Listed below are nine terms and definitions associated with the FASB’s conceptual framework.Terms Definitions1. Completenessa. Requires the consideration of the costs and value of information.2. Comparabilityb. Ability to make comparisons between firms.3. Neutralityc. Comprehending the meaning of accounting information.4. Understandabilityd. Including all information necessary to report the business activity.5. Cost effectiveness e. The business will last indefinitely unless there is evidence otherwise.6. Verifiability f. Recording transactions only for the company.7. Decisiong. Implies consensus among different measures.8. Economic entity assumption h. Accounting should be useful in making decisions.9. Going concern assumption i. Accounting information should not favor a particular group.Required:Pair each term with its related definition.

FASB ( Financial Accounting Standards Board) is one of the standard setting body and another is IASB…

Answered: Listed below are nine terms and…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter2: Financial Statements And The Annual Report

Section: Chapter Questions

Problem 2.11E

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Listed below are nine terms and definitions associated with the FASB’s conceptual framework.

Terms	Definitions
1. Completeness	a. Requires the consideration of the costs and value of information.
2. Comparability	b. Ability to make comparisons between firms.
3. Neutrality	c. Comprehending the meaning of accounting information.
4. Understandability	d. Including all information necessary to report the business activity.
5. Cost effectiveness	e. The business will last indefinitely unless there is evidence otherwise.
6. Verifiability	f. Recording transactions only for the company.
7. Decision	g. Implies consensus among different measures.
8. Economic entity assumption	h. Accounting should be useful in making decisions.
9. Going concern assumption	i. Accounting information should not favor a particular group.

Required:
Pair each term with its related definition.

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