Question
Which of the characteristics is not necessary in order for accounting information to provide faithful representation? a.conservative. b.free from error. c.complete. d.neutral. Consistency of information
Which of the characteristics is not necessary in order for accounting information to provide faithful representation?
a.conservative.
b.free from error.
c.complete.
d.neutral.
Consistency of information means that:
a.the information would influence a decision.
b.different companies use the same accounting principles.
c.the amounts involved are material.
d.a company uses the same accounting principles and methods from year to year.
Comparability of information results when:
a.the information would influence a decision.
b.different companies use the same accounting principles.
c.the amounts involved are material.
d.a company uses the same accounting principles and methods from year to year.
5.The periodicity assumption:
a.indicates that the company will continue in operation long enough to carry out its existing objectives.
b.requires that financial statements be prepared each month.
c.states that the life of a business can be divided into artificial time periods.
d.is an example of a constraint.
6. Current liabilities include:
a.obligations to be paid within the coming year.
b.accounts payable.
c.wages payable.
d.all of these answer choices are correct.
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