Multiple Choice Questions 1 The information provided by

financial reporting pertains #2399

Multiple Choice Questions1. The information provided by financial reporting pertains to:a.
Individual companies, rather than to industries or the economy as a whole or to members of
society as consumersb. Individual companies and industries, rather than to the economy as a
whole or to members of society as consumersc. Individual companies and the economy as a
whole, rather than to industries or to members of society as consumersd. Individual companies,
industries, and the economy as a whole, rather than to members of society as consumers2.
Which of the following is considered a constraint on useful information by Statement of Financial
Accounting Concepts No. 8?a. Benefits costsb. Conservatismc. Timelinessd. Verifiability3.
According to Statement of Financial Accounting Concepts No. 8, to be relevant an earnings
report is expected to have which of the following?4. Which characteristic states that accounting
information should be supported by sufficient evidence to allow two or more qualified individuals
to arrive at similar measures and conclusions?a. Matchingb. Verifiabilityc. Periodicityd.
Monetary unit5. Under Statement of Financial Accounting Concepts No. 8, which of the
following enhances decision-useful information?a. Timelinessb. Neutralityc. Confirmatory
valued. Materiality6. Under Statement of Financial Accounting Concepts No. 6, which of the
following means the process of formally recording and reporting an item in the financial
statements of a company?a. Allocationb. Verificationc. Recognitiond. Realization7. Accruing net
losses on obsolete inventory is an example of the accounting concept of:a. Conservatismb.
Historical costc. Consistencyd. Materiality8. The valuation of a promise to receive cash in the
future at present value on the financial statements of a company is valid because of the
accounting concept of:a. Entityb. Materialityc. Going concernd. Neutrality9. An accrued expense
is an expense:a. Incurred but not paidb. Incurred and paidc. Paid but not incurredd. Not
reasonably estimable10. A patent purchased in 2016 and being amortized over a 10-year life
was determined to be worthless in 2019. The write-off of the asset in 2019 is an example of
which of the following expense recognition principles?a. Associating cause and effectb.
Immediate consumptionc. Systematic and rational allocationd. ObjectivityView Solution:
Multiple Choice Questions 1 The information provided by financial reporting pertains

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