question 21-23

QUESTION 21 Which of the following is not a constraint on the financial statements according to the Conceptual Framework (2010? O a. Benefit versus cost O b. Understandability O c. Balancing of qualitative characteristics QUESTION 22 What is the accrual basis of accounting? O a. Recognition of revenue when it is received in cash b. Recognition of revenue in the accounting period when the sale is made rather than when cash is received. O c. Matching expenses with revenue in the appropriate accounting period. Od. Both (b) and (c) QUESTION 23 Which information is hard to find or missing from the financial statements? O a. Total long-term debt b. Net Income. O Five-year summary of selected financial data, Od Reputation of the firm with its customers