Acc 356 exam 1 verified Study guides, Class notes & Summaries

ACC 356 Exam 1 Verified Questions And Answers Rated A+ Define relevance and its components. What is an example of financial reporting information that has both of these components? ANS Relevance means it is capable of making a difference in user's decision making. It can have confirmatory value (confirm or correct prior expectations) or predictive value (help predict future outcomes). Revenue has both of these components. Define representational faithfulness and its components. ANS A depi...

ACC 356 EXAM 1 Chapters 1-4 Verified Study Questions And Answers neutrality ANS accounting information should be unbiased comparability ANS important in analysis between firms consistency ANS applying the same accounting practices over time cost-effectiveness ANS considers the value of using information relative to cost of providing it recognition ANS the decision to include an amount in the financial statements