What is Relevance? correct answers Information has a direct bearing on a decision
What is Predictive value? correct answers Information helps capital providers make decisions about future actions
What is confirmative value? correct answers Information confirms or changes previous evaluation's...
ACC105 Chapter 5 || A Verified A+ Pass.
What is Relevance? correct answers Information has a direct bearing on a decision
What is Predictive value? correct answers Information helps capital providers make decisions
about future actions
What is confirmative value? correct answers Information confirms or changes previous
evaluation's
What is materiality? correct answers The omission of information could influence the users
economic decisions taken on the basis of the financial statements
What is faithful representation? correct answers Information is complete,neutral and free from
material error
What is completeness? correct answers All information necessary for a reliable decision is
provided
What is neutrality? correct answers Information is free from bias
What does the term "free from material error" means? correct answers Information meets a
minimum level of accuracy, so it doesn't distort what is being reported
What is Comparability ? correct answers The quality of information that enables users to identify
similarities and differences between two sets of financial data
What is verifiability? correct answers Independent measurers get the same result.
What is timeliness ? correct answers The quality that enables users to receive information in time
to influence their decisions
What is understandability ? correct answers The quality that enables users to comprehend the
meaning of information
Another name for cost constraint is ? correct answers Cost benefit
What is cost constraint ? correct answers The benefits to be gained from providing accounting
information should be greater than the costs of providing it
What are accounting conventions? correct answers Constraints used in preparing financial
statements
What is consistency ? correct answers Once a company has adopted an accounting procedure it
must use it from one period to the next, unless informed of a change
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