Question

In: Accounting

Which of the following does NOT describe the fundamental quality relevance? Confirmative value Materiality Predictive value...

Which of the following does NOT describe the fundamental quality relevance?

Confirmative value
Materiality
Predictive value
Completeness

Which of the following is reported on a financial statement at a moment in time?

Revenues
Gains
Assets
Distributions to owners

Which of the following describes the economic entity assumption?

Company keeps its activities separate from its owners and other businesses
Company will last long enough to fulfill objectives and commitments
Money is the common denominator of economic activity
Company can divide its economic activities into time periods

Any facts of sufficient importance to influence the judgment and decisions of an informed reader should be included in the financial statements. Which of the following principles does this statement describe?

Expense recognition
Full disclosure
Measurement
Revenue recognition

Which of the following is NOT an enhancing quality?

Comparability
Neutrality
Timeliness
Understandability

Expert Solution

Answer is as follows:

1. d. completeness

Quality of relevace includes Confirmative value(past events information), Predictive value (predictions of possible future events and Materiality (able to make a difference in decision).

2. c. Assets

In balance sheet we present our financial condition with what we have and what we owe to others at a moment in time. It is a record of our current situation that point of time.

3. a. Company keeps its activities separate from its owners and other businesses.

Economic entity assumption is an accounting principle which separates the transactions undertaken by owner and the business.

4. b. Full disclosure

Full discosure principle requires business to report all necessary and relevant information which influences the judgement and decision of the reader of financial statements.

5. b. Neutrality

Enhancing qualities of accounting information are Comparability, Timeliness, Understandability and Verifiability.

ekkarill92 answered 2 years ago

Label which is which. options are Economic Entity Comparability Predictive Value Cost-effectiveness Materiality Jim Cratchit is...

Label which is which. options are Economic Entity Comparability Predictive Value Cost-effectiveness Materiality Jim Cratchit is the sole owner of Cratchit Plumbing. Jim recently borrowed $100,000 for purchase of a new home to be used as his personal residence. The liability was not recorded in the records of Cratchit Plumbing. A large company immediately expensed a $250 purchase of replacement shelving for the supply room in its corporate office even though the shelving will be used for several years. A...

PLEASEEEEEEE ANSWER IT ALL PLEASEEEE!!!! Differentiate the following; 1. Relevance vs. faithful representation 2. Predictive Value...

PLEASEEEEEEE ANSWER IT ALL PLEASEEEE!!!! Differentiate the following; 1. Relevance vs. faithful representation 2. Predictive Value vs. confirmatory value 3. Neutrality vs free from error 4. Comparability vs Verifiability 5. Timeliness vs understandability Enumerate the Following; 1. Fundamental Characteristics a) b) 2. Components/Aspects to Fundamental Characteristics a) b) c) d) e) f) 3. Enhancing Characteristics a) b) c) d) Enumerate the Major steps in Accounting Cycle a) b) c) d) e) f) g) h) i) Enumerate the different kinds of...

High-quality earnings metrics are said to have confirmatory and predictive value. What does this mean? Discuss...

High-quality earnings metrics are said to have confirmatory and predictive value. What does this mean? Discuss in the context of proforma earnings?

Which of the following statements regarding the predictive value of historical returns is true? A. Historical...

Which of the following statements regarding the predictive value of historical returns is true? A. Historical returns can be useful in predicting the general direction of a market over a long period. B. Macroeconomic forces can be predicted from past market performance. C. All of these answers. D. Systemic risk, which diminishes the predictive value of historic returns, is the risk of company failure.

Which of the following is a fundamental SI Unit? Which of the following is a fundamental...

Which of the following is a fundamental SI Unit? Which of the following is a fundamental SI Unit? centimeter milliliter kilogram microsecond In the reaction AgNO3(aq) + HI(aq) → AgI(s) + HNO3(aq) the spectator ions are In the reaction AgNO3(aq) + HI(aq) → AgI(s) + HNO3(aq) the spectator ions are H+ and I– Ag+ and NO3– Ag+ and I– H+ and NO3– Which element can form more than one kind of monatomic ion? Which element can form more than one...

Which of the following is false regarding materiality? Because we use materiality, benchmarks are not necessary....

Which of the following is false regarding materiality? Because we use materiality, benchmarks are not necessary. Materiality is a relative rather than absolute concept. Performance materiality is materiality for segments of the audit. Auditors often change their preliminary judgment about materiality. Which of the following is false regarding assessing risk? If a client has questionable integrity, the auditor is likely to assess a higher acceptable audit risk. Engagement risk is the risk that the auditor or audit firm will suffer...

Which of the following statements is true when describing Positive Predictive Value? Question 7 options: A)...

Which of the following statements is true when describing Positive Predictive Value? Question 7 options: A) It tells you the probability that a test reflects a person who has the disease. B) It is a constant measurement of a test, regardless of the population it is used on. C) It is the ability of a test to correctly identify people who have the disease you are testing for. D) It increases when prevalence of the disease within your population.decreases. Negative...

Which of the following statements is most correct? a. Fundamental analysis attempts to value a company...

Which of the following statements is most correct? a. Fundamental analysis attempts to value a company by examining the past prices patterns of a company's stock. b. Individuals who apply active investment strategies primarily use technical analysis, fundamental analysis, or a combination. c. Technical analysis concerns itself with determining the intrinsic value of a stock. d. Active investing is defined as buying and selling stock within six months.

4. What is the predictive value of positive test? What does this mean in words and what does this mean for the practical value of the test?

Sensitivity and Specificity We are interested in looking at the connection between a test and a disease to investigate the ability of the test to distinguish between sick and healthy. We look at a sample of 50,000 people who have been tested for a particular disease. Of these, 100 have the disease. Of the 100 who have the disease, 95 are receiving positive test results. Of those who are healthy, there are 48902 people who get negative test results....

Which of the following statements about value is FALSE? Value includes the concept of quality, but...

Which of the following statements about value is FALSE? Value includes the concept of quality, but it is broader in scope. Value takes into account every marketing program element. Unlike quality, value means the same thing to all customers. Value is critical to maintaining long-term customer relationships. Value allows for the necessary balance among the types of utility. 2.Relevance is a critical criterion in formulating a value claim for a positioning statement. The makers of Cialis, an erectile dysfunction (ED)...