6.Which qualitative characteristic is an ingredient of relevance?a. Verifiabilityb. Timelinesse. Neutralityd. representational faithfulness7.Which of the following qualitative characteristics may have to be sacrificed in order to achievetimeliness?a. Relevanceb. Reliabilityc. Comparabilityd. predictive valueWhich of the following are considered secondary characteristics of accounting information?a. verifiability and feedback valueb. predictive value and timelinessc. comparability and consistencyd. representational faithfulness and neutrality8.The four major financial statements of a corporation consist of thea. income statement, balance sheet, statement of cash flows and statement of changes instockholders' equityb. balance sheet, statement of cash flows, statement of retained eamings, and income9.statementc. income statement, statement of cash flows, statement of owners' equity, and balance sheetd. statement of cash flows, balance sheet, income statement, and statement of capital equity10.All of the following items are classified as accounting assumptions and conventions except fora going concermb. TimelinessC. monetary unitd. Entity

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6. Which qualitative characteristic is an ingredient of relevance? a. Verifiability b. Timeliness c. Neutrality d. representational faithfulness

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter14: Completing A Quality Audit

Section: Chapter Questions

Problem 36RQSC

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Which of the following are considered secondary characteristics of accounting information? a. varifiability and feedback value b. predictive value and timeliness c. comparability and consistency d. representational faithfulness and neutrality
Which of the following are considered secondary characteristics of accounting information? a. verifiability and feedback value b. predictive value and timeliness c. comparability and consistency d. representational faithfulness and neutrality
What two primary qualitative characteristics make accounting information useful? Predictive value and relevance. Relevance and neutrality. Faithful representation and relevance. Faithful representation and predictive value.
PROBLEM Below is a list of the qualitative characteristics identified in FASB Statement of Financial Accounting Concepts No. 2. Following the list is a series of descriptive phrases. a. feedback value b. relevance c. decision usefulness d. reliability e. comparability f. predictive value g. varifiability h. consistency i. representational faithfulness j. timeliness k. neutrality _____ 4. When information is verifiable and neutral. _____ 5. Occurs when the measurement results can be duplicated. _____ 6. The overall qualitative characteristics accounting information should possess. _____ 7. When information enables decision makers to confirm prior expectations. _____ 8. When accounting information is reported the same way by different companies. Required: Match each characteristic with the appropiate phrase.
According to the International Accounting Standards Board’s Conceptual Framework, which qualitative characteristics enhance the usefulness of information that is relevant and faithfully representative? Consistency, reliability, measurability, timeliness Materiality, understandability, comparability, reliability Comparability, understandability, timeliness, verifiability Consistency, prudence, measurability, verifiability
Which of the following is not a fundamental quality of useful accounting information? Group of answer choices Faithful representation. Relevance. Faithful representation and Relevance. Materiality
The qualitative characteristics that make accounting information useful for decision-making purposes are as follows. Relevance Neutrality Verifiability Faithful representation Completeness Understandability Predictive value Timeliness Comparability Confirmatory value Materiality Free from error Instructions Identify the appropriate qualitative characteristic(s) to be used given the information provided below. a. Qualitative characteristic being employed when companies in the same industry are using the same accounting principles. b. Quality of information that confirms users’ earlier expectations. c. Imperative for providing comparisons of a company from period to period. d. Ignores the economic consequences of a standard or rule. e. Requires a high degree of consensus among individuals on a given measurement. f. Predictive value is an ingredient of this fundamental quality of information. g. Four qualitative characteristics that are…
Qualitative Characteristics The following is a list of qualitative characteristics of useful accounting information identified in the FASB's and the IASB's Statement of Financial Accounting Concepts No. 8 and statements describing the qualities. A. Comparability B. Decision usefulness C. Relevance D. Faithful representation E. Predictive value F. Confirmatory value G. Verifiability H. Neutrality I. Free from error J. Consistency K. Materiality L. Timeliness M. Understandability N. Completeness Required: Select the appropriate letter identifying each quality on the statement describing the quality. 1. Different knowledgeable and independent observers can reach consensus that a particular representation is faithful. 2. Making information available to decision makers before it loses its capacity to influence decisions. 3. Capacity to make a difference in a decision, enabling users to predict future outcomes and/or confirm prior expectations. 4. Overall objective of…
According to the Conceptual Framework, qualitative characteristics of accounting information are essential to assist decision making process. In your own words, explain: a. How to fundamental qualitative characteristics of accounting information enable the management decision making process? b. The trade-off between fundamental qualitative characteristics and enhancing qualitative characteristics (at least TWO)?
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