2chapter2 Conceptual Framework答案.pdf

C2-1 Qualitative Characteristics The FASB Statement of Concept No.2, several qualitative characteristics of useful accounting information were identified. The following is a list of these qualities as well as a list of statements describing the qualities. A. Comparability B. Decision usefulness C. Relevance D. Reliability E. Predictive value F. Feedback value G. Timeliness H. Verifiability I. Neutrality J. Representational faithfulness K .Consistency L. Materiality _____ 1. Ability of measures to form a consensus that the selected accounting method has been used without error or bias. _____ 2. Making information available to decision makers before it loses it capacity to influence decisions. _____ 3. Capacity to make a difference in a decision. _____ 4. Overall qualitative characteristic. _____ 5. Absence of bias intended to influence behavior in a particular direction. _____ 6. Reasonably free from error and bias. _____ 7. Helps decision makers forecast correctly. _____ 8. Validity. _____ 9. Interactive quality; helps identify and explain similarities and differences. _____ 10. Quantitative “threshold” constraints. _____ 11. Conformity form period to period. _____ 12. helps decision makers confirm or correct prior expectations. 1 Required place the appropriate letter identifying each quality on the line in front of the statement describing the quality. ANSWER: C2-2 1. H 2. G 3. C 4.B 5.I 6. D 7. E 8. J 9. A 10. L 11. K 12. F C2-2 Accounting Assumptions and Convertions Certain accounting assumption and conventions have had an important impact on the development of generally accepted accounting principles. The following is a list of statements describing certain accounting practices. A. Entity B. Continuity C. Period of time D. Historical cost E. Monetary unit F. Realization