Fill in the blanks below with the accounting principle, assumption, or related item that best completes the sentence. __________ and _ are the two fundamental qualities that make accounting information useful for decision making. Information that helps users confirm or correct prior expectations has _ _. ______ enables users to identify the real similarities and differences in economic events between companies. _ is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Information is _ if omitting it or misstating it could influence decisions that users make on the basis of the reported financial information. The characteristic requires that the same accounting method be used from one accounting period to the next unless it becomes evident that an alternative method will bring about a better description of a firm's financial situation. means that a company cannot select information to favor one set of interested parties over another. Providing information that is of sufficient importance to influence the judgement and decisions of an informed user is referred to as _. Corporations must prepare accounting reports at least yearly due to the _ assumption. ___________ occurs when the performance obligation is satisfied.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Fill in the blanks below with the accounting principle, assumption, or related item that best completes the sentence.

________________________ and _______________________ are the two fundamental qualities that make accounting information useful for decision making.

Information that helps users confirm or correct prior expectations has _________________

___________________.

________________________ enables users to identify the real similarities and differences in economic events between companies.

_________________ is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Information is _______________________ if omitting it or misstating it could influence decisions that users make on the basis of the reported financial information.

The ________________________ characteristic requires that the same accounting method be used from one accounting period to the next unless it becomes evident that an alternative method will bring about a better description of a firm's financial situation.

____________________ means that a company cannot select information to favor one set of interested parties over another.

Providing information that is of sufficient importance to influence the judgement and decisions of an informed user is referred to as _______________________.

Corporations must prepare accounting reports at least yearly due to the _______________ assumption.

_________________ occurs when the performance obligation is satisfied.

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