Question 13 Accounting information is neutral if it is free from bias. the amount of assets equals the amount of liabilities. the trial balance balances. all of the information is present to show the economic reality of the transaction. Question 14 The information provided in the notes that accompany financial statements is required because of the O cost principle. O full disclosure principle. O matching principle. O revenue recognition principle. CES Question 15 Information is understandable when it is understood by users O who have a reasonable understanding of financial reporting. O who have a reasonable knowledge of business and economic activities. O because the information provided is classified, and presented clearly and concisely. O all of the above. Question 16 Retailers who sell a product with a warranty period can recognize revenue when the warranty period has expired. o at the point of sale if the warranty amount can be estimated. o when cash is collected. when the exact cost of the items sold is known. Question 17 One criterion for recognition of revenue is to recognize revenue when cash is collected. o collection is not assured. O the seller does not have control over the goods. all sales returns have been returned. Question 18 At the time of acquisition, long-lived assets are recorded at o amortized cost. lower of cost and market. at fair market value. at cost. Question 19 The cost constraint O means that assets and revenues should be estimated at the lower end of their range. means that assets and revenues should be estimated at the higher end of their range. O means the value of the information is not less than the cost to produce the information O means the information would influence the decisions of a user of the financial information. By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Question 20 Financial statements are prepared for an economic business unit that is separate and distinct from its owners. This is referred to as the going concern assumption. O the objective of financial reporting, O a cost constraint O the economic entity concept