Chapter 2, Problem 4ISTQ

Which one of the following recognises the idea that assets and income should not be overstated while liabilities and expenses should not be understated :A. Matching principle,B. Accrual concept,C. Principle of prudence.D. Consistency concept.

The modified accrual basis ______. Multiple select question. What solution is it below? (A) records receivables (B) is merely a "light" version of the accrual version is not equivalent to the cash basis (C) accrues expenditures when payable (D) does not recognize long-term assets and liabilities

Listed below are several information characteristics and accounting principles and assumptions.  Match the letter of each with the appropriate phrase that states its application.  (Items a through k may be used more than once or not at all.) Economic entity assumption g.   Matching principle Going concern assumption h.   Full disclosure principle Monetary unit assumption i.    Relevance characteristic Periodicity assumption j.    Reliability characteristic Historical cost principle k.   Consistency characteristic Revenue recognition principle     ____    1.    Stable-dollar assumption (do not use historical cost principle). ____    2.    Earning process completed and realized or realizable. ____    3.    Presentation of error-free information with representational faithfulness. ____    4.    Yearly financial reports. ____    5.    Accruals and deferrals in the adjusting and closing process. (Do not use going concern.) ____    6.    Useful standard measuring unit for business…

Does Derecognition only apply to the balance sheet? If so, Why? Why are other statements not used? Explain please.

Which of the following is not a pervasive expense recognition principle? a. immediate recognition b. systematic and rational allocation c. cash payment d. association of cause and effect

Which of the following items is NOT classified as a financial asset? a. promissory notes b. forward exchange contracts c. inventory d. accounts receivable

In what ways does revenue recognition differ from other financial accounting procedures?

Listed below are several information characteristics and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application. (Items a through k may be used more than once.) a. Economic entity assumption b. Going concern assumption c. Monetary unit assumption d. Periodicity assumption e. Historical cost principle f. Revenue recognition principle g. Matching principle h. Full disclosure principle i. Relevance characteristic j. Reliability characteristic. k. Consistency characteristic 1. Stable-dollar assumption (do not use historical cost principle). 2. Earning process completed and realized or realizable. 3. Presentation of error-free information with representational faithfulness. 4. Yearly financial reports. 5. Accruals and deferrals in adjusting and closing process. (Do not use going concern.) 6. Useful standard measuring unit for business transactions. 7. Notes as part of necessary information to a fair presentation. 8. Affairs of…

Ac  Whate are the accounting standerds? * Explain the differences between GAAP and Ifrs.