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