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2. Information that is capable of making a difference in the decisions made by users has this qualitative characteristic. Relevance b. Faithful representation c. Timeliness d. Verifiability

2. Information that is capable of making a difference in the decisions made by users has this qualitative characteristic. Relevance b. Faithful representation c. Timeliness d. Verifiability

Auditing: A Risk Based-Approach (MindTap Course List)
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter8: Specialized Audit Tools: Attributes Sampling, Monetary Unit Sampling, And Data Analytics Tools
Section: Chapter Questions
Problem 38CYBK
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95 Conceptual Framework Information that is capable of making a difference in the decisions made by users has this qualitative characteristic. a. Relevance b. Faithful representation 2. c. Timeliness d. Verifiability 3. When making materiality judgments, the overriding consideration is a. the ability of the item being judged to influence users' decisions. b. the size of the impact of the item being judged. the characteristics of the item being judged. C. d. cand d 4. This qualitative characteristic is unique in the sense that it necessarily requires at least two items. a. Verifiability b. Faithful representation c. Timeliness d. Comparability 5. Which of the following enhances the comparability of information? a. Making unlike things look alike. b. Making like things look different. c. Using different methods to account for similar transactions from period to period. d. Consistent application of accounting policies from period to period. 6. Information has this qualitative characteristic if different, knowledgeable and independent observers could reach consensus, although not necessarily complete agreement, that a particular depiction is a faithful representation. a. Relevance c. Verifiability d. Comparability b. Faithful representation
Transcribed Image Text:95 Conceptual Framework Information that is capable of making a difference in the decisions made by users has this qualitative characteristic. a. Relevance b. Faithful representation 2. c. Timeliness d. Verifiability 3. When making materiality judgments, the overriding consideration is a. the ability of the item being judged to influence users' decisions. b. the size of the impact of the item being judged. the characteristics of the item being judged. C. d. cand d 4. This qualitative characteristic is unique in the sense that it necessarily requires at least two items. a. Verifiability b. Faithful representation c. Timeliness d. Comparability 5. Which of the following enhances the comparability of information? a. Making unlike things look alike. b. Making like things look different. c. Using different methods to account for similar transactions from period to period. d. Consistent application of accounting policies from period to period. 6. Information has this qualitative characteristic if different, knowledgeable and independent observers could reach consensus, although not necessarily complete agreement, that a particular depiction is a faithful representation. a. Relevance c. Verifiability d. Comparability b. Faithful representation
96 reporting entity to refer to a. expenses. b. liabilities. c. equity. d. both b and c following accounting concepts? Substance over form b. Form over substance c. Accrual d. Verifiability a. definition of an asset? a. Right b. Potential to produce economic benefits c. Probability of the expected inflows of economic benefi from the asset d. Control 10. The new definition of an asset (a liability) focuses on the asset (liability) being a. a present right (obligation) that has resulted from past events and has the potential to produce (cause a transfer of) economic benefits. b. the expected inflows (outflows) of economic benefits that are both probable and can be measured reliably. c. a physical object (a duty to pay cash or other resources). d. All of these. 11. Which of the following is not an indication of an economic resource's potential to produce economic benefits? a. The economic resource can be used in combination with other resources to produce goods for sale. b. The economic resource can be used to pay liabilities.
Transcribed Image Text:96 reporting entity to refer to a. expenses. b. liabilities. c. equity. d. both b and c following accounting concepts? Substance over form b. Form over substance c. Accrual d. Verifiability a. definition of an asset? a. Right b. Potential to produce economic benefits c. Probability of the expected inflows of economic benefi from the asset d. Control 10. The new definition of an asset (a liability) focuses on the asset (liability) being a. a present right (obligation) that has resulted from past events and has the potential to produce (cause a transfer of) economic benefits. b. the expected inflows (outflows) of economic benefits that are both probable and can be measured reliably. c. a physical object (a duty to pay cash or other resources). d. All of these. 11. Which of the following is not an indication of an economic resource's potential to produce economic benefits? a. The economic resource can be used in combination with other resources to produce goods for sale. b. The economic resource can be used to pay liabilities.
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