Question;Ex. 2-148?Examination of the conceptual;framework.;Users of financial;statements can face different questions about the recognition and measurement;of financial items. To help develop the type of financial information that can;be used to answer these questions financial accounting and reporting rules are;based on a conceptual framework.;Instructions;1. What are the basic components;of the Conceptual Framework?;2. What are your views about the success of the;conceptual framework?;Ex. 2-149?Accounting concepts?identification.;State the accounting assumption, principle, qualitative;characteristic, or constraint that is most applicable in the following cases.;1. All;payments less than $25 are expensed as incurred.;2. The;company employs the same inventory valuation method from period to period.;3. A;patent is capitalized and amortized over the periods benefited.;4. Assuming;that dollars today will buy as much as ten years ago.;5. Rent;paid in advance is recorded as prepaid rent.;6. Financial;statements are prepared each year.;7. All;significant post-statement of financial position events are reported.;8. Personal;transactions of the proprietor are distinguished from business transactions.
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