ACCT221 CH.3 HW EXERCISE 138 (Principals & Assumptions)

____ is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date

Fair Value

Providing information that is of sufficient importance to influence the judgement and decisions of an informed user is referred to as ____

Full Disclosure

Information is ____ if omitting it or misstating it could influence decisions that users make on the basis of the reported financial information

Material

____ enables users to identify the real similarities and differences in economic events between companies

Comparability

Information that helps users confirm or correct prior expectations has ____

Confirmatory Value

The ____ characteristic requires that the same accounting method be used from one accounting period to the next, unless if becomes evident that an alternative method will bring about a better description of a firm's financial situation

Consistency

Corporations must prepare accounting reports at least yearly due to the ____ assumption

Periodicity

____ means when in doubt, choose the solution that will be least likely to overstate income and assets

Prudence of Conservatism

____ and ____ are the two fundamental qualities that make accounting information useful for decision making

Relevance & Faithful Representation

____ occurs when the performance obligation is satisfied

Revenue Recognition