Week 2 quiz.with answer.docx - Accounting Week 2 quiz Week...

Accounting Week 2 quiz
Week 2 quiz
3) The fundamental qualitative characteristics of accounting information are relevance and
reliability.
4) Another name for the continuity assumption is the going-concern assumption. 5) The historical cost principle is not used widely in the United States to value assets. 6) Accounting is moving in the direction of reporting more and more assets and liabilities at
their fair values.
7) Relevance is one of the four enhancing qualitative characteristics. 8) Which of the following characteristics does NOT apply to verifiability?
D
9) Enhancing qualitative characteristics of accounting information do NOT include:
D
10) The conceptual foundation of accounting does NOT include:
D
11) Information must be sufficiently transparent so that it makes sense to reasonably
informed users of the financial statements, such as creditors. This qualitative characteristic of
information is called:
A) verifiability.
B) faithful representative.
C) relevant.
D) understandability.
Answer: D

12) The fair value of a plant asset is equal to:
A