acct 351 homework solution and final review

acct 351 homework solution and final review - 9...

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Chapter 1 Homework Solutions Exercise 1-6 List A List B o 1. Predictive value a. Decreases in equity resulting from transfers to owners. h 2. Relevance b. Requires consideration of the costs and value of information. g 3. Timeliness c. Important for making interfirm comparisons. a 4. Distribution to owners d. Applying the same accounting practices over time. j 5. Feedback value e. Along with relevance, a primary decision-specific quality. e 6. Reliability f. Agreement between a measure and the phenomenon it purports to represent. n 7. Gain g. Information is available prior to the decision. f 8. Representational faithfulness h. Pertinent to the decision at hand. k
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Unformatted text preview: 9. Comprehensive income i. Implies consensus among different measurers. p 10. Materiality j. Information confirms expectations. c 11. Comparability k. The change in equity from nonowner transactions. m 12. Neutrality l. The process of admitting information into financial statements. l 13. Recognition m. Accounting information should not favor a particular group. d 14. Consistency n. Results if an asset is sold for more than its book value. b 15. Cost effectiveness o. Information is useful in predicting the future. i 16. Verifiability p. Concerns the relative size of an item and its effect on decisions....
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This note was uploaded on 07/08/2009 for the course ACCT 351 taught by Professor Staff during the Spring '08 term at George Mason.

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