ACC-315 Problem Set 1 Question 3

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Southern New Hampshire University *

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315

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Accounting

Date

Feb 20, 2024

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docx

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Uploaded by DeanGazelleMaster295

Question 3 of 5 < > 8.18/10 i= View Policies Show Attempt History For each of the following situations listed below, match the following information quality characteristic that either most accurately applies to the situation, or would be the best characteristic to improve the information. More than one characteristic could apply to each situation but choose the most appropriate one. Question Information Situation Characteristic 1. At the beginning of the COVID-19 pandemic, the United States was behind many other countries in testing people for the coronavirus. News reports said that people with symptoms struggled for access to tests, often in vain. The lack of testing = availability resulted in reports of COVID cases that bore no resemblance to the reality of how much the virus had really spread. Consequently, there was fear and uncertainty. 2. This characteristic strongly factors into the reason for reporting land and buildings at historical cost ina company’s Balance Sheet, even though this value may bear no Faithful representation v resemblance to the fair market value of the asset. 3. In the income statement of a company, sales transactions included in the revenue amount are only those that reflect revenue earned during the reporting period—no Completeness more and no less. 4. In the management decision to replace a long-haul transportation truck used for the past 10 years, inclusion of information about the original cost of the truck in a report has no (fillin the characteristic). 5. Disney World provides guests with Magic Bands, which are wrist bands that collect data on who the guests are, where they are, what rides they go on, and what they buy. Disney characters greet children wearing the bands by name. Magic Bands provide Disney with an incredible amount of data about guest profiles and preferences. Information like this can help Disney improve decision making for optimal management of its resorts. 6. Alicia’s Accessories is developing a proprietary big data system called Just-in-Time. The intention of the systemis to continuously monitor and improve operations, products, marketing, sales, and employee training and to improve competitive advantage. The data comes from the company’s point-of-sale systems, inventory Timeliness systems, promotions, customer feedback and surveys, and loyalty programs. Just-in- Time provides information every 30 minutes at headquarters for immediate decision making. Operational glitches get immediate attention. 7. According to the magazine Fast Company, not making the content of business websites available to people with disabilities means potentially losing around $500 million in spending power. This amount does not include losses from lawsuits. Fast Company provides examples of businesses that have been sued for failing to offer ADA-compliant websites, including Domino’s and Beyoncé's Parkwood Entertainment.

10. 11 Oil and gas companies consistently apply the same industry-specific accounting standards to their financial statements, and so there should be a high level of (fllin the characteristic) within that industry. A company with information about a probable and material lawsuit must report it in the notes to its financial statements. An attempt to withhold this information indicates bias and not (fill in characteristic). Financial statements include information on cash flows so that financial analysts and investors can evaluate the accuracy of their past predictions. Financial analysts and investors use past financial statements as a basis to chart performance trends and make predictions about future performance, including profitability and cash flow, for business valuation purposes. Comparability Completeness Confirmatory value v Predictive value

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