Using Financial Accounting Information
10th Edition
ISBN: 9781337276337
Author: Porter, Gary A.
Publisher: Cengage Learning,
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Question
Chapter 2, Problem 2.1E
To determine
Concept Introduction:
Accounting Information is a type of information which is used by the organization for the doing the accounting. Every works needed information related to that so as accounting also need information to prepare books of accounts.
To identify: The qualitative characteristics of accounting information.
Expert Solution & Answer
Explanation of Solution
Following is qualitative characteristics explanation:
1. Relevance | Accounting information which is collected by the organization must be relevant. Information must be included in reports. |
2. Reliable | Accounting information which is collected by the organization is must be from reliable source it must have capacity to make impact on decisions. |
3. Free From Error. | Accounting information which is collected by the organization must be free from error because it is included in books of accounts. |
4. Comparability | Accounting information which is collected by the organization must be comparable to other data or other period data. |
5. Understandability | Accounting information which is collected by the organization must be in a manner that can be understood by everyone in organization. |
6. Comparability | Accounting information which is collected by the organization must be comparable to other data or other period data. |
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What are some of the expenses associated with the provision of accounting data? What are some of the advantages of having accounting information on hand? Describe the cost-benefit considerations that should be taken into account when new accounting standards are being evaluated.
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Group of answer choices
Faithful representation.
Relevance.
Faithful representation and Relevance.
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Fill in the blanks below with the accounting principle, assumption, or related item that best completes the sentence.
________________________ and _______________________ are the two fundamental qualities that make accounting information useful for decision making.
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___________________.
________________________ enables users to identify the real similarities and differences in economic events between companies.
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Information is _______________________ if omitting it or misstating it could influence decisions that users make on the basis of the reported financial information.
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Chapter 2 Solutions
Using Financial Accounting Information
Ch. 2 - Prob. 2.1ECh. 2 - Prob. 2.2.1ECh. 2 - Prob. 2.2.2ECh. 2 - Classification of Financial Statement Items Regal...Ch. 2 - Prob. 2.4.1ECh. 2 - Prob. 2.4.2ECh. 2 - Prob. 2.4.3ECh. 2 - Prob. 2.5ECh. 2 - Prob. 2.6ECh. 2 - Prob. 2.7E
Ch. 2 - Prob. 2.8ECh. 2 - Statement of Retained Earnings Landon Corporation...Ch. 2 - Prob. 2.10ECh. 2 - Prob. 2.11ECh. 2 - Prob. 2.12MCECh. 2 - Prob. 2.13MCECh. 2 - Prob. 2.14MCECh. 2 - Prob. 2.1.1PCh. 2 - Prob. 2.1.2PCh. 2 - Prob. 2.2PCh. 2 - Prob. 2.3.1PCh. 2 - Prob. 2.3.2PCh. 2 - Prob. 2.3.3PCh. 2 - Prob. 2.4.1PCh. 2 - Prob. 2.4.2PCh. 2 - Prob. 2.5.1PCh. 2 - Prob. 2.5.2PCh. 2 - Prob. 2.5.3PCh. 2 - Prob. 2.6.1PCh. 2 - Prob. 2.6.2PCh. 2 - Prob. 2.7.1PCh. 2 - Prob. 2.7.2PCh. 2 - Prob. 2.7.3PCh. 2 - Multiple-Step Income Statement and Profit Margin...Ch. 2 - Prob. 2.8PCh. 2 - Prob. 2.9PCh. 2 - Prob. 2.10MCPCh. 2 - Prob. 2.11MCPCh. 2 - Prob. 2.12MCPCh. 2 - Prob. 2.1.1AAPCh. 2 - Prob. 2.1.2AAPCh. 2 - Prob. 2.2AAPCh. 2 - Prob. 2.3.1AAPCh. 2 - Prob. 2.3.2AAPCh. 2 - Prob. 2.3.3AAPCh. 2 - Prob. 2.4.1AAPCh. 2 - Prob. 2.4.2AAPCh. 2 - Prob. 2.5.1AAPCh. 2 - Prob. 2.5.2AAPCh. 2 - Prob. 2.5.3AAPCh. 2 - Prob. 2.6.1AAPCh. 2 - Prob. 2.6.2AAPCh. 2 - Prob. 2.7.1AAPCh. 2 - Prob. 2.7.2AAPCh. 2 - Prob. 2.7.3AAPCh. 2 - Multiple-Step Income Statement and Profit Margin...Ch. 2 - Prob. 2.8.1AAPCh. 2 - Prob. 2.8.2AAPCh. 2 - Prob. 2.9AAPCh. 2 - Prob. 2.10AAMCPCh. 2 - Prob. 2.11.1AAMCPCh. 2 - Prob. 2.11.2AAMCPCh. 2 - Prob. 2.12AAMCP
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- What are some of the costs of providing accounting information? What are some of the benefits of accounting information? Describe the cost-benefit factors that should be considered when new accounting standards are beingproposed.arrow_forwardThe accompanying chart shows the qualitative characteristics of useful accounting information. Fill in the blanks. Fundamental Enhancing Usefulness Qualities Qualities Relevance Understandability Faithful Representation Neutralarrow_forwardWhich of the following is a fundamental quality of useful accounting information? Select one: Comparability Consistency Relevance Materialityarrow_forward
- What are some of the accounting information costs? What are some advantages of accounting data? Describe the cost-benefit considerations to consider when proposing new accounting rules.arrow_forwardWhich of the following are the fundamental characteristics of accounting information? O a. Predictive value and feedback value. Ob. Relevance and faithful representation. Oc Relevance and verifiabilily. Od. Timeliness and understandability. O e. Verifiability and taithful representation.arrow_forwardDescribe briefly the following characteristics of useful accounting information. Comparability (consistency). Neutrality.arrow_forward
- Indicate whether the following statements about the conceptual framework are true or false. If false, provide a brief explanation supporting your position. a. The fundamental qualitative characteristics that make accounting information useful are relevance and verifiability. b. Relevant information only has predictive value, confirmatory value, or both. c. Information that is a faithful representation is characterized as having predictive or confirmatory value. d. Comparability pertains only to the reporting of information in a similar manner for different companies. e. Verifiability is solely an enhancing characteristic for faithful representation. f. In preparing financial reports, it is assumed that users of the reports have reasonable knowledge of business and economic activities.arrow_forwardIdentify the following questions as most likely to be asked by an internal (I) or an external (E) userof accounting information. What are the costs of our service to customers?arrow_forwardReccomendation on how to improve or overcome the environmental factors that effects accounting system.arrow_forward
- CHARACTERISTICS OF USEFUL INFORMATION All records in a file must be uniquely identifiable in at least one attribute, which is its primary key.Drawing on your general knowledge of accounting,identify the primary key for the following types ofaccounting records. To illustrate, the first record isdone for you.arrow_forwardWhich of the following is a fundamental characteristic of accounting information? Select one: O A. Predictive Value O B. Completeness OC. Faithful Representation O D. Comparability Tin Finisharrow_forwardGive examples of decisions that can be supported by accounting information.arrow_forward
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