Ch.1 pre class assignment

Question 1

The most frequently provided financial statement include all of the following except (balance sheet, statement of cash flows, statement of stockholders equity) except the

Answer 1

Statement of retained earnings

Question 2

The FASB (financial accounting standards board).

Answer 2

should operate in full view of the public through due process and this system gives interested persons ample opportunity to make their views known

Question 3

What characteristic describes the fundamental quality of relevance ?

Answer 3

Predictive value

Question 4

Which one of the following is a fundamental of useful accounting information?

Answer 4

Relevance.

Question 5

Which one the following is an ingredient of faithful representation?

Answer 5

Neutrality

Question 6

Accounting information is considered to be relevant when it:

Answer 6

is capable of making a difference in a decision.

Question 7

Which of the following is commonly referred to as the matching principle ?

Answer 7

Expense recognition principle