ACC-HMW2

Which of the following does not relate to relevance?

All of these answer choices relate to relevance.

According to the FASB's conceptual framework, which of the following is an essential characteristic of an asset?

An asset provides future benefits.

According to the conceptual framework, the usefulness of providing information in financial statements is subject to the constraint of:

Cost-benefit.

Recognition of amortization of an intangible asset illustrates which principle of accounting?

Expense recognition

Which assumption or principle requires that all information significant enough to affect decisions of reasonably informed users should be reported in the financial statements?

Full disclosure.

Which of the following is not a basic assumption underlying the financial accounting structure?

Historical cost assumption

What is the general approach as to when product costs are recognized as expenses?

In the period when the related revenue is recognized

Which of the following assumptions means that money is the common denominator of economic activity and provides an appropriate basis for accounting measurement and analysis?

Monetary unit.

Which of the following is not a required component of financial statements prepared in accordance with generally accepted accounting principles?

President's letter to shareholders.

Which of the following characteristics of accounting information primarily allows users of financial statements to generate predictions about an organization?

Relevance.

According to the conceptual framework, the objectives of financial reporting for business enterprises are based on

The needs of the users of the information.

What is the conceptual framework intended to establish?

The objectives and concepts for use in developing standards of financial accounting and reporting.

A company issuing its annual financial reports within one month of the end of the year is an example of which enhancing quality of accounting information?

Timeliness

All of the following represent costs of providing financial information except

accessing capital.

If the LIFO inventory method was used last period, it should be used for the current and following periods because of

consistency.

A decrease in net assets arising from peripheral or incidental transactions is called a(n)

loss

Expensing the cost of copy paper when the paper is acquired is an example

materiality.

The two fundamental qualities that make accounting information useful for decision making are

relevance and faithful representation.

According to the FASB Conceptual Framework, the elements-assets, liabilities, and equity-describe amounts of resources and claims to resources at/during a

yes-no