Standards and Conceptual Framework

Question 1

The characteristic that enhances relevance and faithful representation is?

Answer 1

Timeliness

Question 2

Under the FASB conceptual framework , what pairs a fundamental qualitative characteristic and its component?

Answer 2

Relevance and materiality.

Relevance is a fundamental qualitative characteristic and materiality is a component of relevance.

Question 3

What is the primary objective of financial reporting?

Answer 3

To provide information that is useful to for economic decision making.

Question 4

The financial accounting concepts that refers to the characteristic 2of accounting information that provide predictive value to users as a quality of?

Answer 4

Relevance

Question 5

How does a sale of a fixed asset recognized in the income statement?

Answer 5

When a fixed asset is sold, the gain or loss is recognized as part of income from continuing operations.

Question 6

What is Freight-in and Freight-out?

Answer 6

“Freight-in” is a part of “Cost of goods sold”

“Freight-out”- is a selling expense