SBR

Question 1

qualitative characteristics of useful financial information

Answer 1

relevance
faithful representation

Question 2

relevance

Question 3

faithful representation

Answer 3

a faithful representation of a transaction represents its economic substance rather than its legal form
a perfect faithful representation would be,
. complete
.neutral
.free from error

Question 4

prudence

Answer 4

prudence means that assets and income are not overstated and liabilities and expenses are not understated.

Question 5

enhancing characteristics

Answer 5

C comparability
U understandability
T timeliness
V verifiability

Question 6

asset

Answer 6

a present economic resource controlled by an entity as a result of a past event

Question 7

liability

Answer 7

a present obligation of the entity to transfer an economic resource as a result of a past event

Question 8

equity

Answer 8

the residual interest in the net assets of an entity