10 Questions
What is the main objective of the first level of financial reporting?
To provide financial information for equity investors, lenders, and creditors
What distinguishes better accounting information from inferior information according to IASB?
Qualitative characteristics
What does 'predictive value' of accounting information refer to?
Value as an input to predictive processes used by investors
What is the relevance of accounting information according to the fundamental qualities?
It must be capable of making a difference in a decision
When is information considered material in accounting?
If omitting it or misstating it could influence decisions
Accounting information must be capable of making a difference in a decision. INGREDIENTS: Predictive Value Has value as an input to predictive processes used by investors to form their own expectations about ______
future
Relevant information also helps users confirm or correct prior ______
expectations
Information is material if omitting it or misstating it could influence ______ that users make on the basis of the reported
decisions
To provide financial information about the reporting entity that is useful to present and potential equity investors, lenders, and other ______ in making decisions about providing resources to the entity
creditors
IASB identified the QUALITATIVE CHARACTERISTICS of accounting information that distinguish better (more useful) information from inferior (less useful) information for ______ purposes
decision-making
Test your knowledge of the fundamental concepts of accounting information with this quiz. Explore the qualitative characteristics identified by the IASB and gain a deeper understanding of financial reporting for potential investors, lenders, and creditors.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
