Podcast
Questions and Answers
What characteristic ensures that financial reports of a business can be compared over time?
What characteristic ensures that financial reports of a business can be compared over time?
- Faithful representation
- Comparability (correct)
- Relevance
- Verifiability
Which characteristic of financial information states that it should be available to decision makers in a timely manner?
Which characteristic of financial information states that it should be available to decision makers in a timely manner?
- Faithful representation
- Timeliness (correct)
- Understandability
- Relevance
Which accounting assumption assumes that assets, liabilities, and business activities are recorded for a specific entity?
Which accounting assumption assumes that assets, liabilities, and business activities are recorded for a specific entity?
- Conservatism principle
- Materiality concept
- Matching principle
- Accounting entity assumption (correct)
What characteristic of financial information ensures that it is free from material error and without bias?
What characteristic of financial information ensures that it is free from material error and without bias?
Which characteristic of financial information helps users to make predictions and change previous evaluations?
Which characteristic of financial information helps users to make predictions and change previous evaluations?
What characteristic of financial information requires that it be presented clearly and concisely for users?
What characteristic of financial information requires that it be presented clearly and concisely for users?
What is the assumption behind the going concern principle in accounting?
What is the assumption behind the going concern principle in accounting?
How are revenue and expenses recognized in accounting under the accrual basis?
How are revenue and expenses recognized in accounting under the accrual basis?
What is the definition of equity or owner's equity in accounting?
What is the definition of equity or owner's equity in accounting?
In accounting, what is the classification criteria for non-current assets?
In accounting, what is the classification criteria for non-current assets?
How are liabilities classified as current or non-current based on the accounting text?
How are liabilities classified as current or non-current based on the accounting text?
Which of the following is NOT an example of an expense in accounting?
Which of the following is NOT an example of an expense in accounting?
