Quiz 1 (Chapter 1) Key
1.
Accountants prepare financial statements at arbitrary points in time during a company's
lifetime in accordance with the accounting concept of
1.
matching.
2.
comparability.
3.
accounting periods.
4.
materiality.
2.
The assumed continuation of a business entity in the absence of evidence to the contrary
is an example of the accounting concept of
1.
accrual.
2.
consistency.
3.
comparability.
4.
going concern.
3.
When a large number of individuals, using the same measurement method, demonstrate
that a high degree of consensus can be secured among independent measurers, then the
result exhibits the characteristic of
1.
verifiability.
2.
neutrality.
3.
relevance.
4.
representational faithfulness
4.
Which of the following measurement attributes is
not
currently used in practice?
1.
Present value
2.
Net realizable value
3.
Current replacement cost
4.
Inflation-adjusted cost
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5.
Financial information exhibits the characteristic of consistency when
1.
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- Fall '09
- Kim
- Accounting, Income Statement, Revenue, Generally Accepted Accounting Principles, 3 percent
-
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