Purchase Solution

FASB Statements

Not what you're looking for?

Ask Custom Question

FASB Statement of Concepts No. 2 indicates several qualitative characteristics of useful accounting information. Following is a list of some of these qualities, as well as a list of statements and phrases describing the qualities
a) Benefits > costs
b) Decisions usefulness
c) Relevance
d) Reliability
e) Predictive value, feed back value, timeliness
f) Verifiability, neutrality, representational faithfulness
g) Comparability
h) Materiality
i) Relevance, reliability

---1) Without usefulness, there would be no benefits from information to set against its cost.
---2) Pervasive constraint imposed upon financial accounting information
---3) Constraint that guides the threshold for recognition
---4) A quality requiring that the information be timely and that it also have predictive value, or feedback value, or both
---5) A quality requiring that the information have representational faithfulness and that it be verifiable and neutral
---6) These are the two primary qualities that make accounting information useful for decision making
---7) These are the ingredients needed to ensure that the information is relevant
---8) These are the ingredients needed to ensure that the information is reliable
---9) Includes consistency and interacts with relevance and reliability to contribute the usefulness of information

Required Place the appropriate letter identifying each quality on the line in front of the statement or phrase describing the quality.

Attachments
Purchase this Solution

Solution Summary

This solution is comprised of answer by placing the appropriate letter identifying each quality on the line in front of the statement or phrase describing the quality.

Solution Preview

FASB Statement of Concepts No. 2 indicates several qualitative characteristics of useful accounting information. Following is a list of some of these qualities, as well as a list of statements and phrases describing the qualities
a) Benefits > costs
b) Decisions usefulness
c) Relevance
d) Reliability
e) Predictive value, feed back ...

Purchase this Solution


Free BrainMass Quizzes
Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.