Term
| These are the two primary qualities that make accounting information useful for decision making. |
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Definition
| Relevance and reliability |
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Term
| These are the ingredients needed to ensure that accounting information is relevant |
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Definition
| Feedback Value, Predictive Value, Timliness |
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Term
| These are the ingredients needed to ensure that accounting information is relevant. |
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Definition
| Neutrality, Representational faithfulness, Verifiability |
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Term
| This is the contraint that guides the threshold for recognition |
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Definition
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Term
| Of the various values that could be used for assets, this value has been selected because it is ojective and determinable. |
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Definition
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Term
| Revenue should be recognized when the earning process is complete and an exchange transaction has occurred. |
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Definition
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Term
| Unless there is evidence to the contrary, accountants assume that a business will remain in business for an indefinite amount of time |
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Definition
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Term
| The principle deals with when to recognize the expenses (efforts) that are associated with the recognized revenue (accomplishment) |
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Term
| Expensing a $20 waste basket in the period that it was acquired is an example of this principle. |
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Definition
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Term
| A firm using the same accounting principles from one period to the next is an example of this principle. |
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Definition
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Term
| This principle requires that accountants report all information that may influence the judgment of an informed user. |
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Definition
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Term
| Some companies report accounting information that does not conform to the generally accepted accounting principles. |
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Definition
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Term
| Financial statements are issued at lease once each year. |
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Definition
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Term
| All of the information reported on the financial statements is expressed in US dollars |
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Definition
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Term
| This results when two or more companies in the same industry use the same accounting principles |
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Definition
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Term
| The business for which financial statements are prepared is separate and distinct from its owners. |
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Definition
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Term
| Under the SEC's integrated disclosure system, which disclosure does not have to be reported in the 10-K if it is reported in the annual report? |
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Definition
| Management's discussion and analysis & Disclosure of domestic and foreign pretax income |
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Term
True or False
The primary financial statements in the annual report are general purpose |
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Definition
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Term
| creditors use financial accounting information to asses the amount, timing and uncertainty of future cash flows from what sources? |
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Definition
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Term
| Financial accounting information is useful for making decisions if it possesses which qualities? |
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Definition
| relevance and reliability |
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Term
| What characteristic makes financial accounting information relevant? |
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Definition
| Timeliness, predicctive value and feedback value |
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Term
| What characteristic makes financial accounting information reliable? |
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Definition
| Reliability, neutrality and repsentational faithfulness |
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