Financial Accounting Basics Quiz

To provide financial information that is useful to existing and potential investors, lenders and other creditors (correct)

To help managers make decisions to manage the business

To present financial statements for public consumption

To prepare accounting information for people outside the organization

Verifiability and Comparability

Relevance and Faithful Representation (correct)

Materiality and Consistency

Predictive Value and Understandability

Capacity of financial information to influence the decision of its users

Uniform application of accounting methods across entities in the same industry (correct)

The actual effects of transactions to be properly accounted for and reported

Financial information must be presented to the users before a decision is to be made