close solutoin list

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 ________ 1. Different knowledgeable and independent observers con 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 financial information. ________ 5. Absence of bias intended to influence financial statement users’ behavior in a particular direction. ________ 6. Presented as accurately as possible, using a process that reflects the best available inputs. ________ 7. Helps decision makers form expectations about the future. ________ 8. Full disclosure of oil the information necessary to understand the information being reported. ________ 9. Enables users to identify and explain similarities and differences between two or more sets of economic foots. ________ 10. The nature and magnitude of on omission or misstatement that would influence the judgment of reasonable users of that information. ________ 11. Accounting methods and procedures applied in the some manner from period to period. ________ 12. Helps decision makers confirm or correct prior predictions or expectations. ________ 13. When the words and amounts accurately depict the economic substance of what they purport to depict. ________ 14. Comprehensible to users. Required: Place the appropriate letter identifying each quality on the line in front of the statement describing the quality.

BuyFind

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281
BuyFind

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281

Solutions

Chapter
Section
Chapter 2, Problem 1E
Textbook Problem

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.

  1. A. Comparability
  2. B. Decision usefulness
  3. C. Relevance
  4. D. Faithful representation
  5. E. Predictive value
  6. F. Confirmatory value
  7. G. Verifiability
  8. H. Neutrality
  9. I. Free from error
  10. J. Consistency
  11. K. Materiality
  12. L. Timeliness
  13. M. Understandability
  14. N. Completeness

________ 1. Different knowledgeable and independent observers con 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 financial information.

________ 5. Absence of bias intended to influence financial statement users’ behavior in a particular direction.

________ 6. Presented as accurately as possible, using a process that reflects the best available inputs.

________ 7. Helps decision makers form expectations about the future.

________ 8. Full disclosure of oil the information necessary to understand the information being reported.

________ 9. Enables users to identify and explain similarities and differences between two or more sets of economic foots.

________ 10. The nature and magnitude of on omission or misstatement that would influence the judgment of reasonable users of that information.

________ 11. Accounting methods and procedures applied in the some manner from period to period.

________ 12. Helps decision makers confirm or correct prior predictions or expectations.

________ 13. When the words and amounts accurately depict the economic substance of what they purport to depict.

________ 14. Comprehensible to users.

Required:

Place the appropriate letter identifying each quality on the line in front of the statement describing the quality.

Expert Solution

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Solution

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 2 Solutions

Intermediate Accounting: Reporting And Analysis
Show all chapter solutions
Ch. 2 - What are the two primary qualities of useful...Ch. 2 - What is relevant accounting information? Identify...Ch. 2 - What is materiality, and how does it relate to...Ch. 2 - What is faithfully represented accounting...Ch. 2 - Identify the enhancing characteristics of useful...Ch. 2 - Compare and contrast comparability and...Ch. 2 - What is the cost constraint, and how does it...Ch. 2 - What is the reporting entity assumption? How does...Ch. 2 - What is the going-concern assumption, and why is...Ch. 2 - What is the period-of-time assumption, and why is...Ch. 2 - Why does financial reporting utilize a mixed set...Ch. 2 - Discuss the relationship among historical cost,...Ch. 2 - What is recognition in accounting?Ch. 2 - Describe accrual accounting. What are the...Ch. 2 - What drives the timing of revenue recognition?...Ch. 2 - What drives expense recognition? When should...Ch. 2 - What is conservatism? Why do accountants sometimes...Ch. 2 - Describe the financial reporting model within the...Ch. 2 - What are the primary sources of useful information...Ch. 2 - The information provided by financial reporting...Ch. 2 - Which of the following is considered a constraint...Ch. 2 - According to Statement of Financial Accounting...Ch. 2 - Which characteristic states that accounting...Ch. 2 - Under Statement of Financial Accounting Concepts...Ch. 2 - Under Statement of Financial Accounting Concepts...Ch. 2 - Accruing net losses on obsolete inventory is an...Ch. 2 - The valuation of a promise to receive cash in the...Ch. 2 - An accrued expense is an expense: a. incurred but...Ch. 2 - A company purchased a patent 4 years ago, and was...Ch. 2 - Qualitative Characteristics The following is a...Ch. 2 - Accounting Assumptions The following is a list of...Ch. 2 - Objectives of Financial Reporting The FASB has...Ch. 2 - A friend, who is not an accounting major, is not...Ch. 2 - A friend, who is not an accounting major, is...Ch. 2 - Financial accounting and reporting provide...Ch. 2 - An accountant must be familiar with the concepts...Ch. 2 - Relevance versus Faithful Representation You are...Ch. 2 - Conceptual Framework The FASBs Conceptual...Ch. 2 - Objectives, Users, and Stewardship The owners of...Ch. 2 - The concept of the reporting entity is a...Ch. 2 - Accruals and Deferrals Generally accepted...Ch. 2 - The following are brief descriptions of two...Ch. 2 - Violations of Assumptions and Principles The...Ch. 2 - You have been hired as an accounting consultant by...Ch. 2 - Inconsistent Statements on Accounting Principles...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
Assume that you have a short investment horizon (less than 1 year). You are considering two investments: a 1-ye...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Explain the cyclical budget deficit.

Economics (MindTap Course List)

What is the quantity theory of money? Is the theory valid?

Macroeconomics: Private and Public Choice (MindTap Course List)