chapter1 hw

chapter1 hw - Kathy Haines Exercises 1-1 and 1 Exercise 1-1...

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Kathy Haines Exercises 1-1 and 1 Exercise 1-1 1. Comprehensive income includes changes in equity resulting from distributions to owners. FALSE because Comprehensive income is defined by the Financial Accounting Standards Board, or FASB, as “the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.” 2. Timeliness and predictive value are both characteristics of relevant information. TRUE 3. The tendency to recognize favorable events early is an example of conservatism. FALSE Accounting conservatism will recognize all probable losses as they are discovered and most expenditures as they are incurred. Revenue will be deferred until it is verified. 4. The conceptual framework focuses primarily on the needs of internal users of financial information. TRUE
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chapter1 hw - Kathy Haines Exercises 1-1 and 1 Exercise 1-1...

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