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INTERMEDIATE ACCOUNTING EXAM STUDY GUIDE QUESTIONS WITH CORRECT ANSWERS
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INTERMEDIATE ACCOUNTING EXAM STUDY GUIDE QUESTIONS WITH CORRECT ANSWERS
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INTERMEDIATE ACCOUNTING EXAMSTUDY GUIDE QUESTIONS WITH
CORRECT ANSWERS
Comprehensive income includes changes in equity resulting from distributions to
owners. - Answer-False
The tendency to recognize favourable events early is an example of conservatism. -
Answer-False
The conceptual framework focuses primarily on the needs of internal users of financial
information. - Answer-False
The eight Statements of Financial Accounting Concepts are considered part of GAAP. -
Answer-False
The overriding objective of financial reporting is to provide information for making
economic decisions. - Answer-True
The term recognition is synonymous with the term disclosure. - Answer-False
Key ingredient in quality of relevance. - Answer-materiality and predictive value
The idea that information should represent what it purports to represent. - Answer-
representational faithfulness
An example of conservatism. - Answer-lower-of-cost-or-market
The availability of information when it is needed. - Answer-timeliness
Recording an item in the accounting records. - Answer-recognition
Determines the threshold for recognition. - Answer-materiality
Implies consensus. - Answer-verifiability
From the list below, for each situation listed indicate the appropriate qualitative
characteristic or accounting measurement concept that has been correctly applied or
violated. - Answer-
Goodwill is recorded in the accounts only when it arises from the purchase of another
entity at a price higher than the fair market value of the purchased entity's identifiable
net assets. - Answer-verifiability
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