ch02 - CHAPTER 2 CONCEPTUAL FRAMEWORK UNDERLYING FINANCIAL...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 2 CONCEPTUAL FRAMEWORK UNDERLYING FINANCIAL ACCOUNTING TRUE-FALSE —Conceptual Answer No. Description F 1. Nature of conceptual framework. T 2. Conceptual framework definition. F 3. Levels of conceptual framework. T 4 International conceptual framework. F 5. Statements of Financial Accounting Concepts. T 6. Decision usefulness. F 7. Financial statement users. T 8. Relevance and reliability. T 9. Consistency. F 10. Relevance. F 11. Reliability. F 12. Basic elements. T 13. Comprehensive income. T 14. Going concern assumption. F 15. Economic entity assumption. F 16. Matching principle. T 17. Realizable revenues. T 18. Supplementary information. F 19. Materiality factors F 20. Conservatism. MULTIPLE CHOICE —Conceptual Answer No. Description c 21. GAAP defined. d 22. Purpose of conceptual framework. c 23. Conceptual framework. d S 24. Conceptual framework benefits. d 25. Objectives of financial reporting. a 26. Decision usefulness. d 27. Objectives of financial reporting. a P 28. Financial repoting objectives. c 29. Purpose of understandable information. a 30. Decision-usefulness criterion. c 31. Primary qualities of accounting information. b 32. Definition of relevance. b 33. Definition of reliability. d 34. Relevance and reliability. c 35. Timeliness characteristic.
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Test Bank for Intermediate Accounting, Twelfth Edition MULTIPLE CHOICE —Conceptual (cont.) Answer No. Description d 36. Verifiability characteristic. b 37. Neutrality characteristic. d 38. Neutrality characteristic. c 39. Definition of verifiability. a 40. Quality of predictive value. c 41. Quality of representational faithfulness. d 42. Consistency. b 43. Consistency characteristic. b 44. Comparability and consistency. d 45. Comparability. d 46. Elements of financial statements. c 47. Distinction between revenues and gains. c 48. Definition of a loss. d 49. Definition of comprehensive income. b 50. Components of comprehensive income. d P 51. Comprehensive income. b S 52. Earnings vs. comprehensive income. a S 53. Reporting financial statement elements. a S 54. Monetary unit assumption. c S 55. Periodicity assumption. c 56. Monetary unit assumption. d 57. Economic entity assumption. a 58. Economic entity assumption. b 59. Periodicity assumption. a 60. Going concern assumption. d 61. Going concern assumption. d 62. Implications of going concern assumption. a 63. Historical cost principle. d 64. Historical cost principle. c 65. Revenue recognition principle. d 66. Revenue recognition principle. d 67. Revenue recognition principle. d 68. Timing of revenue recognition. c 69. Realization concept. b 70. Definition of realized. b 71. Matching principle. b 72. Matching principle. b 73. Expense recognition. c 74. Full-disclosure principle. d 75. Constraints to limit the cost of reporting. a 76. Cost-benefit constraint. c 77. Materiality constraint. d 78. Materiality. d 79. Pervasive constraints. a 80. Conservatism constraint.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern