1. Which of the following statements regarding income is correct? Group of answer choices a. All...

1. Which of the following statements regarding income is correct?
Group of answer choices

a. All increases in net assets are income

b. All income increases assets

c. All increases in assets are income

d. All increases in equity are income

e. All income increases equity

2. Which of the following would be considered a breach of the qualitative characteristic of relevance?
Group of answer choices

a. Omitting details about very complex financial instruments because only a few users would understand it

b. Using the cost basis for measuring the carrying amount of equipment

c. All of these would be considered a breach of the qualitative characteristic of relevance

d. Separately disclosing interest as an expense despite the fact its dollar amount is immaterial

e. Reporting the cost of petrol in the tanks of a fleet of buses of a bus company as an expense at the reporting date

Solutions

Expert Solution

ekkarill92 answered 1 year ago

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