Financial Reporting 5 PDF

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Financial Reporting...

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comparability. accounting periods. materiality.

Question 37

Multiple Choice

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Question The assumed continuation of a business entity in the absence of evidence to the contrary is an ex concept of Answer accrual. consistency. comparability. going concern.

Question 38

Multiple Choice

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Question Important constraints underlying the qualitative characteristics of accounting information are Answer historical cost and going concern. materiality, conservatism, and cost-effectiveness. consistency, comparability, and conservatism. verifiability, neutrality, and representational faithfulness.

Question 39

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Question When a large number of individuals, using the same measurement method, demonstrate that a hig be secured among independent measurers, then the result exhibits the characteristic of Answer verifiability. neutrality. relevance. reliability.

Question 40

Multiple Choice

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Question Which of the following measurement attributes is not currently used in practice? Answer Present value Net realizable value Current replacement cost Inflation-adjusted cost

Question 41

Multiple Choice

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Question Financial information exhibits the characteristic of consistency when Answer accounting procedures are adopted which smooth net income and make results consistent betw extraordinary gains and losses are shown separately on the income statement. accounting entities give similar events the same accounting treatment each period. expenditures are reported as expenses and netted against revenue in the period in which they a

Question 42

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Question Historical cost has been the valuation basis most commonly used in accounting because of its Answer timelessness. conservatism. reliability. accuracy.

Question 43

Multiple Choice

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