week 2 E1-6 - g. Information is available prior to the...

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E 1-6 Concepts; terminology; conceptual framework LO6 Listed below are several terms and phrases associated with the FASB’s conceptual framework. Pair each item from List A (by letter) with the item from List B that is most appropriately associated with it. 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
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Unformatted text preview: g. Information is available prior to the decision. f 8. Representational faithfulness h. Pertinent to the decision at hand. k 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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