Expert please help Question:How does the prudence convention differ from theconservatism principle?a) It ignores all potential lossesb) It requires delaying all revenue recognitionc) It requires evidence before recognizing positive eventswhile still reporting threatsd) It only applies to asset valuation

Detailed explanation: Prudence Convention: • This accounting principle involves considerable care in…

Answered: Question: How does the prudence…

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle

Section: Chapter Questions

Problem 4TFQ

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93 Conptal Framo PROBLEMS PROBLEM 1: TRUE OR FALSE All changes in an entity's economic resources and claims to those resources result from the entity's financial performance. The qualitative characteristics of useful information apply nly to the financial information provided in the financial statements. . According to IFRS Practice Statement 2 Making Materiality Judgnents, cost is an important consideration when making materiality judgments. T, When making materiality judgments, assessment alone is not always sufficient to conclude that an item of information is not material. Es. Materiality judgments apply only to items that are recognized but not to those that are unrecognized. 6. The more significant the qualitative factors are, the lower the quantitative thresholds will be. Thus, an item with a zero amount can be material in light of qualitative thresholds. Fz. When making materiality judgments, an entity should judge an item's materiality only on its own and not in combination…
Which of the following would be considered a breach of the qualitative characteristic of faithful representation? Disclosing information that could influence a decision. O Omitting the recognition of transactions of insignificant dollar amounts. None of these would be considered a breach of the qualitative characteristic of faithful representation. O Applying judgement in determining the existence of a liability. Incorporating estimations in the measurement of assets. Question 7 Which of the following is an application of the principle of materiality? The aggregation of different classes of property, plant and equipment into a single line item. None of these are an example of applying the principle of materiality. O The inclusion of a declaration by the directors in a financial report. The inclusion of an auditor's report in the financial report. The preparation of financial statements at least annually.
14 which statements is incorrect regarding for value measurements? a. fair value is normally the amount that an entity would receive or pay in a forced transaction, involuntary liquidation, or distress sale. b. underlying the concept of fair value measurements is a presumption that the entity is a going concern. c. the measurement of fair value may be relatively sample for assets that are bought and sold in active and open markets. d. the estimation of fair value may be achieved through the use of valuation model or through the assistance of an expert, such as an independent appraiser.
Which of the following is correct about subsequent measurement of financial asset at fair value? a. the financial asset shall be measured at fair value if the business model is not to collect contractual cash flows on specified dates and the contractual cash flow ae not solely payment of principal and interest. b. An entity may designate a finacncial asset as measured at fair value through profit or loss even if the financial asset satisfies the amortized cost measurement. c. both are correct d. both are incorrect
The use of fair value accounting for measuring assets and liabilities has been a source of on-going controversy. Critically appraise benefits and challenges of fair value measurements withrespect to the global financial crisis. Explain the issues relating to the Fair Value Hierarchymeasurement (IFRS 13) as part of your answer.
FAR- Conceptual Framework Kindly help me answer the following: 11. Which is an implication of the going concern assumption? * a. Depreciation and amortization policies are justifiable and appropriate. b. The current and noncurrent classification of assets and liabilities is justifiable and significant. c. All of these are an implication of going concern. d. The historical cost principle is credible. 12. The concept of accounting entity is applicable * a. Only to business organisations b. Only to the economic aspects of business organizations c. Only to the legal aspects of business organizations d. Whenever accounting is involved 13. The overall objective of financial reporting is to provide information * a. That allows owners to assess management performance. b. About assets, liabilities and equity of an entity. c. That is useful for decision making d. About financial…
Explain thoroughly why it is the answer.
Is it true that legal enforceability of a right, for example ownership, is necessary for control over an economic resource to exist?
23) The IFRS criteria for recognizing a transfer of a receivable focuses on which of the following? a)Risks b)Rewards c)Loss of control d) All of these answers choices are correct.

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Question: How does the prudence convention differ from the conservatism principle? a) It ignores all potential losses b) It requires delaying all revenue recognition c) It requires evidence before recognizing positive events while still reporting threats d) It only applies to asset valuation