Chapter 2, Problem 2.5E

Terms and Concepts. Complete the following statements by identifying the appropriate term or concept.

1. a. A __________ sets forth theory, concepts, and principles to ensure that accounting standards are coherent and uniform.
2. b. Information has _________ if decision makers can use it as an input into processes that help forecast future outcomes.
3. c. _________ indicates whether financial information depicts the substance of an economic event in a manner that is complete, neutral and free from error.
4. d. _________ allows financial statement users to identify and understand similarities and differences among several entities.
5. e. _________ means that a group of reasonably informed financial statement users are able to reach a consensus decision that reported information is a faithful representation of an underlying economic event.
6. f. _________ represent resources, claims to resources, or interests in resources as of a specific point in time and appear on the balance sheet (statement of financial position).
7. g. An _________ involves a buyer and seller who are independent and unrelated parties, each bargaining to maximize his or her own wealth.
8. h. The _________ indicates that accountants will record transactions and prepare financial statements as if the entity will continue to operate for an indefinite period of time unless there is evidence to the contrary.
9. i. The _________ specifies that an economic entity can divide its life into artificial time periods for the purpose of providing periodic reports on its economic activities.
10. j. Financial information is _________ if it is capable of making a difference m decision making by exhibiting the following attributes: predictive value, confirmatory value and materiality.