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Unformatted text preview: Neutrality Can the information be verified? Is the information free from error? Is there agreement between the information and the events represented? Is the information slanted in any way to present the company more favorably than is warranted? Comparability Are the methods used in assigning amounts to assets the same as those used by other companies? Consistency Are the methods used in assigning amounts to assets the same as those used in prior years? Materiality Will a specific error in any way affect the judgment of someone relying on the financial statements? Conservatism If there is any uncertainty about any of the amounts assigned to items in the balance sheet, are they recognized using the least optimistic estimate?...
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This note was uploaded on 04/12/2011 for the course ACCT 1310 taught by Professor Vickivorrell during the Spring '07 term at Cuyahoga CC.
- Spring '07
- Financial Accounting