Question 1: Accounting terminology - fill in the blanks

Fill in the blanks below with the accounting term(s) that best completes each sentence.

1. A soundly developed conceptual framework is a _____________ set of standards and rules. ____________ and ____________________ are the fundamental qualitative characteristics that make accounting information useful for decision-making.

2. Enhancing qualitative characteristics are __________, ___________, _____________ and _________________________.

3. Liabilities have three essential characteristics:

1. They represent a __________________, 2. the entity has a ______________________, and 3. ___________________________.

4. While consolidated financial statements are prepared from the perspective of the _______________, taxes are paid from the perspective of the _______________.

5. Collectability is one of the three conditions of the revenue recognition principle. Assuming the other two conditions are met, revenue should only be recognized if collectability is ______________________.

6. The __________________ stipulates that anything that is relevant to decisions should be included in the financial statements.

7. A companys Management Discussion and Analysis (MD&A) is an example of ____________________________.

8. A _______________- based approach, as used in Canadian GAAP and IFRS, is sometimes criticized for being too ______________.

9. Under the _____________ principle, ___________ incurred during a particular period are matched with ___________ earned during that same period.

10. The ____________________ is based on the assumption that a business enterprise will continue to operate for the foreseeable future.

11. One of the assumptions of the ____________________ is valuation at a particular point in time.

12. ______________ is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

13. Standard setters have given companies the option to use _________________ instead of historical costs.