Chapter 2 Homework

Chapter 2 Homework - Chapter 2 Homework Neha Shah September...

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Chapter 2 Homework Neha Shah September 18 th , 2011 Intermediate Accounting 1 E2-4 (Qualitative Characteristics) a. Qualitative characteristic being employed when companies in the same industry are using the same accounting principles.- COMPARABILITY b. Quality of information that confirms users’ earlier expectations.- FEEDBACK VALUE c. Imperative for providing comparisons of a company from period to period.- CONSISTENCY d. Ignores the economic consequences of a standard or rule.- NEUTRALITY e. Requires a high degree of consensus among individuals on a given measurement. -VERIFIABILITY f. Predictive value is an ingredient of this primary quality of information.- RELEVANCE g. Two qualitative characteristics that are related to both relevance and reliability.- COMPARABILITY AND CONSISTENCY h. Neutrality is an ingredient of this primary quality of accounting information. -RELIABILITY i. Two primary qualities that make accounting information useful for decision-making purposes.- RELEVANCE AND RELIABLITY j. Issuance of interim reports is an example of what primary ingredient of relevance? -TIMELINESS E2-5 (Elements of Financial Statements) (f) Assets (b) Liabilities (i) Equity (c) Investment by owners (k)(d) Distribution to owners (l)(g)(e)(c) Comprehensive income (j)(h) Revenue (h) Expenses (a) Gain (a) Losses E2-6 (Assumptions, Principles, and Constraints) a) Allocates expenses to revenues in the proper period. 6. MATCHING PRINCIPLE
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This note was uploaded on 11/13/2011 for the course ECON 201 taught by Professor Bonistis during the Spring '11 term at NJIT.

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Chapter 2 Homework - Chapter 2 Homework Neha Shah September...

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