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CHAPTER 2 CONCEPTUAL FRAMEWORK UNDERLYING FINANCIAL ACCOUNTING

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Question;Ex. 2-152?Accounting concepts?fill in the;blanks.;Fill in the blanks below with the accounting;principle, assumption, or related item that best;completes the sentence.;1.;and _______________________ are the two fundamental qualities that make;accounting information useful for decision making.;2. Information that helps users confirm or;correct prior expectations has;3. ________________________ enables users to;identify the real similarities and differences in economic events between;different companies.;4. __________________ is the price that would;be received to sell an asset or paid to transfer a liability in an orderly;transaction between market participants at the measurement date.;5. Information is _______________________ if;omitting it or misstating it could influence decisions that users make on the;basis of the reported financial information.;6. The;characteristic requires that the same accounting method;be used from one accounting period to the next.;7. ____________________ means when in doubt;choose the solution that will be least likely to overstate income and assets.;8. Providing;information that is of sufficient importance to influence the judgment and;decisions of an informed user is referred to as _______________________.;9. Corporations must prepare accounting reports;at least yearly due to the _______________ assumption.;10. _________________ occurs when the;performance obligation is satisfied.;Ex. 2-153?Basic assumptions.;Briefly explain the five basic assumptions that;underlie financial accounting.;Ex. 2-154?Historical cost principle.;Cost as a basis of accounting for assets has been;severely criticized. What defense can you build for cost as the basis for financial;accounting?.

 

Paper#55039 | Written in 18-Jul-2015

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