(a) Qualitative Characteristic Being Employed When Companies in the Same Industry Are Using the Same Accounting Principles.

Topics: Generally Accepted Accounting Principles, Matching principle, Revenue recognition Pages: 2 (356 words) Published: May 24, 2011
(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 Reliability| (j)| Issuance of interim reports is an example of what primary ingredient of relevance?| Timeliness|

1. Economic entity assumption| 5. Historical cost principle| 9. Cost-benefit relationship| 2. Going concern assumption| 6. Matching principle| 10. Materiality| 3. Monetary unit assumption| 7. Expense recognition principle| 11. Industry practices| 4. Periodicity assumption| 8. Full disclosure principle| 12. Conservatism| Identify by number the accounting assumption, principle, or constraint that describes each situation below. Do not use a number more than once. (a)| Allocates expenses to revenues in the proper period.| 7| (b)| Indicates that fair value changes subsequent to purchase are not recorded in the accounts. (Do not use revenue recognition principle.)| 5| (c)| Ensures that all relevant financial information is reported.| 8| (d)| Rationale why plant assets are not reported at liquidation value. (Do not use historical cost principle.)| 2| (e)| Anticipates all losses,...
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