p4 - timeliness is an ingredient of the primary quality of...

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32. Accounting information is considered to be relevant when it a. can be depended on to represent the economic conditions and events that it is intended to represent. b. is capable of making a difference in a decision. c. is understandable by reasonably informed users of accounting information. d. is verifiable and neutral. 33. The quality of information that gives assurance that it is reasonably free of error and bias and is a faithful representation is a. relevance. b. reliability. c. verifiability. d. neutrality. 34. According to Statement of Financial Accounting Concepts No. 2, which of the following relates to both relevance and reliability? a. Materiality b. Understandability c. Usefulness d. All of these 35. According to Statement of Financial Accounting Concepts No. 2,
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Unformatted text preview: timeliness is an ingredient of the primary quality of Relevance Reliability a. Yes Yes b. No Yes c. Yes No d. No No 36. According to Statement of Financial Accounting Concepts No. 2, verifiability is an ingredient of the primary quality of Relevance Reliability a. Yes No b. Yes Yes c. No No d. No Yes 37. According to Statement of Financial Accounting Concepts No. 2, neutrality is an ingredient of the primary quality of Relevance Reliability a. Yes Yes b. No Yes c. Yes No d. No No 38. Information is neutral if it a. provides benefits which are at least equal to the costs of its preparation. b. can be compared with similar information about an enterprise at other points in time. c. would have no impact on a decision maker. d. is free from bias toward a predetermined result....
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