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ACCCOB2 QUIZ 1 EXAM QUESTIONS WITH VERIFIED ANSWERS
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ACCCOB2 QUIZ 1 EXAM QUESTIONS WITH VERIFIED ANSWERS...
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ACCCOB2 QUIZ 1 EXAM QUESTIONSWITH VERIFIED ANSWERS
RELEVANCE - ANSWER A fundamental characteristic of financial
information which enables it to influence the decision of financial
statement users.
MATERIAL - ANSWER Non-inclusion of such information could change
the decision a financial statement user makes based on the financial
information of a specific entity.
FAITHFUL REPRESENTATION - ANSWER A fundamental qualitative
characteristic of financial information which states that the information
should be complete, neutral, and free from material mistakes.
NEUTRAL - ANSWER Without partiality in the selection or presentation
of financial information.
COMPARABILITY - ANSWER Qualitative characteristic that allows
users to compare and contrast items presented in the financial
information, whether from the same entity at different periods or with
different entities in the same period.
CONSISTENCY - ANSWER Refers to the application of the same
procedures for the same items, either from across periods within a
reporting entity or in a single period among different reporting entities.
VERIFIABILITY - ANSWER Different informed and independent
observers could reach the same conclusion, although not necessarily
complete agreement, that a particular financial information is faithfully
presented.
TIMELINESS - ANSWER Having available information to decision
makers just in time to allow them to make their decisions.
UNDERSTANDABILITY - ANSWER Classifying, characterizing, and
presenting information plainly and succinctly.
, GOING CONCERN - ANSWER Assumes that the entity has neither the
intention nor the need to liquidate or reduce materially the scale of its
operations.
ASSET - ANSWER A present economic resource controlled by the entity
as a result of past events.
EQUITY - ANSWER Residual interest in the assets of the entity after
deducting all its liabilities.
INCOME - ANSWER Increases In economic benefits during the
accounting period in the form of inflows or enhancements of assets or
decreases of liabilities that result in increases in equity, other than those
relating to contributions from equity participants.
EXPENSES - ANSWER Decreases in economic benefits during the
accounting period in the form of outflows or depletions of assets or
incurrences of liabilities that result in decreases In equity, other than
those relating to distributions to equity participants.
RECOGNITION - ANSWER Process of incorporating on the statement of
financial position or profit or loss statement an item that meets the
definition of an element.
MEASUREMENT - ANSWER Process of determining the monetary
amounts at which the elements of the financial statements are to be
recognized and carried on the statement of financial position and profft
or loss statement.
HISTORICAL COST - ANSWER Amount of cash or cash equivalents
given or the fair value of the asset exchanged to obtain an item at the
time of its acquisition,
CURRENT COST - ANSWER Amount of cash or cash equivalents that
would have to be paid if the same or an equivalent asset is acquired
currently.
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