Financial Accounting
3rd Edition
ISBN: 9780078025549
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Question
Chapter 1, Problem 29RQ
1.
To determine
Fundamental Qualitative Characteristics:
The fundamental qualitative characteristics states that the accounting information must be relevant and faithfully represent the position of company, so that it will be useful for better decision making to the external parties.
Relevance: The financial statement prepared should indicate the affirmatory value or supporting value.
To explain: The three aspects of relevance.
2.
To determine
Faithful representation: The information shared or shown in the financial statement should be fair and agree with the original facts.
To explain: The three aspects of faithful representation.
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Chapter 1 Solutions
Financial Accounting
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