BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881

Solutions

Chapter
Section
BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881
Textbook Problem
24 views

Information that provides feedback about prior expectations is:

Relevant Faithfully Represented

a. Yes Yes

b. No Yes

c. Yes No

d. No No

To determine

Introduction:A financial information is useful if it is created and compiled for existing as well as potential investors, lenders and other creditors for making vital investment and credit decisions. The fundamental characteristics of useful information as stated in Financial Accounting Standards Board (FASB) includes relevance and faithful representation which means that the information represented in financial statements should be relevant to the business in predicting future events and making prior changes in business decisions. Also, the financial statements should be complete and faithful representation of the information with utmost accuracy.

To choose-If the information that provides feedback about prior expectation is relevant and/or faithfully represented information.

Explanation

Explanation for correct answer-

Option C which is information that provides feedback about prior expectation is relevant information and not a faithfully represented information.An information is relevant if it can make changes in business decisions by helping external users predicting future events or providing confirmatory feedback about prior expectations. Thus, such an information is not a faithful representation of information.

Explanation for incorrect answer-

Option A-An information which provides feedback about prior expectation is a relevant information. But a faithful representation of information means that the information provided in financial statements should be complete for the user to understand the economic event and as much accurate as possible...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

In your own words, define a joint venture and a syndicate.

Foundations of Business (MindTap Course List)

Should an economic model describe reality exactly?

Principles of Microeconomics (MindTap Course List)

Explain why database design is important.

Database Systems: Design, Implementation, & Management

What is sparse data? Give an example.

Database Systems: Design, Implementation, & Management

Describe how game theory might be used in a business setting.

Principles of Information Systems (MindTap Course List)

On hybrid vehicles, how can you identify the high voltage cables and connectors?

Automotive Technology: A Systems Approach (MindTap Course List)

How is electricity generated in a photovoltaic system?

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)

What is the limitation of the tool bit taper turning method?

Precision Machining Technology (MindTap Course List)

What e input masks� What are validation rules? Why are they important?

Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)

Convert P = 5.00 atm into Pa, bar, and psia.

Fundamentals of Chemical Engineering Thermodynamics (MindTap Course List)

What are some commonly used input methods?

Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)