. Predictive value _____ 2. Relevance _____ 3. Timeliness _____ 4. Distribution to owners _____ 5. Confirmatory value _____ 6.
List A | List B |
_____ 1. Predictive value _____ 2. Relevance _____ 3. Timeliness _____ 4. Distribution to owners _____ 5. Confirmatory value _____ 6. Understandability _____ 7. Gain _____ 8. Faithful representation _____ 9. Comprehensive income _____ 10. Materiality _____ 11. Comparability _____ 12. Neutrality _____ 13. Recognition _____ 14. Consistency _____ 15. Cost effectiveness _____ 16. Verifiability | a. Decreases in equity resulting from transfers to owners. b. Requires consideration of the costs and value of information. c. Important for making interfirm comparisons. d. Applying the same accounting practices over time. e. Users understand the information in the context of the decision being made. f. Agreement between a measure and the phenomenon it purports to represent. g. Information is available prior to the decision. h. Pertinent to the decision at hand. i. Implies consensus among different measurers. j. Information confirms expectations. k. The change in equity from nonowner transactions. l. The process of admitting information into financial statements. m. The absence of bias. n. Results if an asset is sold for more than its book value. o. Information is useful in predicting the future. p. Concerns the relative size of an item and its effect on decisions. |
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