Which of the following statements about materiality is not correct?

The financial information is directed toward the common needs of users and is independent of presumptions about particular needs and desires of specific users.

Current value includes

The overriding qualitative characteristic of accounting information is

A retailer wishes to report its merchandise inventory on its balance sheet at its retail value. This would violate which accounting concept?

Which of the following best describes the cost-benefit constraint?

Derecognition is the removal of a recognized asset or liability from the statement of financial position and normally occurs when

Which accounting concept is associated with the assumption that the company will continue long enough to carry out its objectives and commitments?

The term recognized is synonymous with the term

Faithful representation includes

Which of the following criteria need not be satisfied for a liability to exist?

When an entity has started placing its quarterly financial statements on its website, thereby reducing ample time to get information to users, the qualitative concept involved is

The term income

What is meant by consistency when discussing financial accounting information?

Which assumption justifies the usage of accruals and deferrals?

Which financial statement will provide the information about the changes in entity's economic resources and claims not resulting from financial performance?

The overall objective of financial reporting is to provide information

Conservatism is selecting an accounting alternative that

Which of the following is an application of the systematic and rational allocation principle?

Which financial statement will provide the information about the financial performance based on past cash flows?

Which statement is not true about income and expenses?

Accounting information is considered relevant when it

Which of the following is not an element of Faithful Representation?

What is meant by comparability when discussing financial accounting information

A cause and effect relationship is implicit in the

Under the Revised Conceptual Framework, what is the recognition principle?

What is the quality of information that enables users to better forecast future operations?

How many chapters does the Conceptual Framework have?

What are the attributes that make information in the financial statements useful to the readers?

What is the general approach as to when product costs are recognized as expense?

Accountants might recognize losses but not gains in certain situations. For example, the company might write-down the cost of inventory, but will not write-up the cost of inventory. Which principle/guideline is associated with this action?

Which is not a characteristic of an asset under the Revised Conceptual Framework?

The enhancing quality of understandability means that information should be understood by

Which of the following terms best describes information that influences the economic decisions of users?

Which statement is true in relation to the enhancing quality of understandability?

Which of the following is not an acceptable basis for the recognition of expense?

Which financial statement will provide the information about the changes in entity's economic resources and claims?

Recognition of an element is appropriate when information results in

Which financial statement will provide the information about the financial performance based on accrual accounting?

A reporting entity

When should an expenditure be recorded as an asset rather than an expense?

Fundamental qualitative characteristics of accounting information are

It is the residual interest in the assets of the entity after deducting all of the liabilities.

The Conceptual Framework includes which constraint?

It is the process of capturing for inclusion in the statement of financial position or the statement of financial performance an item that meets the definition of an element of the financial statements.

During the lifetime of an entity, accountants produce financial statements at arbitrary or artificial points in time in accordance with which basic accounting concept?

The qualitative characteristic of relevance includes

This is an aspect of relevance based on the magnitude of the items which the information relates in the context of an individual entity's financial report.

The assumption that an entity will not be sold or liquidated in the near future is known as

What is the new definition of an asset under the Revised Conceptual Framework?

The most common measurement basis is

Which is not a purpose of the Revised Conceptual Framework?

Generally, revenue from sale of goods is recognized

Enhancing qualitive characteristics of accountinginformation include

Inflation is ignored in accounting due to

What is the new definition of liability under the Revised Conceptual Framework?

Which of the following represents the least desirable choice for the recognition of revenue?

Which is not an enhancing characteristic of financial information?

Which statement is not true concerning the Conceptual Framework?

Which statement is not a specific objective of financial reporting?

A corporation pays its annual property tax bill of approximately $12,000 in one payment each December 28. During the year, the corporation's monthly income statements report Property Tax Expense of $1,000. This is an example of which accounting concept?

What is the primary distinction between revenue and gain

Creditors, stockholders and potential investors are what type of users of financial information?

Which statement is not true about current value measurement?

Recognizing expected losses immediately but deferring expected gains is example of