MULTIPLE CHOICE. Choose the best answer among the following choices.6. The financial statements should be stated in terms of a common financial denominator.A. AccrualB. Going ConcernC. Time PeriodD. Stable Monetary Unit7. The principle of objectivity includes the concept ofA. SummarizationB. VerifiabilityC. ClassificationD. Conservatism8. The financial accounting information is directed toward the common needs of users and isindependent of presumptions about particular needs and desires of specific users.A. CompletenessB. VerifiabilityC. RelevanceD. Neutrality9. The attribute of relevance include ALL EXCEPT:A. Predictive valueB. Feedback valueC. MaterialityD. Neutrality10. The assumption that an entity will continue to operate for the foreseeable future is calledA. Accrual basisB. ComparabilityC. Going concernD. Cash basis

Answered: 6. The financial statements should be…

6. The financial statements should be stated in terms of a common financial denominator. A. Accrual B. Going Concern C. Time Period D. Stable Monetary Unit

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter2: Financial Reporting: Its Conceptual Framework

Section: Chapter Questions

Problem 7C

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Question

MULTIPLE CHOICE. Choose the best answer among the following choices.
6. The financial statements should be stated in terms of a common financial denominator.
A. Accrual
B. Going Concern
C. Time Period
D. Stable Monetary Unit
7. The principle of objectivity includes the concept of
A. Summarization
B. Verifiability
C. Classification
D. Conservatism
8. The financial accounting information is directed toward the common needs of users and is
independent of presumptions about particular needs and desires of specific users.
A. Completeness
B. Verifiability
C. Relevance
D. Neutrality
9. The attribute of relevance include ALL EXCEPT:
A. Predictive value
B. Feedback value
C. Materiality
D. Neutrality
10. The assumption that an entity will continue to operate for the foreseeable future is called
A. Accrual basis
B. Comparability
C. Going concern
D. Cash basis

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