Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Question
Chapter 2, Problem 2.4BE
To determine
To identify: Whether the given items are characteristics of information that are relevant (REL) or a faithful representation (FR).
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Which of the following is NOT a characteristic of effective information? a. relevance b. accuracy c. summarization d. precision
The quality of information that gives
assurance that it is reasonably free of
error and bias and provides a true,
correct and complete depiction of
what it purports to represent is *
O relevance.
faithful representation.
O verifiability.
O neutrality.
Which one of the following qualities is most concerned with influencing users' decisions concerning the prediction of future events and the confirmation of past events?
O A. Faithful representation
OB. Understandability
OC. Verifiability
OD. Relevance
(...)
Chapter 2 Solutions
Intermediate Accounting
Ch. 2 - Prob. 2.1QCh. 2 - Why is a conceptual framework of accounting...Ch. 2 - Prob. 2.3QCh. 2 - Prob. 2.4QCh. 2 - Prob. 2.5QCh. 2 - Prob. 2.6QCh. 2 - What is predictive value?Ch. 2 - Prob. 2.8QCh. 2 - When is financial information considered...Ch. 2 - Prob. 2.10Q
Ch. 2 - Prob. 2.11QCh. 2 - Prob. 2.12QCh. 2 - What is the recognition principle and when is an...Ch. 2 - What is the revenue recognition principle and when...Ch. 2 - Prob. 2.15QCh. 2 - When are expenses recognized under IFRS?Ch. 2 - How are transactions recorded under accrual...Ch. 2 - Prob. 2.18QCh. 2 - Prob. 2.19QCh. 2 - Prob. 2.20QCh. 2 - Prob. 2.21QCh. 2 - Prob. 2.22QCh. 2 - Prob. 2.23QCh. 2 - Prob. 2.1BECh. 2 - Prob. 2.2BECh. 2 - Objective of Financial Reporting. Explain the...Ch. 2 - Prob. 2.4BECh. 2 - Fundamental and Enhancing Characteristics....Ch. 2 - Prob. 2.6BECh. 2 - Prob. 2.7BECh. 2 - Prob. 2.8BECh. 2 - Fundamental and Enhancing Characteristics....Ch. 2 - Faithful Representation. Match the component of a...Ch. 2 - Prob. 2.11BECh. 2 - Prob. 2.12BECh. 2 - Expense Recognition. Discuss the three main...Ch. 2 - Element Definitions. Identify whether the...Ch. 2 - Prob. 2.15BECh. 2 - Element Definitions, U.S. GAAP, IFRS. Identify...Ch. 2 - Prob. 2.17BECh. 2 - Measurement Bases. Match the measurement basis...Ch. 2 - Cash versus Accrual Bases of Accounting. The...Ch. 2 - Prob. 2.20BECh. 2 - Prob. 2.21BECh. 2 - Assumptions in Financial Reporting. Indicate the...Ch. 2 - Conceptual Framework. Noeleen Auto Mall, Ltd....Ch. 2 - Qualitative Characteristics. Referring to the...Ch. 2 - Prob. 2.3ECh. 2 - Prob. 2.4ECh. 2 - Terms and Concepts. Complete the following...Ch. 2 - Prob. 2.6ECh. 2 - Cash versus Accrual Bases of Accounting. Top Notch...Ch. 2 - Cash vs. Accrual. you are provided the following...
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Similar questions
- What is meant by each of the following potential characteristics of information: relevant, accurate, and timely? Is objective information always relevant? Accurate?arrow_forwardMatch each of the components of faithful representation with its definition.Faithful Representation Definition1 . Freedom from error a. All information necessary to describe an item is reported. 2. Neutrality b. Information that does not bias the decision maker. 3. Completeness c. Reported amounts reflect the best available information.arrow_forwardWhat kind of information is gathered from a valid and trusted source and can be depended upon to be correct? O a. Information that is reliable. O b. Information that is timely. O c. Information that is accurate. O d. Information that is valid.arrow_forward
- Identify the appropriate qualitative characteristic(s) being described in the statements below.. Information that is capable of making a difference in a decision is said to have this fundamental quality. Select one: O a. Materiality O b. Comparability O c. None of the answers are correct O d. Faithful representation O e. Relevancearrow_forwardWhich is affected by measurement inconsistency and measurement uncertainty?arrow_forwardWhich qualitative characteristic is an ingredient of relevance? a. Verifiability b. Timeliness c. Neutrality d. Representational Faithfulnessarrow_forward
- The fundamental qualitative characteristic of faithful representation has the components of; a- Comparability, consistency, and confirmatory value b- Predictive value and confirmatory value. c- Completeness, neutrality, and freedom from error d- Understandability, predictive value, and reliability.arrow_forwardDescribe about the intuitive approach?arrow_forwardThe conceptual framework's qualitative characteristic of faithful representation includes: Multiple Choice Confirmatory value. Timeliness. Predictive value. Neutralityarrow_forward
- Distinguish between AIS and MIS.arrow_forwardHow does the Representational faithfulness is enhanced if information is free from error?arrow_forwardComparability, understandability, timeliness, and verifiability are enhancing qualitative characteristics that contribute to: Relevance Faithful Representation a. Yes No b. No No c. No Yes d. Yes Yesarrow_forward
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