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 requires that all financial…

Answered: Which principle states that financial…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 2DQ: Explain when revenue may be recognized and give an example.

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Similar questions

Which of the following is a fundamental quality of useful accounting information? Select one: Comparability Consistency Relevance Materiality
Financial information that is capable of making a difference in a decision is a) relevat b) faithfully representative c) convergent d) generally accepted
Explain when revenue may be recognized and give an example.
Describe the revenue recognition principle. Give specifics.
Which of the following are considered secondary characteristics of accounting information? a. verifiability and feedback value b. predictive value and timeliness c. comparability and consistency d. representational faithfulness and neutrality
Which of the following are considered secondary characteristics of accounting information? a. varifiability and feedback value b. predictive value and timeliness c. comparability and consistency d. representational faithfulness and neutrality
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
What is the two criteria be satisfied before revenue can be recognized?
Which is the first step within the hierarchy of guidance when selecting accounting policies? a. Apply a standard from PFRS (IFRS) if it specifically relates to the transaction b. Apply the requirements in PFRS (IFRS) dealing with similar and related issue c. Consider the applicability of the definitions, recognition criteria and measurement concepts in the Conceptual Framework d. Consider the most recent pronouncements of other standard setting bodies
Match the qualitative characteristics below with the following statements. 1. Timeliness 2. Completeness 3. Free from error 4. Understandability 5. Faithful representation 6. Relevance 7. Neutrality 8. Confirmatory value a. Quality of information that assures users that information represents the economic phenomena that it purports to represent. b. Information about an economic phenomenon that corrects past or present expectations based on previous evaluations. c. The extent to which information is accurate in representing the economic substance of a transaction. d. Includes all the information that is necessary for a faithful representation of the economic phenomena that it purports to represent. e. Quality of information that allows users to comprehend its meaning.
Which of the following pars of items are the two fundamental qualitative characteristics of a useful financial information? a. Relevance and prudence b. Relevance and faithful representation c. Faithful representation and materiality d. Faithful representation and comparability
Which of the following characteristics must exist for accounting information to be useful in making informed decisions? O relevant and precise O internal and relevant O relevant and representationally faithful O precise and reliable

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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