Concept explainers
Listed below are nine terms and definitions associated with the FASB’s conceptual framework.
Terms | Definitions |
1. _____ Completeness 2. _____ Comparability 3. _____ Neutrality 4. _____ Understandability 5. _____ Cost effectiveness 6. _____ Verifiability 7. _____ Decision usefulness 8. _____ Economic entity assumption 9. _____ Going concern assumption |
a. Requires the consideration of the costs and value of information. b. Ability to make comparisons between firms. c. Comprehending the meaning of accounting information. d. Including all information necessary to report the business activity. e. The business will last indefinitely unless there is evidence otherwise. f. Recording transactions only for the company. g. Implies consensus among different measures. h. Accounting should be useful in making decisions. i. Accounting information should not favor a particular group. |
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Pair each term with its related definition.
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Financial Accounting
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