Constraints and Present Value Flashcards
1
Q
In conservatism a constraint or a qualitative characteristic?
A
-No neither
2
Q
If estimates of an outcome are not equally likely, what is the preferred approach?
A
-Report the most likely estimate rather than the more conservative
3
Q
What are the recognition and measurement criteria?
A
- Definition
- Measurability
- Relevance
- Faithful Representation
4
Q
When a present value measure is used, what is the preferred approach and why?
A
-Expected cash flow because it reflects uncertainties inherent in estimated cash flows
