The two primary qualities that make accounting information useful for decision making are:

a.

comparability and consistency.

b.

relevance and reliability.

c.

materiality and timeliness.

d.

reliability and comparability.

The economic activities of United corporation are divided into 6-month periods for the purpose of issuing semi-annual reports. The basic assumption of accounting that best described is:

a.

Periodicity

b.

Monetary unit

c.

Economic entity

d.

Going concern

Tala was involved in litigation over the last year. This litigation is disclosed in the financial statements. What accounting assumption, principle, or constraint would Tala use in this situation:

a.

Periodicity assumption

b.

Historical cost

c.

Full disclosure

d.

Expense recognition