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ent Exercise 2-4 tive characte s) to be used given the l mation provided below (

ID: 2338959 • Letter: E

Question

ent Exercise 2-4 tive characte s) to be used given the l mation provided below (a) Qualitative characteristic being employed when companies in the same industry are using the same accounting principles Neutrality (b) Quality of information that confirms users' earlier expectations (c) Imperative for providing comparisons of a company from period to period (d) Ignores the economic consequences of a standard or rule. (e) Requires a high degree of consensus among individuals on a given measurement (f) Predictive value is an ingredient of this fundamental quality of information (g) Four qualitative characteristics that are related to both relevance and faithful representation (h) An item is not recorded because its effect on income would not change a decision of John Wiley&Sons Inc Y Policy1 2000 2018 John Wilcy&Sons. Inc. All Rights Reserved. A Division search

Explanation / Answer

Exercise 2- 4;

Given information

Qulitative characteristics

(a).

Comparability

(b).

Feedback value

(c).

Consistency

(d).

Neutrality

(e).

Verifiability

(f).

Relevance

(g).

Comparability, Verifiability, Timeliness, Understandability

(h).

Materiality

Exercise 2- 5;

Item

The Element

(a).

Gains, Losses

(b).

Liabilities

(c).

Investments by owner, Comprehensive income

(d).

Distributions to owners

(e).

Comprehensive income

(f).

Assets

(g).

Comprehensive income

(h).

Revenues, Expenses

Given information

Qulitative characteristics

(a).

Comparability

(b).

Feedback value

(c).

Consistency

(d).

Neutrality

(e).

Verifiability

(f).

Relevance

(g).

Comparability, Verifiability, Timeliness, Understandability

(h).

Materiality