Ans Which principle states thatfinancialstatements should be based on verifiable orfactual information?a) Revenue Recognition Principleb) Objectivity Principlee) Matching Principled) Consistency Principle

Explanation of Objectivity Principle: The Objectivity Principle in accounting requires that…

Answered: Which principle states that financial…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter2: Financial Reporting: Its Conceptual Framework

Section: Chapter Questions

Problem 5MC

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Which one of the following recognises the idea that assets and income should not be overstated while liabilities and expenses should not be understated :A. Matching principle,B. Accrual concept,C. Principle of prudence.D. Consistency concept.
A principle that is concerned with information that should be significant enough to affect evaluations and decisions is called? * O Consistency O Historical cost O Materiality O Adequate disclosure Expense recognition
Adequate disclosure in financial statements to meet the needs and purposes of their users is a means of attaining the quality of a. neutrality b. verifiability c. understandability d. faithful representation
Explain when revenue may be recognized and give an example.
Describe the revenue recognition principle. Give specifics.
Discuss and outline the requirements for "revenue recognition principles". What do you think the standard is designed to achieve? In your opinion is there any gap that the standard setter has not fully addressed
Which of the following is not a fundamental quality of useful accounting information? Group of answer choices Faithful representation. Relevance. Faithful representation and Relevance. Materiality
Revenue is generally recognised at the point of sale. Which principal is applied a. Consistency b. Matching c. Revenue recognition / Realisation d. Cost principle
Which among the following is a form related attribute of good information? a. Relevance b. Presentation c. Accuracy d. Brevity
Enhanced the credibility of the information about a subject matter ( such as the financial statement) by evaluating whether the subject matter conforms in all material respects with suitable criteria A. Compilation services B. Assurance Services C. Agreed-upon procedures engagement D. Limited Assurance Services
Which of the following sets includes only accounting assumptions and conventions? a. timeliness, prudence, historical cost, and neutrality b. matching, comparability, period of timem and reliability c. monetary unit, going concern, relevance, and materiality d. monetary unit, entity, going concern, and realization-recognition
Difference between going concern and matching principle of accounting

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Which principle states that financial statements should be based on verifiable or factual information? a) Revenue Recognition Principle b) Objectivity Principle e) Matching Principle d) Consistency Principle